Factors influencing financial strain on elderly people who live alone in the U.S.A.

The purpose of this study is to investigate factors influencing financial strain experienced by elderly persons living alone. Data for this study were drawn from a national survey conducted by Louis Harris and Associates, Inc. in 1986 at the request of The Commonwealth Fund Commission on Elderly People Living Alone to obtain a picture of the resources, problems, needs and preferences of elderly Americans who live alone. For this study, a path model was tested by using multiple regressions. Demographic factors (gender, age and race) were statistically significant factors indirectly influencing financial strain through one economic factor (income) and one health-related factor (physical limitations). Economic factors (income and health insurance coverage) and one health-related factor (physical limitations) were statistically significant factors directly influencing financial strain.     

Term Structure Movements and Pricing Interest Rate Contingent Claims

This paper derives an arbitrage-free interest rate movements model (AR model). This model takes the complete term structure as given and derives the subsequent stochastic movement of the term structure such that the movement is arbitrage free. We then show that the AR model can be used to price interest rate contingent claims relative to the observed complete term structure of interest rates. This paper also studies the behavior and the economics of the model. Our approach can be used to price a broad range of interest rate contingent claims, including bond options and callable bonds.     

IMMIGRANT SELECTION SYSTEMS AND IMMIGRANT HEALTH

This paper is an analysis of the determinants of self‐reported health status of immigrants, with a particular focus on the type of visa used to gain admission. The empirical analysis uses the three waves of the Longitudinal Survey of Immigrants to Australia (panel I). Immigrant health is greater for immigrants who are younger, more educated, male, more proficient in English, and living outside an immigrant ethnic enclave. Immigrant health is poorest for refugees and best for independent (economic) migrants, and declines with duration in the destination. Alternative hypotheses for the decline in immigrant health with duration are explored (JEL I12, J15, J61, F22).     

Ethnic Minority Analysts’ Participation in Public Earnings Conference Calls

We investigate ethnic minority and nonminority sell-side analysts’ participation in public earnings conference calls. We find that minority analysts are underrepresented in conference call Q&A sessions, and minority analysts who do participate on the calls experience lower levels of prioritization than do nonminority analysts. Minority analysts’ lower participation rates are partially but not fully mediated by characteristics such as experience, work environment, and stock rating favorability. Additionally, firm and conference call fixed effects mediate approximately half the magnitude of lower minority participation rates. Extroverted minority analysts participate at higher rates, but the negative association between minority status and conference call participation is exacerbated when calls are more time constrained, when executive teams are less diverse, and when analysts are from less prestigious brokerage houses. Overall, we document the underrepresentation of minority analysts on earnings conference calls and provide evidence suggesting both analysts’ and managers’ choices influence minority analysts’ participation rates.     

Auditors’ Use of In-House Specialists

Using Public Company Accounting Oversight Board (PCAOB) inspection data from 2006 to 2018, we examine the use of auditor-employed specialists in audit engagements. First, we find that the use of specialists is increasingly prevalent and related to clients’ size and complex accounting estimates. Second, the use of specialists is positively associated with the incidence of audit process deficiencies (identified by PCAOB inspections) but is not associated with output-based audit-quality proxies (restatements or absolute discretionary accruals). Hence, although process deficiencies are more likely to occur in engagements with higher use of specialists, financial reporting quality is not negatively impacted. Third, the use of specialists is positively associated with the likelihood of goodwill impairments and negatively associated with engagement profitability. Finally, cross-sectional tests suggest that board accounting expertise is a salient condition for more effective use of specialists. Collectively, our findings align with concerns noted by the PCAOB and prior experimental and survey studies. Although specialists assist auditors with the audit of complex estimates, engagements with comparatively high specialist use entail an incremental risk of audit process deficiencies.