The Governmental Accounting Standards Board (GASB, 1987, p. 12) has identified bond investors as a primary user group of government financial reports and is currently active in setting standards for pension accounting and reporting (GASB, 1986, 1988; lves, 1988). However, relatively little is known...

We evaluate the hypothesis that client monitoring is priced in the seasoned governmental bond market above and beyond other independent measures of local administration quality and the Big 8/Non-Big 8 dichotomy. Our results are generally consistent with the hypothesis

Considerable evidence exists that governmental accounting numbers are related empirically to bond risk and return measures. However, prior research does not preclude the possibility that accounting numbers merely reflect unobserved factors such as economic and political attributes impounded in...