华尔街精神

果敢的人讨论问题总是直截了当!利昂就是这样的人，这一点从他给自己的书起的名字就可以证明：《华尔街精神》。当我们华尔街的历史与某种所谓的精神放在一起时，必将引起很大的震动，而利昂恰恰是第一位尝试这样结合的人。利昂认为，他是惟一有资格研究华尔街精神状态的人，因为他在大学期间“变态心理学”得了A＋。     

THE IMPACT OF THE INSIDER TRADING SCANDAL ON THE INFORMATION CONTENT OF THE WALL STREET JOURNAL'S “HEARD ON THE STREET” COLUMN

We examine the impact of a scandal on the information content in the “Heard on the Street” column of the Wall Street Journal. Following the scandal in 1984, the column is found to have a reduced impact on stock prices for both buy and sell recommendations. However, the stock price response to information later published in the column before the publication day is smaller for the post-scandal period. This result suggests that after the scandal, editors and authors may have become more cautious in guarding against information leaks in the column. The scandal does not appear to have changed the impact of the column on trading volume.     

UNDERWRITING SPREADS AND REPUTATIONAL CAPITAL: AN ANALYSIS OF NEW CORPORATE SECURITIES

When entering a new security market, investment banks must establish their reputation. This is done through direct experience in the security market or through reputational capital established in existing security markets. I examine the effects of underwriters' market reputation in publicly underwritten offerings in forty-three financial innovations and find more significant entry barriers for less prestigious underwriters. An analysis of underwriting spreads reveals first-issue pricing advantages due to reputational capital. Unlike the more prestigious underwriters, the less prestigious underwriters reduce spreads upon first entry into each new security market to overcome their lack of market reputation.     

THE ROLE OF INFLATION-ADJUSTED ACCOUNTING DATA IN CORPORATE RISK ANALYSIS: AN EMPIRICAL INVESTIGATION*

Both in the U.S. and abroad, certain large companies are required to report accounting data adjusted for the effect of changing prices. This study investigated the role of such adjusted accounting data in corporate risk analysis. Loan decision situations were constructed for a firm whose income from continuing operations reported in accordance with Statement of Financial Accounting Standard No. 33 (SFAS 33) was drastically reduced. Questionnaires were mailed to 1,050 randomly selected bank lending officers (BLOs) in 240 banks in 40 states and the District of Columbia. A group of BLOs received no SFAS 33 data and served as a control. While most of the responding BLOs did not seem to use SFAS 33 data in making their decisions, those who reported that they used such data reached significantly different decisions from those of the control group. More specifically, the users evaluated the firm twice as risky and recommended significantly lower loans than the control group with respect to both short-term and long-term loans. Furthermore, the users spent significantly more time in data analysis and decision making than the control group.     

MULTIVARIATE ANALYSIS OF CORPORATE BOND RATINGS AND INDUSTRY CLASSIFICATIONS

Previous statistical models designed to predict bond ratings use a variety of financial data and ratios; however, the possible effect of the industry in which the firms operate is generally disregarded. Although the exact bond rating process used by the rating agencies is not known, industry analysis is an important component of the process. This study evaluates the use of industry-specific multiple discriminant functions for predicting bond ratings. The results support using such a technique.     

ACCOUNTING FOR RESEARCH AND DEVELOPMENT EXPENDITURE: AN ANALYSIS OF THE ROLLS ROYCE RB.211 PROJECT

There is evidence that standard setting bodies see the promotion of uniformity of accounting practice as a major objective in setting accounting standards. However, recently issued standards in respect of the accounting treatment of research and development costs allow corporate managers considerable choice in accounting for these costs. An examination of the circumstances surrounding the development of the RB.211 engine by Rolls Royce Limited during the years 1967-70 is undertaken to determine the extent to which different practices may be employed in accounting for research and development costs under the U.K. and International accounting standards. Evidence adduced from this examination suggests that the management of Rolls Royce Limited could have complied with the requirements of these accounting standards and still have been free to expense or capitalise the costs incurred on the RB.211 project.