This empirical study is concerned with whether the oil and gas reserve value data reported by petroleum producers have been utilized by investors. Reporting reserve value data based on a present value approach is the initial step toward the development of the Securities and Exchange Commission's new accounting method called "Reserve Recognition Accounting" (RRA) for oil and gas producers. Experimentation with this new accounting concept in the oil and gas industry has been adopted as a tentative resolution of the long-standing controversy over valuation of oil and gas reserves and the measure of income from oil and gas exploration. Evidence gathered in this research will be valuable to the SEC in its efforts to assess the usefulness of RRA. This dissertation assumes capital market efficiency and address two specific questions. First, do investors behave as if the reported end-of-year reserve value data are effective signals for pricing securities of oil and gas producers? Second, has the SEC-mandated reserve value disclosures induced any response in the capital market? Two research designs were employed to permit extensive investigation of these two questions.

The purpose of this thesis was to analyze a number of auditor change and other peripheral issues from two related perspectives. Empirical data were gathered from publicly available Forms 8-K and 10-K to first assess whether meaningful differences existed between NYSE, AMEX, and OTC registrants regarding disclosures required in those documents. Secondly, the data were analyzed to determine whether differences existed with respect to the accounting firms (Big Eight or non-Big Eight) involved in the auditor changes. In most of the tests designed to achieve these purposes, statistically defensible results were obtained using the nonparametric chi-square test for significance of observed differences and the McNemar test for significance of changes, at the .05 level.