We investigate the effects of opacity of information a firm discloses on stock price synchronicity and crash risk. We develop an analytical model in the presence of firm-specific information and market-wide information. Stock price synchronicity is predicted to increase with the opacity of firm-specific information. Our model also reveals that stock crashes are more frequent and more severe for the opaque firms. These predictions are confirmed empirically. Further, our model predicts that after a catastrophic event stock prices become synchronous with the market because of investors' limited attention, and hence the frequency and severity of a stock crash increase. We use the Great East Japan Earthquake as a representative catastrophe to examine these implications, and provide support for the model. Finally, we find that a stock price of a firm disclosing opaque information tends to be synchronous with the market, and hence experiences a more serious crash from the earthquake, which is consistent with the model.

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The Japanese Ministry of Education, Culture, Sports, Science and Technology c 2002 initiative to begin English education in primary schools provides educators with an important opportunity to create a curriculum of sequential learning outcomes. Previous studies comparing vocabulary featured in top selling textbooks indicate a lack of coordination in the vocabulary selected for junior and senior high school texts (Ozasa and Erikawa, 2004; Hasegawa and Chujo, 2004,), and a preliminary analysis of primary level texts (Higuchi et al., 2003) reflects this same trend. In this study, the authors examine vocabulary currently taught at each level and, based on an analysis of the vocabulary in widely published textbooks, have created a list of 514 basic but essential primary level words, 552 words for junior high school, and 1,089 terms for high school. From this list of 2,155 words, an estimated 40% are presented two or more times in textbooks taught at derent levels; therefore, without repetition, the core presented two or more times in textbooks taught at derent levels; therefore, without repetition, the core list contains 1,288 words. By constructing a sequential vocabulary curriculum, learners can continue to build on EFL learning as they proceed through each level. Although an estimated 7,000 to 8,000 words are said to be necessary for practical English competence, the vocabulary compiled in this study represents a positive step in coordinating learning outcomes for Japanese EFL learners.

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