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When parents support children in college, does this undermine the incentive to do well? The authors test the hypothesis that parental cash transfers induce college students to commit moral hazard in their studies on a sample of nearly 1300 undergraduates at two Midwestern universities. After controlling for a wide variety of factors influencing college performance, it was found that those students receiving at least partial coverage from their parents for tuition and books: (1) failed their courses more often than self-financed students; (2) were at higher risk of being placed on academic probation; and (3) earned lower GPAs.

To examine whether presentation of autism spectrum disorder (ASD) and associated patterns of psychiatric comorbidity and dysfunction vary by referral source. ASD youth referred to a specialized ambulatory program for ASD (N = 143) were compared to ASD youth referred to a general child psychiatry clinic (N = 217). More ASD clinic youth met criteria for a more robust form of ASD (autistic disorder); more youth referred to the psychiatry clinic met criteria for broader spectrum ASD (pervasive developmental disorder not otherwise specified). General psychiatry clinic youth with ASD suffered from a greater burden of psychopathologies and higher levels of dysfunction. The presentation of ASD in psychiatrically referred youth differs between general and ASD-specialized clinics, though both referral populations have high levels of comorbidity and dysfunction. Keywords Autism spectrum disorder * Psychiatric comorbidity * Youth, Introduction Autism spectrum disorder (ASD) refers to a developmental disorder characterized by impairments in socialization and communication in the presence of restricted, repetitive behaviors and is estimated to affect up [...]

We replicate prior IPO regression research and show that the relation between gross insider selling and R&D manipulation is weakened for a newer period that (unlike prior research) includes bubble IPOs. In response, we develop a regression model that includes new insider variables designed to better capture the total influence of insider behavior by measuring the proportional change in inside ownership brought about by the IPO. Our OLS regression results indicate that R&D spending falls significantly when insider ownership proportions decrease and that this positive relation is best explained by non-bubble IPOs. However, when we adjust for endogeneity, 2SLS regressions indicate that bubble IPOs best explain this positive association. Our insider results are driven by insiders who are directors and officers. A number of tests show that our findings support the earnings manipulation hypothesis that posits insiders reduce R&D to inflate earnings when it enhances their wealth., Introduction Brau and Fawcett (2006) find that CFOs believe an IPO firm's earnings report is a strong (if not the strongest) signal of IPO quality. This paper focuses on the [...]

Purpose: The article aims to explore if stock derivative types (stock options and stock warrants) are associated with stock returns for firms undergoing seasoned equity offerings (SEOs). Design/methodology/approach: The authors regress stock returns against stock derivatives for periods around SEO announcements with standard errors clustered at the month level. Findings: The authors find that lower stock derivatives holdings for the fiscal year after the SEO are associated with superior pre-SEO returns. This can be explained by owners exercising their derivatives to capitalize on the pre-SEO price run-up. The authors find that greater stock option holdings by insiders for the fiscal year after the SEO are associated with superior post-SEO returns for up to ten years after the SEO announcement. This new finding does not hold for stock warrants. Research limitations/implications: Stock derivatives are supplied by Capital IQ. Given their description, the authors infer that stock options are owned largely by insiders. Thus, the insider conclusions for stock options depend on this implication. Practical implications: Stock options and stock warrants can be used strategically to reward stock derivative owners of strong performing firms for past performance. Stock options can be used to motivate insiders (primarily key executives) to achieve superior future performance. Originality/value: This study is unique in comparing the influence of holdings for stock options and stock warrants on stock price performance around SEOs. The authors show that the sign of the association depends on whether the test includes pre-SEO periods. [ABSTRACT FROM AUTHOR]