Why should disclosure rules subsidize informed traders?

This article justifies the existence of disclosure provisions as part of the securities laws. Securities prices may deviate from the securities' underlying values due to “irrationalities.” Market efficiency (i.e., the accuracy of securities' prices) materializes through the trading of investors who observe and attempt to profit from these inefficiencies. The danger of false prices deters the corrective trading of these “informed traders”. This article argues that disclosure rules provide them with costless information, essentially subsidizing their activity. The cost of this subsidy is borne by the corporation, i.e., all shareholders, of which informed traders are only a fraction. Long-term shareholders would not subsidize efficiency absent disclosure rules because, they do not trade, and they do not reap the benefits of accurate prices. This subsidy fosters short-term uninformed shareholdings and, thus, increases trading volume and capital market liquidity.     

Developments in juvenile justice during the decade of the 70s: Juvenile detention facilities

A number of important developments in juvenile justice during the decade of the 70s are identified. Data were obtained from a sample of juvenile detention facilities in the late 1960s and again, from the same sample, in the late 1970s. The data obtained included the perceived purpose of detention, information concerning the detainees and personnel, and procedural and program information. The two sets of data were compared to determine whether the developments in the juvenile justice system were reflected in the detention segment of the system.     

RECONCILING THE IRRECONCILABLE? THE RESOURCE ASSESSMENT COMMISSION,RESOURCES POLICY AND THE ENVIRONMENT*

Abstract: This paper investigates the place of the Resource Assessment Commission (RAC) in the reform of resource policy-making undertaken by the Hawke government in the aftermath of its experience of the Wesley Vale pulp-mill dispute. The paper argues that the RAC was seen as a foundation upon which the reformed process would rest. The RAC's role would conform to the essence of “accordism”—that is, it would seek to depoliticise information and scientific data by filtering the wide range of inputs at the evaluative stage whilst attempting to reconcile hitherto irreconcilable interest groups from the development and environment sides of the land-use debate. The paper begins by exploring the origins of the RAC. It then reviews the RAC in action and concludes by analyzing the role of the commission within the broader context of the Hawke government's pursuit of “consensus politics”.     

Law,Fact and Narrative Coherence: A deep look at court adjudication

I am grateful to Neil Duxbury and Philip Leith for their comments on earlier drafts of this article.     

Mixing God's Work and the Public Business: A Framework for the Analysis of Faith‐Based Service Delivery

Over the past thirty years, there has been a dramatic transformation in the way the American political process operates. There has been a growing public perception that traditional political institutions lack the capacity to meet existing challenges. This has led many observers to call for a rethinking of how government does its work. Numerous alternatives, including the use of faith‐based organizations, have been suggested. The current popular debate on the appropriate role of faith‐based organizations in public service delivery has shed little light on a number of important issues raised by engaging such actors in governance issues. The impact of using faith‐based institutions to design and implement public policy must be considered not only in terms of traditional evaluation standards, but also regarding potential long‐term impacts on the political process itself. This article outlines a theoretical framework for the evaluation of faith‐based organizations as “alternatives” to conventional governance structures. It identifies key practical and theoretical issues raised by such substitution, in both short and long range systemic terms.     

Children's Conceptual Knowledge of Lying and Its Relation to Their Actual Behaviors: Implications for Court Competence Examinations

Child witnesses must undergo a competence examination in which they must show appropriate conceptual understanding of lying and truth-telling, and promise to tell the truth. Three experiments (Ns = 123, 103, 177) were conducted to address the assumptions underlying the court competence examination that (1) children who understand lying and its moral implications are less likely to lie and (2) discussing the conceptual issues concerning lying and having children promising to tell the truth promotes truth-telling. Both measures of lying and understanding of truth- and lie-telling were obtained from children between 3 and 7 years of age. Most children demonstrated appropriate conceptual knowledge of lying and truth-telling and the obligation to tell the truth, but many of the same children lied to conceal their own transgression. Promising to tell the truth significantly reduced lying. Implications for legal systems are discussed.     

Application of multivariate chemometrics in forensic soil discrimination based on the UV-Vis spectrum of the acid fraction of humus

Forty-four soil samples from five different areas were examined on the basis of the UV-Vis spectrum of the acid fraction of humus with a view to achieving good discrimination between them. Fulvic and humic acids were extracted from the samples into an alkaline aqueous solution and absorbance values, after appropriate transformations, were subjected to a K-mean cluster analysis (CA) over the objects (samples) for an initial feature reduction (20 variables retained). This was followed by principal component analysis (PCA) for the removal of outliers (four samples removed). The same statistical technique was used on the remaining samples to decide how many variables to enter into the linear discriminant function analysis (DA) and whether original variables or component scores should be used. It was found that the scree test was a good criterion for deciding on the number of components to extract (nine components extracted) and that the use of component scores instead of original variables led to a lower average redundancy (20.6%) of the variables in the discriminant model. From the components entered into the model and their loadings, it was concluded that the discrimination achieved was due to the relative concentration of aromatic groups and other fragments in the samples as well as the degree of soil humification. An overall 85% correct classification of the training dataset was observed (Wilks' lambda = 0.0420) and the method was judged satisfactory for supporting exclusionary forensic purposes.