The research involved measuring the information content of qualified audit reports on published accounts. The market model was used to measure the abnormal returns associated with various "types" of qualification. It was found that some types of audit qualification had a significant impact on investment decisions while others had very little. There was found to be no relationship between the accounting firm qualifying the accounts and the abnormal returns. The findings suggest that more information on the nature of the audit qualifications should be given.

An experiment Was conducted where practicing financial analysts provided risk and return judgments on 30 equity securities. The ability of financial analysts to subjectively express the relative emphasis they place on the available cues when generating their judgment evaluations was assessed by three alternative measurement methods. The results indicate the analysts exhibited a relatively high degree of self-insight since their subjective indications of cue importance were consistent with the models and outputs of their judgment policies.

This study investigates the dynamic interdependence of the major stock markets in Latin America. Using data from 1995 to 2000, we examine the stock market indexes of Argentina, Brazil, Chile, Colombia, Mexico and Venezuela. The index level series are non-stationary and so we employ cointegration analysis and error correction vector autoregressions (VAR) techniques to model the interdependencies. We find that there is one cointegrating vector which appears to explain the dependencies in prices. The results are robust to sensitivity tests based on translating indexes to US dollars (i.e., a common currency for all the markets) and to partitioning the sample into periods before and after the Asian and Russian financial crises of 1997 and 1998, respectively. Our results suggest that the potential for diversifying risk by investing in different Latin American markets is limited.