Municipal Market Measures and Reporting Practices: An Extension
扩展了Wallace（1981）的研究，使用更具代表性的美国市政样本，考察州强制会计审计实践对市政债券风险与收益的影响，发现更严格的会计审计要求与较低利息成本和风险相关。
In a recent paper, Wallace [1981] reported the results of her study on the effects of accounting and auditing practices of municipal bond issuers on their borrowing costs and bond ratings. The study concluded that costs reflect cross-sectional differences in accounting variables and bond ratings reflect cross-sectional differences in auditors and audit reports. However, the sample was constrained to municipal issues within the state of Florida, so she was unable to generalize beyond this sample. Our study provides an extension of Wallace's research by (1) examining a more representative sample of United States municipalities, (2) employing alternative measures of bond risk and return, and (3) focusing on state-mandated accounting, auditing, and financial management practices. The magnitude of municipal bond risk and return measures is hypothesized to be associated with state-mandated practices. Our findings confirm those of Wallace in that we also found accounting and auditing practices to be associated with the interest cost and risk of municipal bonds. In particular, more stringent accounting and auditing requirements were associated with lower interest costs and risk measures.