In the November/December 1978 issue of
He concedes that timing problems could have prevented earlier studies from detecting effects from both the APB’s and FASB’s proposals; uncertainty, rumor or investor anticipation may have caused significant adverse effects that fell outside the studies’ test periods, all of which surrounded actual issue dates. Tests to date have not been as decisive as one would like on this point.
Nevertheless, the author disagrees with Collins, Dent and O’Connor’s contention that, if in fact there is an adverse effect from such proposals, the resulting social cost will be severe. He points out that, so far, no studies have tested for such costs.