Abstract. The purpose of this paper is to model the legal exposure of auditors and to study the extent to which limitations on this exposure affect auditors' chosen audit intensity and collusion with management. Résumé. L'article qui suit a pour but de modéliser les risques auxquels sont exposés les vérificateurs de par la loi et de voir dans quelle mesure les limites de ce risque influent sur l'intensité de la vérification dont décident les vérificateurs et sur la collusion avec la direction.

Journal Article Announcements Get access Charles Bean, Charles Bean Search for other works by this author on: Oxford Academic Google Scholar John Moore John Moore Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 56, Issue 4, October 1989, Page 475, https://doi.org/10.1093/restud/56.4.475 Published: 01 October 1989

This study examines a disequilibrium model of a small, open economy with explicit links between periods due to inventory accumulation, as well as the more conventional channels through current account imbalances and the government budget constraint. The key features of the model are that agents have perfect foresight with neutral public debt and that inventories adjust to smooth production intertemporarily. The paper explores the extent to which fiscal policy can be used selectively for coping with an export slump without running into a balance of payments constraint. Copyright 1989 by The Review of Economic Studies Limited.

Equity valuation effects of decisions by corporations to shift assets to master limited partnerships (MLPs) are examined for the period 1982–1987. Positive average abnormal returns are found for (1) total conversions of corporations to MLPs (5.89%), (2) rollouts of subsets of assets by distribution of MLP equity claims to parent-firm shareholders (6.41%), and (3) rollouts of subsets of assets by public sale of MLP equity claims (2.41%). The positive effects are consistent with tax advantages, reduction in free cash flow, and information signaling. The positive effects for rollouts of subsets of assets are also consistent with reductions in information asymmetry and improvements in asset management.

ABSTRACT Common stock price reactions to announcements of 67 calls of in‐the‐money convertible preferred stocks are examined, and a significant average abnormal return of −1.6 percent is documented. The finding is robust to the choice of estimation period and the assumed return‐generating process. Annual dividend obligations for the called preferred issues in the sample typically are greater than the dividends for the common shares into which they are converted, and announcement‐period abnormal returns are negatively correlated with changes in dividends. Moreover, calls that result in dilution of voting rights appear to have greater adverse valuation effects than calls that do not alter voting rights concentration.

Eric L. Mais, William T. Moore, Ronald C. Rogers, A Re-Examination of Shareholder Wealth Effects of Calls of Convertible Preferred Stock, The Journal of Finance, Vol. 44, No. 5 (Dec., 1989), pp. 1401-1410

To what extent has the increased supply by government of certain union-like services reduced the demand for union membership and thereby contributed to the decline in trade union density? The existing empirical evidence is meager and conflicting. The puropse of our paper is to reexamine the government substitution hypothesis, specifically with respect to the relationship between government welfare spending and union density. We test the hypothesis with time-series data using three alternative models of union growth. The advantage of this approach is that it will permit an assessment of how sensitive the results are to both specification and sample period changes. In all, we find the time-series evidence of a negative welfare effect on union density to be mixed. Copyright 1989 by MIT Press.