Citation
The impact on interpersonal intimacy of parental divorce and the subsequent father-daughter relationship

Material Information

Title:
The impact on interpersonal intimacy of parental divorce and the subsequent father-daughter relationship
Creator:
Freeman, Diane E., 1947-
Publication Date:
Language:
English
Physical Description:
viii, 128 leaves : ill. ; 29 cm.

Subjects

Subjects / Keywords:
Adolescents ( jstor )
Child psychology ( jstor )
Daughters ( jstor )
Divorce ( jstor )
Divorced status ( jstor )
Dyadics ( jstor )
Fathers ( jstor )
Intimacy ( jstor )
Mothers ( jstor )
Parents ( jstor )
Children of divorced parents -- Psychology ( lcsh )
Divorce -- Psychological aspects ( lcsh )
Divorced fathers ( lcsh )
Fathers and daughters ( lcsh )
Genre:
bibliography ( marcgt )
theses ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis (Ph. D.)--University of Florida, 1993.
Bibliography:
Includes bibliographical references (leaves 116-127).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Diane E. Freeman.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
Copyright [name of dissertation author]. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
001921473 ( ALEPH )
AJZ7237 ( NOTIS )
30461504 ( OCLC )

Downloads

This item has the following downloads:


Full Text









THE IMPACT ON INTERPERSONAL INTIMACY OF PARENTAL DIVORCE AND
THE SUBSEQUENT FATHER-DAUGHTER RELATIONSHIP
















By

DIANE E. FREEMAN


A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY

UNIVERSITY OF FLORIDA


1993












This is dedicated to the memory of my grandmother,

Mary McKim Turner, who was always my greatest supporter

and friend. She was a survivor, and an inspiration.










ACKNOWLEDGEMENTS


Sincere appreciation goes to Dr. Dorothy Nevill as the

chair of my committee. Her guidance, support and

encouragement have been invaluable throughout this project

and throughout graduate school. Over the last five years,

she has been my teacher, my mentor and my friend. She has

seen my strengths and weaknesses; she has allowed me to cry

on her shoulder; but she has never allowed me to give up.

She is also an excellent role model, helping me to learn to

take care of myself as well as others.

Thanks also go to Drs. Harry Grater, Marty Heesacker,

Phyllis Meek and Larry Severy who generously offered their

time and knowledge. Dr. Grater has been one of my favorite

professors, giving me courage to take risks and grow as a

therapist. Dr. Heesacker helped me to discover some of the

"fun" involved in doing research. Dean Meek gave me a new

understanding and appreciation of feminism, and she was

another strong female role model. Finally, Dr. Severy has

shown me respect, given me both responsibility and freedom,

and supported me in ways that have helped me to feel

confident in my abilities.

Christine Pugleise, my research assistant, has also

been a tremendous help. Without her, data collection would


iii







have been difficult, if not impossible. My friends, Linda,

Sally, and Moseley have also been invaluable. They have

encouraged and supported me both before and during graduate

school, and Linda even helped in the coding of the data.













TABLE OF CONTENTS


page

ACKNOWLEDGEMENTS...................................... iii

ABSTRACT .......... .................................... vii

CHAPTERS

1 INTRODUCTION................................... 1

Divorce as a Process............................. 3
Importance of the Father-Daughter Relationship... 4
Intimacy and Adolescent Development............. 5
Theoretical Foundation ........................... 8
Purpose and Need for the Study................... 13

2 REVIEW OF THE LITERATURE........................ 15

Method of Literature Search....................... 16
Long Term Effects of Divorce..................... 17
Intergenerational Transmission of Divorce........ 27
Father-Child Relationship Following Divorce...... 31
Intimacy and its Measurement..................... 39
Capacity for Intimacy......................... 41
Intimacy Motivation........................... 43
Impact of Parental Divorce on Intimacy.......... 44
Summary.................... .................... 47
Hypotheses...................... .. ... ...... ....... 49

3 METHODS..... .................. ........... ..... 53

Subjects........... .............................. 53
Procedure................................. ....... 56
Measures......... .. ............................ 57
Demographic Questionnaire....................... 57
Parent-Child Relationship Survey (PCRS)........ 58
Miller Social Intimacy Inventory (MSIS)........ 60
Risk in Intimacy Inventory (RII).............. 62
Rubin's Love Scale (RLS)....................... 63
Dyadic Trust Scale (DTS)...................... 65














4 RESULTS ........................................ 68

Frequencies and Univariate Statistics for
Parent-Child Relationships...................... 69
The Chi Square Test of Racial Composition........ 71
Socio-Economic Status........................... 71
Analyses of Variance for Primary Hypotheses...... 72
Relationship with Father...................... 72
Parental Marital Status and Intimacy........... 74
Father-Daughter Relationship and Intimacy....... 75
Interaction of Father-Daughter Relationship
and Parental Marital Status.................. 75
Impact of Having Someone "Like a Father"....... 77
Factor Analyses of Intimacy Scales............... 79

5 DISCUSSION...................................... 83

Conclusions................................... 89
Limitations of the Study......................... 91
Implications for Future Research................. 95

APPENDICES

A INFORMED CONSENT................................ 99

B DEBRIEFING.... .................. ...... ......... 100

C DEMOGRAPHIC QUESTIONNAIRE....................... 101

D PARENT-CHILD RELATIONSHIP SURVEY.................. 104

E RUBIN'S LOVE SCALE ............... .............. 110

F DYADIC TRUST SCALE............................... 112

G RISK IN INTIMACY INVENTORY....................... 114

REFERENCES ............................................. 116

BIOGRAPHICAL SKETCH..................................... 128












Abstract of Dissertation Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Doctor of Philosophy


THE IMPACT ON INTERPERSONAL INTIMACY OF PARENTAL DIVORCE AND
THE SUBSEQUENT FATHER-DAUGHTER RELATIONSHIP

By

Diane E. Freeman

August 1993

Chairperson: Dr. Dorothy D. Nevill
Major Department: Counseling Psychology

The present investigation looked first at the impact of

parental divorce on the father-daughter relationship, and

found there to be a significant negative effect. Overall,

fathers were found to be rated more negatively than mothers,

and the relationship was more negatively influenced by

divorce. Next, parental marital status and the relationship

with the father were examined for their impact on

interpersonal intimacy. There appeared to be little

difference between daughters from intact or divorced families

on the measures of intimacy, with the exception that daughters

of divorce perceived more risk associated with intimacy. The

father-daughter relationship contributed little to the

variance in intimacy scores. Finally, the impact of having

another significant father figure was examined. Daughters of

divorce with a poor relationship with their father perceived

vii












higher levels of risk associated with intimacy when there was

no other significant father figure. When someone "like a

father" was present, the level of perceived risk was similar

to that found in daughters from intact families.


viii












CHAPTER 1
INTRODUCTION


Americans have an increasing desire for intimacy, but

seem to have a decreasing capacity to fill that desire

(Reis, 1984). Among the possible contributors to this

incapacity are the divorce rate and the number of children

raised in single parent homes. If divorce is

intergenerationally transmitted as some suggest, then the

deficiencies in intimacy may be perpetuated. Consequently,

it is important to explore further the long-term impact of

parental divorce and the subsequent capacity for

heterosexual intimacy in the children of divorce.

In contemporary society, it is rare to find someone who

has not been touched by divorce. Divorce "affects an

interpersonal system that includes many people other than

spouses as many as five million people will be tied to

the more than one million who divorce" (Rice & Rice, 1986,

p.3) each year. Hetherington, in 1979, predicted that 40-

50% of children born in the 1970's would experience divorce

and spend an average of six years living in a single parent

home. Consequently, a large number of today's college

students either will have been impacted by parental divorce,

or can expect to experience it.








Given the incidence of divorce and the number of

children who spend at least part of their youth in single

parent homes, a number of investigators have been concerned

about the economic, social and emotional consequences of

divorce. Both the short-term, and to a lesser extent, the

long-term sequellae have been examined. Any of the factors

that surround divorce may have profound effects which "are

incorporated within the character, the attitudes, the

relationships, the self-concept, the expectations, and the

world view of the child" (Wallerstein, 1983, p. 233).

However, in every major area of investigation, including

interpersonal relationships, contradictory results exist

(Edwards, 1987).

The ambiguous nature of the literature may be due to

differences in research methodology, including failure to

control for socioeconomic status; differences in subject

samples; small or nonrepresentative samples; outcome

measures, for example, use of projective tests or measures

that are insensitive to changes that might occur over time;

or theoretical perspectives (Edwards, 1987; Kanoy &

Cunningham, 1984). However, contradictions might also occur

because the responses to divorce are dependent upon a number

of variables in the experience of the family. For example,

a number of factors have been identified that might affect

adjustment, including the age of the child at the time of

the disruption; the quality of the parents' marriage before






3

the disruption; remarriage; conflict before, during or after

the divorce; and the relationship with the noncustodial

parent (Kalter, 1987; White, Brinkerhoff, & Booth, 1985).

Divorce as a Process

Obviously, divorce cannot be viewed as a single event,

but must be viewed as a cluster of experiences or as a

process. The tendency to dichotomize subjects as either

from intact or divorced families is an oversimplification

and is one of the problems with methodology, which was

identified by Lopez (1987) in a review of the literature.

The systemic process of divorce begins before the legal

separation and extends well into the post-divorce years

(Lussen, 1988). It is particularly important to note that,

when comparing children of divorce with children from intact

families, it is not necessarily "a comparison of one

category of persons, all of whom had very negative early

influences, with another category of persons, all of whom

were free of very negative early influences" (Glenn &

Kramer, 1985, p. 910).

For some, parental divorce brings relief from tension

and anger, so it is a positive event. For others, divorce

may be perceived negatively, as it brings feelings of loss

or shattered dreams. Whatever the initial experience,

divorce generally produces changes in the parent-child

relationship. While relationships with both mothers and

fathers may change following parental divorce, the quality








of the relationship with both the custodial and the

noncustodial parent is considered to be important in

predicting a child's behavior (Hess & Camara, 1979).

Importance of the Father-daughter Relationship

Following a parental divorce, a child still has two

natural parents, but may be faced with divided loyalties.

Approximately 90% of children who end up living with only

one natural parent are in the custody of their mother

(White, Brinkerhoff, & Booth, 1985). Consequently, "father

absence, or at least decreased father availability, is a

typical concomitant of divorce" (Biller, 1981, p. 489).

Because of changes in the living situation and other

divisive tendencies within families following divorce, the

child often experiences increased closeness and quality of

relations with one parent and reduced contact and quality of

relations with the other, generally, the non-custodial

parent, or father.

White, Brinkerhoff and Booth (1985) point out that the

decrease in attachment to the non-custodial parent reduces

the child's affectional network. Although both sons and

daughters are affected, the reduced affectional network

uniquely impacts the daughter, as father absence seems to

have an effect on her ability to function in interpersonal

and heterosexual relationships (Biller, 1981). The presence

of the father and his influence helps the daughter "to






5

experience herself as a feminine person and helps her relate

to the social world as a female" (Forrest, 1966, p. 21).

Intimacy and Adolescent Development

The possibility that parental divorce may have a long-

term impact on interpersonal and heterosexual relationships

has significant implications for the adolescent and young

adult. The developmental task for this age group is the

achievement of greater psychological separation from the

family and the establishment of an adult identity. Erikson

(1968) describes this developmental task as that of

establishing mutual psychosocial intimacy.

A part of creating an adult identity involves forming

intimate relationships with others, outside of the family,

who show understanding and love. Gilligan (1982) suggested

that women define their identity in the context of human

relationships. The ability to establish these relationships

is related to self-esteem, trust, willingness to take risks,

and willingness to make commitments, and it is rooted in the

parent-child relationship. The ability to establish

relationships does not suddenly emerge in young adulthood,

but builds on skills attained in previous relationships

(Bar-Yam Hassan & Bar-Yam, 1987).

Because there are changes in parent-child relationships

following divorce, and because Hetherington (1979) suggests

that adolescence is a time where earlier unresolved issues

reemerge in disturbances in heterosexual relations, it is








important to explore further the impact of divorce on the

development of intimacy. The concept of intimacy captures

the essence of "shared norms (about communication,

responsibilities); attitudes (liking, loving, trust);

beliefs about the relationship (its uniqueness, importance);

and relations with other persons" (Kelley et al., 1983, p.

39). Intimacy involves mutuality in being able to share

worries and problems, being able to express emotions, having

a genuine interest in others, and lacking defensiveness

(Orlofsky, Marcia & Lesser, 1973). The ability to develop

an intimate relationship with a member of the opposite sex,

is a complex process, and can be influenced by a variety of

factors. For instance, a deterioration in relations with

either parent is associated with increased courtship

activity and decreased satisfaction with interpersonal

relations for both males and females (Booth, Brinkerhoff &

White, 1984).

The break-up of the parental marriage may produce

suffering and a feeling of abandonment that has long lasting

effects, extending well into adult life (Jersild, Brook, &

Brook, 1978). Following parental divorce, the daughter

seems to get more maternal support, but she also gets less

paternal attention and she is more affected by father

absence than is the son (Hetherington, 1979). Leonard

(1966) suggested that the father's unavailability to give

love and to be loved is critical to the daughter's








development. Perhaps because father availability is

decreased, Lopez, Campbell and Watkins (1988) found that

parental divorce might actually accelerate most forms of

father-daughter psychological separation.

This separation may be manifested in a number of ways.

For example, adult female children of divorce are more

likely to have lower levels of well-being as defined by

happiness, health self-ratings, and satisfaction with

health, community, leisure, friendship and family life

(Glenn & Kramer, 1985). They are also more likely to become

sexually active at an earlier age (Booth, Brinkerhoff, &

White, 1984; Newcomer & Udry, 1987), to have a greater

number of sexual partners (Hepworth, Ryder & Dreyer, 1984),

and to marry earlier (Hetherington & Parke, 1979). Some of

these behaviors may be problematic, as making excessively

early commitments to another person may have negative

implications for the ability to negotiate later adult issues

(Franz & White, 1985). There is also some evidence of the

intergenerational transmission of divorce, as children of

divorce tend to marry earlier (McLanahan & Bumpass, 1988)

and to be more likely to divorce than are children from

intact families (Glenn & Shelton, 1983). Some persons with

loss by divorce seem to "seek to demonstrate by moving in

and out of a series of relationships, that the losses do not

hurt and that relationships have diminished value"

(Hepworth, Ryder, & Dreyer, 1984, p. 79).








Biller (1981) suggested that the "lack of opportunity

to observe meaningful male-female relationships in childhood

can make it more difficult for the father-absent female to

develop the interpersonal skills necessary for adequate

heterosexual adjustment" (p. 502). While Biller's

suggestion seems reasonable, it also seems inadequate to

completely explain the impact of parental divorce upon the

subsequent interpersonal relationships. Object relations

theory provides a broader theoretical foundation that

addresses the complexity of the responses to parental

divorce.

Theoretical Foundation

A person "is comprehensible only within [the] tapestry

of relationships, past and present" (Mitchell, 1988, p. 3).

Whereas object relations theory is described as a field

theory that considers the individual as anchored in his/her

environment or matrix of relationships (Antonovsky. 1987),

it provides a good foundation for understanding the

behaviors that are manifest in intimate interpersonal

relationships (Alford, 1990; Horner, 1984). Dicks (1963)

suggests that an individual internalizes relationships with

significant others (mother, father, siblings, etc.) and

because he or she has felt loved, cherished and accepted, he

or she learns to love as an adult.

The "objects" in object relations are human objects,

and the "relations" may be real or fantasied, internal or






9

external interactions with others (Cashdan, 1988). Sullivan

(1953), considered by Kernberg (1976) to be somewhat of an

object relations theorist, stresses the importance "of

interpersonal relationships as determinants of intrapsychic

and interpersonal structures" (p. 122). Early relationships

become internalized as mental representations that later

become manifest in behaviors with others (Lieberman, 1984).

Interactions with objects lead to "significant and lasting

modifications of the personality, usually conceived of as

internal structures, which affect all later experiences with

others" (Antonovsky, 1987, p. 538). Thus, the inner world

of object relations determines the way an individual relates

to the external world through interpersonal relationships.

Object relations evolve over the first three or four

years of life, but they continue to be modified by

experiences throughout life. In fact, the adolescent ego

identity has a foundation in the behavior of meaningful

others toward him or her (Sharf, 1989). The adolescent

integrates these perceptions and experiences into his or her

own changing self-concept.

Although the focus in object relations theory is on the

importance of the mother-child relationship, others also

play a significant role in the life of the child (Applegate,

1990; Lieberman, 1984). It is not the role of mother or

father, determined biologically or legally, that is

critical, but the object function of mothering or fathering








(Rosenberger, 1990). Rutter (1974) suggests that "most

children develop bonds with several people and it appears

likely that these bonds are basically similar" (p. 125).

Consequently, the father, or fathering figure, who is active

in the life of his child, may be almost as important in the

formation of object relations as is the mother, or mothering

figure.

Modification or formation of the internal structures

"is likely to take place in the presence of and in reaction

to strongly experienced affects such as...pain in the

relationship with significant others" (Antonovsky, 1987, p.

539). Obviously, parental divorce and the subsequent

decrease in the amount of contact and the quality of the

relationship with the father can create such pain. Divorce

differs from other loss, i.e. parental death, because the

father is still present. Consequently, the decrease in

contact may be perceived as rejection. This aspect of the

divorce experience might well create more pain and have a

larger impact upon interpersonal behaviors than any other.

"A primary human need is attachment to a caring person

or persons; we develop intense attachments because we crave

relatedness" (Mitchell, 1988, p. 26). In fact, Fairbairn

(1954) stated that the ultimate goal of human behavior is

the establishment of meaningful relationships. In the

family, the child learns a mode of connection, "and these

learned modes are desperately maintained throughout life"








(Mitchell, 1988, p. 27). Events that break or prevent the

necessary attachments, may produce effects that "crop up in

different ways over the years, as the child passes through

progressive stages of development (Hetherington, Cox & Cox,

1978).

According to object relations theorists, "development

is a process which takes place within an interactive matrix

of constitutional endowments, significant relationships, and

critical events" (Nicholson, 1988, p. 26). Divorce is not

only a critical event, but it also impacts on interpersonal

relationships. Parental divorce, almost of necessity,

interrupts or interferes with attachment to the noncustodial

parent, usually the father. Children often experience pain,

fear, anger, or depression following a parental divorce. As

suggested by Antonovsky (1987), this strong affect may lead

to modifications of internal structures.

If divorce results in the perception of abandonment or

rejection by the father, even though this rejection is only

fantasied, and if this perception is internalized, later

relationships may well be affected. The goal of the child

will be to avoid anxiety. To do this, the child may utilize

defenses of splitting or projective identification. For

example, a daughter may see men as all good or all bad; she

might use sexuality to attract men, as if to attract her

father; she may expect to be rejected and act in a way to

elicit rejection; or she might use dominance or control, as







12

if to say that she negates the importance of her father and

can stand alone. In essence, her mind will work to maintain

connections with objects, or parents (Alford, 1990).

"Painful feelings, self-destructive relationships,

self-sabotaging situations, (may be) recreated throughout

life as vehicles for the perpetuation of early ties to

significant others" (Mitchell, 1988, p. 27). In particular,

girls may manifest problems, in relating to males, that

surface when their interest in the opposite sex heightens

(Lynn, 1974). The old ways of maintaining connections may

no longer be appropriate or useful in forming intimate

relationships in young adulthood, but they may be

perpetuated none-the-less.

In conclusion, changes in the intrapsychic structures

"can have a profound effect on an individual's capacity to

enter into mature interpersonal relationships in adult life"

(Nicholson, 1988, p. 26). One may carry unconscious

fantasies along with mental representations of objects that

can color, distort, and affect relations with significant

others (Arlow, 1980). Object relations theory seems to

provide a theoretical base that addresses the complexity of

the impact of divorce on development. Specifically, it

gives a foundation for understanding the impact of father-

daughter relations on the ability to establish meaningful

interpersonal relationships.








Purpose and Need for the Study

To summarize, divorce impacts the entire family,

including the children, and there is some evidence that this

impact extends well into the post-divorce years (Lussen,

1988). In fact, there is some indication that children of

divorce are themselves more likely to end up divorcing. It

seems important to ascertain whether this is due to social

learning or perhaps due to the ability of children of

divorce to establish intimate relationships.

Prior research that has examined the long-term effects

of divorce on children has produced confusing and

contradictory results, generally due to the variability of

factors that might affect the adjustment of individuals

following divorce (Kalter, 1987; White, Brinkerhoff & Booth,

1985). One of the factors that has received some attention

is the child's relationship with the father. Divorce often

produces a decrease in the amount of contact and the quality

of the relationship with the non-custodial parent, typically

the father (Biller, 1981). The daughter's experience

following parental divorce differs from that of the son,

because the daughter is more affected by father absence than

is the son (Hetherington, 1979).

Although some studies have examined the importance of

the father-daughter relationship following divorce, none

have focused upon the impact of this relationship on the

developmentally appropriate task of college aged students,







14

i.e. the formation of intimate relationships outside of the

family. The present investigation seeks to extend the work

of others and to avoid some of the pitfalls of prior work by

using objective measures with good reliability and validity

and by using enough subjects to allow for detection of

significant differences, but not so many as to detect

differences of questionable importance.

The findings of this study may help to guide parental

decisions regarding the importance of a continuing father-

daughter relationship. If there are long-term ramifications

of divorce and subsequent decreases in parental relations,

as suspected, counselors may also utilize this information

in aiding families in transition. At the very least,

information will be gathered that will indicate whether or

not the father-daughter relationship needs to be examined or

controlled in future divorce research.













CHAPTER 2
REVIEW OF THE LITERATURE


The preponderance of research on the impact of parental

divorce has addressed the traumatic effects that occur

shortly after the event or within the period of adjustment,

up to three years following the divorce. However, several

longitudinal studies and other examinations of long-term

effects have been undertaken. Those that have dealt with

the long-term effects of parental divorce on adolescent and

young adult women have focused primarily on psychological

adjustment, family relationships, heterosexual

relationships, and the intergenerational transmission of

divorce. Although this body of literature provided the

foundation for the present investigation, few studies of

divorce have examined "conditions surrounding the divorce

that might affect children's attempts to form rewarding

relationships with the opposite sex" (Booth, Brinkerhoff, &

White, 1984, p. 85).

There are a variety of changes set in motion by

divorce, including changes in the father-daughter

relationship. Because the daughter's relationship with her

father might affect her relations with the opposite sex,

studies of the role of the father in adolescent development,

15









and the quantity and quality of the father-daughter

relationship following divorce were summarized. Also, the

research that focused on intimacy, the developmental task of

adolescence and young adulthood, was reviewed.

Studies that linked divorce and the father-daughter

relationship to interpersonal intimacy would have been

ideal. Unfortunately, such studies were not found.

However, four studies were reviewed that linked either the

father-child relationship or parental divorce to courtship

behaviors, interpersonal relationships, or intimacy (Andrews

& Christensen, 1951; Booth, Brinkerhoff & White, 1984;

Gabardi, 1990; Weiss, 1988).

Method of Literature Search

The literature was sampled via a computerized search of

the Psychlit, Sociofile and Dissertation Abstracts

International data bases. Search terms were gathered from

the literature and from the Thesaurus of Psychological Index

Terms (Walker, 1991). The terms included: "intimacy,"

"object relations," "divorce," "parent child relations,"

"young adults," "adolescents," "interpersonal intimacy," and

"father child relations." The terms were used alone and in

various combinations. Additionally, a search was performed

of the Social Science Citation Index on highly relevant

studies, such as Gabardi (1990). Finally, the reference

sections of useful articles were searched. The studies that

were utilized focused on the impact of parental divorce on









adolescents and young adults, the long-term impact of

divorce, the impact of the father-daughter relationship on

intimacy, and the impact of parental divorce on intimacy.

Studies were excluded that focused on young children or on

the short term consequences of divorce.
Long Term Effects of Divorce

Wallerstein and Kelly (1976, 1980, 1987) conducted a

seminal longitudinal study, which involved 60 families with

131 children. The subjects came from a nonclinical

population, and were referred for anticipatory guidance at

the time of separation. Subjects were seen again at 18

months, 5 years and 10 years. The data were gathered

primarily through lengthy interviews.

At the five year follow-up, the crisis period was over,

and most children had resolved their negative feelings about

their parents' divorce. It was noted that those who had

positive relationships with both parents achieved the best

adjustment. Despite resolution of many of the problems,

there was some evidence of emotional difficulties in one-

third of the children. These children described being

intensely dissatisfied with their post-divorce lives,

depressed and lonely. Only 34% of the children were

considered to be doing especially well, with high self-

esteem.

At the 10-year follow-up, Wallerstein (1987) re-visited

16 girls and 22 boys who had been early latency aged (6-8









years old) at the time of their parents' divorce. Semi-

structured interviews were supplemented by questionnaires.

All of the children were in the custody of their mothers,

but during the ten-year period several had spent some time

living with their fathers. A little more than one-third saw

their fathers regularly, defined as one or more times per

month. Fifty-seven percent of the girls and 44% of the boys

had irregular visits, defined as less than six visits per

year (Wallerstein, 1987).

In terms of school performance, Wallerstein (1987)

estimated that 40% of the subjects were underachieving to a

significant degree. Additionally, their career aspirations

were notably shallow. This group was found to be

significantly less psychologically and socially well

adjusted than the youngest group, who were now 11-15 years

old. Overall, "half of the boys and one fourth of the girls

were considered poorly adjusted and at high risk at the time

of the ten-year follow-up" (Wallerstein, 1987, p. 210).

The profound unhappiness which these subjects

experienced in their current relationships distinguished

them from the children who were either younger or older.

The unhappiness with relationships is particularly

significant as the formation of intimate relationships is

the appropriate developmental task for adolescents and young

adults (Erikson, 1968). Girls were noted to have had three

or more boyfriends during their adolescence, and one quarter







19

of the girls had had abortions. The girls in this age group

also reported more depression and suicide attempts

(Wallerstein, 1987).

The Wallerstein and Kelly studies focused attention on

the long-term ramifications of divorce with negative

findings in educational, psychological and social areas of

functioning which extended over a ten year period. These

negative results seem to have sparked a variety of

subsequent investigations. However, attempts to replicate

the findings have not always been successful. The lack of a

control group of intact families, the small number of

subjects in some of the comparison groups, and the use of

the interview as the primary data gathering method have been

criticized (Levitin, 1979). Nonetheless, the findings have

received considerable attention, in both the research and

popular literature, and Wallerstein and Kelly contributed

much to the study of divorce by delineating outcomes for

children of different ages and developmental levels.

A longitudinal investigation by Guidubaldi and Perry

(1985) focused on long-term psychological adjustment and

utilized a multifactored mental health assessment of 110

children. Children of parental divorce performed more

poorly than children of intact families on 9 out of 30

mental health measures (Guidubaldi & Perry, 1985). In this

study, the average length of time since the divorce was 6.41







20

years, again indicating the continuation of negative effects

beyond the initial adjustment period.

Guidubaldi and Perry (1985) found that divorce seemed

more related to maladjustment in boys than in girls.

However, girls were found to have more social involvement,

unreflectiveness, irrelevant talk, negative feelings,

critical-competitiveness and blaming than boys (Guidubaldi &

Perry, 1985). This investigation utilized parent ratings in

addition to other methods, and the authors suggested that

the daughters of divorce were more likely than the daughters

of intact families to tell their mothers if something good

happened. Thus, mothers' ratings of the daughters of

divorce could have been positively skewed. On the other

hand, the sons of divorce were less likely to tell their

mothers if something good happened than the sons of intact

families, possibly accounting for more negative ratings.

Psychological well-being following divorce was also

examined by Glenn and Kramer (1985). Females whose parents

had divorced, when compared to females from intact families,

had negative coefficients which reached significance on five

out of eight dimensions of psychological well-being. There

was no evidence that the negative effects diminished with

time, and there was evidence that females were more

negatively affected than males. Comparisons were also made

between persons who had lost a parent due to death and those

from intact families. The results indicated that loss of a








parent due to death does not produce the same long-term

negative effects as loss due to divorce (Glenn & Kramer,

1985). While this appears to contradict the theory that

father loss is an significant component of divorce, it

suggests that the reason for the loss is important.

Following parental death, there is no reason for a child to

expect continued contact, but following divorce, the father

is still alive and available. A decrease in the amount and

quality of contact with the father might be perceived as a

rejection and this perception might contribute to negative

effects.

Divorce often involves parental conflict, and this

conflict also affects the adjustment of the child. For

example, Chess et al. (1983) found high parental conflict

associated with poorer adaptation; Long (1986) found self

esteem positively related to parental happiness rather than

to family structure; and Ellison (1983) found a positive

correlation between parental harmony and children's

assessment of their own psychological adjustment.

Slater and Calhoun (1988) examined the influences of

parental marital status and level of conflict during

childhood (high or low) on social functioning of

undergraduate psychology students. "The ability to develop

and maintain supportive friendships and dating relationships

varied as a function of family structure and conflict"

(Slater & Calhoun, 1988, p. 123). Interestingly, within the







22

divorced group, those with high conflict had better indices

of social functioning than did those with low conflict.

However, females in the divorced/high conflict group were

less likely to have a boyfriend. The authors concluded that

students from the high conflict groups might have lower

expectations and reduced skills for the maintenance of

intimate relationships.

Parental conflict also affects the parent-child

relationship. Conflictual parents are more likely to be

self-absorbed, having less energy or capacity for parenting.

The child may end up feeling like a pawn, torn between two

warring parents, and the conflict may make the access to the

non-custodial parent more difficult (Kline, Johnston &

Tschann, 1991). Farber, Felner and Primavera (1985) also

found levels of family cohesion and conflict to be

predictive of adaptive outcome. Where there was greater

conflict and less cohesion, there was an increase in

anxiety.

Hetherington, Cox, & Cox (1985) conducted a

longitudinal study of 144 children and their parents which

began to address family relationships. In the original

investigation, one-half of the children were from divorced

families, and were in the custody of their mothers; the

other half were from intact families. At the six year

follow-up, 42 of the divorced mothers had remarried.

Consequently, some subjects were added so that there were 30









sons and 30 daughters in each of three groups: intact,

divorced/remarried, and divorced.

This investigation utilized interviews, standardized

measures, and in-home observations. Several differences

were observed in family relationships, depending upon family

structure. For example, sons and daughters from divorced

families were allowed more responsibility and independence

than children from intact homes (Hetherington, 1989).

Interestingly, what Hetherington described in positive

terms, Wallerstein (1985) perceived more negatively, as she

felt that children became "overburdened" with various types

of responsibilities. Whether or not the daughters of

divorce perceived their life changes negatively varied with

whether or not their mothers had remarried. Those whose

mothers had remarried saw themselves and were seen as having

more problems than those from intact families and those from

divorced, non-remarried families. Despite many strengths of

this study, the quality of parent-child relationships was

not addressed.

In an attempt to examine the attitudes of children

toward themselves and their parents, Parish and Wigle (1985)

evaluated the attitudes of 639 students in another

longitudinal study. There were three randomly selected

groups of 30 adolescents each: families intact throughout

the study; families divorced at the onset and completion of







24

the study; and families intact at the onset but divorced at

the completion.

Subjects were asked to complete the Personal Attribute

Inventory for Children (Parish & Wigle, 1985) with their

mothers, fathers, and themselves as targets. The

adolescents from intact families evaluated themselves and

their families more positively than adolescents from

divorced families. The ratings were the lowest for those

adolescents whose families experienced parental divorce

during the study. These findings demonstrate the impact of

recent divorce, and suggest that the pain of divorce

diminishes with time (Parish & Wigle, 1985).

Although the evaluations of self and parents became

more positive over time, the evaluations from children of

divorce never became as positive as those from intact

families. This study went beyond family structure to

examine family processes and relationships. Family

processes appear related to the way adolescents evaluate

themselves and their parents, and father absence, in

particular, was strongly associated with negative

evaluations (Parish & Wigle, 1985).

Parental divorce also seems to have an impact on

attitudes and expectations for intimate relationships.

Wallerstein and Blakeslee (1989) interviewed 116 children

ten years after their parents' divorce. At that time, the

children were between 11 and 29 years of age. The findings






25

indicated that these children wanted what their parents had

failed to achieve: a lasting, committed, romantic love and

marriage. However, they felt it was unlikely that they

would achieve these goals. Many of these subjects felt

rejected and feared rejection in future relationships with

the opposite sex.

As a part of the Wallerstein and Kelly investigation,

Kelly (1981) conducted a study of 18 adolescents and young

adults (aged 17-23). Eighteen months following their

parents' divorce, the subjects were categorized as resuming

their developmental agendas or remaining delayed, disrupted

or fixated in their development. After five years, those

who had been considered to be well adjusted, at the eighteen

month interview, had not yet developed appropriate, enduring

relationships. Their relationships tended to be short-lived

and terminated by the subjects. Those adolescents who had

been functioning at a lower level, had rushed into

heterosexual activity and clung to relationships that were

unsatisfying. Both patterns could be indicative of problems

with interpersonal intimacy. However, it should be noted

that these conclusions are based on a small sample; that

gender was not controlled; and that there was no comparison

group of children from intact families.

Kalter et al. (1985) compared the attitudes of 42

female college students from divorced families to the

attitudes of 42 female subjects from intact families. A 19









page questionnaire and 2 Thematic Apperception Test (TAT)

(Murray, 1971) cards were administered. Several findings

emerged: the women in the divorced group began dating later

than those in the intact group; the divorced group saw men

as more unfeeling and less strong; the divorced group saw

females as less sensitive and less mature; and the divorced

group was less hopeful about the future and less certain

about having a lasting marriage.

Using TAT cards, Lussen (1988) compared the stories of

nine girls who experienced parental divorce and ten girls

from intact families. The divorced group wrote stories that

had the same conflicts, themes, and tasks as the stories

from the intact group, but their stories had less resolution

and greater ambivalence. The divorced group also had a less

trusting view of the world than the intact group. Men were

seen as "less supportive, more absent, more pursuing, less

rational, more impulsive, and less understandable" where

women tended to be "more stuck, burdened, worn down, and

trapped by their relationships and cares" (Lussen, 1988, p.

114-115). The author does not indicate that the stories

were judged blind and, if that were not done, it would have

been a major flaw in the research design.

Parental divorce has been found to have significant

negative effects in educational, psychological and social

areas of adjustment. Eleven studies have been reviewed and

have indicated that the negative effects of divorce extend









beyond the three year adjustment period. Even though the

negative effects diminish over time, Parish and Wigle (1985)

found that the evaluations of self and parent by children of

divorce never became as positive as those from children of

intact families. Following divorce, not only does the

structure of the family change, but the family processes and

relationships also change. The absence of the father has

been found to be strongly associated with adolescents'

negative evaluations of themselves and their parents (Parish

& Wigle, 1985). Relationships within the family were not

the only ones affected; Kelly (1981) found that adolescents'

heterosexual relationships tended to be either short-lived

or unsatisfying. Additionally, girls who have experienced

parental divorce have been found to view men less positively

and to have lower hopes and expectations for marriage

(Kalter et al., 1985).

Intergenerational Transmission of Divorce

With parental divorce impacting upon relationships and

expectations for marriage, one of the long-term consequences

of divorce that has received much of the research focus has

been the intergenerational transmission of divorce. Several

investigators have found there to be no significant

differences between intact and divorced adult children on

attitudes toward marriage. For example, adult children of

divorce have been found to be as likely to want to get

married (Black & Sprenkle, 1991; Ganong, Coleman & Brown,









1981) and to perceive the advantages of marriage similarly

to the children from intact families (Amato, 1988).

However, children living in either single parent or

reconstituted families view divorce more favorably than

those from intact families (Coleman & Ganong, 1984;

Greenberg & Nay, 1982).

Wallerstein and Blakeslee (1989) interviewed 116

children ten years after their parents' divorce. At that

time, the children were between 11 and 29 years of age. The

findings indicated that these children wanted what their

parents failed to achieve: a lasting, committed, romantic

love and marriage. However, they felt it was unlikely that

they would achieve these goals. Many of these subjects felt

rejected and feared rejection in relationships with the

opposite sex.

Kulka and Weingarten (1979) utilized data from two

national surveys which were conducted by the Survey Research

Center at the University of Michigan. The initial survey,

in 1957, included 2460 respondents and then 2264 respondents

were surveyed in 1976. The data were collected using ninety

minute interviews, and results indicated that young adults

from divorced homes were less likely than those from intact

homes to report being very happy. Also, children of

parental divorce were more likely to report having their own

marital problems. Other investigators confirmed the

findings that parental divorce is positively related to









lower levels of marital happiness, increased marital

instability, and increased marital disagreements (Booth &

Edwards, 1989; Glenn & Kramer, 1987).

In another study designed to examine the impact of

preadult experiences on behavior and adult well-being, Glenn

and Shelton (1983) found that females whose parents had

divorced had a 59.3% greater divorce rate than those whose

families remained intact. Similarly, Pope and Mueller

(1976) found a higher rate of marital dissolution among

children from disrupted homes. By analyzing data including

parents' and grandparents' marital status, Black and

Sprenkle (1991) found that intergenerational marital

instability was significantly greater for the divorced

group. Adult children who perceived their parents' marriage

to be unhappy had lower levels of psychological, social and

marital well-being, as did the adult children of divorce

(Amato & Booth, 1991).

In addition to a greater likelihood for divorce or for

marital difficulties, parental divorce may influence

children's relationships and their later adult well-being in

other ways. McLanahan and Bumpass (1988) extended previous

studies by examining variables relevant to the formation of

families. Interviews were conducted with 7,969 women who

ranged in age from 15-44 years. The results provided strong

evidence that women who experienced parental divorce and

lived in single parent homes, whether in the custody of









mother or father, were more likely to marry before age

twenty, give birth before age twenty, give birth before

marriage, and to divorce.

Long (1987) had 134 female undergraduates fill out

questionnaires on two occasions in order to evaluate

attitudes toward marriage. The expectations and evaluations

of marriage were lower for daughters who perceived their

parents' marriages to be unhappy. Daughters of broken

marriage also expected to marry later.

Wallerstein (1983) stated that one of the six

psychological tasks of the child after divorce is to achieve

realistic hopes regarding relationships. Generally, the

achievement of this goal is an issue of adolescence and

young adulthood. "In order to trust in the reliability of

relationships and maintain the capacity to love and be

loved, the child of divorce will need to have acquired

confidence in his or her ability and self-worth"

(Wallerstein, 1983, p. 242). A number of Wallerstein's

(1983) subjects indicated on-going problems in achieving

this task. Some said they would never marry, some were

described as promiscuous with low self-esteem, and some

seemed cynical and felt hopeless.

The conclusions of the preceding investigations seem to

indicate that while the adult children of divorce appear as

likely to enter into a marriage (Black & Sprenkle, 1991;

Ganong, Coleman & Brown, 1981), they may be more likely than







31

children from intact families to experience problems within

marriage and to divorce (Kulka & Weingarten, 1979; Glenn &

Shelton, 1983). The eleven studies that were reviewed

provided evidence to support theories of intergenerational

transmission of marital instability. Perhaps some aspects

of parental divorce influence relationships and

consequently impact upon the ability to find satisfaction in

marriage.

Father-Child Relationship Following Divorce

While much of the previous research focused upon the

impact of parental divorce as if it were a single event, a

number of more recent investigations have explored the

impact of components of the divorce process. It may well be

that divorce status does not simply indicate the structure

of the family, but indicates the kinds of interactions or

relationships likely to be found within families. Relations

with parents have been found to be particularly important in

contributing to the successful adjustment of children

following parental divorce (Hetherington, Stanley-Hagan, &

Anderson, 1989). For example, parent-child relationship

variables were found to have a greater impact on social

relations than parental harmony (Hess & Camara, 1979), and

the parent-child relationship was found to have a greater

influence on marital attitudes than was family dissolution

(Coleman & Ganong, 1984).









Whereas relationships with both parents are important,

significant differences have been noted in intimate

attachments to mothers and fathers, with fathers being rated

lower on intimacy (LeCroy, 1988). However, a father who is

warm, involved and accepting contributes to the optimal

development of his child (Weinraub, 1978). Comparisons of

children from intact and divorced families, using measures

of attitudes toward parents and the number of positive

adjectives checked, reveal higher ratings of fathers by

children from intact families than by children from divorced

families (Drill, 1987; Parish, 1981; Parish, 1991). These

ratings may be related to changes in the amount of contact

with the father or in the quality of the father-child

relationship.

Based on a review of the literature, Biller and Weiss

(1970) concluded that the role of the father is important in

the personality development of the daughter and in her

feminine identification. The relationship with the father

also explains a significant amount of the variance in self-

esteem and problem behaviors (LeCroy, 1988). The impact of

the father-daughter relationship on self-esteem is relevant

for the current investigation because a good sense of self

and strong ego are essential for the ability to achieve

emotional and sexual intimacy (Kaslow & Schwartz, 1987).

Young and Parish (1977) specifically explored the

impact of father absence on female college students. There









were three groups of students: daughters who lost their

father because of death; daughters who lost their fathers

because of divorce; and daughters from intact families.

Within each of the "father loss" groups, some of the mothers

had remarried and some remained single. Standardized

measures were administered in order to assess reflection vs.

impulsivity, self-criticism, and feelings of security.

Daughters who had lost a father and whose mothers had not

remarried thought of themselves more negatively and saw

themselves as more insecure than girls from intact families

(Young & Parish, 1977).

Similarly, Parish and Wigle (1985) found father absence

to be strongly associated with negative evaluations of self

and parents by the child. When examining the father-child

relationship, fathers from divorced families were rated

significantly more negatively than those from intact

families (Parish & Osterberg, 1984). Attachment to the non-

custodial parent was significantly lower than attachment to

parents in intact families (White, Brinkerhoff & Booth,

1985).

Following parental divorce, both males and females

typically have less contact with their fathers, but the

amount of contact is considerably less for females than for

males (Amato & Booth, 1991). Southworth and Schwarz (1987)

assessed the frequency, regularity and duration of visits

with the father in a study of 104 female college students,









one-half from divorced families and one-half from intact

families. A composite score indicated that post-divorce

contact decreased over time. The amount of contact during

the 3-5 year period after divorce was significantly lower

than during the first two years (Southworth & Schwarz,

1987). Indicating the impact of a decrease in contact,

Lopez and Watkins (1991) found that those students who

reported a low level of contact with their fathers had

higher scores of functional, emotional, and attitudinal

independence from their fathers.

Although the amount of contact does not necessarily

indicate the quality of the relationship with the father,

there tends to be some correspondence. For example, those

who experienced less frequent contact with their fathers

following divorce perceived their fathers as less accepting

and more inconsistent (Southworth & Schwarz, 1987).

Further, within the divorced group, when there was a

perception of decreased acceptance and consistency, there

was an indication of a decrease in heterosexual trust.

These findings are particularly significant because there is

a correspondence between the capacity for intimacy and

parental acceptance (Finch, 1986).

Overall, quality is considered more important than the

frequency of visitation with the father, as children need to

have confidence in their ties with their father (Hess &

Camara, 1979; Wallerstein & Blakeslee, 1989). Daughters not









only experience a decrease in contact with the father

following divorce, but the nature of the father-daughter

relationship also changes over time (Hetherington, Cox &

Cox, 1978). Fathers were found to become more and more

unavailable to their children over the two year period

following divorce. Fathers became less nurturant and more

detached, and when interactions between fathers and their

children were observed, the divorced fathers ignored their

children more and demonstrated less affection (Hetherington,

Cox & Cox, 1978).

In a study designed to examine the effects of father

absence on personality development in adolescent daughters,

Hetherington (1972) utilized observations of non-verbal

behaviors, interviews and personality measures. There were

three groups of 24 adolescents each; the subjects were

either from intact families, families with father absence

due to death, or families with father absence due to

divorce. Significant differences were found between the

groups in the ways they responded to male interviewers,

while few differences were observed in the responses to

female interviewers. Additionally, daughters of divorce

reported more heterosexual activity, more negative feelings

toward their fathers and more conflict with their fathers

than either of the other groups. Further, the effects were









greater with early separation rather than later separation,

perhaps attesting to the importance of early object

relations.

For daughters, there seem to be different patterns of

effects depending upon the reason for the father absence,

and these effects appear during adolescence and are

manifested primarily as the inability to interact

appropriately and satisfactorily with males (Hetherington,

1972; Chase-Lansdale & Hetherington, 1990). Zaslow (1988)

has described the long-term effects of divorce and father

absence as "sleeper effects", appearing as a child passes

through progressive stages of development. What

Hetherington (1972) described as apprehension and inadequate

skills in relating to males becomes most evident just when

these skills are required.

Hainline and Feig (1978) attempted to replicate

Hetherington's (1972) findings regarding the impact of

father absence in a study of college-aged women. Non-verbal

behavior during an interview and performance on both

standardized and nonstandardized measures were evaluated.

Subjects who experienced father absence before age five

seemed to have more traditional attitudes about some aspects

of sexual behavior than did the subjects who experienced

father absence between ages 5 and 10. However, there were

no significant differences noted between any of the father

loss or control groups on measures of sexual behaviors or








Rubin's Romantic Love Scale (Rubin, 1970). While this

investigation failed to replicate the findings of

Hetherington (1972), it should be noted that there were only

six subjects in each of the cells; there were cultural

differences in the samples, and the subjects in the

Hetherington study were of a lower socioeconomic status.

Vess, Schwebel and Moreland (1983) further explored the

long-term impact of divorce on feminine development.

Undergraduates were utilized whose families were intact,

whose families divorced before the subject was five years of

age, and whose families divorced when the subject was

between five and ten years of age. The girls whose fathers

left before age five selected more feminine characteristics

on the Gough Femininity Scale than those whose parents

divorced later. The authors further concluded, based on the

indications of distrust and insecurity that persisted well

after the parental divorce, that the child's perceived

rejection by one or both parents may result in enduring

problems (Vess, Schwebel & Moreland, 1983).

Kinnaird and Gerrard (1986) examined sexual behavior

and attitudes toward marriage, using adolescents and young

adults whose families were divorced, remarried or intact.

Subjects were administered five questionnaires and the

results indicated that the intact group had more positive

attitudes toward marriage; the daughters from both divorced

and reconstituted families reported more sexual experience;









and subjects from divorced and reconstituted families were

more likely to respond that they would have liked more

contact with their fathers. An effort was made to

investigate the impact of other significant males, including

the stepfather, but the presence of other influential males

was not predictive of any behavioral, attitudinal or

adjustment variables.

Wallerstein (1984), as a part of the ten-year follow-

up, found that, for thirty adolescents who had been between

two and one-half and six at the time of divorce, "the non-

custodial father remained a significant psychological

presence" (p. 454). Even those children whose mothers had

remarried had an intense awareness of their fathers, and the

relationships with fathers and stepfathers were

distinguishable and separate. The need for the father had

not diminished but heightened with the advent of adolescence

(Wallerstein, 1984).

The relationship with the father has been found to be

important in contributing to adjustment following parental

divorce (Hetherington, Stanley-Hagan & Anderson, 1989) and

to the optimal development of the child (Weinraub, 1978).

Following divorce, not only is the amount of contact with

the father decreased, but the nature of the relationship

also changes (Hetherington, Cox & Cox, 1978). Daughters

experience less frequent contact than sons and the amount of

contact decreased over time (Amato & Booth, 1991; Southworth









& Schwarz, 1987). While some authors have suggested that

the presence of another significant male figure might

decrease the impact of changes in the father-daughter

relationship, this has not received much support in the

studies that were reviewed.

A poor relationship with the father has been linked

with apprehension and inadequate skills in relating to males

(Hetherington, 1972); with changes in the personality

development of the daughter and her feminine identification

(Biller & Weiss, 1970; Vess, Schwebel & Moreland, 1983); and

with sexual behaviors and negative attitudes toward marriage

(Kinnaird & Gerrard, 1986). Of all the components of the

divorce process, the relationship with the father may have

the greatest impact upon the ability to have satisfying,

intimate relationships.

Intimacy and its Measurement

Much of the literature about intimacy is descriptive,

attempting to define the construct. This is understandable

as some equate intimacy with love, some equate intimacy with

sexual behavior, and others believe that intimacy involves

primarily the ability to self-disclose. The diverse ways

that intimacy has been defined make it appear more complex

than any of these views indicate. Intimacy involves

affection, the willingness to commit oneself to another, the

ability to trust, the ability to be open and share personal

information, and the willingness to provide support to








another (Levitz-Jones & Orlofsky, 1985; Perlman & Fehr,

1987; Trotter, 1986). Intimacy also requires the ability to

both give and receive love, so it entails mutuality

(McAdams, 1989; Dyk & Adams, 1987).

A study by Roscoe, Kennedy and Pope (1987) further

illustrates the complexity of defining intimacy. When 277

undergraduate students were asked to respond to questions

requesting their thoughts of what distinguishes an intimate

from a non-intimate relationship, the most frequently

mentioned components were sharing, physical/sexual

interaction, trust and faith, openness, and love (Roscoe,

Kennedy & Pope, 1987). There were also significant

differences between the components mentioned most frequently

by men and women. Males were more likely to cite

physical/sexual interaction, and females were more likely to

cite openness and self-abandon.

Intimacy is but one component of love (McAdams, 1989;

Sternberg, 1986). Sternberg's triangular theory of love

proposes that there are three components of love; intimacy,

passion, and commitment. The intimacy component seems to be

at the core of loving relationships (Sternberg & Grajek,

1984). Intimacy is necessary for both friendship and love,

and "the desire for intimacy is a fundamental psychological

need in human lives, one of a few basic needs that organize

our behavior and experience and provide our lives with

meaning" (McAdams, 1989, p. 2).






41

While Sullivan, Erikson and McAdams see intimacy as an

individual capacity, Argyle and Dean (1965) see it as both a

quality of persons and interactions. In the second view, an

individual may have the capacity for intimacy, but not

achieve it because it requires a relationship. There has

also been some debate over whether intimacy is a state or a

process, but Perlman and Fehr (1987) see intimacy as both

dynamic and static, and as both personal and situational.

Perhaps intimacy is best captured by examining both

attitudes and behaviors.

Capacity for Intimacy

The capacity for intimacy depends upon the individual

resolving their own separateness, and it is unlikely that a

person would achieve this level of development until late

adolescence or early adulthood (Erikson, 1968). In a study

of intimate relationships between college women, Rayfield,

Liabre and Stokes (1987) found that self-actualization was

the best predictor of intimate friendships. Whether

intimacy precedes the self-actualized, mentally healthy

state or whether the mentally healthy state precedes

intimacy is unknown.

The capacity for intimacy also requires the ability to

trust another person. Optimism and trust were measured in a

study by Franklin, Janoff-Bulman and Roberts (1990). Groups

of college students from divorced families and intact

families were compared. Although the groups did not differ









significantly in trust or optimism regarding present or

future dating relationships, or close friendships, the

parental divorce subjects were less optimistic about their

own future marriages. Perhaps witnessing the breakdown in

trust in their parents' marriage led to increased pessimism

and caution, or perhaps, as the authors suggest, these

children of divorce have a more realistic assessment of the

dynamics of relationships (Franklin, Janoff-Bulman &

Roberts, 1990).

Craig-Bray and Adams (1986) performed a study which

utilized a variety of measures of intimacy, including the

Orlofsky, Marcia and Lesser (1973) interview. Additionally,

subjects were asked to fill out a record of their social

interactions. The sample included 23 males and 25 females

between the ages of 18 and 22 years. Females with higher

social intimacy were found to have greater self-disclosure

and satisfaction with interactions in opposite sex contexts

(Craig-Bray & Adams, 1986). The interview and self-report

measures which were utilized were found to have strong, but

not perfect convergence, and the measures lacked strong

convergence with daily social interactions. Intimacy status

in same sex relationships paralled intimacy status in

heterosexual relationships (Craig-Bray & Adams, 1986),

suggesting that intimacy is a capacity which may depend upon

a relationship, but not on a specific type of relationship.









Intimacy Motivation

Intimate relationships were found to be preferred over

less intimate relationships, in a study by Caldwell and

Peplau (1982). When 98 college students were asked about

the types of friendships that they prefer, 73% of the men

and 83% of the women preferred having a few intimate friends

over having many less intimate friends. Similarly, Reis and

Shaver (1988) found that five of the most highly rated

friendship goals, based on the ratings of 99 college

students, also fit the definition of intimacy.

In order to study intimacy motivation, McAdams (1989)

designed a way to score the Thematic Apperception Test

(TAT), as he believed that people who were both high and low

in intimacy motivation were likely to rate themselves as

natural, warm, sincere and loving. Utilizing the TAT,

McAdams et al.(1988) explored sex differences in intimacy

motivation. Consistently, women had higher scores than men,

indicating greater desire for intimacy. Although women

seemed to have a disposition to prefer intimacy, overt

behaviors were not being evaluated. There were no

significant differences between women and men on fear of

intimacy (McAdams et al., 1988).

In a study that specifically addressed fear of intimacy

in college women, Lutwak (1985) found 31 out of 107 women to

have a high fear of intimacy. Most of the 31 students were

frightened of being hurt or taking risks. The women feared









marriage and commitment and sought security and safety.

These characteristics fit the descriptions of women in low-

intimacy status, as described in Levitz-Jones and Orlofsky

(1985). Unfortunately, Lutwak (1985) did not provide data

on parental marital status, so no information is available

on whether the students who had a high fear of intimacy came

from any particular family background.

Impact of Parental Divorce on Intimacy

While dating behaviors do not necessarily correspond to

intimacy, either absent or excessive dating may indicate

problems in the capacity for intimacy. Andrews and

Christensen (1951) found that both males and females who had

a father missing from the home had begun dating at an

earlier age, "gone steady" earlier, gotten engaged earlier,

and had more broken engagements than the group that had both

parents present. Thus there seemed to be accelerated

courtship activity when the father was absent, but the

outcomes did not necessarily involve close, committed

relationships.

Booth, Brinkerhoff and White (1984) assessed the long-

term consequences of divorce on courtship. They utilized a

questionnaire designed for their investigation. The sample

of 2538 college students included 228 whose parents'

marriage was broken by death and 365 whose parents had

separated or divorced. The children of divorce were found

to be actively involved in courtship behaviors, and as









likely to form long-term relationships as others. However,

children of divorce were more likely to engage in premarital

sexual intercourse or to be cohabiting. Additionally, when

there was a decline in relations with mother or father,

there was a significantly large percentage of the children

of divorce who reported "difficulty in dating people with

whom they could develop a serious relationship" (Booth,

Brinkerhoff & White, 1984, p. 90). When relations with the

parents were analyzed separately, those students who were

less close to their fathers reported less satisfaction with

their heterosexual relationships.

Following disruption of their parents' marriage, adult

female children of divorce have been found to "become more

solitary within interpersonal relationships" (Weiss, 1988,

p. 148). Additionally, when compared to daughters of intact

families, those from divorced families felt more distant

from their fathers. In this particular investigation, these

findings persisted over a period as long as 17 years, again

indicating that the impact of divorce extends well beyond

the adjustment period.

Gabardi (1990) performed a study of the differences

between college students from divorced and intact families

on measures of intimacy, sexual behaviors and beliefs about

relationships. Subjects were both male and female students

aged 18-25 years old. There were 185 children of intact

families and 115 children of divorce. The results indicated









that the number of sexual partners was significantly

influenced by a number of factors. Parental divorce,

parental unhappiness and parental conflict all predicted a

greater number of sexual partners. Since these same three

factors also affect the quality of the parent child

relationship, it is possible that the nature of the

relationship actually explains the most variance in the

number of sexual partners. No significant differences were

noted between college students from divorced and intact

families on measures of intimacy, relationship beliefs or

self-esteem. Students whose parents had divorced also had a

more negative view of their sociability than did the

students from intact families.

Intimacy is a construct that has been defined and

measured in different ways by different researchers.

However, there do seem to be some commonly accepted

components of intimacy, including the ability to self-

disclose, the ability to trust, and the sharing of support

and love. Intimate relationships have been found to be

preferred to other types of relationships (Caldwell &

Peplau, 1982), and women seem to prefer intimacy more than

men (McAdams, et al., 1988). Behavioral indications of

intimacy suggest that parental divorce and the absence of

the father are negative influences on the ability to

establish close, committed relationships (Andrews &

Christensen, 1951; Booth, Brinkerhoff & White, 1984;









Gabardi, 1990; Weiss, 1988). Because the ability to

establish intimate relationships influences both

heterosexual and same-sex relationships, further exploration

into the impact of divorce on interpersonal intimacy is

warranted.

Summary

The impact of parental divorce has been found to extend

well beyond the period immediately surrounding the legal

separation. In the years following divorce, not only does

the structure of the family change but family processes and

relationships also change. Of the family relationships, the

one between the father and daughter has been found to be

negatively affected, with contact becoming less frequent and

fathers becoming less available and less nurturant (Amato &

Booth, 1991; Southworth & Schwarz, 1987; Hetherington, Cox &

Cox, 1987). The impact of parental divorce also extends

beyond the family; parental divorce affects attitudes and

behaviors related to dating, courtship, and the formation of

long-lasting relationships. The daughters of divorce were

found to have dated earlier (Andrews & Christensen, 1951),

had a greater number of dating relationships (Wallerstein,

1987), had more sexual experience (Kinnaird & Gerrard,

1986), had shorter-lived relationships (Kelly, 1981), and

had lower hopes and expectations for marriage (Kalter et

al., 1985) than did daughters from intact families.

Children of divorce were also more likely to report problems









within their own marriages (Booth & Edwards, 1989; Glenn &

Kramer, 1987).

These behavioral and attitudinal indices suggest that

intimacy, or the ability to commit oneself to another,

trust, interact physically/sexually, be open and share

personal information, and the willingness to provide support

to another (Levitz-Jones & Orlofsky, 1985; Perlman & Fehr,

1987; Roscoe, Kennedy & Pope, 1987), is affected following

parental divorce. However, various measures of intimacy and

behavioral measures have not always had perfect convergence

(Craig-Bray & Adams, 1986) and studies of intimacy following

parental divorce have not always found differences between

children from intact and divorced families (Gabardi, 1990).

Since parental divorce does not necessarily involve

uniformly negative experiences, perhaps some aspect of the

divorce process, for example, the father-daughter

relationship, is more important in impacting intimacy than

is the divorce itself.

It has been suggested that father absence or a poor

relationship with the father has been linked with

apprehension and inadequate skills in relating to males

(Hetherington, 1972); with changes in the personality

development of the daughter and her feminine identification

(Biller & Weiss, 1970; Vess, Schwebel & Moreland, 1983); and

with sexual behaviors and negative attitudes toward marriage

(Kinnaird & Gerrard, 1986). It may be that the failure to








control for the nature of the father-daughter relationship

contributed to the lack of significant results in studies

that used divorce as the predictor of the ability to

establish meaningful, intimate relationships (Franklin,

Janoff-Bulman & Roberts, 1990; Gabardi, 1990).

Object relations theory provides a foundation for the

examination of the father-daughter relationship and its

impact upon intimacy as it suggests that early relationships

with significant others are internalized and impact upon the

ability to love as an adult (Dicks, 1963). Antonovsky

(1985) states that interactions with significant others are

internalized and "affect all later experiences with others"

(p. 538). Further, although object relations are formed

early in the life of a child, they continue to be modified

throughout life. Modification is likely to occur when there

is "pain in relationship with significant others"

(Antonovsky, 1987, p. 538). Parental divorce often

interferes with or interrupts the attachment to the father.

The resultant disturbance of this important object

relationship may be expected to influence interpersonal

intimacy.
Hypotheses

The goals of the current investigation include

confirmation of previous studies, which have concluded that

divorce has a negative effect upon the father-daughter

relationship, and exploration of the impact of the father-







50

daughter relationship, following divorce, upon intimacy. It

is expected that both parental divorce and the quality of

the father-daughter contact will impact the capacity for

intimacy with the opposite sex. Accordingly, the present

investigation tests the following hypotheses:

HYPOTHESIS #1: Daughters of parental divorce will be more

likely to rate their fathers lower on the Parent-Child

Relationship Survey than will the daughters from intact

families. This hypothesis tests a main effect: that the

father-daughter relationship is negatively affected by

divorce. This hypothesis was supported by the findings of

Drill (1987), Parish (1981), Parish (1991), Parish and

Osterberg (1984).

HYPOTHESIS #2: Daughters of parental divorce will score

lower than daughters from intact families on measures of

intimacy. This hypothesis tests the effect of divorce on

heterosexual intimacy irrespective of the quality of the

father-daughter relationship, which is a main effect.

Although the negative effect of divorce on intimacy was not

supported by Gabardi (1990), Weiss (1988) found daughters of

divorce to be "more solitary within interpersonal

relationships" (p.148).

HYPOTHESIS #3: Daughters who have a poor relationship with

their father will score lower on measures of intimacy than

daughters who have a good relationship with their father,

regardless of parental marital status. This hypothesis








tests the main effect of parent-child relationship on

measures of intimacy. This hypothesis was supported by

Biller and Weiss (1970) and Hetherington (1972), but was not

supported by Hainline and Feig (1978).

HYPOTHESIS #4: Daughters of parental divorce who have a poor

relationship with their father will score lower on measures

of intimacy than any other comparison group. This

hypothesis tests an interaction effect. While this

hypothesis and the one following have not yet been tested,

they are predicted based upon the support of their separate

components, as indicated above.

HYPOTHESIS #5: Daughters from intact families who have a

good relationship with their fathers will score higher on

measures of intimacy than daughters from any other

comparison group. This hypothesis tests the interaction of

parental marital status and father-child relationship on

measures of intimacy. Figure 1 illustrates the predicted

directions of the interaction effects for Hypotheses 4 and

5.

HYPOTHESIS #6: Daughters of divorce who have a poor

relationship with their father, but who have someone "like a

father" to them will score higher on measures of intimacy

than will daughters who have a poor relationship with their

father and no other significant father figure. Kinnaird and

Gerrard (1986) found that the presence of another

significant male was not predictive of behavioral,







52

attitudinal or adjustment variables, but they did not assess

the quality of the relationship. Object relations theory

suggests that the fathering figure is important, but it need

not be the biological father (Rosenberger, 1990).

Consequently, it is considered important to examine the

effect of someone who is perceived as filling the fathering

role.




High I
I
D
Intimacy


Low D

Poor Good

Father-child Relationship

Figure 1: Predicted interactions for Hypotheses 4 and 5.

Note. "D" and "I" refer to parental marital status with "D"
being divorced and "I" being intact. Scores on the Risk in
Intimacy Inventory would be reversed.












CHAPTER 3
METHODS

Subjects

Subjects for the current investigation were taken from

a sample of 379 female students enrolled in undergraduate

psychology courses. Some volunteers, particularly those who

were taking general psychology, participated for course

credit; others received no compensation or credit for their

participation. Data were also gathered from 67 male

students who filled out the questionnaires within their

psychology classes, but the data from these subjects were

not used in the tests of the primary hypotheses. When

subjects were solicited from the general psychology pool,

the notices requested females aged 17-25. Subjects were not

selected or solicited based on parental marital status or

the nature of the father-daughter relationship.

Since the purpose of the present investigation was to

ascertain the long term impact on interpersonal intimacy, of

the father-daughter relationship following divorce, only

subjects for whom information was available on parental

marital status, age of the subject at the time of divorce,

and the nature of the father-daughter relationship were

included. Subjects were placed in one of two groups, those

whose parents were divorced and those whose families of

53









origin were intact. Approximately thirty percent of the

total sample were from families of divorce and seventy

percent were from intact families. Further, subjects were

categorized as having either a "good" or a "poor"

relationship with their fathers. This categorization was

determined by the score on the Parent Child Relationship

Survey (Fine, Worley & Schwebel, 1985), as described within

this chapter, and by a single question on the demographic

form: please rate your relationship with your father, on a

scale from 1-7, with 1 being poor and seven being excellent.

Every attempt was made to either eliminate or control

for as many confounding variables as possible, as several

researchers have indicated that there are a number of

variables that might affect adjustment following parental

divorce. These covariates included gender (Kalter & Rembar,

1981); current age (Kalter & Rembar, 1981); length of time

since the divorce (Frost & Pakiz, 1990); age at the time of

divorce (Black & Sprenkle, 1991; Lopez, 1987; White,

Brinkerhoff & Booth, 1985); socioeconomic status (Biller,

1981; Edwards, 1987; Guidubaldi & Perry, 1985; Mueller &

Cooper, 1986); and race (Glenn & Kramer, 1985). In addition

to these variables, presence of another significant male

figure, sexuality and custody arrangements were also

considered important by the author.







55

Of these variables, gender and current age were judged

to be of primary importance and they were controlled by

using only female subjects within a limited age range (17-25

years of age). Another covariate which had to be controlled

was the length of time since the divorce, since only long-

term effects were being examined. Accordingly, in order to

be included in the category of children of parental divorce,

the divorce must have occurred three or more years prior to

the administration of the questionnaires.

Socioeconomic status was utilized as a covariate as it

was found to have a significant effect on one of the

intimacy measures. Information on race was gathered and

analyzed to assure that a balanced composition was

maintained in the cells. Information on the presence of

another significant male figure was collected and examined

in order to determine if it contributed significantly to the

variance in intimacy scores. Data on homosexual and

bisexual students (n=9) were eliminated from the primary

analyses, as it was considered possible that the father-

daughter relationship would have a different impact on

intimacy, depending upon sexual orientation. Finally, data

on subjects who had lost a parent due to death or who were

in the custody of their father following divorce were

excluded from the analyses. After all of these factors were

controlled, approximately 300 subjects remained. A summary

of the variables that were controlled appears in Table 1,









and the number of subjects in each cell is indicated in

Table 2.


Table 1: Description of final sample.


Gender -
Age -
Sexuality -
If parents
are divorced-


Female
Aged 17-25
Heterosexual

Mother had custody
Divorce occurred 3 or more years ago


Table 2: Number of subj .


Parental Marital
Status

Intact


Divorced


Father-Daughter Relationship

Good Poor


Procedure

Subjects were given a demographic/descriptive

questionnaire, a parent-child relationship survey and four

measures of intimacy. Surveys were administered to groups

of approximately 10-30 subjects. Prior to the

administration of the questionnaires, the informed consent

form was read. The subjects were told that the purpose of

this investigation was to learn more about interpersonal

relationships. The whole purpose of the study was not

revealed to the subjects until the debriefing, in order to

prevent any tendency to respond in the expected direction.


140 89
(47%) (30%)

11 58
(4%) (19%)


Table 2: Number. of iubiects in-each categorv






57

Within each packet, the questionnaires were randomly ordered

in an attempt to prevent any response bias, and the forms

were identified only by last four digits of the subjects'

parents' phone number so that anonymity could be maintained.

After completing the instruments, the subjects were given a

debriefing form and were allowed to ask questions.

Measures

Students completed a demographic and descriptive

questionnaire, a parent-child relationship survey, and four

measures of intimacy: the Miller Social Intimacy Scale, the

Risk in Intimacy Inventory, Rubin's Love Scale, and the

Dyadic Trust Scale. Based on the information from the

demographic/descriptive and parent-child relationship

surveys, subjects were placed in appropriate categories:

intact/good relationship; intact/poor relationship;

divorced/good relationship; and divorced/poor relationship.

Demographic Questionnaire The demographic and descriptive

questionnaire was designed to assess the parents' marital

status, the subject's current age and the age at the time of

the divorce (if applicable), some indication of the parent-

child relationship, and whether or not someone else may have

been a significant "object," like a father, in the subject's

life. Additionally, information about current dating status

and sexual orientation was solicited. A copy of the

demographic questionnaire can be found in Appendix C.

Responses to questions about parental occupations and







58

educational levels were used to code the socioeconomic level

according to the socioeconomic index and occupational

classification scheme of Stevens and Cho (1985).

Parent-Child Relationship Survey (PCRS) This paper and

pencil, self-report questionnaire, was designed to "assess

older children's perceptions of the quality of their own

parent-child relationships on a number of dimensions" (Fine,

Worley & Schwebel, 1985, p. 155). A copy of the Parent-

Child Relationship Survey can be found in Appendix D. There

are two parallel subscales, one for the mother and one for

the father. Each uses 24 Likert-type items, scored on a

seven point scale. For the purposes of this investigation,

only the Father Scale was utilized.

The psychometric properties of the Father Scale are

mainly unidimensional, measuring primarily the Positive

Affect of the father-child relationship, as perceived by the

child. Positive Affect accounts for over 50% of the

variance (Fine, Worley & Schwebel, 1985). Other factors,

which accounted for much less of the common variance, were

trust/respect; lack of anger; and father identification

(Fine, Worley & Schwebel, 1985).

Reliability and validity of the PCRS have been examined

in several studies of middle-class, college-aged students

(Fine, Moreland & Schwebel, 1983; Fine, Worley & Schwebel,

1985, 1986). Internal consistency of the Father subscale

was .96. The Father subscale also has discriminative








ability in that it distinguishes between subjects from

divorced and intact families (Fine, Worley & Schwebel,

1986).

While the range of possible scores, on the father

subscale, is 24-268, the means for women from intact and

divorced homes were 128 and 97, respectively in a study by

Fine, Moreland and Schwebel (1983). When daughters of

parental divorce filled out the subscale with their

stepfathers as the target, the mean was 114 (Sauer & Fine,

1988). For the present investigation, the mean for the

total sample (n = 440) was 114 and the median was 123. For

the approximately 300 subjects in the final sample, the mean

was 115, and the median was 126, and for the 51 subjects who

had some one "like a father", the mean for the other

significant father figure was 116 and the median was 122.

For the purpose of determining whether the father

daughter relationship would be considered "good" or "bad",

it was decided to use a median split. Although it was

thought that utilizing either the upper and lower forty

percent or the upper and lower thirds would perhaps give a

greater ability to detect differences, there was a

concomitant loss of power because of the reduction in cell

sizes. Additionally, when the different ways of

categorizing the father daughter relationship were compared,

there appeared to be little difference in the outcomes. The

PCRS was also correlated with the single item on the









demographic questionnaire which dealt with the father-

daughter relationship. That single item captured 86% of the

variance explained by the PCRS.

Miller Social Intimacy Scale (MSIS) The Miller Social

Intimacy Scale (MSIS) was designed to measure intimacy in

the context of interpersonal relationships (Miller &

Lefcourt, 1982). A copy of the Miller Social Intimacy Scale

can be found in Miller and Lefcourt (1982). In order to

develop this scale, an initial pool of thirty items was

generated from interviews with fifty students. Based on

high inter-item and item-total correlations, seventeen

intimacy items were retained for the final scale. The items

are scored on a ten point frequency and intensity scale.

Two hundred and fifty-two subjects participated in a

study designed to assess the validity and reliability of the

scale. There were 72 male and 116 female unmarried

undergraduates, a married sample of 17 couples, and a

married clinic sample of 15 couples who were seeking marital

therapy (Miller & Lefcourt, 1982). The mean MSIS score for

unmarried females was 139.3 and the mean score for married

females was 156.2. The mean of 143.59 for the sample in the

present investigation appears similar and fell within the

range of means found by Miller and Lefcourt (1982).

A Cronbach alpha coefficient of 0.91 lent strong

support to the internal consistency of the measure and

indicated that a single construct was being assessed. Test-









retest reliability was measured over a two month period.

The results indicated that there is some stability in the

maximum level of intimacy experienced (Miller & Lefcourt,

1982).

Convergent validity was explored by having subjects

also complete the Interpersonal Relationship Scale (IRS),

which assesses trust and intimacy in the marital

relationship. Those who scored high on the MSIS also scored

high on the IRS. Another group completed a measure of

loneliness and those with low scores also scored low on the

MSIS, as predicted.

Construct validity was examined by having subjects

complete the MSIS twice, describing a casual friend and then

their closest friend. The intimacy scores were

significantly higher for closest friends than for casual

friends. MSIS scores for married students were also

significantly greater than scores for unmarried students.

Finally, MSIS scores for married students were higher than

for the marreid clinic sample (Miller & Lefcourt, 1982).

These findings suggest that the MSIS is a valid and

reliable instrument for measuring social intimacy. Waring

(1985), in a review of measures of intimacy, suggests that a

problem with this instrument revolves around the issue of

whose intimacy is being measured his, hers, or theirs.

The question of whose intimacy is being measured does not

seem to be of practical importance for this study, but it is








important that this scale utilizes a broad definition of

intimacy. The MSIS is designed to recognize the

multifaceted nature of intimacy, and does not simply

focus on self-disclosure, as other scales have done (Waring,

1985).

Risk in Intimacy Inventory (RII) This inventory, with 10

items scored on a 6-point scale, was designed to measure

differences in the perception of risks associated with

intimacy (Pilkington & Richardson, 1988). A copy of the

Risk in Intimacy Inventory can be found in Appendix G. One

hundred and ninety-five female and 201 male undergraduates

completed the Risk in Intimacy Inventory (RII). Based on

their responses and a principal components factor analysis,

one principal factor was identified, which accounted for 37%

of the variance. A Cronbach's alpha of .80 indicated good

internal consistency of the measure.

Convergent validity was suggested as those who

perceived greater risk also were more likely to have lower

self-esteem and fewer close friends, and were less likely to

be currently involved in a romantic relationship (Pilkington

& Richardson, 1988). Negative correlations were also noted

between high RII scores and measures of interpersonal trust

and dating assertiveness.

A second study supported these findings with one factor

accounting for 45% of the variance and a Cronbach's alpha of

.86. Additionally, sociability and overall extraversion









correlated negatively with RII. "In general, those who

perceive risk in intimacy report attitudes (e.g. low trust)

and behaviors (e.g. low assertiveness) consistent with their

perceptions (Pilkington & Richardson, 1988, p. 507)."

Pilkington & Nezlek (1991) summed each subject's

responses to the 10 items and performed a median split.

Thus, subjects were defined as perceiving higher levels of

risk in intimacy or perceiving lower levels of risk in

intimacy. For the Pilkington and Nezlak (1991)

investigation, the median score was 22. For the present

investigation, the median score was 25. The means in two

studies by Pilkington and Richardson (1988) were 24.31 and

25.68. The mean for the current study was 25.78, which is

considered similar to those found in the prior

investigations by Pilkington and Richardson (1988).

Rubin's Love Scale (RLS) This 13-item scale was developed

to measure three components of romantic love: affiliation

and dependent need; predisposition to help; and

exclusiveness and absorption (Rubin, 1970). The items for

the scale were selected based on separate factor analyses

for responses with reference to "lovers" and "friends." The

items which loaded the highest when "lovers" were the target

formed the love scale. Sternberg and Grajek (1984) found

that the love scale focuses on the intimacy component of

close relationships rather than on the other two components

of love: commitment and passion.






64

The love scale had a high internal consistency, with a

coefficient alpha of .84 for women and .86 for men. Thus,

it seems to primarily tap into a unitary concept. There was

also some support for its discriminative validity, as the

love scale was only moderately correlated with the parallel

liking scale, r = .39 for women.

The love and liking scales were administered to 158

dating couples, and the mean scores for dating partners were

much higher than they were for friends. For women, the mean

love score for a dating partner was 89.46, and the mean love

score for a friend of the same sex was 65.27. These means

compare favorably to the mean of 84.98 found in the present

investigation. Kacerguis and Adams (1980) found the Rubin

Love Scale and the Yufit intimacy scales positively

correlated. The Love Scale also correlates significantly

with the strength scale of the Relationship Closeness

Inventory (Berscheid, Snyder, & Omoto, 1989). These results

lend support to the construct validity of this scale.

Additionally, the scores were uncorrelated with the Marlowe-

Crowne Social Desirability Scale.

Of importance to the present investigation, the Love

scale seems to measure an attitude toward a particular

person rather than a general capacity for love or intimacy.

However, high scores would seem more likely when a person is

more capable of developing intimate relationships.









Dyadic Trust Scale (DTS) This eight-item scale was

constructed from a pool of 57 items taken from previous

trust scales (Larzelere & Huston, 1980). The items which

were selected for this scale, seemed to tap into a

unidimensional construct, based on factor analysis. The

item-total correlations were high, ranging from .72 to .89.

A sample population that was not involved in the item

selection also completed the Dyadic Trust Scale. The

reliability found for that sample was .93. Additionally,

the Dyadic Trust Scale had a low correlation with social

desirability and with other generalized trust scales. Thus,

this measure appears reliable, unaffected by social

desirability, and distinct from generalized trust (Larzelere

& Huston, 1980). The overall mean for the sample in the

present investigation was 48.12

Forty dating couples, 20 newlywed couples, and 20

longer-married couples completed the Dyadic Trust Scale as

well as Rubin's Love Scale. The findings indicated a strong

relationship between dyadic trust and love, for individual

and couple scores. When comparing the longer-married

couples with the unmarried couples, the correlations were

significantly higher for the longer-married couples.

However, when the newlyweds were included in the comparison,

there was no significant difference. Larzelere and Huston

(1980) suggest that the engagement and newlywed period is









one of transition and turbulence, which would account for

lower correlations between love and dyadic trust.

Larzelere and Huston (1980) found that the mean dycdic

trust scores varied by the type of relationship being

measured, but the range was from 43.63 to 49.40 for couples

that were either dating or married. The mean score for the

present investigation was 48.04. This mean compares

favorably to the scores found by Larlelere and Huston

(1980).

Dyadic trust was also noted to be associated with self-

disclosure for both the dating and married participants.

There was some trend for these correlations to increase as

levels of commitment increased (Larzelere & Huston, 1980).

The dyadic trust scores also varied by relationship status.

Separated or divorced partners had significantly lower

scores than any other group, and the newlyweds had the

highest scores of the other groups, being significantly

higher than the dating or separated/divorced groups.

However, the differences between the dating and longer

married couples failed to reach the levels of statistical

difference.

Dyadic trust is considered to be a necessary component

of intimacy. The validity and reliability of this scale, as

well as its brevity make it a desirable addition to other

measures of intimacy. Larzelere and Huston suggest that the

"reciprocity of dyadic trust in intimate relationships is at









least as strong as the reciprocity of self-disclosure, and

apparently stronger than reciprocity of love" (1980, p.

603). The scores were expected to provide some confirmation

of the quality of the dating relationship.

In conclusion, four measures of intimacy were used in

order to assess different aspects of the construct. These

four scales are objective in format, and have good

reliability and validity. The aspects of intimacy that were

measured are summarized in Table 3.



Table 3: Summary of the Instruments and Aspects of Intimacy


Instrument


Aspect of Intimacy Measured


MSIS Social Intimacy intimacy in the context of
interpersonal relationships
RII Differences in the perception of risks
associated with intimacy
RLS Three components of romantic love:
affiliation and dependent need;
predisposition to help; and exclusiveness
and absorption
DTS Dyadic Trust in intimate relationships












CHAPTER 4
RESULTS


The data were analyzed utilizing SAS software (SAS

Institute, 1982) and the statistical procedures described

below. Univariate statistics were calculated so that

frequencies, means, medians and standard deviations could be

examined and compared. The medians on the PCRS were used to

place participants in appropriate categories for the father

daughter relationship, i.e., "good" or "poor." A Chi-Square

test was performed to ascertain whether or not the cells

were similar on racial composition.

Because of the unequal number of participants in each

category, the general linear model was used to test the

primary hypotheses. This procedure called for the

performance of two-way analyses of variance designed for

unbalanced data, with parental marital status and

relationship with the father being the predictor variables

and the scores on the four measures of intimacy as the

criterion variables. Socioeconomic status was examined for

its contribution to the variance in intimacy scores, and the

impact of divorce on socioeconomic status was also explored.

Once statistically significant results were observed in the

general linear model suggesting the contribution of a









significant proportion of the variance by one of the

independent variables, simple effects tests were utilized to

provide a clearer picture of the actual differences.

Finally, a factor analysis was performed on the items in the

measures of intimacy, in order to determine that there were

indeed four factors, corresponding to the four intimacy

scales.

Frequencies and Univariate Statistics for Parent-Child
Relationships

Participants were asked to rate the quality of their

relationship with their father and then to rate the quality

of their relationship with their mother on the demographic

questionnaire. The rating of these parent-child

relationships was on a seven point Likert scale, with 1

being poor and 7 being excellent. Using the entire sample,

responses to these items were examined and the distributions

are shown in Figures 2 and 3. Not only were there apparent

differences in the distribution patterns, there were also

differences in the mean ratings, E ( 1, 438) = 66.1, R <

.0001. The mean for mothers was 6.0 and for fathers was

4.9. Even when parental marital status was not a factor,

the relationship with the mother was rated significantly

higher than the relationship with the father.










180

Frequency 160
(n=443)
140

120

100

80

60

40

20 120-

0-8
1 2 3


Figure 2: Relationship with Mother


4 5 6 7
Rating


Frequency
(n=438)


180

160

140

120

100

80

60

40

20

0


-100-


-110-


-54-

-32- -28-- 27



1 2 3 4 5 6 7
Rating


Figure 3: Relationship with Father


-87-









The Chi-Square Test of Racial Composition

The Chi-Square Test for differences in racial

composition in the cells revealed no significant

differences, F ( 9, 248) = 15.7, R < .074. These findings

indicated that it was not necessary to use racial/ethnic

background as a covariate in further analyses. The

composition of each of the cells is indicated in Table 4.


Table 4: Racial/ethnic composition of cells, by parental
marital status and relationship with father.

Int/Poor Int/Good Div/Poor Div/Good

Caucasian 59 110 48 8
(75.5%)

African American 8 8 5 2
(8%)

Hispanic 8 13 2 1
(8%)

Asian 12 9 3
(8%)

Other 6
(<1%)

Note: "Int" and "div" refer to the parental marital status,
with "int" being intact and "div" being divorced; good and
poor refer to the nature of the father-daughter
relationship.

Socioeconomic Status

Socioeconomic status (SES) was entered into the general

linear model as a covariate in order to see if it

contributed significantly to the variance in intimacy

scores. Scores on the Dyadic Trust Scale were significantly

lower when SES was lower, F ( 1, 281) = 4.2, R < .042.







72

Additionally, findings of an apparent interaction of marital

status and the father-daughter relationship on Rubin's Love

Scale disappeared when SES was included. Participants from

divorced and intact families differed significantly on

socioeconomic status, F (1, 286) = 6.5, R < .012. Intact

families had a significantly higher SES than divorced

families. The mean score for intact families (n = 220) was

58.3 and for divorced families (n = 67) was 50.6. Based on

these observations, SES was included as a covariate in the

analyses of the primary hypotheses.

Analyses of Variance for Primary Hypotheses

Relationship with Father

The first hypothesis predicted that daughters of

parental divorce would rate their fathers lower on the PCRS

than would daughters from intact families. This hypothesis

was supported, F (1,296) = 119.7, R < .0001. The mean for

daughters of divorce (n = 69) was 82.3 and for daughters

from intact families (n = 228) was 126.5. For this sample,

divorce was associated with a reduction in the quality of

the relationship with the father.

Given these findings, it was decided to further examine

the father-child relationship as affected by divorce, and to

determine whether the relationship with the mother was

similarly affected. Because the single item regarding the

relationship with the father on the demographic

questionnaire correlated 86% with the father subscale of the









PCRS, this item was considered to be a reasonable way to

further examine the parent-child relationship.

Additionally, because the mother subscale of the PCRS had

not been utilized, it was decided to use the single question

to compare the impact of divorce on the relationships with

both the father and mother. There was a significant

interaction effect between parental marital status and the

relationships with parents, E (1,296) = 67.8, R < .0001.

The mean ratings of relationships with fathers and mothers,

by parental marital status, are shown in Figure 4.

7

6 --6.0--
Mean -5.4- -- 5.6-
Ratings 5
of
Fathers 4
and -3.4-
Mothers 3

2

1

Father Mother Father Mother
Intact Divorced

Figure 4: Mean ratings of relationships with fathers and
mothers, by parental marital status

Simple effects tests were then conducted to determine

if the observed differences were significant at each level

of marital status. When the parental marriage was intact,

the relationship with the father was rated significantly

lower than the relationship with the mother, E (1, 228) =

43.3, R <.0001. When parents were divorced, the differences







74

were also strong, F (1, 69) = 79.3, R = .0001. The ratings

of mothers from divorced and intact families did not differ

significantly, F (1, 297) = 2.91, p < .089, but fathers from

divorced families were rated significantly lower than

fathers from intact families, F ( 1, 297) = 94.9, R < .0001.

The results regarding fathers' ratings agree with the

findings based on the PCRS.

Parental Marital Status and Intimacy

The second hypothesis predicted that daughters of

divorce would score lower on measures of intimacy than

daughters from intact families. This hypothesis was not

supported on three of the measures of intimacy: the Rubin

Love Scale (RLS), F (1, 293) = .02, R < .88; the Dyadic

Trust Scale (DTS), F (1, 292) = .80, R < .37; and the Miller

Social Intimacy Scale (MSIS), F (1, 294) = 1.1, R < .30.

Findings on the Risk in Intimacy Inventory (RII) did reach

the level of statistical significance, F (1, 297) = 5.0, R <

.026. The means on each of these measures are indicated in

Table 5. It appears that daughters of divorce perceive more

Table 5: Means on intimacy scales, by parental marital
status.


Note. indicates statistically significant results.


RLS DTS

Divorced Intact Divorced Intact
86.0 84.1 48.4 4.8

MSIS RII*

Divorced Intact Divorced Intact
145.5 142.9 28.4 25.0







75

risks associated with intimacy, but daughters from divorced

and intact families do not differ significantly on other

measures of trust and intimacy.

Father-Daughter Relationship and Intimacy

The third hypothesis predicted that daughters who had a

"poor" relationship with their fathers would score lower on

measures on intimacy than daughters who had a "good"

relationship. This hypothesis was not supported by the

data, as the relationship with the father contributed little

to the variance in intimacy scores. The findings for the

four intimacy scales are as follow: Rubin Love Scale (RLS),

F (1, 293) = 2.1, R < .15; Dyadic Trust Scale (DTS), F (1,

292) = 2.2, R < .14; Miller Social Intimacy Scale (MSIS), E

(1, 294) = .77, R < .38; and the Risk in Intimacy Inventory

(RII), F (1, 297) = 0.0, R < .97. The means for each of the

intimacy measures are shown in Table 6.



Table 6: Means on intimacy scales, by father-daughter
relationship.


RLS DTS

Good Poor Good Poor
83.9 85.7 49.7 46.9

MSIS RII

Good Poor Good Poor
144.7 142.3 24.7 26.9









Interaction of Father-Daughter Relationship and Parental
Marital Status

The fourth and fifth hypotheses examined interaction

effects. The fourth Hypothesis predicted that daughters of

divorce with a poor relationship with their fathers would

score the lowest on measures of intimacy. This hypothesis

was not supported by the data as there was no significant

interaction between marital status and father daughter

relationship. The findings for the four intimacy scales

were as follow: Rubin Love Scale (RLS), (1, 293) = 2.5, R

< .11; Dyadic Trust Scale (DTS), F (1, 292) = .03, R < .87;

Miller Social Intimacy Scale (MSIS), (1, 294) = .03, E <

.85; and Risk in Intimacy Inventory (RII), E (1, 297) = 1.2,

R = .28. The means for the tests of interaction are given

in Table 7.



Table 7: Means on intimacy scales, by father daughter
relationship and parental marital status.


RLS DTS

Intact Divorced Intact Divorced
Good Poor Good Poor Good Poor Good Poor
84.3 83.8 78.6 88.4 49.7 46.4 51.1 47.8

MSIS RII

Intact Divorced Intact Divorced
Good Poor Good Poor Good Poor Good Poor
144.4 140.4 147.6 145.0 24.2 26.1 30.1 28.1



The fifth hypothesis also predicted an interaction

effect, where the daughters from intact families who had a







77

good relationship with their fathers would score higher than

any other comparison group. Again, there were no

significant effects noted. The findings and means are noted

above, under Hypothesis 4 and are shown in Table 7. It

appears that the interaction of father daughter relationship

and parental marital status contributes little to

differences in the four measures of intimacy.

Impact of Having Someone "Like a Father"

The sixth hypothesis predicted that, of daughters who

rated their relationship with their father as poor, those

who have "someone like a father" would score higher on the

intimacy scales than those who do not have another

significant father figure. This hypothesis received mixed

support from the data: it was not supported on three of the

measures of intimacy: the Rubin Love Scale (RLS), F (1, 57)

= 1.1, R < .31; the Dyadic Trust Scale (DTS), F (1, 57) =

.28, R < .60; and the Miller Social Intimacy Scale (MSIS), E

(1, 67) = .13, E < .72. Findings on the Risk in Intimacy

Inventory (RII) did reach the level of statistical

significance, F (1, 57) = 5.1, R < .03. Daughters of

divorce with a poor relationship with their father perceived

higher levels of risk associated with intimacy when there

was no other significant father figure. The means for the

test of the sixth hypothesis are indicated in Table 8.

The findings for the RII were further explored by

comparing daughters from intact families with daughters of







78

divorce who had someone else like a father and those who did

not have another significant father figure. A main effect

for group was observed, F (2, 297) = 4.5 p < .01. The

means are indicated in Figure 5.



Table 8: Means on intimacy scales, by the presence or
absence of someone like a father.

RLS DTS

No Yes No Yes
83.2 89.0 49.1 47.2

MSIS RII*

No Yes No Yes
146.9 144.8 30.1 24.0

Note. indicates statistically significant results.


Mean Scores on the
RII
(Higher = More
Perceived Risk)


60 I

32

30

28


Intact Div/None Div/With

Figure 5: Mean scores on the RII by parental marital status
and presence of a significant father figure.


Follow-up comparisons were conducted to isolate the

effect of group. Comparing those participants whose parents

were divorced and who had someone like a father'with those

whose parents were divorced with no other significant father









figure, the differences were statistically significant,

E ( 1, 68) = 4.1, R < .04, with the daughters who lacked

someone like a father perceiving more risk associated with

intimacy. The daughters whose parents were married also

perceived significantly less risk associated with intimacy

than did those whose parents were divorced with no one else

like a father, f ( 1, 262) = 8.9, p < .003. When comparing

those whose parents were married and those whose parents

were divorced with another father figure present, there was

no significant difference noted, F ( 1, 263) = .10, E < .75.

The presence of another significant father figure following

parental divorce seems to reduce the perception of risk

associated with intimacy.

Factor Analyses of Intimacy Scales

The Scree plot, shown in Figure 6, of all items on the

four questionnaires indicated that there were indeed four

factors. The four factor solution was rotated using a

promax rotation because there was some correlation between

the scales, as shown in Table 9. The factor analysis,

including all scores greater than an absolute value of .2,

is shown in Table 10. In large part, each factor

represented one of the intimacy scales. Each item

correlated with one of the scales, with the exception that

the fourteenth item of the MSIS correlated with the second

factor.
















































89012
34567 89012
3456789012 3456789012 3
45678


0 5 10 15 20
Numbe


25 30 35 40 45


Figure 6:


Scree plot of Eigenvalues


TPah1e Q! Correlation


analysis of the intima .


RLS
RLS 1.0
DTS
MSIS
RII


DTS
.35
1.0


MSIS RII
.62 -.22
.47 -.27
1.0 -.38
1.0


- ar--e 6: Scree .....of iaenva u


Table 9: Correlation analvsis of the intimacv scales.









Table 10: Factor Analysis Using a Promax Rotation
Factor 1 Factor 2 Factor 3 Factor 4
RLS 1 .57716 -
RLS 2 .40188 .36969 -
RLS 3 .32448 -
RLS 4 .65962 -
RLS 5 .63370 -
RLS 6 .75504 -
RLS 7 .78488 -
RLS 8 .25155 .59526 -
RLS 9 .69333 -
RLS 10 .62745 -
RLS 11 .56193 -
RLS 12 .54140 -
RLS 13 .69669 -
DTS 1 .70511 -
DTS 2 .72139 -
DTS 3 .79015 -
DTS 4 .84766 -
DTS 5 .84187 -
DTS 6 .71402 -
DTS 7 .83442 -
DTS 8 .77816 -
MSIS 1 .78792 -
MSIS 2 .29523 -.22879
MSIS 3 .81108 -
MSIS 4 .57546 -.25041
MSIS 5 .34903 -
MSIS 6 .76892 .25787 -
MSIS 7 .82179 -
MSIS 8 .69403 -
MSIS 9 .78929 .28110 -
MSIS 10 .75565 -
MSIS 11 .67330 .39775 -
MSIS 12 .83176 -
MSIS 13 .51260 .22130
MSIS 14 .50464 -
MSIS 15 .72773 -
MSIS 16 .75011 -.25509
MSIS 17 .66629 .22474 -
RII 1 .77797
RII 2 -.64279
RII 3 .75524
RII 4 .20291 .56562
RII 5 .78707
RII 6 -.24088 .51288
RII 7 .74167
RII 8 .65331
RII 9 .84575
RII 10 .50640

Note: Only correlations of +/- .20 were shown.













In conclusion, three of the measures of intimacy,

Rubin's Love Scale, the Dyadic Trust Scale, and the Miller

Social Intimacy Scale correlated positively with each other

and correlated negatively with the Risk in Intimacy

Inventory. Also, the intimacy scales seemed to represent

different factors. The correlations and factor analysis

seem to indicate that the scales tap into different aspects

of intimacy, and they support the decision of this author to

utilize all four scales.












CHAPTER 5
DISCUSSION


The present investigation looked first at the impact

that parental marital status has on the father-daughter

relationship. The relationships between fathers and

daughters were found to be generally rated lower than those

between mothers and daughters, regardless of marital status.

Furthermore, relationships between fathers and daughters

were found to be significantly negatively affected by

parental divorce. These findings supported the conclusions

of several other investigations (Drill, 1987; Parish, 1981;

Parish, 1991; Parish & Osterberg, 1984; Parish & Wigle,

1985). Given the expected reduction in the quality of the

father-daughter relationship following divorce, it was not

surprising that daughters of divorced parents who had a good

relationship with their fathers were the least-frequently

found participants in this investigation. Only eleven

daughters (16% of the daughters whose parents were divorced)

rated the relationship with their fathers as good. This

seems a disturbing statistic, but it is important to

remember that all of these participants were in the custody

of their mothers following the divorce of their parents.






84

Because of the custodial arrangement, it may not have

been totally unexpected to find that only 16% of the

daughters did have a good relationship with their fathers,

because children of divorce who are in the custody of their

mothers may have less contact with their fathers. Amato and

Booth (1991) reported that "both males and females from

divorced families had less contact with their fathers, but

the difference was considerably greater for females than for

males" (p. 903), and Southworth and Schwarz (1987) found

that females who had less frequent contact perceived their

fathers as less accepting and more inconsistent. In the

present investigation, all participants whose parents were

divorced and who were included in the final sample were

likely to have had some level of restriction on the amount

of contact with their fathers. Consequently, it is possible

that the eleven fathers who received higher ratings gave

some extra attention to maintaining a good relationship.

More often, children are not that fortunate, so there is

still some concern that, within this sample, 84% of the

female participants whose parents were divorced were not

satisfied with their relationship with their fathers. The

percentage of participants who rated the father-daughter

relationship as poor may not be unexpected, but it still

seems undesirable because the father is important to the

development of the child.








The second area of investigation was the effect of

parental marital status on intimacy. The prediction was

that daughters of divorce would score lower on measures of

intimacy than would the daughters from intact families.

Four intimacy scales, which measured specifically love,

dyadic trust, social intimacy and risk in intimacy, were

used. Four scales were selected in order to examine the

commonly accepted components of intimacy, including the

ability to self-disclose, the ability to trust, the ability

to establish a close committed relationship, and the sharing

of support and love. The prediction that marital status

would affect intimacy was not wholly supported. There were

no significant differences on Rubin's Love Scale, Dyadic

Trust Scale, or Miller Social Intimacy Scale. These results

supported the findings of Greenberg and Nay (1982) that

children from divorced and intact families were not

significantly different in level or quality of dating

behavior or in attitudes to marriage, but they contradict

the findings of Booth, et. al. (1984) and Hetherington

(1972) that parental divorce affected the quality of

courtship relations. The data also did not support the

conclusions of Weiss (1988), who found that daughters of

divorce tended to become "more solitary within interpersonal

relationships" (p. 148).

Although parental divorce did not seem to have an

effect on love, dyadic trust, or social intimacy, the









results did suggest that divorce was related to a higher

perception of risk in intimacy. Lutwak (1985) found that

fear of intimacy was related to fear of marriage and

commitment, supporting the conclusions of Carson, Madison

and Santrock (1987) that adolescents from divorced families

were more apprehensive about entering into marriage. Booth

and Edwards (1989) and Carson, Madison and Santrock (1987)

also indicated that the perception of risk and the fear of

intimacy may be linked to a greater willingness to break off

an unsatisfying relationship. Based on these earlier

findings, the higher level of risk perceived among the

daughters of divorce may be predictive of the

intergenerational transmission of divorce.

Trust is one component of intimacy. Pilkington and

Richardson (1988) found the perception of risk to be

associated with lower levels of trust. The present

investigation also tended to support that association, as

the scores on the Dyadic Trust Scale, which measures dyadic

trust in intimate relationships, were negatively correlated

(r = -.27) with the RII scores. As the perception of risk

increased, the level of dyadic trust decreased. Despite the

correlation, it is important to remember that parental

marital status did not have a statistically significant

impact on the score on the Dyadic Trust Scale.

The impact of the father-daughter relationship on

intimacy was explored next. The relationship with the









father was found to have little impact on the intimacy

measures. This finding contradicts that of Booth,

Brinkerhoff and White (1984) who concluded that students who

were less close to their fathers reported less satisfaction

with heterosexual relationships. The lack of significant

findings regarding the impact of the father-daughter

relationship would tend to contradict the expectation that

pain in the relationship with the father would impact

interpersonal relationships. This would also seem to refute

the importance of the father as a significant object in the

life of the child, but it may be that when the father is

"lost" because of divorce, someone else can fill his role,

as in parental remarriage.

Because a fathering figure may have contributed to the

variance, the presence of someone "like a father" was

examined for its impact on interpersonal intimacy. The

presence of a significant father figure, other than the

biological father, was found to be associated with a lower

perception of risk in intimate relationships, so the

daughters of divorce who had a significant father figure

perceived similar levels of risk similar to those found in

daughters of intact families. Those with no one "like a

father" perceived significantly more risk associated with

intimacy. There were no significant results noted on any of

the other measures of intimacy. In the majority of cases

(68%), the person who was "like a father" was the









stepfather, but grandfathers and others were included as

well. These findings support the suggestion by object

relations theorists that the fathering figure is important,

but that he need not be the biological father (Rosenberger,

1990).

It was also noted that socioeconomic status was

significantly lower in families of divorce than in intact

families. This observation supports the conclusions of

previous investigations that it is important to control for

socioeconomic status (Biller, 1981; Edwards, 1987;

Guidubaldi & Perry, 1985; Mueller & Cooper, 1986). Although

socioeconomic status was not the subject of this study, it

may have a "bearing on socialization practices and parent-

child relationships" (Edwards, 1987, p. 361). For example,

the amount of time spent with children and the nature of

interactions and relationships may vary with socioeconomic

status.

One final observation was that several scales were

needed to capture the construct of intimacy. The data

indicated that there were four factors in the intimacy items

used in the present investigation. This seems to confirm

that intimacy is indeed a complex construct, but it does not

necessarily indicate that the four scales, measuring love,

dyadic trust, social intimacy, and risk in intimacy,

captured all of its components. Alternatively, intimacy may

actually be less complex, and these scales may have been









measuring different factors rather than components of one

factor. While this is not considered to be a likely

explanation, it is possible.

Conclusions

It is certainly clear that divorce has a negative

impact on the relationship with the father, but it is

unclear, at this point, exactly what the ramifications are

for the changes in that significant relationship. The

present investigation sought to explore the impact on

interpersonal intimacy, as the absence of the father from

the home or even from the life of his daughter was thought

to be associated with her feeling less secure or adequate in

intimate interpersonal relationships.

Neither parental divorce nor the father-daughter

relationship were associated with significant differences in

love, dyadic trust, or social intimacy, as measured in this

study. Biller (1981) had concluded that divorce uniquely

affected the daughter, as father absence had an effect on

her ability to function in interpersonal and heterosexual

relationships. The present investigation would tend to

indicate that this is not necessarily the case, as daughters

of divorce appear to be as satisfied in their relationships

as are their counterparts from intact families. The one

significant negative finding relative to intimacy was that

the daughters of divorced parents perceived more risk

associated with intimacy. When this effect was further






90

examined, it was found that those participants whose parents

were divorced and who had no other significant father figure

perceived the highest levels of risk. The presence of

someone "like a father" apparently was associated with a

reduction of the perception of risk in intimacy.

The expectation was that something about the

relationship with the father, perhaps communication,

emotional support, reliability, encouragement, or some other

interpersonal factor, would create differences in the

ability to establish meaningful intimate relationships.

Leonard (1966) had suggested that the father's

unavailability to give love and to be loved was critical to

the daughter's development, but it is also important to

remember that the presence of the father in the home is

likely to provide more economic stability. The provision of

economic stability was evidenced by the significant

differences between participants from divorced and intact

families on socioeconomic status, and by the significant

effect of socioeconomic status on the scores on the Dyadic

Trust Scale. The reason why participants who had someone

"like a father" perceived less risk with intimacy might have

been because his presence provided financial as well as

emotional stability. Further study could indicate whether

economic or interpersonal factors contribute more to the

perception of risk in intimacy.









Limitations of the Study

The study's limitations will be discussed and related

to threats to the following different forms of validity:

internal, statistical conclusion, external, and construct.

Although attempts were made to reduce the threats to

validity to a minimum, no research project is perfect.

Gelso (1979) suggested that all research designs are flawed,

but that the researcher can be cognizant of the flaws in the

chosen design. Accordingly, an attempt will be made to

delineate and describe the possible threats to validity in

the present investigation.

Because the present investigation was a correlational

design, threats to internal validity should be considered.

Internal validity refers to the confidence that can be

placed in the association between the predictor and

criterion variables and to the ability to rule out

alternative explanations for the observed relationships. In

a correlational design, variables are not manipulated, and

there may be extraneous factors that influence the results.

History, or life events or experiences since the divorce,

might have affected the observations in the present study.

For example, an alternative explanation of the results could

have been that subjects experienced depression as a result

of parental divorce and that depression made them more

pessimistic about relationships and more fearful. Although

a number of variables were controlled in this study, it








would have been impossible to eliminate all of the threats

due to history.

Inadequate statistical power may have reduced the

probability of obtaining statistically significant results,

creating a threat to statistical conclusion validity

(Heppner, Kivlighan & Wampold, 1992). Despite attempts to

obtain a large enough sample, only eleven participants were

from divorced families and also had a good relationship with

their fathers. The paucity of participants in this group

may have reduced the power of the current investigation to

detect differences between the groups. There were some

marginally significant results, not always in the expected

direction, that might have reached the level of statistical

significance, if the number of participants in this group

were higher.

One possible way to have increased the number of

participants in the divorced/ good relationship with father

group would have been to include participants who were in

the custody of their fathers (14.6% of the original sample).

These participants would have been more likely to have had a

better relationship with their fathers than those in the

custody of their mothers. However, paternal custody may

have produced different childhood experiences for the

daughters. In addition, the father might have been awarded

custody because of an existing poor mother-child

relationship. In either of these two cases, the random




Full Text

PAGE 2

7+( ,03$&7 21 ,17(53(5621$/ ,17,0$&< 2) 3$5(17$/ ',925&( $1' 7+( 68%6(48(17 )$7+(5'$8*+7(5 5(/$7,216+,3 %\ ',$1( ( )5((0$1 $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( 6&+22/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2) )/25,'$

PAGE 3

7KLV LV GHGLFDWHG WR WKH PHPRU\ RI P\ JUDQGPRWKHU 0DU\ 0F.LP 7XUQHU ZKR ZDV DOZD\V P\ JUHDWHVW VXSSRUWHU DQG IULHQG 6KH ZDV D VXUYLYRU DQG DQ LQVSLUDWLRQ

PAGE 4

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

PAGE 5

KDYH EHHQ GLIILFXOW LI QRW LPSRVVLEOH 0\ IULHQGV /LQGD 6DOO\ DQG 0RVHOH\ KDYH DOVR EHHQ LQYDOXDEOH 7KH\ KDYH HQFRXUDJHG DQG VXSSRUWHG PH ERWK EHIRUH DQG GXULQJ JUDGXDWH VFKRRO DQG /LQGD HYHQ KHOSHG LQ WKH FRGLQJ RI WKH GDWD LY

PAGE 6

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f 0LOOHU 6RFLDO ,QWLPDF\ ,QYHQWRU\ 06,6f 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f 5XELQnV /RYH 6FDOH 5/6f '\DGLF 7UXVW 6FDOH '76f Y

PAGE 7

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n6 /29( 6&$/( ) '<$',& 75867 6&$/( 5,6. ,1 ,17,0$&< ,19(1725< 5()(5(1&(6 %,2*5$3+,&$/ 6.(7&+ YL

PAGE 8

$EVWUDFW RI 'LVVHUWDWLRQ 3UHVHQWHG WR WKH *UDGXDWH 6FKRRO RI WKH 8QLYHUVLW\ RI )ORULGD LQ 3DUWLDO )XOILOOPHQW RI WKH 5HTXLUHPHQWV IRU WKH 'HJUHH RI 'RFWRU RI 3KLORVRSK\ 7+( ,03$&7 21 ,17(53(5621$/ ,17,0$&< 2) 3$5(17$/ ',925&( $1' 7+( 68%6(48(17 )$7+(5'$8*+7(5 5(/$7,216+,3 %\ 'LDQH ( )UHHPDQ $XJXVW &KDLUSHUVRQ 'U 'RURWK\ 1HYLOO 0DMRU 'HSDUWPHQW &RXQVHOLQJ 3V\FKRORJ\ 7KH SUHVHQW LQYHVWLJDWLRQ ORRNHG ILUVW DW WKH LPSDFW RI SDUHQWDO GLYRUFH RQ WKH IDWKHUGDXJKWHU UHODWLRQVKLS DQG IRXQG WKHUH WR EH D VLJQLILFDQW QHJDWLYH HIIHFW 2YHUDOO IDWKHUV ZHUH IRXQG WR EH UDWHG PRUH QHJDWLYHO\ WKDQ PRWKHUV DQG WKH UHODWLRQVKLS ZDV PRUH QHJDWLYHO\ LQIOXHQFHG E\ GLYRUFH 1H[W SDUHQWDO PDULWDO VWDWXV DQG WKH UHODWLRQVKLS ZLWK WKH IDWKHU ZHUH H[DPLQHG IRU WKHLU LPSDFW RQ LQWHUSHUVRQDO LQWLPDF\ 7KHUH DSSHDUHG WR EH OLWWOH GLIIHUHQFH EHWZHHQ GDXJKWHUV IURP LQWDFW RU GLYRUFHG IDPLOLHV RQ WKH PHDVXUHV RI LQWLPDF\ ZLWK WKH H[FHSWLRQ WKDW GDXJKWHUV RI GLYRUFH SHUFHLYHG PRUH ULVN DVVRFLDWHG ZLWK LQWLPDF\ 7KH IDWKHUGDXJKWHU UHODWLRQVKLS FRQWULEXWHG OLWWOH WR WKH YDULDQFH LQ LQWLPDF\ VFRUHV )LQDOO\ WKH LPSDFW RI KDYLQJ DQRWKHU VLJQLILFDQW IDWKHU ILJXUH ZDV H[DPLQHG 'DXJKWHUV RI GLYRUFH ZLWK D SRRU UHODWLRQVKLS ZLWK WKHLU IDWKHU SHUFHLYHG YLL

PAGE 9

KLJKHU OHYHOV RI ULVN DVVRFLDWHG ZLWK LQWLPDF\ ZKHQ WKHUH ZDV QR RWKHU VLJQLILFDQW IDWKHU ILJXUH :KHQ VRPHRQH IDWKHU ZDV SUHVHQW WKH OHYHO RI SHUFHLYHG ULVN ZDV WR WKDW IRXQG LQ GDXJKWHUV IURP LQWDFW IDPLOLHV OLNH D VLPLODU YLLL

PAGE 10

&+$37(5 ,1752'8&7,21 $PHULFDQV KDYH DQ LQFUHDVLQJ GHVLUH IRU LQWLPDF\ EXW VHHP WR KDYH D GHFUHDVLQJ FDSDFLW\ WR ILOO WKDW GHVLUH 5HLV f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t 5LFH Sf HDFK \HDU +HWKHULQJWRQ LQ SUHGLFWHG WKDW b RI FKLOGUHQ ERUQ LQ WKH nV ZRXOG H[SHULHQFH GLYRUFH DQG VSHQG DQ DYHUDJH RI VL[ \HDUV OLYLQJ LQ D VLQJOH SDUHQW KRPH &RQVHTXHQWO\ D ODUJH QXPEHU RI WRGD\nV FROOHJH VWXGHQWV HLWKHU ZLOO KDYH EHHQ LPSDFWHG E\ SDUHQWDO GLYRUFH RU FDQ H[SHFW WR H[SHULHQFH LW

PAGE 11

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f +RZHYHU LQ HYHU\ PDMRU DUHD RI LQYHVWLJDWLRQ LQFOXGLQJ LQWHUSHUVRQDO UHODWLRQVKLSV FRQWUDGLFWRU\ UHVXOWV H[LVW (GZDUGV f 7KH DPELJXRXV QDWXUH RI WKH OLWHUDWXUH PD\ EH GXH WR GLIIHUHQFHV LQ UHVHDUFK PHWKRGRORJ\ LQFOXGLQJ IDLOXUH WR FRQWURO IRU VRFLRHFRQRPLF VWDWXV GLIIHUHQFHV LQ VXEMHFW VDPSOHV VPDOO RU QRQUHSUHVHQWDWLYH VDPSOHV RXWFRPH PHDVXUHV IRU H[DPSOH XVH RI SURMHFWLYH WHVWV RU PHDVXUHV WKDW DUH LQVHQVLWLYH WR FKDQJHV WKDW PLJKW RFFXU RYHU WLPH RU WKHRUHWLFDO SHUVSHFWLYHV (GZDUGV .DQR\ t &XQQLQJKDP f +RZHYHU FRQWUDGLFWLRQV PLJKW DOVR RFFXU EHFDXVH WKH UHVSRQVHV WR GLYRUFH DUH GHSHQGHQW XSRQ D QXPEHU RI YDULDEOHV LQ WKH H[SHULHQFH RI WKH IDPLO\ )RU H[DPSOH D QXPEHU RI IDFWRUV KDYH EHHQ LGHQWLILHG WKDW PLJKW DIIHFW DGMXVWPHQW LQFOXGLQJ WKH DJH RI WKH FKLOG DW WKH WLPH RI WKH GLVUXSWLRQ WKH TXDOLW\ RI WKH SDUHQWVn PDUULDJH EHIRUH

PAGE 12

WKH GLVUXSWLRQ UHPDUULDJH FRQIOLFW EHIRUH GXULQJ RU DIWHU WKH GLYRUFH DQG WKH UHODWLRQVKLS ZLWK WKH QRQFXVWRGLDO SDUHQW .DOWHU :KLWH %ULQNHUKRII t %RRWK f 'LYRUFH DV D 3URFHVV 2EYLRXVO\ GLYRUFH FDQQRW EH YLHZHG DV D VLQJOH HYHQW EXW PXVW EH YLHZHG DV D FOXVWHU RI H[SHULHQFHV RU DV D SURFHVV 7KH WHQGHQF\ WR GLFKRWRPL]H VXEMHFWV DV HLWKHU IURP LQWDFW RU GLYRUFHG IDPLOLHV LV DQ RYHUVLPSOLILFDWLRQ DQG LV RQH RI WKH SUREOHPV ZLWK PHWKRGRORJ\ ZKLFK ZDV LGHQWLILHG E\ /RSH] f LQ D UHYLHZ RI WKH OLWHUDWXUH 7KH V\VWHPLF SURFHVV RI GLYRUFH EHJLQV EHIRUH WKH OHJDO VHSDUDWLRQ DQG H[WHQGV ZHOO LQWR WKH SRVWGLYRUFH \HDUV /XVVHQ f ,W LV SDUWLFXODUO\ LPSRUWDQW WR QRWH WKDW ZKHQ FRPSDULQJ FKLOGUHQ RI GLYRUFH ZLWK FKLOGUHQ IURP LQWDFW IDPLOLHV LW LV QRW QHFHVVDULO\ D FRPSDULVRQ RI RQH FDWHJRU\ RI SHUVRQV DOO RI ZKRP KDG YHU\ QHJDWLYH HDUO\ LQIOXHQFHV ZLWK DQRWKHU FDWHJRU\ RI SHUVRQV DOO RI ZKRP ZHUH IUHH RI YHU\ QHJDWLYH HDUO\ LQIOXHQFHV *OHQQ t .UDPHU S f )RU VRPH SDUHQWDO GLYRUFH EULQJV UHOLHI IURP WHQVLRQ DQG DQJHU VR LW LV D SRVLWLYH HYHQW )RU RWKHUV GLYRUFH PD\ EH SHUFHLYHG QHJDWLYHO\ DV LW EULQJV IHHOLQJV RI ORVV RU VKDWWHUHG GUHDPV :KDWHYHU WKH LQLWLDO H[SHULHQFH GLYRUFH JHQHUDOO\ SURGXFHV FKDQJHV LQ WKH SDUHQWFKLOG UHODWLRQVKLS :KLOH UHODWLRQVKLSV ZLWK ERWK PRWKHUV DQG IDWKHUV PD\ FKDQJH IROORZLQJ SDUHQWDO GLYRUFH WKH TXDOLW\

PAGE 13

RI WKH UHODWLRQVKLS ZLWK ERWK WKH FXVWRGLDO DQG WKH QRQFXVWRGLDO SDUHQW LV FRQVLGHUHG WR EH LPSRUWDQW LQ SUHGLFWLQJ D FKLOGnV EHKDYLRU +HVV t &DPDUD f ,PSRUWDQFH RI WKH )DWKHUGDXJKWHU 5HODWLRQVKLS )ROORZLQJ D SDUHQWDO GLYRUFH D FKLOG VWLOO KDV WZR QDWXUDO SDUHQWV EXW PD\ EH IDFHG ZLWK GLYLGHG OR\DOWLHV $SSUR[LPDWHO\ b RI FKLOGUHQ ZKR HQG XS OLYLQJ ZLWK RQO\ RQH QDWXUDO SDUHQW DUH LQ WKH FXVWRG\ RI WKHLU PRWKHU :KLWH %ULQNHUKRII t %RRWK f &RQVHTXHQWO\ IDWKHU DEVHQFH RU DW OHDVW GHFUHDVHG IDWKHU DYDLODELOLW\ LV D W\SLFDO FRQFRPLWDQW RI GLYRUFH %LOOHU S f %HFDXVH RI FKDQJHV LQ WKH OLYLQJ VLWXDWLRQ DQG RWKHU GLYLVLYH WHQGHQFLHV ZLWKLQ IDPLOLHV IROORZLQJ GLYRUFH WKH FKLOG RIWHQ H[SHULHQFHV LQFUHDVHG FORVHQHVV DQG TXDOLW\ RI UHODWLRQV ZLWK RQH SDUHQW DQG UHGXFHG FRQWDFW DQG TXDOLW\ RI UHODWLRQV ZLWK WKH RWKHU JHQHUDOO\ WKH QRQFXVWRGLDO SDUHQW RU IDWKHU :KLWH %ULQNHUKRII DQG %RRWK f SRLQW RXW WKDW WKH GHFUHDVH LQ DWWDFKPHQW WR WKH QRQFXVWRGLDO SDUHQW UHGXFHV WKH FKLOGnV DIIHFWLRQDO QHWZRUN $OWKRXJK ERWK VRQV DQG GDXJKWHUV DUH DIIHFWHG WKH UHGXFHG DIIHFWLRQDO QHWZRUN XQLTXHO\ LPSDFWV WKH GDXJKWHU DV IDWKHU DEVHQFH VHHPV WR KDYH DQ HIIHFW RQ KHU DELOLW\ WR IXQFWLRQ LQ LQWHUSHUVRQDO DQG KHWHURVH[XDO UHODWLRQVKLSV %LOOHU f 7KH SUHVHQFH RI WKH IDWKHU DQG KLV LQIOXHQFH KHOSV WKH GDXJKWHU WR

PAGE 14

H[SHULHQFH KHUVHOI DV D IHPLQLQH SHUVRQ DQG KHOSV KHU UHODWH WR WKH VRFLDO ZRUOG DV D IHPDOH )RUUHVW S f ,QWLPDF\ DQG $GROHVFHQW 'HYHORSPHQW 7KH SRVVLELOLW\ WKDW SDUHQWDO GLYRUFH PD\ KDYH D ORQJn WHUP LPSDFW RQ LQWHUSHUVRQDO DQG KHWHURVH[XDO UHODWLRQVKLSV KDV VLJQLILFDQW LPSOLFDWLRQV IRU WKH DGROHVFHQW DQG \RXQJ DGXOW 7KH GHYHORSPHQWDO WDVN IRU WKLV DJH JURXS LV WKH DFKLHYHPHQW RI JUHDWHU SV\FKRORJLFDO VHSDUDWLRQ IURP WKH IDPLO\ DQG WKH HVWDEOLVKPHQW RI DQ DGXOW LGHQWLW\ (ULNVRQ f GHVFULEHV WKLV GHYHORSPHQWDO WDVN DV WKDW RI HVWDEOLVKLQJ PXWXDO SV\FKRVRFLDO LQWLPDF\ $ SDUW RI FUHDWLQJ DQ DGXOW LGHQWLW\ LQYROYHV IRUPLQJ LQWLPDWH UHODWLRQVKLSV ZLWK RWKHUV RXWVLGH RI WKH IDPLO\ ZKR VKRZ XQGHUVWDQGLQJ DQG ORYH *LOOLJDQ f VXJJHVWHG WKDW ZRPHQ GHILQH WKHLU LGHQWLW\ LQ WKH FRQWH[W RI KXPDQ UHODWLRQVKLSV 7KH DELOLW\ WR HVWDEOLVK WKHVH UHODWLRQVKLSV LV UHODWHG WR VHOIHVWHHP WUXVW ZLOOLQJQHVV WR WDNH ULVNV DQG ZLOOLQJQHVV WR PDNH FRPPLWPHQWV DQG LW LV URRWHG LQ WKH SDUHQWFKLOG UHODWLRQVKLS 7KH DELOLW\ WR HVWDEOLVK UHODWLRQVKLSV GRHV QRW VXGGHQO\ HPHUJH LQ \RXQJ DGXOWKRRG EXW EXLOGV RQ VNLOOV DWWDLQHG LQ SUHYLRXV UHODWLRQVKLSV %DU
PAGE 15

LPSRUWDQW WR H[SORUH IXUWKHU WKH LPSDFW RI GLYRUFH RQ WKH GHYHORSPHQW RI LQWLPDF\ 7KH FRQFHSW RI LQWLPDF\ FDSWXUHV WKH HVVHQFH RI VKDUHG QRUPV DERXW FRPPXQLFDWLRQ UHVSRQVLELOLWLHVf DWWLWXGHV OLNLQJ ORYLQJ WUXVWf EHOLHIV DERXW WKH UHODWLRQVKLS LWV XQLTXHQHVV LPSRUWDQFHf DQG UHODWLRQV ZLWK RWKHU SHUVRQV .HOOH\ HW DO S f ,QWLPDF\ LQYROYHV PXWXDOLW\ LQ EHLQJ DEOH WR VKDUH ZRUULHV DQG SUREOHPV EHLQJ DEOH WR H[SUHVV HPRWLRQV KDYLQJ D JHQXLQH LQWHUHVW LQ RWKHUV DQG ODFNLQJ GHIHQVLYHQHVV 2UORIVN\ 0DUFLD t /HVVHU f 7KH DELOLW\ WR GHYHORS DQ LQWLPDWH UHODWLRQVKLS ZLWK D PHPEHU RI WKH RSSRVLWH VH[ LV D FRPSOH[ SURFHVV DQG FDQ EH LQIOXHQFHG E\ D YDULHW\ RI IDFWRUV )RU LQVWDQFH D GHWHULRUDWLRQ LQ UHODWLRQV ZLWK HLWKHU SDUHQW LV DVVRFLDWHG ZLWK LQFUHDVHG FRXUWVKLS DFWLYLW\ DQG GHFUHDVHG VDWLVIDFWLRQ ZLWK LQWHUSHUVRQDO UHODWLRQV IRU ERWK PDOHV DQG IHPDOHV %RRWK %ULQNHUKRII t :KLWH f 7KH EUHDNXS RI WKH SDUHQWDO PDUULDJH PD\ SURGXFH VXIIHULQJ DQG D IHHOLQJ RI DEDQGRQPHQW WKDW KDV ORQJ ODVWLQJ HIIHFWV H[WHQGLQJ ZHOO LQWR DGXOW OLIH -HUVLOG %URRN t %URRN f )ROORZLQJ SDUHQWDO GLYRUFH WKH GDXJKWHU VHHPV WR JHW PRUH PDWHUQDO VXSSRUW EXW VKH DOVR JHWV OHVV SDWHUQDO DWWHQWLRQ DQG VKH LV PRUH DIIHFWHG E\ IDWKHU DEVHQFH WKDQ LV WKH VRQ +HWKHULQJWRQ f /HRQDUG f VXJJHVWHG WKDW WKH IDWKHUnV XQDYDLODELOLW\ WR JLYH ORYH DQG WR EH ORYHG LV FULWLFDO WR WKH GDXJKWHUnV

PAGE 16

GHYHORSPHQW 3HUKDSV EHFDXVH IDWKHU DYDLODELOLW\ LV GHFUHDVHG /RSH] &DPSEHOO DQG :DWNLQV f IRXQG WKDW SDUHQWDO GLYRUFH PLJKW DFWXDOO\ DFFHOHUDWH PRVW IRUPV RI IDWKHUGDXJKWHU SV\FKRORJLFDO VHSDUDWLRQ 7KLV VHSDUDWLRQ PD\ EH PDQLIHVWHG LQ D QXPEHU RI ZD\V )RU H[DPSOH DGXOW IHPDOH FKLOGUHQ RI GLYRUFH DUH PRUH OLNHO\ WR KDYH ORZHU OHYHOV RI ZHOOEHLQJ DV GHILQHG E\ KDSSLQHVV KHDOWK VHOIUDWLQJV DQG VDWLVIDFWLRQ ZLWK KHDOWK FRPPXQLW\ OHLVXUH IULHQGVKLS DQG IDPLO\ OLIH *OHQQ t .UDPHU f 7KH\ DUH DOVR PRUH OLNHO\ WR EHFRPH VH[XDOO\ DFWLYH DW DQ HDUOLHU DJH %RRWK %ULQNHUKRII t :KLWH 1HZFRPHU t 8GU\ f WR KDYH D JUHDWHU QXPEHU RI VH[XDO SDUWQHUV +HSZRUWK 5\GHU t 'UH\HU f DQG WR PDUU\ HDUOLHU +HWKHULQJWRQ t 3DUNH f 6RPH RI WKHVH EHKDYLRUV PD\ EH SUREOHPDWLF DV PDNLQJ H[FHVVLYHO\ HDUO\ FRPPLWPHQWV WR DQRWKHU SHUVRQ PD\ KDYH QHJDWLYH LPSOLFDWLRQV IRU WKH DELOLW\ WR QHJRWLDWH ODWHU DGXOW LVVXHV )UDQ] t :KLWH f 7KHUH LV DOVR VRPH HYLGHQFH RI WKH LQWHUJHQHUDWLRQDO WUDQVPLVVLRQ RI GLYRUFH DV FKLOGUHQ RI GLYRUFH WHQG WR PDUU\ HDUOLHU 0F/DQDKDQ t %XPSDVV f DQG WR EH PRUH OLNHO\ WR GLYRUFH WKDQ DUH FKLOGUHQ IURP LQWDFW IDPLOLHV *OHQQ t 6KHOWRQ f 6RPH SHUVRQV ZLWK ORVV E\ GLYRUFH VHHP WR VHHN WR GHPRQVWUDWH E\ PRYLQJ LQ DQG RXW RI D VHULHV RI UHODWLRQVKLSV WKDW WKH ORVVHV GR QRW KXUW DQG WKDW UHODWLRQVKLSV KDYH GLPLQLVKHG YDOXH +HSZRUWK 5\GHU t 'UH\HU S f

PAGE 17

%LOOHU f VXJJHVWHG WKDW WKH ODFN RI RSSRUWXQLW\ WR REVHUYH PHDQLQJIXO PDOHIHPDOH UHODWLRQVKLSV LQ FKLOGKRRG FDQ PDNH LW PRUH GLIILFXOW IRU WKH IDWKHUDEVHQW IHPDOH WR GHYHORS WKH LQWHUSHUVRQDO VNLOOV QHFHVVDU\ IRU DGHTXDWH KHWHURVH[XDO DGMXVWPHQW S f :KLOH %LOOHUnV VXJJHVWLRQ VHHPV UHDVRQDEOH LW DOVR VHHPV LQDGHTXDWH WR FRPSOHWHO\ H[SODLQ WKH LPSDFW RI SDUHQWDO GLYRUFH XSRQ WKH VXEVHTXHQW LQWHUSHUVRQDO UHODWLRQVKLSV 2EMHFW UHODWLRQV WKHRU\ SURYLGHV D EURDGHU WKHRUHWLFDO IRXQGDWLRQ WKDW DGGUHVVHV WKH FRPSOH[LW\ RI WKH UHVSRQVHV WR SDUHQWDO GLYRUFH 7KHRUHWLFDO )RXQGDWLRQ $ SHUVRQ LV FRPSUHKHQVLEOH RQO\ ZLWKLQ >WKH@ WDSHVWU\ RI UHODWLRQVKLSV SDVW DQG SUHVHQW 0LWFKHOO S f :KHUHDV REMHFW UHODWLRQV WKHRU\ LV GHVFULEHG DV D ILHOG WKHRU\ WKDW FRQVLGHUV WKH LQGLYLGXDO DV DQFKRUHG LQ KLVKHU HQYLURQPHQW RU PDWUL[ RI UHODWLRQVKLSV $QWRQRYVN\ f LW SURYLGHV D JRRG IRXQGDWLRQ IRU XQGHUVWDQGLQJ WKH EHKDYLRUV WKDW DUH PDQLIHVW LQ LQWLPDWH LQWHUSHUVRQDO UHODWLRQVKLSV $OIRUG +RUQHU f 'LFNV f VXJJHVWV WKDW DQ LQGLYLGXDO LQWHUQDOL]HV UHODWLRQVKLSV ZLWK VLJQLILFDQW RWKHUV PRWKHU IDWKHU VLEOLQJV HWFf DQG EHFDXVH KH RU VKH KDV IHOW ORYHG FKHULVKHG DQG DFFHSWHG KH RU VKH OHDUQV WR ORYH DV DQ DGXOW 7KH REMHFWV LQ REMHFW UHODWLRQV DUH KXPDQ REMHFWV DQG WKH UHODWLRQV PD\ EH UHDO RU IDQWDVLHG LQWHUQDO RU

PAGE 18

H[WHUQDO LQWHUDFWLRQV ZLWK RWKHUV &DVKGDQ f 6XOOLYDQ f FRQVLGHUHG E\ .HUQEHUJ f WR EH VRPHZKDW RI DQ REMHFW UHODWLRQV WKHRULVW VWUHVVHV WKH LPSRUWDQFH RI LQWHUSHUVRQDO UHODWLRQVKLSV DV GHWHUPLQDQWV RI LQWUDSV\FKLF DQG LQWHUSHUVRQDO VWUXFWXUHV S f (DUO\ UHODWLRQVKLSV EHFRPH LQWHUQDOL]HG DV PHQWDO UHSUHVHQWDWLRQV WKDW ODWHU EHFRPH PDQLIHVW LQ EHKDYLRUV ZLWK RWKHUV /LHEHUPDQ f ,QWHUDFWLRQV ZLWK REMHFWV OHDG WR VLJQLILFDQW DQG ODVWLQJ PRGLILFDWLRQV RI WKH SHUVRQDOLW\ XVXDOO\ FRQFHLYHG RI DV LQWHUQDO VWUXFWXUHV ZKLFK DIIHFW DOO ODWHU H[SHULHQFHV ZLWK RWKHUV $QWRQRYVN\ S f 7KXV WKH LQQHU ZRUOG RI REMHFW UHODWLRQV GHWHUPLQHV WKH ZD\ DQ LQGLYLGXDO UHODWHV WR WKH H[WHUQDO ZRUOG WKURXJK LQWHUSHUVRQDO UHODWLRQVKLSV 2EMHFW UHODWLRQV HYROYH RYHU WKH ILUVW WKUHH RU IRXU \HDUV RI OLIH EXW WKH\ FRQWLQXH WR EH PRGLILHG E\ H[SHULHQFHV WKURXJKRXW OLIH ,Q IDFW WKH DGROHVFHQW HJR LGHQWLW\ KDV D IRXQGDWLRQ LQ WKH EHKDYLRU RI PHDQLQJIXO RWKHUV WRZDUG KLP RU KHU 6KDUI f 7KH DGROHVFHQW LQWHJUDWHV WKHVH SHUFHSWLRQV DQG H[SHULHQFHV LQWR KLV RU KHU RZQ FKDQJLQJ VHOIFRQFHSW $OWKRXJK WKH IRFXV LQ REMHFW UHODWLRQV WKHRU\ LV RQ WKH LPSRUWDQFH RI WKH PRWKHUFKLOG UHODWLRQVKLS RWKHUV DOVR SOD\ D VLJQLILFDQW UROH LQ WKH OLIH RI WKH FKLOG $SSOHJDWH /LHEHUPDQ f ,W LV QRW WKH UROH RI PRWKHU RU IDWKHU GHWHUPLQHG ELRORJLFDOO\ RU OHJDOO\ WKDW LV FULWLFDO EXW WKH REMHFW IXQFWLRQ RI PRWKHULQJ RU IDWKHULQJ

PAGE 19

5RVHQEHUJHU f 5XWWHU f VXJJHVWV WKDW PRVW FKLOGUHQ GHYHORS ERQGV ZLWK VHYHUDO SHRSOH DQG LW DSSHDUV OLNHO\ WKDW WKHVH ERQGV DUH EDVLFDOO\ VLPLODU S f &RQVHTXHQWO\ WKH IDWKHU RU IDWKHULQJ ILJXUH ZKR LV DFWLYH LQ WKH OLIH RI KLV FKLOG PD\ EH DOPRVW DV LPSRUWDQW LQ WKH IRUPDWLRQ RI REMHFW UHODWLRQV DV LV WKH PRWKHU RU PRWKHULQJ ILJXUH 0RGLILFDWLRQ RU IRUPDWLRQ RI WKH LQWHUQDO VWUXFWXUHV LV OLNHO\ WR WDNH SODFH LQ WKH SUHVHQFH RI DQG LQ UHDFWLRQ WR VWURQJO\ H[SHULHQFHG DIIHFWV VXFK DVSDLQ LQ WKH UHODWLRQVKLS ZLWK VLJQLILFDQW RWKHUV $QWRQRYVN\ S f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f ,Q IDFW )DLUEDLUQ f VWDWHG WKDW WKH XOWLPDWH JRDO RI KXPDQ EHKDYLRU LV WKH HVWDEOLVKPHQW RI PHDQLQJIXO UHODWLRQVKLSV ,Q WKH IDPLO\ WKH FKLOG OHDUQV D PRGH RI FRQQHFWLRQ DQG WKHVH OHDUQHG PRGHV DUH GHVSHUDWHO\ PDLQWDLQHG WKURXJKRXW OLIH

PAGE 20

0LWFKHOO S f (YHQWV WKDW EUHDN RU SUHYHQW WKH QHFHVVDU\ DWWDFKPHQWV PD\ SURGXFH HIIHFWV WKDW FURS XS LQ GLIIHUHQW ZD\V RYHU WKH \HDUV DV WKH FKLOG SDVVHV WKURXJK SURJUHVVLYH VWDJHV RI GHYHORSPHQW +HWKHULQJWRQ &R[ t &R[ f $FFRUGLQJ WR REMHFW UHODWLRQV WKHRULVWV GHYHORSPHQW LV D SURFHVV ZKLFK WDNHV SODFH ZLWKLQ DQ LQWHUDFWLYH PDWUL[ RI FRQVWLWXWLRQDO HQGRZPHQWV VLJQLILFDQW UHODWLRQVKLSV DQG FULWLFDO HYHQWV 1LFKROVRQ S f 'LYRUFH LV QRW RQO\ D FULWLFDO HYHQW EXW LW DOVR LPSDFWV RQ LQWHUSHUVRQDO UHODWLRQVKLSV 3DUHQWDO GLYRUFH DOPRVW RI QHFHVVLW\ LQWHUUXSWV RU LQWHUIHUHV ZLWK DWWDFKPHQW WR WKH QRQFXVWRGLDO SDUHQW XVXDOO\ WKH IDWKHU &KLOGUHQ RIWHQ H[SHULHQFH SDLQ IHDU DQJHU RU GHSUHVVLRQ IROORZLQJ D SDUHQWDO GLYRUFH $V VXJJHVWHG E\ $QWRQRYVN\ f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

PAGE 21

LI WR VD\ WKDW VKH QHJDWHV WKH LPSRUWDQFH RI KHU IDWKHU DQG FDQ VWDQG DORQH ,Q HVVHQFH KHU PLQG ZLOO ZRUN WR PDLQWDLQ FRQQHFWLRQV ZLWK REMHFWV RU SDUHQWV $OIRUG f 3DLQIXO IHHOLQJV VHOIGHVWUXFWLYH UHODWLRQVKLSV VHOIVDERWDJLQJ VLWXDWLRQV PD\ EHf UHFUHDWHG WKURXJKRXW OLIH DV YHKLFOHV IRU WKH SHUSHWXDWLRQ RI HDUO\ WLHV WR VLJQLILFDQW RWKHUV 0LWFKHOO S f ,Q SDUWLFXODU JLUOV PD\ PDQLIHVW SUREOHPV LQ UHODWLQJ WR PDOHV WKDW VXUIDFH ZKHQ WKHLU LQWHUHVW LQ WKH RSSRVLWH VH[ KHLJKWHQV /\QQ f 7KH ROG ZD\V RI PDLQWDLQLQJ FRQQHFWLRQV PD\ QR ORQJHU EH DSSURSULDWH RU XVHIXO LQ IRUPLQJ LQWLPDWH UHODWLRQVKLSV LQ \RXQJ DGXOWKRRG EXW WKH\ PD\ EH SHUSHWXDWHG QRQHWKHOHVV ,Q FRQFOXVLRQ FKDQJHV LQ WKH LQWUDSV\FKLF VWUXFWXUHV FDQ KDYH D SURIRXQG HIIHFW RQ DQ LQGLYLGXDOnV FDSDFLW\ WR HQWHU LQWR PDWXUH LQWHUSHUVRQDO UHODWLRQVKLSV LQ DGXOW OLIH 1LFKROVRQ S f 2QH PD\ FDUU\ XQFRQVFLRXV IDQWDVLHV DORQJ ZLWK PHQWDO UHSUHVHQWDWLRQV RI REMHFWV WKDW FDQ FRORU GLVWRUW DQG DIIHFW UHODWLRQV ZLWK VLJQLILFDQW RWKHUV $UORZ f 2EMHFW UHODWLRQV WKHRU\ VHHPV WR SURYLGH D WKHRUHWLFDO EDVH WKDW DGGUHVVHV WKH FRPSOH[LW\ RI WKH LPSDFW RI GLYRUFH RQ GHYHORSPHQW 6SHFLILFDOO\ LW JLYHV D IRXQGDWLRQ IRU XQGHUVWDQGLQJ WKH LPSDFW RI IDWKHU GDXJKWHU UHODWLRQV RQ WKH DELOLW\ WR HVWDEOLVK PHDQLQJIXO LQWHUSHUVRQDO UHODWLRQVKLSV

PAGE 22

3XUSRVH DQG 1HHG IRU WKH 6WXG\ 7R VXPPDUL]H GLYRUFH LPSDFWV WKH HQWLUH IDPLO\ LQFOXGLQJ WKH FKLOGUHQ DQG WKHUH LV VRPH HYLGHQFH WKDW WKLV LPSDFW H[WHQGV ZHOO LQWR WKH SRVWGLYRUFH \HDUV /XVVHQ f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t %RRWK f 2QH RI WKH IDFWRUV WKDW KDV UHFHLYHG VRPH DWWHQWLRQ LV WKH FKLOGnV UHODWLRQVKLS ZLWK WKH IDWKHU 'LYRUFH RIWHQ SURGXFHV D GHFUHDVH LQ WKH DPRXQW RI FRQWDFW DQG WKH TXDOLW\ RI WKH UHODWLRQVKLS ZLWK WKH QRQFXVWRGLDO SDUHQW W\SLFDOO\ WKH IDWKHU %LOOHU f 7KH GDXJKWHUnV H[SHULHQFH IROORZLQJ SDUHQWDO GLYRUFH GLIIHUV IURP WKDW RI WKH VRQ EHFDXVH WKH GDXJKWHU LV PRUH DIIHFWHG E\ IDWKHU DEVHQFH WKDQ LV WKH VRQ +HWKHULQJWRQ f $OWKRXJK VRPH VWXGLHV KDYH H[DPLQHG WKH LPSRUWDQFH RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS IROORZLQJ GLYRUFH QRQH KDYH IRFXVHG XSRQ WKH LPSDFW RI WKLV UHODWLRQVKLS RQ WKH GHYHORSPHQWDOO\ DSSURSULDWH WDVN RI FROOHJH DJHG VWXGHQWV

PAGE 23

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

PAGE 24

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nV DWWHPSWV WR IRUP UHZDUGLQJ UHODWLRQVKLSV ZLWK WKH RSSRVLWH VH[ %RRWK %ULQNHUKRII t :KLWH S f 7KHUH DUH D YDULHW\ RI FKDQJHV VHW LQ PRWLRQ E\ GLYRUFH LQFOXGLQJ FKDQJHV LQ WKH IDWKHUGDXJKWHU UHODWLRQVKLS %HFDXVH WKH GDXJKWHUnV UHODWLRQVKLS ZLWK KHU IDWKHU PLJKW DIIHFW KHU UHODWLRQV ZLWK WKH RSSRVLWH VH[ VWXGLHV RI WKH UROH RI WKH IDWKHU LQ DGROHVFHQW GHYHORSPHQW

PAGE 25

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t &KULVWHQVHQ %RRWK %ULQNHUKRII t :KLWH *DEDUGL :HLVV f 0HWKRG RI /LWHUDWXUH 6HDUFK 7KH OLWHUDWXUH ZDV VDPSOHG YLD D FRPSXWHUL]HG VHDUFK RI WKH 3V\FKOLW 6RFLRILOH DQG 'LVVHUWDWLRQ $EVWUDFWV ,QWHUQDWLRQDO GDWD EDVHV 6HDUFK WHUPV ZHUH JDWKHUHG IURP WKH OLWHUDWXUH DQG IURP WKH 7KHVDXUXV RI 3V\FKRORJLFDO ,QGH[ 7HUPV :DONHU f 7KH WHUPV LQFOXGHG LQWLPDF\ REMHFW UHODWLRQV GLYRUFH SDUHQW FKLOG UHODWLRQV \RXQJ DGXOWV DGROHVFHQWV LQWHUSHUVRQDO LQWLPDF\ DQG IDWKHU FKLOG UHODWLRQV 7KH WHUPV ZHUH XVHG DORQH DQG LQ YDULRXV FRPELQDWLRQV $GGLWLRQDOO\ D VHDUFK ZDV SHUIRUPHG RI WKH 6RFLDO 6FLHQFH &LWDWLRQ ,QGH[ RQ KLJKO\ UHOHYDQW VWXGLHV VXFK DV *DEDUGL f )LQDOO\ WKH UHIHUHQFH VHFWLRQV RI XVHIXO DUWLFOHV ZHUH VHDUFKHG 7KH VWXGLHV WKDW ZHUH XWLOL]HG IRFXVHG RQ WKH LPSDFW RI SDUHQWDO GLYRUFH RQ

PAGE 26

DGROHVFHQWV DQG \RXQJ DGXOWV WKH ORQJWHUP LPSDFW RI GLYRUFH WKH LPSDFW RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS RQ LQWLPDF\ DQG WKH LPSDFW RI SDUHQWDO GLYRUFH RQ LQWLPDF\ 6WXGLHV ZHUH H[FOXGHG WKDW IRFXVHG RQ \RXQJ FKLOGUHQ RU RQ WKH VKRUW WHUP FRQVHTXHQFHV RI GLYRUFH /RQJ 7HUP (IIHFWV RI 'LYRUFH :DOOHUVWHLQ DQG .HOO\ f FRQGXFWHG D VHPLQDO ORQJLWXGLQDO VWXG\ ZKLFK LQYROYHG IDPLOLHV ZLWK FKLOGUHQ 7KH VXEMHFWV FDPH IURP D QRQFOLQLFDO SRSXODWLRQ DQG ZHUH UHIHUUHG IRU DQWLFLSDWRU\ JXLGDQFH DW WKH WLPH RI VHSDUDWLRQ 6XEMHFWV ZHUH VHHQ DJDLQ DW PRQWKV \HDUV DQG \HDUV 7KH GDWD ZHUH JDWKHUHG SULPDULO\ WKURXJK OHQJWK\ LQWHUYLHZV $W WKH ILYH \HDU IROORZXS WKH FULVLV SHULRG ZDV RYHU DQG PRVW FKLOGUHQ KDG UHVROYHG WKHLU QHJDWLYH IHHOLQJV DERXW WKHLU SDUHQWVn GLYRUFH ,W ZDV QRWHG WKDW WKRVH ZKR KDG SRVLWLYH UHODWLRQVKLSV ZLWK ERWK SDUHQWV DFKLHYHG WKH EHVW DGMXVWPHQW 'HVSLWH UHVROXWLRQ RI PDQ\ RI WKH SUREOHPV WKHUH ZDV VRPH HYLGHQFH RI HPRWLRQDO GLIILFXOWLHV LQ RQH WKLUG RI WKH FKLOGUHQ 7KHVH FKLOGUHQ GHVFULEHG EHLQJ LQWHQVHO\ GLVVDWLVILHG ZLWK WKHLU SRVWGLYRUFH OLYHV GHSUHVVHG DQG ORQHO\ 2QO\ b RI WKH FKLOGUHQ ZHUH FRQVLGHUHG WR EH GRLQJ HVSHFLDOO\ ZHOO ZLWK KLJK VHOIn HVWHHP $W WKH \HDU IROORZXS :DOOHUVWHLQ f UHYLVLWHG JLUOV DQG ER\V ZKR KDG EHHQ HDUO\ ODWHQF\ DJHG

PAGE 27

\HDUV ROGf DW WKH WLPH RI WKHLU SDUHQWVn GLYRUFH 6HPL VWUXFWXUHG LQWHUYLHZV ZHUH VXSSOHPHQWHG E\ TXHVWLRQQDLUHV $OO RI WKH FKLOGUHQ ZHUH LQ WKH FXVWRG\ RI WKHLU PRWKHUV EXW GXULQJ WKH WHQ\HDU SHULRG VHYHUDO KDG VSHQW VRPH WLPH OLYLQJ ZLWK WKHLU IDWKHUV $ OLWWOH PRUH WKDQ RQHWKLUG VDZ WKHLU IDWKHUV UHJXODUO\ GHILQHG DV RQH RU PRUH WLPHV SHU PRQWK )LIW\VHYHQ SHUFHQW RI WKH JLUOV DQG b RI WKH ER\V KDG LUUHJXODU YLVLWV GHILQHG DV OHVV WKDQ VL[ YLVLWV SHU \HDU :DOOHUVWHLQ f ,Q WHUPV RI VFKRRO SHUIRUPDQFH :DOOHUVWHLQ f HVWLPDWHG WKDW b RI WKH VXEMHFWV ZHUH XQGHUDFKLHYLQJ WR D VLJQLILFDQW GHJUHH $GGLWLRQDOO\ WKHLU FDUHHU DVSLUDWLRQV ZHUH QRWDEO\ VKDOORZ 7KLV JURXS ZDV IRXQG WR EH VLJQLILFDQWO\ OHVV SV\FKRORJLFDOO\ DQG VRFLDOO\ ZHOO DGMXVWHG WKDQ WKH \RXQJHVW JURXS ZKR ZHUH QRZ \HDUV ROG 2YHUDOO KDOI RI WKH ER\V DQG RQH IRXUWK RI WKH JLUOV ZHUH FRQVLGHUHG SRRUO\ DGMXVWHG DQG DW KLJK ULVN DW WKH WLPH RI WKH WHQ\HDU IROORZXS :DOOHUVWHLQ S f 7KH SURIRXQG XQKDSSLQHVV ZKLFK WKHVH VXEMHFWV H[SHULHQFHG LQ WKHLU FXUUHQW UHODWLRQVKLSV GLVWLQJXLVKHG WKHP IURP WKH FKLOGUHQ ZKR ZHUH HLWKHU \RXQJHU RU ROGHU 7KH XQKDSSLQHVV ZLWK UHODWLRQVKLSV LV SDUWLFXODUO\ VLJQLILFDQW DV WKH IRUPDWLRQ RI LQWLPDWH UHODWLRQVKLSV LV WKH DSSURSULDWH GHYHORSPHQWDO WDVN IRU DGROHVFHQWV DQG \RXQJ DGXOWV (ULNVRQ f *LUOV ZHUH QRWHG WR KDYH KDG WKUHH RU PRUH ER\IULHQGV GXULQJ WKHLU DGROHVFHQFH DQG RQH TXDUWHU

PAGE 28

RI WKH JLUOV KDG KDG DERUWLRQV 7KH JLUOV LQ WKLV DJH JURXS DOVR UHSRUWHG PRUH GHSUHVVLRQ DQG VXLFLGH DWWHPSWV :DOOHUVWHLQ f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f 1RQHWKHOHVV WKH ILQGLQJV KDYH UHFHLYHG FRQVLGHUDEOH DWWHQWLRQ LQ ERWK WKH UHVHDUFK DQG SRSXODU OLWHUDWXUH DQG :DOOHUVWHLQ DQG .HOO\ FRQWULEXWHG PXFK WR WKH VWXG\ RI GLYRUFH E\ GHOLQHDWLQJ RXWFRPHV IRU FKLOGUHQ RI GLIIHUHQW DJHV DQG GHYHORSPHQWDO OHYHOV $ ORQJLWXGLQDO LQYHVWLJDWLRQ E\ *XLGXEDOGL DQG 3HUU\ f IRFXVHG RQ ORQJWHUP SV\FKRORJLFDO DGMXVWPHQW DQG XWLOL]HG D PXOWLIDFWRUHG PHQWDO KHDOWK DVVHVVPHQW RI FKLOGUHQ &KLOGUHQ RI SDUHQWDO GLYRUFH SHUIRUPHG PRUH SRRUO\ WKDQ FKLOGUHQ RI LQWDFW IDPLOLHV RQ RXW RI PHQWDO KHDOWK PHDVXUHV *XLGXEDOGL t 3HUU\ f ,Q WKLV VWXG\ WKH DYHUDJH OHQJWK RI WLPH VLQFH WKH GLYRUFH ZDV

PAGE 29

\HDUV DJDLQ LQGLFDWLQJ WKH FRQWLQXDWLRQ RI QHJDWLYH HIIHFWV EH\RQG WKH LQLWLDO DGMXVWPHQW SHULRG *XLGXEDOGL DQG 3HUU\ f IRXQG WKDW GLYRUFH VHHPHG PRUH UHODWHG WR PDODGMXVWPHQW LQ ER\V WKDQ LQ JLUOV +RZHYHU JLUOV ZHUH IRXQG WR KDYH PRUH VRFLDO LQYROYHPHQW XQUHIOHFWLYHQHVV LUUHOHYDQW WDON QHJDWLYH IHHOLQJV FULWLFDOFRPSHWLWLYHQHVV DQG EODPLQJ WKDQ ER\V *XLGXEDOGL t 3HUU\ f 7KLV LQYHVWLJDWLRQ XWLOL]HG SDUHQW UDWLQJV LQ DGGLWLRQ WR RWKHU PHWKRGV DQG WKH DXWKRUV VXJJHVWHG WKDW WKH GDXJKWHUV RI GLYRUFH ZHUH PRUH OLNHO\ WKDQ WKH GDXJKWHUV RI LQWDFW IDPLOLHV WR WHOO WKHLU PRWKHUV LI VRPHWKLQJ JRRG KDSSHQHG 7KXV PRWKHUVn UDWLQJV RI WKH GDXJKWHUV RI GLYRUFH FRXOG KDYH EHHQ SRVLWLYHO\ VNHZHG 2Q WKH RWKHU KDQG WKH VRQV RI GLYRUFH ZHUH OHVV OLNHO\ WR WHOO WKHLU PRWKHUV LI VRPHWKLQJ JRRG KDSSHQHG WKDQ WKH VRQV RI LQWDFW IDPLOLHV SRVVLEO\ DFFRXQWLQJ IRU PRUH QHJDWLYH UDWLQJV 3V\FKRORJLFDO ZHOOEHLQJ IROORZLQJ GLYRUFH ZDV DOVR H[DPLQHG E\ *OHQQ DQG .UDPHU f )HPDOHV ZKRVH SDUHQWV r KDG GLYRUFHG ZKHQ FRPSDUHG WR IHPDOHV IURP LQWDFW IDPLOLHV KDG QHJDWLYH FRHIILFLHQWV ZKLFK UHDFKHG VLJQLILFDQFH RQ ILYH RXW RI HLJKW GLPHQVLRQV RI SV\FKRORJLFDO ZHOOEHLQJ 7KHUH ZDV QR HYLGHQFH WKDW WKH QHJDWLYH HIIHFWV GLPLQLVKHG ZLWK WLPH DQG WKHUH ZDV HYLGHQFH WKDW IHPDOHV ZHUH PRUH QHJDWLYHO\ DIIHFWHG WKDQ PDOHV &RPSDULVRQV ZHUH DOVR PDGH EHWZHHQ SHUVRQV ZKR KDG ORVW D SDUHQW GXH WR GHDWK DQG WKRVH IURP LQWDFW IDPLOLHV 7KH UHVXOWV LQGLFDWHG WKDW ORVV RI D

PAGE 30

SDUHQW GXH WR GHDWK GRHV QRW SURGXFH WKH VDPH ORQJWHUP QHJDWLYH HIIHFWV DV ORVV GXH WR GLYRUFH *OHQQ t .UDPHU f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f IRXQG KLJK SDUHQWDO FRQIOLFW DVVRFLDWHG ZLWK SRRUHU DGDSWDWLRQ /RQJ f IRXQG VHOI HVWHHP SRVLWLYHO\ UHODWHG WR SDUHQWDO KDSSLQHVV UDWKHU WKDQ WR IDPLO\ VWUXFWXUH DQG (OOLVRQ f IRXQG D SRVLWLYH FRUUHODWLRQ EHWZHHQ SDUHQWDO KDUPRQ\ DQG FKLOGUHQnV DVVHVVPHQW RI WKHLU RZQ SV\FKRORJLFDO DGMXVWPHQW 6ODWHU DQG &DOKRXQ f H[DPLQHG WKH LQIOXHQFHV RI SDUHQWDO PDULWDO VWDWXV DQG OHYHO RI FRQIOLFW GXULQJ FKLOGKRRG KLJK RU ORZf RQ VRFLDO IXQFWLRQLQJ RI XQGHUJUDGXDWH SV\FKRORJ\ VWXGHQWV 7KH DELOLW\ WR GHYHORS DQG PDLQWDLQ VXSSRUWLYH IULHQGVKLSV DQG GDWLQJ UHODWLRQVKLSV YDULHG DV D IXQFWLRQ RI IDPLO\ VWUXFWXUH DQG FRQIOLFW 6ODWHU t &DOKRXQ S f ,QWHUHVWLQJO\ ZLWKLQ WKH

PAGE 31

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t 7VFKDQQ f )DUEHU )HOQHU DQG 3ULPDYHUD f DOVR IRXQG OHYHOV RI IDPLO\ FRKHVLRQ DQG FRQIOLFW WR EH SUHGLFWLYH RI DGDSWLYH RXWFRPH :KHUH WKHUH ZDV JUHDWHU FRQIOLFW DQG OHVV FRKHVLRQ WKHUH ZDV DQ LQFUHDVH LQ DQ[LHW\ +HWKHULQJWRQ &R[ t &R[ f FRQGXFWHG D ORQJLWXGLQDO VWXG\ RI FKLOGUHQ DQG WKHLU SDUHQWV ZKLFK EHJDQ WR DGGUHVV IDPLO\ UHODWLRQVKLSV ,Q WKH RULJLQDO LQYHVWLJDWLRQ RQHKDOI RI WKH FKLOGUHQ ZHUH IURP GLYRUFHG IDPLOLHV DQG ZHUH LQ WKH FXVWRG\ RI WKHLU PRWKHUV WKH RWKHU KDOI ZHUH IURP LQWDFW IDPLOLHV $W WKH VL[ \HDU IROORZXS RI WKH GLYRUFHG PRWKHUV KDG UHPDUULHG &RQVHTXHQWO\ VRPH VXEMHFWV ZHUH DGGHG VR WKDW WKHUH ZHUH

PAGE 32

VRQV DQG GDXJKWHUV LQ HDFK RI WKUHH JURXSV LQWDFW GLYRUFHGUHPDUULHG DQG GLYRUFHG 7KLV LQYHVWLJDWLRQ XWLOL]HG LQWHUYLHZV VWDQGDUGL]HG PHDVXUHV DQG LQKRPH REVHUYDWLRQV 6HYHUDO GLIIHUHQFHV ZHUH REVHUYHG LQ IDPLO\ UHODWLRQVKLSV GHSHQGLQJ XSRQ IDPLO\ VWUXFWXUH )RU H[DPSOH VRQV DQG GDXJKWHUV IURP GLYRUFHG IDPLOLHV ZHUH DOORZHG PRUH UHVSRQVLELOLW\ DQG LQGHSHQGHQFH WKDQ FKLOGUHQ IURP LQWDFW KRPHV +HWKHULQJWRQ f ,QWHUHVWLQJO\ ZKDW +HWKHULQJWRQ GHVFULEHG LQ SRVLWLYH WHUPV :DOOHUVWHLQ f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f HYDOXDWHG WKH DWWLWXGHV RI VWXGHQWV LQ DQRWKHU ORQJLWXGLQDO VWXG\ 7KHUH ZHUH WKUHH UDQGRPO\ VHOHFWHG JURXSV RI DGROHVFHQWV HDFK IDPLOLHV LQWDFW WKURXJKRXW WKH VWXG\ IDPLOLHV GLYRUFHG DW WKH RQVHW DQG FRPSOHWLRQ RI

PAGE 33

WKH VWXG\ DQG IDPLOLHV LQWDFW DW WKH RQVHW EXW GLYRUFHG DW WKH FRPSOHWLRQ 6XEMHFWV ZHUH DVNHG WR FRPSOHWH WKH 3HUVRQDO $WWULEXWH ,QYHQWRU\ IRU &KLOGUHQ 3DULVK t :LJOH f ZLWK WKHLU PRWKHUV IDWKHUV DQG WKHPVHOYHV DV WDUJHWV 7KH DGROHVFHQWV IURP LQWDFW IDPLOLHV HYDOXDWHG WKHPVHOYHV DQG WKHLU IDPLOLHV PRUH SRVLWLYHO\ WKDQ DGROHVFHQWV IURP GLYRUFHG IDPLOLHV 7KH UDWLQJV ZHUH WKH ORZHVW IRU WKRVH DGROHVFHQWV ZKRVH IDPLOLHV H[SHULHQFHG SDUHQWDO GLYRUFH GXULQJ WKH VWXG\ 7KHVH ILQGLQJV GHPRQVWUDWH WKH LPSDFW RI UHFHQW GLYRUFH DQG VXJJHVW WKDW WKH SDLQ RI GLYRUFH GLPLQLVKHV ZLWK WLPH 3DULVK t :LJOH f $OWKRXJK WKH HYDOXDWLRQV RI VHOI DQG SDUHQWV EHFDPH PRUH SRVLWLYH RYHU WLPH WKH HYDOXDWLRQV IURP FKLOGUHQ RI GLYRUFH QHYHU EHFDPH DV SRVLWLYH DV WKRVH IURP LQWDFW IDPLOLHV 7KLV VWXG\ ZHQW EH\RQG IDPLO\ VWUXFWXUH WR H[DPLQH IDPLO\ SURFHVVHV DQG UHODWLRQVKLSV )DPLO\ SURFHVVHV DSSHDU UHODWHG WR WKH ZD\ DGROHVFHQWV HYDOXDWH WKHPVHOYHV DQG WKHLU SDUHQWV DQG IDWKHU DEVHQFH LQ SDUWLFXODU ZDV VWURQJO\ DVVRFLDWHG ZLWK QHJDWLYH HYDOXDWLRQV 3DULVK t :LJOH f 3DUHQWDO GLYRUFH DOVR VHHPV WR KDYH DQ LPSDFW RQ DWWLWXGHV DQG H[SHFWDWLRQV IRU LQWLPDWH UHODWLRQVKLSV :DOOHUVWHLQ DQG %ODNHVOHH f LQWHUYLHZHG FKLOGUHQ WHQ \HDUV DIWHU WKHLU SDUHQWVn GLYRUFH $W WKDW WLPH WKH FKLOGUHQ ZHUH EHWZHHQ DQG \HDUV RI DJH 7KH ILQGLQJV

PAGE 34

LQGLFDWHG WKDW WKHVH FKLOGUHQ ZDQWHG ZKDW WKHLU SDUHQWV KDG IDLOHG WR DFKLHYH D ODVWLQJ FRPPLWWHG URPDQWLF ORYH DQG PDUULDJH +RZHYHU WKH\ IHOW LW ZDV XQOLNHO\ WKDW WKH\ ZRXOG DFKLHYH WKHVH JRDOV 0DQ\ RI WKHVH VXEMHFWV IHOW UHMHFWHG DQG IHDUHG UHMHFWLRQ LQ IXWXUH UHODWLRQVKLSV ZLWK WKH RSSRVLWH VH[ $V D SDUW RI WKH :DOOHUVWHLQ DQG .HOO\ LQYHVWLJDWLRQ .HOO\ f FRQGXFWHG D VWXG\ RI DGROHVFHQWV DQG \RXQJ DGXOWV DJHG f (LJKWHHQ PRQWKV IROORZLQJ WKHLU SDUHQWVn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f FRPSDUHG WKH DWWLWXGHV RI IHPDOH FROOHJH VWXGHQWV IURP GLYRUFHG IDPLOLHV WR WKH DWWLWXGHV RI IHPDOH VXEMHFWV IURP LQWDFW IDPLOLHV $

PAGE 35

SDJH TXHVWLRQQDLUH DQG 7KHPDWLF $SSHUFHSWLRQ 7HVW 7$7f 0XUUD\ f FDUGV ZHUH DGPLQLVWHUHG 6HYHUDO ILQGLQJV HPHUJHG WKH ZRPHQ LQ WKH GLYRUFHG JURXS EHJDQ GDWLQJ ODWHU WKDQ WKRVH LQ WKH LQWDFW JURXS WKH GLYRUFHG JURXS VDZ PHQ DV PRUH XQIHHOLQJ DQG OHVV VWURQJ WKH GLYRUFHG JURXS VDZ IHPDOHV DV OHVV VHQVLWLYH DQG OHVV PDWXUH DQG WKH GLYRUFHG JURXS ZDV OHVV KRSHIXO DERXW WKH IXWXUH DQG OHVV FHUWDLQ DERXW KDYLQJ D ODVWLQJ PDUULDJH 8VLQJ 7$7 FDUGV /XVVHQ f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f 7KH DXWKRU GRHV QRW LQGLFDWH WKDW WKH VWRULHV ZHUH MXGJHG EOLQG DQG LI WKDW ZHUH QRW GRQH LW ZRXOG KDYH EHHQ D PDMRU IODZ LQ WKH UHVHDUFK GHVLJQ 3DUHQWDO GLYRUFH KDV EHHQ IRXQG WR KDYH VLJQLILFDQW QHJDWLYH HIIHFWV LQ HGXFDWLRQDO SV\FKRORJLFDO DQG VRFLDO DUHDV RI DGMXVWPHQW (OHYHQ VWXGLHV KDYH EHHQ UHYLHZHG DQG KDYH LQGLFDWHG WKDW WKH QHJDWLYH HIIHFWV RI GLYRUFH H[WHQG

PAGE 36

EH\RQG WKH WKUHH \HDU DGMXVWPHQW SHULRG (YHQ WKRXJK WKH QHJDWLYH HIIHFWV GLPLQLVK RYHU WLPH 3DULVK DQG :LJOH f IRXQG WKDW WKH HYDOXDWLRQV RI VHOI DQG SDUHQW E\ FKLOGUHQ RI GLYRUFH QHYHU EHFDPH DV SRVLWLYH DV WKRVH IURP FKLOGUHQ RI LQWDFW IDPLOLHV )ROORZLQJ GLYRUFH QRW RQO\ GRHV WKH VWUXFWXUH RI WKH IDPLO\ FKDQJH EXW WKH IDPLO\ SURFHVVHV DQG UHODWLRQVKLSV DOVR FKDQJH 7KH DEVHQFH RI WKH IDWKHU KDV EHHQ IRXQG WR EH VWURQJO\ DVVRFLDWHG ZLWK DGROHVFHQWVn QHJDWLYH HYDOXDWLRQV RI WKHPVHOYHV DQG WKHLU SDUHQWV 3DULVK t :LJOH f 5HODWLRQVKLSV ZLWKLQ WKH IDPLO\ ZHUH QRW WKH RQO\ RQHV DIIHFWHG .HOO\ f IRXQG WKDW DGROHVFHQWVn KHWHURVH[XDO UHODWLRQVKLSV WHQGHG WR EH HLWKHU VKRUWOLYHG RU XQVDWLVI\LQJ $GGLWLRQDOO\ JLUOV ZKR KDYH H[SHULHQFHG SDUHQWDO GLYRUFH KDYH EHHQ IRXQG WR YLHZ PHQ OHVV SRVLWLYHO\ DQG WR KDYH ORZHU KRSHV DQG H[SHFWDWLRQV IRU PDUULDJH .DOWHU HW DO f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t 6SUHQNOH *DQRQJ &ROHPDQ t %URZQ

PAGE 37

f DQG WR SHUFHLYH WKH DGYDQWDJHV RI PDUULDJH VLPLODUO\ WR WKH FKLOGUHQ IURP LQWDFW IDPLOLHV $PDWR f +RZHYHU FKLOGUHQ OLYLQJ LQ HLWKHU VLQJOH SDUHQW RU UHFRQVWLWXWHG IDPLOLHV YLHZ GLYRUFH PRUH IDYRUDEO\ WKDQ WKRVH IURP LQWDFW IDPLOLHV &ROHPDQ t *DQRQJ *UHHQEHUJ t 1D\ f :DOOHUVWHLQ DQG %ODNHVOHH f LQWHUYLHZHG FKLOGUHQ WHQ \HDUV DIWHU WKHLU SDUHQWVn GLYRUFH $W WKDW WLPH WKH FKLOGUHQ ZHUH EHWZHHQ DQG \HDUV RI DJH 7KH ILQGLQJV LQGLFDWHG WKDW WKHVH FKLOGUHQ ZDQWHG ZKDW WKHLU SDUHQWV IDLOHG WR DFKLHYH D ODVWLQJ FRPPLWWHG URPDQWLF ORYH DQG PDUULDJH +RZHYHU WKH\ IHOW LW ZDV XQOLNHO\ WKDW WKH\ ZRXOG DFKLHYH WKHVH JRDOV 0DQ\ RI WKHVH VXEMHFWV IHOW UHMHFWHG DQG IHDUHG UHMHFWLRQ LQ UHODWLRQVKLSV ZLWK WKH RSSRVLWH VH[ .XOND DQG :HLQJDUWHQ f XWLOL]HG GDWD IURP WZR QDWLRQDO VXUYH\V ZKLFK ZHUH FRQGXFWHG E\ WKH 6XUYH\ 5HVHDUFK &HQWHU DW WKH 8QLYHUVLW\ RI 0LFKLJDQ 7KH LQLWLDO VXUYH\ LQ LQFOXGHG UHVSRQGHQWV DQG WKHQ UHVSRQGHQWV ZHUH VXUYH\HG LQ 7KH GDWD ZHUH FROOHFWHG XVLQJ QLQHW\ PLQXWH LQWHUYLHZV DQG UHVXOWV LQGLFDWHG WKDW \RXQJ DGXOWV IURP GLYRUFHG KRPHV ZHUH OHVV OLNHO\ WKDQ WKRVH IURP LQWDFW KRPHV WR UHSRUW EHLQJ YHU\ KDSS\ $OVR FKLOGUHQ RI SDUHQWDO GLYRUFH ZHUH PRUH OLNHO\ WR UHSRUW KDYLQJ WKHLU RZQ PDULWDO SUREOHPV 2WKHU LQYHVWLJDWRUV FRQILUPHG WKH ILQGLQJV WKDW SDUHQWDO GLYRUFH LV SRVLWLYHO\ UHODWHG WR

PAGE 38

ORZHU OHYHOV RI PDULWDO KDSSLQHVV LQFUHDVHG PDULWDO LQVWDELOLW\ DQG LQFUHDVHG PDULWDO GLVDJUHHPHQWV %RRWK t (GZDUGV *OHQQ t .UDPHU f ,Q DQRWKHU VWXG\ GHVLJQHG WR H[DPLQH WKH LPSDFW RI SUHDGXOW H[SHULHQFHV RQ EHKDYLRU DQG DGXOW ZHOOEHLQJ *OHQQ DQG 6KHOWRQ f IRXQG WKDW IHPDOHV ZKRVH SDUHQWV KDG GLYRUFHG KDG D b JUHDWHU GLYRUFH UDWH WKDQ WKRVH ZKRVH IDPLOLHV UHPDLQHG LQWDFW 6LPLODUO\ 3RSH DQG 0XHOOHU f IRXQG D KLJKHU UDWH RI PDULWDO GLVVROXWLRQ DPRQJ FKLOGUHQ IURP GLVUXSWHG KRPHV %\ DQDO\]LQJ GDWD LQFOXGLQJ SDUHQWVn DQG JUDQGSDUHQWVn PDULWDO VWDWXV %ODFN DQG 6SUHQNOH f IRXQG WKDW LQWHUJHQHUDWLRQDO PDULWDO LQVWDELOLW\ ZDV VLJQLILFDQWO\ JUHDWHU IRU WKH GLYRUFHG JURXS $GXOW FKLOGUHQ ZKR SHUFHLYHG WKHLU SDUHQWVn PDUULDJH WR EH XQKDSS\ KDG ORZHU OHYHOV RI SV\FKRORJLFDO VRFLDO DQG PDULWDO ZHOOEHLQJ DV GLG WKH DGXOW FKLOGUHQ RI GLYRUFH $PDWR t %RRWK f ,Q DGGLWLRQ WR D JUHDWHU OLNHOLKRRG IRU GLYRUFH RU IRU PDULWDO GLIILFXOWLHV SDUHQWDO GLYRUFH PD\ LQIOXHQFH FKLOGUHQnV UHODWLRQVKLSV DQG WKHLU ODWHU DGXOW ZHOOEHLQJ LQ RWKHU ZD\V 0F/DQDKDQ DQG %XPSDVV f H[WHQGHG SUHYLRXV VWXGLHV E\ H[DPLQLQJ YDULDEOHV UHOHYDQW WR WKH IRUPDWLRQ RI IDPLOLHV ,QWHUYLHZV ZHUH FRQGXFWHG ZLWK ZRPHQ ZKR UDQJHG LQ DJH IURP \HDUV 7KH UHVXOWV SURYLGHG VWURQJ HYLGHQFH WKDW ZRPHQ ZKR H[SHULHQFHG SDUHQWDO GLYRUFH DQG OLYHG LQ VLQJOH SDUHQW KRPHV ZKHWKHU LQ WKH FXVWRG\ RI

PAGE 39

PRWKHU RU IDWKHU ZHUH PRUH OLNHO\ WR PDUU\ EHIRUH DJH WZHQW\ JLYH ELUWK EHIRUH DJH WZHQW\ JLYH ELUWK EHIRUH PDUULDJH DQG WR GLYRUFH /RQJ f KDG IHPDOH XQGHUJUDGXDWHV ILOO RXW TXHVWLRQQDLUHV RQ WZR RFFDVLRQV LQ RUGHU WR HYDOXDWH DWWLWXGHV WRZDUG PDUULDJH 7KH H[SHFWDWLRQV DQG HYDOXDWLRQV RI PDUULDJH ZHUH ORZHU IRU GDXJKWHUV ZKR SHUFHLYHG WKHLU SDUHQWVn PDUULDJHV WR EH XQKDSS\ 'DXJKWHUV RI EURNHQ PDUULDJH DOVR H[SHFWHG WR PDUU\ ODWHU :DOOHUVWHLQ f VWDWHG WKDW RQH RI WKH VL[ SV\FKRORJLFDO WDVNV RI WKH FKLOG DIWHU GLYRUFH LV WR DFKLHYH UHDOLVWLF KRSHV UHJDUGLQJ UHODWLRQVKLSV *HQHUDOO\ WKH DFKLHYHPHQW RI WKLV JRDO LV DQ LVVXH RI DGROHVFHQFH DQG \RXQJ DGXOWKRRG ,Q RUGHU WR WUXVW LQ WKH UHOLDELOLW\ RI UHODWLRQVKLSV DQG PDLQWDLQ WKH FDSDFLW\ WR ORYH DQG EH ORYHG WKH FKLOG RI GLYRUFH ZLOO QHHG WR KDYH DFTXLUHG FRQILGHQFH LQ KLV RU KHU DELOLW\ DQG VHOIZRUWK :DOOHUVWHLQ S f $ QXPEHU RI :DOOHUVWHLQnV f VXEMHFWV LQGLFDWHG RQJRLQJ SUREOHPV LQ DFKLHYLQJ WKLV WDVN 6RPH VDLG WKH\ ZRXOG QHYHU PDUU\ VRPH ZHUH GHVFULEHG DV SURPLVFXRXV ZLWK ORZ VHOIHVWHHP DQG VRPH VHHPHG F\QLFDO DQG IHOW KRSHOHVV 7KH FRQFOXVLRQV RI WKH SUHFHGLQJ LQYHVWLJDWLRQV VHHP WR LQGLFDWH WKDW ZKLOH WKH DGXOW FKLOGUHQ RI GLYRUFH DSSHDU DV OLNHO\ WR HQWHU LQWR D PDUULDJH %ODFN t 6SUHQNOH *DQRQJ &ROHPDQ t %URZQ f WKH\ PD\ EH PRUH OLNHO\ WKDQ

PAGE 40

FKLOGUHQ IURP LQWDFW IDPLOLHV WR H[SHULHQFH SUREOHPV ZLWKLQ PDUULDJH DQG WR GLYRUFH .XOND t :HLQJDUWHQ *OHQQ t 6KHOWRQ f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t $QGHUVRQ f )RU H[DPSOH SDUHQWFKLOG UHODWLRQVKLS YDULDEOHV ZHUH IRXQG WR KDYH D JUHDWHU LPSDFW RQ VRFLDO UHODWLRQV WKDQ SDUHQWDO KDUPRQ\ +HVV t &DPDUD f DQG WKH SDUHQWFKLOG UHODWLRQVKLS ZDV IRXQG WR KDYH D JUHDWHU LQIOXHQFH RQ PDULWDO DWWLWXGHV WKDQ ZDV IDPLO\ GLVVROXWLRQ &ROHPDQ t *DQRQJ f

PAGE 41

:KHUHDV UHODWLRQVKLSV ZLWK ERWK SDUHQWV DUH LPSRUWDQW VLJQLILFDQW GLIIHUHQFHV KDYH EHHQ QRWHG LQ LQWLPDWH DWWDFKPHQWV WR PRWKHUV DQG IDWKHUV ZLWK IDWKHUV EHLQJ UDWHG ORZHU RQ LQWLPDF\ /H&UR\ f +RZHYHU D IDWKHU ZKR LV ZDUP LQYROYHG DQG DFFHSWLQJ FRQWULEXWHV WR WKH RSWLPDO GHYHORSPHQW RI KLV FKLOG :HLQUDXE f &RPSDULVRQV RI FKLOGUHQ IURP LQWDFW DQG GLYRUFHG IDPLOLHV XVLQJ PHDVXUHV RI DWWLWXGHV WRZDUG SDUHQWV DQG WKH QXPEHU RI SRVLWLYH DGMHFWLYHV FKHFNHG UHYHDO KLJKHU UDWLQJV RI IDWKHUV E\ FKLOGUHQ IURP LQWDFW IDPLOLHV WKDQ E\ FKLOGUHQ IURP GLYRUFHG IDPLOLHV 'ULOO 3DULVK 3DULVK f 7KHVH UDWLQJV PD\ EH UHODWHG WR FKDQJHV LQ WKH DPRXQW RI FRQWDFW ZLWK WKH IDWKHU RU LQ WKH TXDOLW\ RI WKH IDWKHUFKLOG UHODWLRQVKLS %DVHG RQ D UHYLHZ RI WKH OLWHUDWXUH %LOOHU DQG :HLVV f FRQFOXGHG WKDW WKH UROH RI WKH IDWKHU LV LPSRUWDQW LQ WKH SHUVRQDOLW\ GHYHORSPHQW RI WKH GDXJKWHU DQG LQ KHU IHPLQLQH LGHQWLILFDWLRQ 7KH UHODWLRQVKLS ZLWK WKH IDWKHU DOVR H[SODLQV D VLJQLILFDQW DPRXQW RI WKH YDULDQFH LQ VHOIn HVWHHP DQG SUREOHP EHKDYLRUV /H&UR\ f 7KH LPSDFW RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS RQ VHOIHVWHHP LV UHOHYDQW IRU WKH FXUUHQW LQYHVWLJDWLRQ EHFDXVH D JRRG VHQVH RI VHOI DQG VWURQJ HJR DUH HVVHQWLDO IRU WKH DELOLW\ WR DFKLHYH HPRWLRQDO DQG VH[XDO LQWLPDF\ .DVORZ t 6FKZDUW] f
PAGE 42

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
PAGE 43

RQHKDOI IURP GLYRUFHG IDPLOLHV DQG RQHKDOI IURP LQWDFW IDPLOLHV $ FRPSRVLWH VFRUH LQGLFDWHG WKDW SRVWGLYRUFH FRQWDFW GHFUHDVHG RYHU WLPH 7KH DPRXQW RI FRQWDFW GXULQJ WKH \HDU SHULRG DIWHU GLYRUFH ZDV VLJQLILFDQWO\ ORZHU WKDQ GXULQJ WKH ILUVW WZR \HDUV 6RXWKZRUWK t 6FKZDU] f ,QGLFDWLQJ WKH LPSDFW RI D GHFUHDVH LQ FRQWDFW /RSH] DQG :DWNLQV f IRXQG WKDW WKRVH VWXGHQWV ZKR UHSRUWHG D ORZ OHYHO RI FRQWDFW ZLWK WKHLU IDWKHUV KDG KLJKHU VFRUHV RI IXQFWLRQDO HPRWLRQDO DQG DWWLWXGLQDO LQGHSHQGHQFH IURP WKHLU IDWKHUV $OWKRXJK WKH DPRXQW RI FRQWDFW GRHV QRW QHFHVVDULO\ LQGLFDWH WKH TXDOLW\ RI WKH UHODWLRQVKLS ZLWK WKH IDWKHU WKHUH WHQGV WR EH VRPH FRUUHVSRQGHQFH )RU H[DPSOH WKRVH ZKR H[SHULHQFHG OHVV IUHTXHQW FRQWDFW ZLWK WKHLU IDWKHUV IROORZLQJ GLYRUFH SHUFHLYHG WKHLU IDWKHUV DV OHVV DFFHSWLQJ DQG PRUH LQFRQVLVWHQW 6RXWKZRUWK t 6FKZDU] f )XUWKHU ZLWKLQ WKH GLYRUFHG JURXS ZKHQ WKHUH ZDV D SHUFHSWLRQ RI GHFUHDVHG DFFHSWDQFH DQG FRQVLVWHQF\ WKHUH ZDV DQ LQGLFDWLRQ RI D GHFUHDVH LQ KHWHURVH[XDO WUXVW 7KHVH ILQGLQJV DUH SDUWLFXODUO\ VLJQLILFDQW EHFDXVH WKHUH LV D FRUUHVSRQGHQFH EHWZHHQ WKH FDSDFLW\ IRU LQWLPDF\ DQG SDUHQWDO DFFHSWDQFH )LQFK f 2YHUDOO TXDOLW\ LV FRQVLGHUHG PRUH LPSRUWDQW WKDQ WKH IUHTXHQF\ RI YLVLWDWLRQ ZLWK WKH IDWKHU DV FKLOGUHQ QHHG WR KDYH FRQILGHQFH LQ WKHLU WLHV ZLWK WKHLU IDWKHU +HVV t &DPDUD :DOOHUVWHLQ t %ODNHVOHH f 'DXJKWHUV QRW

PAGE 44

RQO\ H[SHULHQFH D GHFUHDVH LQ FRQWDFW ZLWK WKH IDWKHU IROORZLQJ GLYRUFH EXW WKH QDWXUH RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS DOVR FKDQJHV RYHU WLPH +HWKHULQJWRQ &R[ t &R[ f )DWKHUV ZHUH IRXQG WR EHFRPH PRUH DQG PRUH XQDYDLODEOH WR WKHLU FKLOGUHQ RYHU WKH WZR \HDU SHULRG IROORZLQJ GLYRUFH )DWKHUV EHFDPH OHVV QXUWXUDQW DQG PRUH GHWDFKHG DQG ZKHQ LQWHUDFWLRQV EHWZHHQ IDWKHUV DQG WKHLU FKLOGUHQ ZHUH REVHUYHG WKH GLYRUFHG IDWKHUV LJQRUHG WKHLU FKLOGUHQ PRUH DQG GHPRQVWUDWHG OHVV DIIHFWLRQ +HWKHULQJWRQ &R[ t &R[ f ,Q D VWXG\ GHVLJQHG WR H[DPLQH WKH HIIHFWV RI IDWKHU DEVHQFH RQ SHUVRQDOLW\ GHYHORSPHQW LQ DGROHVFHQW GDXJKWHUV +HWKHULQJWRQ f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

PAGE 45

JUHDWHU ZLWK HDUO\ VHSDUDWLRQ UDWKHU WKDQ ODWHU VHSDUDWLRQ SHUKDSV DWWHVWLQJ WR WKH LPSRUWDQFH RI HDUO\ REMHFW UHODWLRQV )RU GDXJKWHUV WKHUH VHHP WR EH GLIIHUHQW SDWWHUQV RI HIIHFWV GHSHQGLQJ XSRQ WKH UHDVRQ IRU WKH IDWKHU DEVHQFH DQG WKHVH HIIHFWV DSSHDU GXULQJ DGROHVFHQFH DQG DUH PDQLIHVWHG SULPDULO\ DV WKH LQDELOLW\ WR LQWHUDFW DSSURSULDWHO\ DQG VDWLVIDFWRULO\ ZLWK PDOHV +HWKHULQJWRQ &KDVH/DQVGDOH t +HWKHULQJWRQ f =DVORZ f KDV GHVFULEHG WKH ORQJWHUP HIIHFWV RI GLYRUFH DQG IDWKHU DEVHQFH DV VOHHSHU HIIHFWV DSSHDULQJ DV D FKLOG SDVVHV WKURXJK SURJUHVVLYH VWDJHV RI GHYHORSPHQW :KDW +HWKHULQJWRQ f GHVFULEHG DV DSSUHKHQVLRQ DQG LQDGHTXDWH VNLOOV LQ UHODWLQJ WR PDOHV EHFRPHV PRVW HYLGHQW MXVW ZKHQ WKHVH VNLOOV DUH UHTXLUHG +DLQOLQH DQG )HLJ f DWWHPSWHG WR UHSOLFDWH +HWKHULQJWRQnV f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

PAGE 46

5XELQnV 5RPDQWLF /RYH 6FDOH 5XELQ f :KLOH WKLV LQYHVWLJDWLRQ IDLOHG WR UHSOLFDWH WKH ILQGLQJV RI +HWKHULQJWRQ f LW VKRXOG EH QRWHG WKDW WKHUH ZHUH RQO\ VL[ VXEMHFWV LQ HDFK RI WKH FHOOV WKHUH ZHUH FXOWXUDO GLIIHUHQFHV LQ WKH VDPSOHV DQG WKH VXEMHFWV LQ WKH +HWKHULQJWRQ VWXG\ ZHUH RI D ORZHU VRFLRHFRQRPLF VWDWXV 9HVV 6FKZHEHO DQG 0RUHODQG f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nV SHUFHLYHG UHMHFWLRQ E\ RQH RU ERWK SDUHQWV PD\ UHVXOW LQ HQGXULQJ SUREOHPV 9HVV 6FKZHEHO t 0RUHODQG f .LQQDLUG DQG *HUUDUG f H[DPLQHG VH[XDO EHKDYLRU DQG DWWLWXGHV WRZDUG PDUULDJH XVLQJ DGROHVFHQWV DQG \RXQJ DGXOWV ZKRVH IDPLOLHV ZHUH GLYRUFHG UHPDUULHG RU LQWDFW 6XEMHFWV ZHUH DGPLQLVWHUHG ILYH TXHVWLRQQDLUHV DQG WKH UHVXOWV LQGLFDWHG WKDW WKH LQWDFW JURXS KDG PRUH SRVLWLYH DWWLWXGHV WRZDUG PDUULDJH WKH GDXJKWHUV IURP ERWK GLYRUFHG DQG UHFRQVWLWXWHG IDPLOLHV UHSRUWHG PRUH VH[XDO H[SHULHQFH

PAGE 47

DQG VXEMHFWV IURP GLYRUFHG DQG UHFRQVWLWXWHG IDPLOLHV ZHUH PRUH OLNHO\ WR UHVSRQG WKDW WKH\ ZRXOG KDYH OLNHG PRUH FRQWDFW ZLWK WKHLU IDWKHUV $Q HIIRUW ZDV PDGH WR LQYHVWLJDWH WKH LPSDFW RI RWKHU VLJQLILFDQW PDOHV LQFOXGLQJ WKH VWHSIDWKHU EXW WKH SUHVHQFH RI RWKHU LQIOXHQWLDO PDOHV ZDV QRW SUHGLFWLYH RI DQ\ EHKDYLRUDO DWWLWXGLQDO RU DGMXVWPHQW YDULDEOHV :DOOHUVWHLQ f DV D SDUW RI WKH WHQ\HDU IROORZn XS IRXQG WKDW IRU WKLUW\ DGROHVFHQWV ZKR KDG EHHQ EHWZHHQ WZR DQG RQHKDOI DQG VL[ DW WKH WLPH RI GLYRUFH WKH QRQn FXVWRGLDO IDWKHU UHPDLQHG D VLJQLILFDQW SV\FKRORJLFDO SUHVHQFH S f (YHQ WKRVH FKLOGUHQ ZKRVH PRWKHUV KDG UHPDUULHG KDG DQ LQWHQVH DZDUHQHVV RI WKHLU IDWKHUV DQG WKH UHODWLRQVKLSV ZLWK IDWKHUV DQG VWHSIDWKHUV ZHUH GLVWLQJXLVKDEOH DQG VHSDUDWH 7KH QHHG IRU WKH IDWKHU KDG QRW GLPLQLVKHG EXW KHLJKWHQHG ZLWK WKH DGYHQW RI DGROHVFHQFH :DOOHUVWHLQ f 7KH UHODWLRQVKLS ZLWK WKH IDWKHU KDV EHHQ IRXQG WR EH LPSRUWDQW LQ FRQWULEXWLQJ WR DGMXVWPHQW IROORZLQJ SDUHQWDO GLYRUFH +HWKHULQJWRQ 6WDQOH\+DJDQ t $QGHUVRQ f DQG WR WKH RSWLPDO GHYHORSPHQW RI WKH FKLOG :HLQUDXE f )ROORZLQJ GLYRUFH QRW RQO\ LV WKH DPRXQW RI FRQWDFW ZLWK WKH IDWKHU GHFUHDVHG EXW WKH QDWXUH RI WKH UHODWLRQVKLS DOVR FKDQJHV +HWKHULQJWRQ &R[ t &R[ f 'DXJKWHUV H[SHULHQFH OHVV IUHTXHQW FRQWDFW WKDQ VRQV DQG WKH DPRXQW RI FRQWDFW GHFUHDVHG RYHU WLPH $PDWR t %RRWK 6RXWKZRUWK

PAGE 48

t 6FKZDU] f :KLOH VRPH DXWKRUV KDYH VXJJHVWHG WKDW WKH SUHVHQFH RI DQRWKHU VLJQLILFDQW PDOH ILJXUH PLJKW GHFUHDVH WKH LPSDFW RI FKDQJHV LQ WKH IDWKHUGDXJKWHU UHODWLRQVKLS WKLV KDV QRW UHFHLYHG PXFK VXSSRUW LQ WKH VWXGLHV WKDW ZHUH UHYLHZHG $ SRRU UHODWLRQVKLS ZLWK WKH IDWKHU KDV EHHQ OLQNHG ZLWK DSSUHKHQVLRQ DQG LQDGHTXDWH VNLOOV LQ UHODWLQJ WR PDOHV +HWKHULQJWRQ f ZLWK FKDQJHV LQ WKH SHUVRQDOLW\ GHYHORSPHQW RI WKH GDXJKWHU DQG KHU IHPLQLQH LGHQWLILFDWLRQ %LOOHU t :HLVV 9HVV 6FKZHEHO t 0RUHODQG f DQG ZLWK VH[XDO EHKDYLRUV DQG QHJDWLYH DWWLWXGHV WRZDUG PDUULDJH .LQQDLUG t *HUUDUG f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

PAGE 49

DQRWKHU /HYLW]-RQHV t 2UORIVN\ 3HUOPDQ t )HKU 7URWWHU f ,QWLPDF\ DOVR UHTXLUHV WKH DELOLW\ WR ERWK JLYH DQG UHFHLYH ORYH VR LW HQWDLOV PXWXDOLW\ 0F$GDPV '\N t $GDPV f $ VWXG\ E\ 5RVFRH .HQQHG\ DQG 3RSH f IXUWKHU LOOXVWUDWHV WKH FRPSOH[LW\ RI GHILQLQJ LQWLPDF\ :KHQ XQGHUJUDGXDWH VWXGHQWV ZHUH DVNHG WR UHVSRQG WR TXHVWLRQV UHTXHVWLQJ WKHLU WKRXJKWV RI ZKDW GLVWLQJXLVKHV DQ LQWLPDWH IURP D QRQLQWLPDWH UHODWLRQVKLS WKH PRVW IUHTXHQWO\ PHQWLRQHG FRPSRQHQWV ZHUH VKDULQJ SK\VLFDOVH[XDO LQWHUDFWLRQ WUXVW DQG IDLWK RSHQQHVV DQG ORYH 5RVFRH .HQQHG\ t 3RSH f 7KHUH ZHUH DOVR VLJQLILFDQW GLIIHUHQFHV EHWZHHQ WKH FRPSRQHQWV PHQWLRQHG PRVW IUHTXHQWO\ E\ PHQ DQG ZRPHQ 0DOHV ZHUH PRUH OLNHO\ WR FLWH SK\VLFDOVH[XDO LQWHUDFWLRQ DQG IHPDOHV ZHUH PRUH OLNHO\ WR FLWH RSHQQHVV DQG VHOIDEDQGRQ ,QWLPDF\ LV EXW RQH FRPSRQHQW RI ORYH 0F$GDPV 6WHUQEHUJ f 6WHUQEHUJnV WULDQJXODU WKHRU\ RI ORYH SURSRVHV WKDW WKHUH DUH WKUHH FRPSRQHQWV RI ORYH LQWLPDF\ SDVVLRQ DQG FRPPLWPHQW 7KH LQWLPDF\ FRPSRQHQW VHHPV WR EH DW WKH FRUH RI ORYLQJ UHODWLRQVKLSV 6WHUQEHUJ t *UDMHN f ,QWLPDF\ LV QHFHVVDU\ IRU ERWK IULHQGVKLS DQG ORYH DQG WKH GHVLUH IRU LQWLPDF\ LV D IXQGDPHQWDO SV\FKRORJLFDO QHHG LQ KXPDQ OLYHV RQH RI D IHZ EDVLF QHHGV WKDW RUJDQL]H RXU EHKDYLRU DQG H[SHULHQFH DQG SURYLGH RXU OLYHV ZLWK PHDQLQJ 0F$GDPV S f

PAGE 50

:KLOH 6XOOLYDQ (ULNVRQ DQG 0F$GDPV VHH LQWLPDF\ DV DQ LQGLYLGXDO FDSDFLW\ $UJ\OH DQG 'HDQ f VHH LW DV ERWK D TXDOLW\ RI SHUVRQV DQG LQWHUDFWLRQV ,Q WKH VHFRQG YLHZ DQ LQGLYLGXDO PD\ KDYH WKH FDSDFLW\ IRU LQWLPDF\ EXW QRW DFKLHYH LW EHFDXVH LW UHTXLUHV D UHODWLRQVKLS 7KHUH KDV DOVR EHHQ VRPH GHEDWH RYHU ZKHWKHU LQWLPDF\ LV D VWDWH RU D SURFHVV EXW 3HUOPDQ DQG )HKU f VHH LQWLPDF\ DV ERWK G\QDPLF DQG VWDWLF DQG DV ERWK SHUVRQDO DQG VLWXDWLRQDO 3HUKDSV LQWLPDF\ LV EHVW FDSWXUHG E\ H[DPLQLQJ ERWK DWWLWXGHV DQG EHKDYLRUV &DSDFLW\ IRU ,QWLPDF\ 7KH FDSDFLW\ IRU LQWLPDF\ GHSHQGV XSRQ WKH LQGLYLGXDO UHVROYLQJ WKHLU RZQ VHSDUDWHQHVV DQG LW LV XQOLNHO\ WKDW D SHUVRQ ZRXOG DFKLHYH WKLV OHYHO RI GHYHORSPHQW XQWLO ODWH DGROHVFHQFH RU HDUO\ DGXOWKRRG (ULNVRQ f ,Q D VWXG\ RI LQWLPDWH UHODWLRQVKLSV EHWZHHQ FROOHJH ZRPHQ 5D\ILHOG /LDEUH DQG 6WRNHV f IRXQG WKDW VHOIDFWXDOL]DWLRQ ZDV WKH EHVW SUHGLFWRU RI LQWLPDWH IULHQGVKLSV :KHWKHU LQWLPDF\ SUHFHGHV WKH VHOIDFWXDOL]HG PHQWDOO\ KHDOWK\ VWDWH RU ZKHWKHU WKH PHQWDOO\ KHDOWK\ VWDWH SUHFHGHV LQWLPDF\ LV XQNQRZQ 7KH FDSDFLW\ IRU LQWLPDF\ DOVR UHTXLUHV WKH DELOLW\ WR WUXVW DQRWKHU SHUVRQ 2SWLPLVP DQG WUXVW ZHUH PHDVXUHG LQ D VWXG\ E\ )UDQNOLQ -DQRII%XOPDQ DQG 5REHUWV f *URXSV RI FROOHJH VWXGHQWV IURP GLYRUFHG IDPLOLHV DQG LQWDFW IDPLOLHV ZHUH FRPSDUHG $OWKRXJK WKH JURXSV GLG QRW GLIIHU

PAGE 51

VLJQLILFDQWO\ LQ WUXVW RU RSWLPLVP UHJDUGLQJ SUHVHQW RU IXWXUH GDWLQJ UHODWLRQVKLSV RU FORVH IULHQGVKLSV WKH SDUHQWDO GLYRUFH VXEMHFWV ZHUH OHVV RSWLPLVWLF DERXW WKHLU RZQ IXWXUH PDUULDJHV 3HUKDSV ZLWQHVVLQJ WKH EUHDNGRZQ LQ WUXVW LQ WKHLU SDUHQWVn PDUULDJH OHG WR LQFUHDVHG SHVVLPLVP DQG FDXWLRQ RU SHUKDSV DV WKH DXWKRUV VXJJHVW WKHVH FKLOGUHQ RI GLYRUFH KDYH D PRUH UHDOLVWLF DVVHVVPHQW RI WKH G\QDPLFV RI UHODWLRQVKLSV )UDQNOLQ -DQRII%XOPDQ t 5REHUWV f &UDLJ%UD\ DQG $GDPV f SHUIRUPHG D VWXG\ ZKLFK XWLOL]HG D YDULHW\ RI PHDVXUHV RI LQWLPDF\ LQFOXGLQJ WKH 2UORIVN\ 0DUFLD DQG /HVVHU f LQWHUYLHZ $GGLWLRQDOO\ VXEMHFWV ZHUH DVNHG WR ILOO RXW D UHFRUG RI WKHLU VRFLDO LQWHUDFWLRQV 7KH VDPSOH LQFOXGHG PDOHV DQG IHPDOHV EHWZHHQ WKH DJHV RI DQG \HDUV )HPDOHV ZLWK KLJKHU VRFLDO LQWLPDF\ ZHUH IRXQG WR KDYH JUHDWHU VHOIGLVFORVXUH DQG VDWLVIDFWLRQ ZLWK LQWHUDFWLRQV LQ RSSRVLWH VH[ FRQWH[WV &UDLJ%UD\ t $GDPV f 7KH LQWHUYLHZ DQG VHOIUHSRUW PHDVXUHV ZKLFK ZHUH XWLOL]HG ZHUH IRXQG WR KDYH VWURQJ EXW QRW SHUIHFW FRQYHUJHQFH DQG WKH PHDVXUHV ODFNHG VWURQJ FRQYHUJHQFH ZLWK GDLO\ VRFLDO LQWHUDFWLRQV ,QWLPDF\ VWDWXV LQ VDPH VH[ UHODWLRQVKLSV SDUDOOHG LQWLPDF\ VWDWXV LQ KHWHURVH[XDO UHODWLRQVKLSV &UDLJ%UD\ t $GDPV f VXJJHVWLQJ WKDW LQWLPDF\ LV D FDSDFLW\ ZKLFK PD\ GHSHQG XSRQ D UHODWLRQVKLS EXW QRW RQ D VSHFLILF W\SH RI UHODWLRQVKLS

PAGE 52

,QWLPDF\ 0RWLYDWLRQ ,QWLPDWH UHODWLRQVKLSV ZHUH IRXQG WR EH SUHIHUUHG RYHU OHVV LQWLPDWH UHODWLRQVKLSV LQ D VWXG\ E\ &DOGZHOO DQG 3HSODX f :KHQ FROOHJH VWXGHQWV ZHUH DVNHG DERXW WKH W\SHV RI IULHQGVKLSV WKDW WKH\ SUHIHU b RI WKH PHQ DQG b RI WKH ZRPHQ SUHIHUUHG KDYLQJ D IHZ LQWLPDWH IULHQGV RYHU KDYLQJ PDQ\ OHVV LQWLPDWH IULHQGV 6LPLODUO\ 5HLV DQG 6KDYHU f IRXQG WKDW ILYH RI WKH PRVW KLJKO\ UDWHG IULHQGVKLS JRDOV EDVHG RQ WKH UDWLQJV RI FROOHJH VWXGHQWV DOVR ILW WKH GHILQLWLRQ RI LQWLPDF\ ,Q RUGHU WR VWXG\ LQWLPDF\ PRWLYDWLRQ 0F$GDPV f GHVLJQHG D ZD\ WR VFRUH WKH 7KHPDWLF $SSHUFHSWLRQ 7HVW 7$7f DV KH EHOLHYHG WKDW SHRSOH ZKR ZHUH ERWK KLJK DQG ORZ LQ LQWLPDF\ PRWLYDWLRQ ZHUH OLNHO\ WR UDWH WKHPVHOYHV DV QDWXUDO ZDUP VLQFHUH DQG ORYLQJ 8WLOL]LQJ WKH 7$7 0F$GDPV HW DOf H[SORUHG VH[ GLIIHUHQFHV LQ LQWLPDF\ PRWLYDWLRQ &RQVLVWHQWO\ ZRPHQ KDG KLJKHU VFRUHV WKDQ PHQ LQGLFDWLQJ JUHDWHU GHVLUH IRU LQWLPDF\ $OWKRXJK ZRPHQ VHHPHG WR KDYH D GLVSRVLWLRQ WR SUHIHU LQWLPDF\ RYHUW EHKDYLRUV ZHUH QRW EHLQJ HYDOXDWHG 7KHUH ZHUH QR VLJQLILFDQW GLIIHUHQFHV EHWZHHQ ZRPHQ DQG PHQ RQ IHDU RI LQWLPDF\ 0F$GDPV HW DO f ,Q D VWXG\ WKDW VSHFLILFDOO\ DGGUHVVHG IHDU RI LQWLPDF\ LQ FROOHJH ZRPHQ /XWZDN f IRXQG RXW RI ZRPHQ WR KDYH D KLJK IHDU RI LQWLPDF\ 0RVW RI WKH VWXGHQWV ZHUH IULJKWHQHG RI EHLQJ KXUW RU WDNLQJ ULVNV 7KH ZRPHQ IHDUHG

PAGE 53

PDUULDJH DQG FRPPLWPHQW DQG VRXJKW VHFXULW\ DQG VDIHW\ 7KHVH FKDUDFWHULVWLFV ILW WKH GHVFULSWLRQV RI ZRPHQ LQ ORZ LQWLPDF\ VWDWXV DV GHVFULEHG LQ /HYLW]-RQHV DQG 2UORIVN\ f 8QIRUWXQDWHO\ /XWZDN f GLG QRW SURYLGH GDWD RQ SDUHQWDO PDULWDO VWDWXV VR QR LQIRUPDWLRQ LV DYDLODEOH RQ ZKHWKHU WKH VWXGHQWV ZKR KDG D KLJK IHDU RI LQWLPDF\ FDPH IURP DQ\ SDUWLFXODU IDPLO\ EDFNJURXQG ,PSDFW RI 3DUHQWDO 'LYRUFH RQ ,QWLPDF\ :KLOH GDWLQJ EHKDYLRUV GR QRW QHFHVVDULO\ FRUUHVSRQG WR LQWLPDF\ HLWKHU DEVHQW RU H[FHVVLYH GDWLQJ PD\ LQGLFDWH SUREOHPV LQ WKH FDSDFLW\ IRU LQWLPDF\ $QGUHZV DQG &KULVWHQVHQ f IRXQG WKDW ERWK PDOHV DQG IHPDOHV ZKR KDG D IDWKHU PLVVLQJ IURP WKH KRPH KDG EHJXQ GDWLQJ DW DQ HDUOLHU DJH JRQH VWHDG\ HDUOLHU JRWWHQ HQJDJHG HDUOLHU DQG KDG PRUH EURNHQ HQJDJHPHQWV WKDQ WKH JURXS WKDW KDG ERWK SDUHQWV SUHVHQW 7KXV WKHUH VHHPHG WR EH DFFHOHUDWHG FRXUWVKLS DFWLYLW\ ZKHQ WKH IDWKHU ZDV DEVHQW EXW WKH RXWFRPHV GLG QRW QHFHVVDULO\ LQYROYH FORVH FRPPLWWHG UHODWLRQVKLSV %RRWK %ULQNHUKRII DQG :KLWH f DVVHVVHG WKH ORQJn WHUP FRQVHTXHQFHV RI GLYRUFH RQ FRXUWVKLS 7KH\ XWLOL]HG D TXHVWLRQQDLUH GHVLJQHG IRU WKHLU LQYHVWLJDWLRQ 7KH VDPSOH RI FROOHJH VWXGHQWV LQFOXGHG ZKRVH SDUHQWVn PDUULDJH ZDV EURNHQ E\ GHDWK DQG ZKRVH SDUHQWV KDG VHSDUDWHG RU GLYRUFHG 7KH FKLOGUHQ RI GLYRUFH ZHUH IRXQG WR EH DFWLYHO\ LQYROYHG LQ FRXUWVKLS EHKDYLRUV DQG DV

PAGE 54

OLNHO\ WR IRUP ORQJWHUP UHODWLRQVKLSV DV RWKHUV +RZHYHU FKLOGUHQ RI GLYRUFH ZHUH PRUH OLNHO\ WR HQJDJH LQ SUHPDULWDO VH[XDO LQWHUFRXUVH RU WR EH FRKDELWLQJ $GGLWLRQDOO\ ZKHQ WKHUH ZDV D GHFOLQH LQ UHODWLRQV ZLWK PRWKHU RU IDWKHU WKHUH ZDV D VLJQLILFDQWO\ ODUJH SHUFHQWDJH RI WKH FKLOGUHQ RI GLYRUFH ZKR UHSRUWHG GLIILFXOW\ LQ GDWLQJ SHRSOH ZLWK ZKRP WKH\ FRXOG GHYHORS D VHULRXV UHODWLRQVKLS %RRWK %ULQNHUKRII t :KLWH S f :KHQ UHODWLRQV ZLWK WKH SDUHQWV ZHUH DQDO\]HG VHSDUDWHO\ WKRVH VWXGHQWV ZKR ZHUH OHVV FORVH WR WKHLU IDWKHUV UHSRUWHG OHVV VDWLVIDFWLRQ ZLWK WKHLU KHWHURVH[XDO UHODWLRQVKLSV )ROORZLQJ GLVUXSWLRQ RI WKHLU SDUHQWVn PDUULDJH DGXOW IHPDOH FKLOGUHQ RI GLYRUFH KDYH EHHQ IRXQG WR EHFRPH PRUH VROLWDU\ ZLWKLQ LQWHUSHUVRQDO UHODWLRQVKLSV :HLVV S f $GGLWLRQDOO\ ZKHQ FRPSDUHG WR GDXJKWHUV RI LQWDFW IDPLOLHV WKRVH IURP GLYRUFHG IDPLOLHV IHOW PRUH GLVWDQW IURP WKHLU IDWKHUV ,Q WKLV SDUWLFXODU LQYHVWLJDWLRQ WKHVH ILQGLQJV SHUVLVWHG RYHU D SHULRG DV ORQJ DV \HDUV DJDLQ LQGLFDWLQJ WKDW WKH LPSDFW RI GLYRUFH H[WHQGV ZHOO EH\RQG WKH DGMXVWPHQW SHULRG *DEDUGL f SHUIRUPHG D VWXG\ RI WKH GLIIHUHQFHV EHWZHHQ FROOHJH VWXGHQWV IURP GLYRUFHG DQG LQWDFW IDPLOLHV RQ PHDVXUHV RI LQWLPDF\ VH[XDO EHKDYLRUV DQG EHOLHIV DERXW UHODWLRQVKLSV 6XEMHFWV ZHUH ERWK PDOH DQG IHPDOH VWXGHQWV DJHG \HDUV ROG 7KHUH ZHUH FKLOGUHQ RI LQWDFW IDPLOLHV DQG FKLOGUHQ RI GLYRUFH 7KH UHVXOWV LQGLFDWHG

PAGE 55

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t 3HSODX f DQG ZRPHQ VHHP WR SUHIHU LQWLPDF\ PRUH WKDQ PHQ 0F$GDPV HW DO f %HKDYLRUDO LQGLFDWLRQV RI LQWLPDF\ VXJJHVW WKDW SDUHQWDO GLYRUFH DQG WKH DEVHQFH RI WKH IDWKHU DUH QHJDWLYH LQIOXHQFHV RQ WKH DELOLW\ WR HVWDEOLVK FORVH FRPPLWWHG UHODWLRQVKLSV $QGUHZV t &KULVWHQVHQ %RRWK %ULQNHUKRII t :KLWH

PAGE 56

*DEDUGL :HLVV f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t %RRWK 6RXWKZRUWK t 6FKZDU] +HWKHULQJWRQ &R[ t &R[ f 7KH LPSDFW RI SDUHQWDO GLYRUFH DOVR H[WHQGV EH\RQG WKH IDPLO\ SDUHQWDO GLYRUFH DIIHFWV DWWLWXGHV DQG EHKDYLRUV UHODWHG WR GDWLQJ FRXUWVKLS DQG WKH IRUPDWLRQ RI ORQJODVWLQJ UHODWLRQVKLSV 7KH GDXJKWHUV RI GLYRUFH ZHUH IRXQG WR KDYH GDWHG HDUOLHU $QGUHZV t &KULVWHQVHQ f KDG D JUHDWHU QXPEHU RI GDWLQJ UHODWLRQVKLSV :DOOHUVWHLQ f KDG PRUH VH[XDO H[SHULHQFH .LQQDLUG t *HUUDUG f KDG VKRUWHUOLYHG UHODWLRQVKLSV .HOO\ f DQG KDG ORZHU KRSHV DQG H[SHFWDWLRQV IRU PDUULDJH .DOWHU HW DO f WKDQ GLG GDXJKWHUV IURP LQWDFW IDPLOLHV &KLOGUHQ RI GLYRUFH ZHUH DOVR PRUH OLNHO\ WR UHSRUW SUREOHPV

PAGE 57

ZLWKLQ WKHLU RZQ PDUULDJHV %RRWK t (GZDUGV *OHQQ t .UDPHU f 7KHVH EHKDYLRUDO DQG DWWLWXGLQDO LQGLFHV VXJJHVW WKDW LQWLPDF\ RU WKH DELOLW\ WR FRPPLW RQHVHOI WR DQRWKHU WUXVW LQWHUDFW SK\VLFDOO\VH[XDOO\ EH RSHQ DQG VKDUH SHUVRQDO LQIRUPDWLRQ DQG WKH ZLOOLQJQHVV WR SURYLGH VXSSRUW WR DQRWKHU /HYLW]-RQHV t 2UORIVN\ 3HUOPDQ t )HKU 5RVFRH .HQQHG\ t 3RSH f LV DIIHFWHG IROORZLQJ SDUHQWDO GLYRUFH +RZHYHU YDULRXV PHDVXUHV RI LQWLPDF\ DQG EHKDYLRUDO PHDVXUHV KDYH QRW DOZD\V KDG SHUIHFW FRQYHUJHQFH &UDLJ%UD\ t $GDPV f DQG VWXGLHV RI LQWLPDF\ IROORZLQJ SDUHQWDO GLYRUFH KDYH QRW DOZD\V IRXQG GLIIHUHQFHV EHWZHHQ FKLOGUHQ IURP LQWDFW DQG GLYRUFHG IDPLOLHV *DEDUGL f 6LQFH SDUHQWDO GLYRUFH GRHV QRW QHFHVVDULO\ LQYROYH XQLIRUPO\ QHJDWLYH H[SHULHQFHV SHUKDSV VRPH DVSHFW RI WKH GLYRUFH SURFHVV IRU H[DPSOH WKH IDWKHUGDXJKWHU UHODWLRQVKLS LV PRUH LPSRUWDQW LQ LPSDFWLQJ LQWLPDF\ WKDQ LV WKH GLYRUFH LWVHOI ,W KDV EHHQ VXJJHVWHG WKDW IDWKHU DEVHQFH RU D SRRU UHODWLRQVKLS ZLWK WKH IDWKHU KDV EHHQ OLQNHG ZLWK DSSUHKHQVLRQ DQG LQDGHTXDWH VNLOOV LQ UHODWLQJ WR PDOHV +HWKHULQJWRQ f ZLWK FKDQJHV LQ WKH SHUVRQDOLW\ GHYHORSPHQW RI WKH GDXJKWHU DQG KHU IHPLQLQH LGHQWLILFDWLRQ %LOOHU t :HLVV 9HVV 6FKZHEHO t 0RUHODQG f DQG ZLWK VH[XDO EHKDYLRUV DQG QHJDWLYH DWWLWXGHV WRZDUG PDUULDJH .LQQDLUG t *HUUDUG f ,W PD\ EH WKDW WKH IDLOXUH WR

PAGE 58

FRQWURO IRU WKH QDWXUH RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS FRQWULEXWHG WR WKH ODFN RI VLJQLILFDQW UHVXOWV LQ VWXGLHV WKDW XVHG GLYRUFH DV WKH SUHGLFWRU RI WKH DELOLW\ WR HVWDEOLVK PHDQLQJIXO LQWLPDWH UHODWLRQVKLSV )UDQNOLQ -DQRII%XOPDQ t 5REHUWV *DEDUGL f 2EMHFW UHODWLRQV WKHRU\ SURYLGHV D IRXQGDWLRQ IRU WKH H[DPLQDWLRQ RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS DQG LWV LPSDFW XSRQ LQWLPDF\ DV LW VXJJHVWV WKDW HDUO\ UHODWLRQVKLSV ZLWK VLJQLILFDQW RWKHUV DUH LQWHUQDOL]HG DQG LPSDFW XSRQ WKH DELOLW\ WR ORYH DV DQ DGXOW 'LFNV f $QWRQRYVN\ f VWDWHV WKDW LQWHUDFWLRQV ZLWK VLJQLILFDQW RWKHUV DUH LQWHUQDOL]HG DQG DIIHFW DOO ODWHU H[SHULHQFHV ZLWK RWKHUV S f )XUWKHU DOWKRXJK REMHFW UHODWLRQV DUH IRUPHG HDUO\ LQ WKH OLIH RI D FKLOG WKH\ FRQWLQXH WR EH PRGLILHG WKURXJKRXW OLIH 0RGLILFDWLRQ LV OLNHO\ WR RFFXU ZKHQ WKHUH LV SDLQ LQ UHODWLRQVKLS ZLWK VLJQLILFDQW RWKHUV $QWRQRYVN\ S f 3DUHQWDO GLYRUFH RIWHQ LQWHUIHUHV ZLWK RU LQWHUUXSWV WKH DWWDFKPHQW WR WKH IDWKHU 7KH UHVXOWDQW GLVWXUEDQFH RI WKLV LPSRUWDQW REMHFW UHODWLRQVKLS PD\ EH H[SHFWHG WR LQIOXHQFH LQWHUSHUVRQDO LQWLPDF\ +\SRWKHVHV 7KH JRDOV RI WKH FXUUHQW LQYHVWLJDWLRQ LQFOXGH FRQILUPDWLRQ RI SUHYLRXV VWXGLHV ZKLFK KDYH FRQFOXGHG WKDW GLYRUFH KDV D QHJDWLYH HIIHFW XSRQ WKH IDWKHUGDXJKWHU UHODWLRQVKLS DQG H[SORUDWLRQ RI WKH LPSDFW RI WKH IDWKHU

PAGE 59

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f 3DULVK f 3DULVK f 3DULVK DQG 2VWHUEHUJ f +<327+(6,6 'DXJKWHUV RI SDUHQWDO GLYRUFH ZLOO VFRUH ORZHU WKDQ GDXJKWHUV IURP LQWDFW IDPLOLHV RQ PHDVXUHV RI LQWLPDF\ 7KLV K\SRWKHVLV WHVWV WKH HIIHFW RI GLYRUFH RQ KHWHURVH[XDO LQWLPDF\ LUUHVSHFWLYH RI WKH TXDOLW\ RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS ZKLFK LV D PDLQ HIIHFW $OWKRXJK WKH QHJDWLYH HIIHFW RI GLYRUFH RQ LQWLPDF\ ZDV QRW VXSSRUWHG E\ *DEDUGL f :HLVV f IRXQG GDXJKWHUV RI GLYRUFH WR EH PRUH VROLWDU\ ZLWKLQ LQWHUSHUVRQDO UHODWLRQVKLSV Sf +<327+(6,6 'DXJKWHUV ZKR KDYH D SRRU UHODWLRQVKLS ZLWK WKHLU IDWKHU ZLOO VFRUH ORZHU RQ PHDVXUHV RI LQWLPDF\ WKDQ GDXJKWHUV ZKR KDYH D JRRG UHODWLRQVKLS ZLWK WKHLU IDWKHU UHJDUGOHVV RI SDUHQWDO PDULWDO VWDWXV 7KLV K\SRWKHVLV

PAGE 60

WHVWV WKH PDLQ HIIHFW RI SDUHQWFKLOG UHODWLRQVKLS RQ PHDVXUHV RI LQWLPDF\ 7KLV K\SRWKHVLV ZDV VXSSRUWHG E\ %LOOHU DQG :HLVV f DQG +HWKHULQJWRQ f EXW ZDV QRW VXSSRUWHG E\ +DLQOLQH DQG )HLJ f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f IRXQG WKDW WKH SUHVHQFH RI DQRWKHU VLJQLILFDQW PDOH ZDV QRW SUHGLFWLYH RI EHKDYLRUDO

PAGE 61

DWWLWXGLQDO RU DGMXVWPHQW YDULDEOHV EXW WKH\ GLG QRW DVVHVV WKH TXDOLW\ RI WKH UHODWLRQVKLS 2EMHFW UHODWLRQV WKHRU\ VXJJHVWV WKDW WKH IDWKHULQJ ILJXUH LV LPSRUWDQW EXW LW QHHG QRW EH WKH ELRORJLFDO IDWKHU 5RVHQEHUJHU f &RQVHTXHQWO\ LW LV FRQVLGHUHG LPSRUWDQW WR H[DPLQH WKH HIIHFW RI VRPHRQH ZKR LV SHUFHLYHG DV ILOOLQJ WKH IDWKHULQJ UROH +LJK ,QWLPDF\ /RZ 3RRU *RRG )DWKHUFKLOG 5HODWLRQVKLS )LJXUH 3UHGLFWHG LQWHUDFWLRQV IRU +\SRWKHVHV DQG 1RWH DQG UHIHU WR SDUHQWDO PDULWDO VWDWXV ZLWK EHLQJ GLYRUFHG DQG ,f EHLQJ LQWDFW 6FRUHV RQ WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ ZRXOG EH UHYHUVHG

PAGE 62

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

PAGE 63

RULJLQ ZHUH LQWDFW $SSUR[LPDWHO\ WKLUW\ SHUFHQW RI WKH WRWDO VDPSOH ZHUH IURP IDPLOLHV RI GLYRUFH DQG VHYHQW\ SHUFHQW ZHUH IURP LQWDFW IDPLOLHV )XUWKHU VXEMHFWV ZHUH FDWHJRUL]HG DV KDYLQJ HLWKHU D JRRG RU D SRRU UHODWLRQVKLS ZLWK WKHLU IDWKHUV 7KLV FDWHJRUL]DWLRQ ZDV GHWHUPLQHG E\ WKH VFRUH RQ WKH 3DUHQW &KLOG 5HODWLRQVKLS 6XUYH\ )LQH :RUOH\ t 6FKZHEHO f DV GHVFULEHG ZLWKLQ WKLV FKDSWHU DQG E\ D VLQJOH TXHVWLRQ RQ WKH GHPRJUDSKLF IRUP SOHDVH UDWH \RXU UHODWLRQVKLS ZLWK \RXU IDWKHU RQ D VFDOH IURP ZLWK EHLQJ SRRU DQG VHYHQ EHLQJ H[FHOOHQW (YHU\ DWWHPSW ZDV PDGH WR HLWKHU HOLPLQDWH RU FRQWURO IRU DV PDQ\ FRQIRXQGLQJ YDULDEOHV DV SRVVLEOH DV VHYHUDO UHVHDUFKHUV KDYH LQGLFDWHG WKDW WKHUH DUH D QXPEHU RI YDULDEOHV WKDW PLJKW DIIHFW DGMXVWPHQW IROORZLQJ SDUHQWDO GLYRUFH 7KHVH FRYDULDWHV LQFOXGHG JHQGHU .DOWHU t 5HPEDU f FXUUHQW DJH .DOWHU t 5HPEDU f OHQJWK RI WLPH VLQFH WKH GLYRUFH )URVW t 3DNL] f DJH DW WKH WLPH RI GLYRUFH %ODFN t 6SUHQNOH /RSH] :KLWH %ULQNHUKRII t %RRWK f VRFLRHFRQRPLF VWDWXV %LOOHU (GZDUGV *XLGXEDOGL t 3HUU\ 0XHOOHU t &RRSHU f DQG UDFH *OHQQ t .UDPHU f ,Q DGGLWLRQ WR WKHVH YDULDEOHV SUHVHQFH RI DQRWKHU VLJQLILFDQW PDOH ILJXUH VH[XDOLW\ DQG FXVWRG\ DUUDQJHPHQWV ZHUH DOVR FRQVLGHUHG LPSRUWDQW E\ WKH DXWKRU

PAGE 64

2I WKHVH YDULDEOHV JHQGHU DQG FXUUHQW DJH ZHUH MXGJHG WR EH RI SULPDU\ LPSRUWDQFH DQG WKH\ ZHUH FRQWUROOHG E\ XVLQJ RQO\ IHPDOH VXEMHFWV ZLWKLQ D OLPLWHG DJH UDQJH \HDUV RI DJHf $QRWKHU FRYDULDWH ZKLFK KDG WR EH FRQWUROOHG ZDV WKH OHQJWK RI WLPH VLQFH WKH GLYRUFH VLQFH RQO\ ORQJn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f ZHUH HOLPLQDWHG IURP WKH SULPDU\ DQDO\VHV DV LW ZDV FRQVLGHUHG SRVVLEOH WKDW WKH IDWKHU GDXJKWHU UHODWLRQVKLS ZRXOG KDYH D GLIIHUHQW LPSDFW RQ LQWLPDF\ GHSHQGLQJ XSRQ VH[XDO RULHQWDWLRQ )LQDOO\ GDWD RQ VXEMHFWV ZKR KDG ORVW D SDUHQW GXH WR GHDWK RU ZKR ZHUH LQ WKH FXVWRG\ RI WKHLU IDWKHU IROORZLQJ GLYRUFH ZHUH H[FOXGHG IURP WKH DQDO\VHV $IWHU DOO RI WKHVH IDFWRUV ZHUH FRQWUROOHG DSSUR[LPDWHO\ VXEMHFWV UHPDLQHG $ VXPPDU\ RI WKH YDULDEOHV WKDW ZHUH FRQWUROOHG DSSHDUV LQ 7DEOH

PAGE 65

DQG WKH QXPEHU RI VXEMHFWV LQ HDFK FHOO LV LQGLFDWHG LQ 7DEOH 7DEOH 'HVFULSWLRQ RI ILQDO VDPSOH *HQGHU )HPDOH $JH $JHG 6H[XDOLW\ +HWHURVH[XDO ,I SDUHQWV DUH GLYRUFHG 0RWKHU KDG FXVWRG\ 'LYRUFH RFFXUUHG RU PRUH \HDUV DJR 7DEOH 1XPEHU RI VXEMHFWV LQ HDFK FDWHJRU\ )DWKHU'DXJKWHU 5HODWLRQVKLS 3DUHQWDO 0DULWDO 6WDWXV *RRG 3RRU ,QWDFW bf bf 'LYRUFHG bf bf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

PAGE 66

:LWKLQ HDFK SDFNHW WKH TXHVWLRQQDLUHV ZHUH UDQGRPO\ RUGHUHG LQ DQ DWWHPSW WR SUHYHQW DQ\ UHVSRQVH ELDV DQG WKH IRUPV ZHUH LGHQWLILHG RQO\ E\ ODVW IRXU GLJLWV RI WKH VXEMHFWVn SDUHQWVn SKRQH QXPEHU VR WKDW DQRQ\PLW\ FRXOG EH PDLQWDLQHG $IWHU FRPSOHWLQJ WKH LQVWUXPHQWV WKH VXEMHFWV ZHUH JLYHQ D GHEULHILQJ IRUP DQG ZHUH DOORZHG WR DVN TXHVWLRQV 0HDVXUHV 6WXGHQWV FRPSOHWHG D GHPRJUDSKLF DQG GHVFULSWLYH TXHVWLRQQDLUH D SDUHQWFKLOG UHODWLRQVKLS VXUYH\ DQG IRXU PHDVXUHV RI LQWLPDF\ WKH 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5XELQnV /RYH 6FDOH DQG WKH '\DGLF 7UXVW 6FDOH %DVHG RQ WKH LQIRUPDWLRQ IURP WKH GHPRJUDSKLFGHVFULSWLYH DQG SDUHQWFKLOG UHODWLRQVKLS VXUYH\V VXEMHFWV ZHUH SODFHG LQ DSSURSULDWH FDWHJRULHV LQWDFWJRRG UHODWLRQVKLS LQWDFWSRRU UHODWLRQVKLS GLYRUFHGJRRG UHODWLRQVKLS DQG GLYRUFHGSRRU UHODWLRQVKLS 'HPRJUDSKLF 4XHVWLRQQDLUH 7KH GHPRJUDSKLF DQG GHVFULSWLYH TXHVWLRQQDLUH ZDV GHVLJQHG WR DVVHVV WKH SDUHQWVn PDULWDO VWDWXV WKH VXEMHFWnV FXUUHQW DJH DQG WKH DJH DW WKH WLPH RI WKH GLYRUFH LI DSSOLFDEOHf VRPH LQGLFDWLRQ RI WKH SDUHQW FKLOG UHODWLRQVKLS DQG ZKHWKHU RU QRW VRPHRQH HOVH PD\ KDYH EHHQ D VLJQLILFDQW REMHFW OLNH D IDWKHU LQ WKH VXEMHFWnV OLIH $GGLWLRQDOO\ LQIRUPDWLRQ DERXW FXUUHQW GDWLQJ VWDWXV DQG VH[XDO RULHQWDWLRQ ZDV VROLFLWHG $ FRS\ RI WKH GHPRJUDSKLF TXHVWLRQQDLUH FDQ EH IRXQG LQ $SSHQGL[ & 5HVSRQVHV WR TXHVWLRQV DERXW SDUHQWDO RFFXSDWLRQV DQG

PAGE 67

HGXFDWLRQDO OHYHOV ZHUH XVHG WR FRGH WKH VRFLRHFRQRPLF OHYHO DFFRUGLQJ WR WKH VRFLRHFRQRPLF LQGH[ DQG RFFXSDWLRQDO FODVVLILFDWLRQ VFKHPH RI 6WHYHQV DQG &KR f 3DUHQW&KLOG 5HODWLRQVKLS 6XUYH\ 3&56f 7KLV SDSHU DQG SHQFLO VHOIUHSRUW TXHVWLRQQDLUH ZDV GHVLJQHG WR DVVHVV ROGHU FKLOGUHQnV SHUFHSWLRQV RI WKH TXDOLW\ RI WKHLU RZQ SDUHQWFKLOG UHODWLRQVKLSV RQ D QXPEHU RI GLPHQVLRQV )LQH :RUOH\ t 6FKZHEHO S f $ FRS\ RI WKH 3DUHQW &KLOG 5HODWLRQVKLS 6XUYH\ FDQ EH IRXQG LQ $SSHQGL[ 7KHUH DUH WZR SDUDOOHO VXEVFDOHV RQH IRU WKH PRWKHU DQG RQH IRU WKH IDWKHU (DFK XVHV /LNHUWW\SH LWHPV VFRUHG RQ D VHYHQ SRLQW VFDOH )RU WKH SXUSRVHV RI WKLV LQYHVWLJDWLRQ RQO\ WKH )DWKHU 6FDOH ZDV XWLOL]HG 7KH SV\FKRPHWULF SURSHUWLHV RI WKH )DWKHU 6FDOH DUH PDLQO\ XQLGLPHQVLRQDO PHDVXULQJ SULPDULO\ WKH 3RVLWLYH $IIHFW RI WKH IDWKHUFKLOG UHODWLRQVKLS DV SHUFHLYHG E\ WKH FKLOG 3RVLWLYH $IIHFW DFFRXQWV IRU RYHU b RI WKH YDULDQFH )LQH :RUOH\ t 6FKZHEHO f 2WKHU IDFWRUV ZKLFK DFFRXQWHG IRU PXFK OHVV RI WKH FRPPRQ YDULDQFH ZHUH WUXVWUHVSHFW ODFN RI DQJHU DQG IDWKHU LGHQWLILFDWLRQ )LQH :RUOH\ t 6FKZHEHO f 5HOLDELOLW\ DQG YDOLGLW\ RI WKH 3&56 KDYH EHHQ H[DPLQHG LQ VHYHUDO VWXGLHV RI PLGGOHFODVV FROOHJHDJHG VWXGHQWV )LQH 0RUHODQG t 6FKZHEHO )LQH :RUOH\ t 6FKZHEHO f ,QWHUQDO FRQVLVWHQF\ RI WKH )DWKHU VXEVFDOH ZDV 7KH )DWKHU VXEVFDOH DOVR KDV GLVFULPLQDWLYH

PAGE 68

DELOLW\ LQ WKDW LW GLVWLQJXLVKHV EHWZHHQ VXEMHFWV IURP GLYRUFHG DQG LQWDFW IDPLOLHV )LQH :RUOH\ t 6FKZHEHO f :KLOH WKH UDQJH RI SRVVLEOH VFRUHV RQ WKH IDWKHU VXEVFDOH LV WKH PHDQV IRU ZRPHQ IURP LQWDFW DQG GLYRUFHG KRPHV ZHUH DQG UHVSHFWLYHO\ LQ D VWXG\ E\ )LQH 0RUHODQG DQG 6FKZHEHO f :KHQ GDXJKWHUV RI SDUHQWDO GLYRUFH ILOOHG RXW WKH VXEVFDOH ZLWK WKHLU VWHSIDWKHUV DV WKH WDUJHW WKH PHDQ ZDV 6DXHU t )LQH f )RU WKH SUHVHQW LQYHVWLJDWLRQ WKH PHDQ IRU WKH WRWDO VDPSOH Q f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

PAGE 69

GHPRJUDSKLF TXHVWLRQQDLUH ZKLFK GHDOW ZLWK WKH IDWKHU GDXJKWHU UHODWLRQVKLS 7KDW VLQJOH LWHP FDSWXUHG b RI WKH YDULDQFH H[SODLQHG E\ WKH 3&56 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 06,6f 7KH 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 06,6f ZDV GHVLJQHG WR PHDVXUH LQWLPDF\ LQ WKH FRQWH[W RI LQWHUSHUVRQDO UHODWLRQVKLSV 0LOOHU t /HIFRXUW f $ FRS\ RI WKH 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH FDQ EH IRXQG LQ 0LOOHU DQG /HIFRXUW f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t /HIFRXUW f 7KH PHDQ 06,6 VFRUH IRU XQPDUULHG IHPDOHV ZDV DQG WKH PHDQ VFRUH IRU PDUULHG IHPDOHV ZDV 7KH PHDQ RI IRU WKH VDPSOH LQ WKH SUHVHQW LQYHVWLJDWLRQ DSSHDUV VLPLODU DQG IHOO ZLWKLQ WKH UDQJH RI PHDQV IRXQG E\ 0LOOHU DQG /HIFRXUW f $ &URQEDFK DOSKD FRHIILFLHQW RI OHQW VWURQJ VXSSRUW WR WKH LQWHUQDO FRQVLVWHQF\ RI WKH PHDVXUH DQG LQGLFDWHG WKDW D VLQJOH FRQVWUXFW ZDV EHLQJ DVVHVVHG 7HVW

PAGE 70

UHWHVW UHOLDELOLW\ ZDV PHDVXUHG RYHU D WZR PRQWK SHULRG 7KH UHVXOWV LQGLFDWHG WKDW WKHUH LV VRPH VWDELOLW\ LQ WKH PD[LPXP OHYHO RI LQWLPDF\ H[SHULHQFHG 0LOOHU t /HIFRXUW f &RQYHUJHQW YDOLGLW\ ZDV H[SORUHG E\ KDYLQJ VXEMHFWV DOVR FRPSOHWH WKH ,QWHUSHUVRQDO 5HODWLRQVKLS 6FDOH ,56f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t /HIFRXUW f 7KHVH ILQGLQJV VXJJHVW WKDW WKH 06,6 LV D YDOLG DQG UHOLDEOH LQVWUXPHQW IRU PHDVXULQJ VRFLDO LQWLPDF\ :DULQJ f LQ D UHYLHZ RI PHDVXUHV RI LQWLPDF\ VXJJHVWV WKDW D SUREOHP ZLWK WKLV LQVWUXPHQW UHYROYHV DURXQG WKH LVVXH RI ZKRVH LQWLPDF\ LV EHLQJ PHDVXUHG KLV KHUV RU WKHLUV 7KH TXHVWLRQ RI ZKRVH LQWLPDF\ LV EHLQJ PHDVXUHG GRHV QRW VHHP WR EH RI SUDFWLFDO LPSRUWDQFH IRU WKLV VWXG\ EXW LW LV

PAGE 71

LPSRUWDQW WKDW WKLV VFDOH XWLOL]HV D EURDG GHILQLWLRQ RI LQWLPDF\ 7KH 06,6 LV GHVLJQHG WR UHFRJQL]H WKH PXOWLIDFHWHG QDWXUH RI LQWLPDF\ DQG GRHV QRW VLPSO\ IRFXV RQ VHOIGLVFORVXUH DV RWKHU VFDOHV KDYH GRQH :DULQJ f 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f 7KLV LQYHQWRU\ ZLWK LWHPV VFRUHG RQ D SRLQW VFDOH ZDV GHVLJQHG WR PHDVXUH GLIIHUHQFHV LQ WKH SHUFHSWLRQ RI ULVNV DVVRFLDWHG ZLWK LQWLPDF\ 3LONLQJWRQ t 5LFKDUGVRQ f $ FRS\ RI WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ FDQ EH IRXQG LQ $SSHQGL[ 2QH KXQGUHG DQG QLQHW\ILYH IHPDOH DQG PDOH XQGHUJUDGXDWHV FRPSOHWHG WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f %DVHG RQ WKHLU UHVSRQVHV DQG D SULQFLSDO FRPSRQHQWV IDFWRU DQDO\VLV RQH SULQFLSDO IDFWRU ZDV LGHQWLILHG ZKLFK DFFRXQWHG IRU b RI WKH YDULDQFH $ &URQEDFKnV DOSKD RI LQGLFDWHG JRRG LQWHUQDO FRQVLVWHQF\ RI WKH PHDVXUH &RQYHUJHQW YDOLGLW\ ZDV VXJJHVWHG DV WKRVH ZKR SHUFHLYHG JUHDWHU ULVN DOVR ZHUH PRUH OLNHO\ WR KDYH ORZHU VHOIHVWHHP DQG IHZHU FORVH IULHQGV DQG ZHUH OHVV OLNHO\ WR EH FXUUHQWO\ LQYROYHG LQ D URPDQWLF UHODWLRQVKLS 3LONLQJWRQ t 5LFKDUGVRQ f 1HJDWLYH FRUUHODWLRQV ZHUH DOVR QRWHG EHWZHHQ KLJK 5,, VFRUHV DQG PHDVXUHV RI LQWHUSHUVRQDO WUXVW DQG GDWLQJ DVVHUWLYHQHVV $ VHFRQG VWXG\ VXSSRUWHG WKHVH ILQGLQJV ZLWK RQH IDFWRU DFFRXQWLQJ IRU b RI WKH YDULDQFH DQG D &URQEDFKnV DOSKD RI $GGLWLRQDOO\ VRFLDELOLW\ DQG RYHUDOO H[WUDYHUVLQ

PAGE 72

FRUUHODWHG QHJDWLYHO\ ZLWK 5,, ,Q JHQHUDO WKRVH ZKR SHUFHLYH ULVN LQ LQWLPDF\ UHSRUW DWWLWXGHV HJ ORZ WUXVWf DQG EHKDYLRUV HJ ORZ DVVHUWLYHQHVVf FRQVLVWHQW ZLWK WKHLU SHUFHSWLRQV 3LONLQJWRQ t 5LFKDUGVRQ S f 3LONLQJWRQ t 1H]OHN f VXPPHG HDFK VXEMHFWnV UHVSRQVHV WR WKH LWHPV DQG SHUIRUPHG D PHGLDQ VSOLW 7KXV VXEMHFWV ZHUH GHILQHG DV SHUFHLYLQJ KLJKHU OHYHOV RI ULVN LQ LQWLPDF\ RU SHUFHLYLQJ ORZHU OHYHOV RI ULVN LQ LQWLPDF\ )RU WKH 3LONLQJWRQ DQG 1H]ODN f LQYHVWLJDWLRQ WKH PHGLDQ VFRUH ZDV )RU WKH SUHVHQW LQYHVWLJDWLRQ WKH PHGLDQ VFRUH ZDV 7KH PHDQV LQ WZR VWXGLHV E\ 3LONLQJWRQ DQG 5LFKDUGVRQ f ZHUH DQG 7KH PHDQ IRU WKH FXUUHQW VWXG\ ZDV ZKLFK LV FRQVLGHUHG VLPLODU WR WKRVH IRXQG LQ WKH SULRU LQYHVWLJDWLRQV E\ 3LONLQJWRQ DQG 5LFKDUGVRQ f 5XELQnV /RYH 6FDOH 5/6f 7KLV LWHP VFDOH ZDV GHYHORSHG WR PHDVXUH WKUHH FRPSRQHQWV RI URPDQWLF ORYH DIILOLDWLRQ DQG GHSHQGHQW QHHG SUHGLVSRVLWLRQ WR KHOS DQG H[FOXVLYHQHVV DQG DEVRUSWLRQ 5XELQ f 7KH LWHPV IRU WKH VFDOH ZHUH VHOHFWHG EDVHG RQ VHSDUDWH IDFWRU DQDO\VHV IRU UHVSRQVHV ZLWK UHIHUHQFH WR ORYHUV DQG IULHQGV 7KH LWHPV ZKLFK ORDGHG WKH KLJKHVW ZKHQ ORYHUV ZHUH WKH WDUJHW IRUPHG WKH ORYH VFDOH 6WHUQEHUJ DQG *UDMHN f IRXQG WKDW WKH ORYH VFDOH IRFXVHV RQ WKH LQWLPDF\ FRPSRQHQW RI FORVH UHODWLRQVKLSV UDWKHU WKDQ RQ WKH RWKHU WZR FRPSRQHQWV RI ORYH FRPPLWPHQW DQG SDVVLRQ

PAGE 73

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f IRXQG WKH 5XELQ /RYH 6FDOH DQG WKH
PAGE 74

'\DGLF 7UXVW 6FDOH '76f 7KLV HLJKWLWHP VFDOH ZDV FRQVWUXFWHG IURP D SRRO RI LWHPV WDNHQ IURP SUHYLRXV WUXVW VFDOHV /DU]HOHUH t +XVWRQ f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t +XVWRQ f 7KH RYHUDOO PHDQ IRU WKH VDPSOH LQ WKH SUHVHQW LQYHVWLJDWLRQ ZDV )RUW\ GDWLQJ FRXSOHV QHZO\ZHG FRXSOHV DQG ORQJHUPDUULHG FRXSOHV FRPSOHWHG WKH '\DGLF 7UXVW 6FDOH DV ZHOO DV 5XELQnV /RYH 6FDOH 7KH ILQGLQJV LQGLFDWHG D VWURQJ UHODWLRQVKLS EHWZHHQ G\DGLF WUXVW DQG ORYH IRU LQGLYLGXDO DQG FRXSOH VFRUHV :KHQ FRPSDULQJ WKH ORQJHUPDUULHG FRXSOHV ZLWK WKH XQPDUULHG FRXSOHV WKH FRUUHODWLRQV ZHUH VLJQLILFDQWO\ KLJKHU IRU WKH ORQJHUPDUULHG FRXSOHV +RZHYHU ZKHQ WKH QHZO\ZHGV ZHUH LQFOXGHG LQ WKH FRPSDULVRQ WKHUH ZDV QR VLJQLILFDQW GLIIHUHQFH /DU]HOHUH DQG +XVWRQ f VXJJHVW WKDW WKH HQJDJHPHQW DQG QHZO\ZHG SHULRG LV

PAGE 75

RQH RI WUDQVLWLRQ DQG WXUEXOHQFH ZKLFK ZRXOG DFFRXQW IRU ORZHU FRUUHODWLRQV EHWZHHQ ORYH DQG G\DGLF WUXVW /DU]HOHUH DQG +XVWRQ f IRXQG WKDW WKH PHDQ G\FGLF WUXVW VFRUHV YDULHG E\ WKH W\SH RI UHODWLRQVKLS EHLQJ PHDVXUHG EXW WKH UDQJH ZDV IURP WR IRU FRXSOHV WKDW ZHUH HLWKHU GDWLQJ RU PDUULHG 7KH PHDQ VFRUH IRU WKH SUHVHQW LQYHVWLJDWLRQ ZDV 7KLV PHDQ FRPSDUHV IDYRUDEO\ WR WKH VFRUHV IRXQG E\ /DUOHOHUH DQG +XVWRQ f '\DGLF WUXVW ZDV DOVR QRWHG WR EH DVVRFLDWHG ZLWK VHOIn GLVFORVXUH IRU ERWK WKH GDWLQJ DQG PDUULHG SDUWLFLSDQWV 7KHUH ZDV VRPH WUHQG IRU WKHVH FRUUHODWLRQV WR LQFUHDVH DV OHYHOV RI FRPPLWPHQW LQFUHDVHG /DU]HOHUH t +XVWRQ f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

PAGE 76

OHDVW DV VWURQJ DV WKH UHFLSURFLW\ RI VHOIGLVFORVXUH DQG DSSDUHQWO\ VWURQJHU WKDQ UHFLSURFLW\ RI ORYH S f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

PAGE 77

&+$37(5 5(68/76 7KH GDWD ZHUH DQDO\]HG XWLOL]LQJ 6$6 VRIWZDUH 6$6 ,QVWLWXWH f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

PAGE 78

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f S 7KH PHDQ IRU PRWKHUV ZDV DQG IRU IDWKHUV ZDV (YHQ ZKHQ SDUHQWDO PDULWDO VWDWXV ZDV QRW D IDFWRU WKH UHODWLRQVKLS ZLWK WKH PRWKHU ZDV UDWHG VLJQLILFDQWO\ KLJKHU WKDQ WKH UHODWLRQVKLS ZLWK WKH IDWKHU

PAGE 79

)UHTXHQF\ Q f 5DWLQJ )LJXUH 5HODWLRQVKLS ZLWK 0RWKHU )UHTXHQF\ Q f 5DWLQJ )LJXUH 5HODWLRQVKLS ZLWK )DWKHU

PAGE 80

7KH &KL6TXDUH 7HVW RI 5DFLDO &RPSRVLWLRQ 7KH &KL6TXDUH 7HVW IRU GLIIHUHQFHV LQ UDFLDO FRPSRVLWLRQ LQ WKH FHOOV UHYHDOHG QR VLJQLILFDQW GLIIHUHQFHV ) f S 7KHVH ILQGLQJV LQGLFDWHG WKDW LW ZDV QRW QHFHVVDU\ WR XVH UDFLDOHWKQLF EDFNJURXQG DV D FRYDULDWH LQ IXUWKHU DQDO\VHV 7KH FRPSRVLWLRQ RI HDFK RI WKH FHOOV LV LQGLFDWHG LQ 7DEOH 7DEOH 5DFLDOHWKQLF FRPSRVLWLRQ RI FHOOV E\ SDUHQWDO PDULWDO VWDWXV DQG UHODWLRQVKLS ZLWK IDWKHU ,QW3RRU ,QW*RRG 'LY3RRU 'LY*RRG &DXFDVLDQ bf $IULFDQ $PHULFDQ bf +LVSDQLF bf $VLDQ bf 2WKHU bf 1RWH ,QW DQG GLY UHIHU WR WKH SDUHQWDO PDUULWDO VWDWXV ZLWK LQW EHLQJ LQWDFW DQG GLYf EHLQJ GLYRUFHG JRRG DQG SRRU UHIHU WR WKH QDWXUH RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS 6RFLRHFRQRPLF 6WDWXV 6RFLRHFRQRPLF VWDWXV 6(6f ZDV HQWHUHG LQWR WKH JHQHUDO OLQHDU PRGHO DV D FRYDULDWH LQ RUGHU WR VHH LI LW FRQWULEXWHG VLJQLILFDQWO\ WR WKH YDULDQFH LQ LQWLPDF\ VFRUHV 6FRUHV RQ WKH '\DGLF 7UXVW 6FDOH ZHUH VLJQLILFDQWO\ ORZHU ZKHQ 6(6 ZDV ORZHU ) f S

PAGE 81

$GGLWLRQDOO\ ILQGLQJV RI DQ DSSDUHQW LQWHUDFWLRQ RI PDULWDO VWDWXV DQG WKH IDWKHUGDXJKWHU UHODWLRQVKLS RQ 5XELQnV /RYH 6FDOH GLVDSSHDUHG ZKHQ 6(6 ZDV LQFOXGHG 3DUWLFLSDQWV IURP GLYRUFHG DQG LQWDFW IDPLOLHV GLIIHUHG VLJQLILFDQWO\ RQ VRFLRHFRQRPLF VWDWXV ) f S ,QWDFW IDPLOLHV KDG D VLJQLILFDQWO\ KLJKHU 6(6 WKDQ GLYRUFHG IDPLOLHV 7KH PHDQ VFRUH IRU LQWDFW IDPLOLHV Q f ZDV DQG IRU GLYRUFHG IDPLOLHV Q f ZDV %DVHG RQ WKHVH REVHUYDWLRQV 6(6 ZDV LQFOXGHG DV D FRYDULDWH LQ WKH DQDO\VHV RI WKH SULPDU\ K\SRWKHVHV $QDO\VHV RI 9DULDQFH IRU 3ULPDU\ +\SRWKHVHV 5HODWLRQVKLS ZLWK )DWKHU 7KH ILUVW K\SRWKHVLV SUHGLFWHG WKDW GDXJKWHUV RI SDUHQWDO GLYRUFH ZRXOG UDWH WKHLU IDWKHUV ORZHU RQ WKH 3&56 WKDQ ZRXOG GDXJKWHUV IURP LQWDFW IDPLOLHV 7KLV K\SRWKHVLV ZDV VXSSRUWHG ) f S 7KH PHDQ IRU GDXJKWHUV RI GLYRUFH Q f ZDV DQG IRU GDXJKWHUV IURP LQWDFW IDPLOLHV Q f ZDV )RU WKLV VDPSOH GLYRUFH ZDV DVVRFLDWHG ZLWK D UHGXFWLRQ LQ WKH TXDOLW\ RI WKH UHODWLRQVKLS ZLWK WKH IDWKHU *LYHQ WKHVH ILQGLQJV LW ZDV GHFLGHG WR IXUWKHU H[DPLQH WKH IDWKHUFKLOG UHODWLRQVKLS DV DIIHFWHG E\ GLYRUFH DQG WR GHWHUPLQH ZKHWKHU WKH UHODWLRQVKLS ZLWK WKH PRWKHU ZDV VLPLODUO\ DIIHFWHG %HFDXVH WKH VLQJOH LWHP UHJDUGLQJ WKH UHODWLRQVKLS ZLWK WKH IDWKHU RQ WKH GHPRJUDSKLF TXHVWLRQQDLUH FRUUHODWHG b ZLWK WKH IDWKHU VXEVFDOH RI WKH

PAGE 82

3&56 WKLV LWHP ZDV FRQVLGHUHG WR EH D UHDVRQDEOH ZD\ WR IXUWKHU H[DPLQH WKH SDUHQWFKLOG UHODWLRQVKLS $GGLWLRQDOO\ EHFDXVH WKH PRWKHU VXEVFDOH RI WKH 3&56 KDG QRW EHHQ XWLOL]HG LW ZDV GHFLGHG WR XVH WKH VLQJOH TXHVWLRQ WR FRPSDUH WKH LPSDFW RI GLYRUFH RQ WKH UHODWLRQVKLSV ZLWK ERWK WKH IDWKHU DQG PRWKHU 7KHUH ZDV D VLJQLILFDQW LQWHUDFWLRQ HIIHFW EHWZHHQ SDUHQWDO PDULWDO VWDWXV DQG WKH UHODWLRQVKLSV ZLWK SDUHQWV ) f S 7KH PHDQ UDWLQJV RI UHODWLRQVKLSV ZLWK IDWKHUV DQG PRWKHUV E\ SDUHQWDO PDULWDO VWDWXV DUH VKRZQ LQ )LJXUH 0HDQ 5DWLQJV RI )DWKHUV DQG 0RWKHUV )LJXUH 0HDQ UDWLQJV RI UHODWLRQVKLSV ZLWK IDWKHUV DQG PRWKHUV E\ SDUHQWDO PDULWDO VWDWXV 6LPSOH HIIHFWV WHVWV ZHUH WKHQ FRQGXFWHG WR GHWHUPLQH LI WKH REVHUYHG GLIIHUHQFHV ZHUH VLJQLILFDQW DW HDFK OHYHO RI PDULWDO VWDWXV :KHQ WKH SDUHQWDO PDUULDJH ZDV LQWDFW WKH UHODWLRQVKLS ZLWK WKH IDWKHU ZDV UDWHG VLJQLILFDQWO\ ORZHU WKDQ WKH UHODWLRQVKLS ZLWK WKH PRWKHU ) f S :KHQ SDUHQWV ZHUH GLYRUFHG WKH GLIIHUHQFHV

PAGE 83

ZHUH DOVR VWURQJ ) f S 7KH UDWLQJV RI PRWKHUV IURP GLYRUFHG DQG LQWDFW IDPLOLHV GLG QRW GLIIHU VLJQLILFDQWO\ ) f S EXW IDWKHUV IURP GLYRUFHG IDPLOLHV ZHUH UDWHG VLJQLILFDQWO\ ORZHU WKDQ IDWKHUV IURP LQWDFW IDPLOLHV ) f J 7KH UHVXOWV UHJDUGLQJ IDWKHUVn UDWLQJV DJUHH ZLWK WKH ILQGLQJV EDVHG RQ WKH 3&56 3DUHQWDO 0DULWDO 6WDWXV DQG ,QWLPDF\ 7KH VHFRQG K\SRWKHVLV SUHGLFWHG WKDW GDXJKWHUV RI GLYRUFH ZRXOG VFRUH ORZHU RQ PHDVXUHV RI LQWLPDF\ WKDQ GDXJKWHUV IURP LQWDFW IDPLOLHV 7KLV K\SRWKHVLV ZDV QRW VXSSRUWHG RQ WKUHH RI WKH PHDVXUHV RI LQWLPDF\ WKH 5XELQ /RYH 6FDOH 5/6f ) f J WKH '\DGLF 7UXVW 6FDOH '76f ) f S DQG WKH 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 06,6f ) f S )LQGLQJV RQ WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f GLG UHDFK WKH OHYHO RI VWDWLVWLFDO VLJQLILFDQFH ) f S 7KH PHDQV RQ HDFK RI WKHVH PHDVXUHV DUH LQGLFDWHG LQ 7DEOH ,W DSSHDUV WKDW GDXJKWHUV RI GLYRUFH SHUFHLYH PRUH 7DEOH 0HDQV RQ LQWLPDF\ VFDOHV E\ SDUHQWDO PDULWDO VWDWXV 5/6 'LYRUFHG ,QWDFW 'LYRUFHG '76 ,QWDFW 06,6 5,,r 'LYRUFHG ,QWDFW 'LYRUFHG ,QWDFW 1RWH r LQGLFDWHV VWDWLVWLFDOO\ VLJQLILFDQW UHVXOWV

PAGE 84

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f ) f S '\DGLF 7UXVW 6FDOH '76f ) f S 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 06,6f ) f S DQG WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f ) f ,, R f R WR 7KH PHDQV IRU HDFK RI LQWLPDF\ PHDVXUHV DUH VKRZQ LQ 7DEOH 7DEOH 0HDQV RQ LQWLPDFY VFDOHV EY IDWKHU GDXJKWHU UHODWLRQVKLS f 5/6 '76 *RRG 3RRU *RRG 3RRU 06,6 5,, *RRG 3RRU *RRG 3RRU

PAGE 85

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f ) f S '\DGLF 7UXVW 6FDOH '76f ) f S 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 06,6f ) f S DQG 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f ) f 3 7KH PHDQV IRU WKH WHVWV RI LQWHUDFWLRQ DUH JLYHQ LQ 7DEOH 7DEOH 0HDQV RQ LQWLPDF\ VFDOHV E\ IDWKHU GDXJKWHU UHODWLRQVKLS DQG SDUHQWDO PDULWDO VWDWXV 5/6 '76 ,QWDFW *RRG 3RRU 'LYRUFHG *RRG 3RRU ,QWDFW *RRG 3RRU 'LYRUFHG *RRG 3RRU 06,6 5,, ,QWDFW *RRG 3RRU 'LYRUFHG *RRG 3RRU ,QWDFW *RRG 3RRU 'LYRUFHG *RRG 3RRU 7KH ILIWK K\SRWKHVLV DOVR SUHGLFWHG DQ LQWHUDFWLRQ HIIHFW ZKHUH WKH GDXJKWHUV IURP LQWDFW IDPLOLHV ZKR KDG D

PAGE 86

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f ) f S WKH '\DGLF 7UXVW 6FDOH '76f ) f H DQG WKH 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 06,6f ) f H )LQGLQJV RQ WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ 5,,f GLG UHDFK WKH OHYHO RI VWDWLVWLFDO VLJQLILFDQFH ) f H r 'DXJKWHUV RI GLYRUFH ZLWK D SRRU UHODWLRQVKLS ZLWK WKHLU IDWKHU SHUFHLYHG KLJKHU OHYHOV RI ULVN DVVRFLDWHG ZLWK LQWLPDF\ ZKHQ WKHUH ZDV QR RWKHU VLJQLILFDQW IDWKHU ILJXUH 7KH PHDQV IRU WKH WHVW RI WKH VL[WK K\SRWKHVLV DUH LQGLFDWHG LQ 7DEOH 7KH ILQGLQJV IRU WKH 5,, ZHUH IXUWKHU H[SORUHG E\ FRPSDULQJ GDXJKWHUV IURP LQWDFW IDPLOLHV ZLWK GDXJKWHUV RI

PAGE 87

GLYRUFH ZKR KDG VRPHRQH HOVH OLNH D IDWKHU DQG WKRVH ZKR GLG QRW KDYH DQRWKHU VLJQLILFDQW IDWKHU ILJXUH $ PDLQ HIIHFW IRU JURXS ZDV REVHUYHG ) f S 7KH PHDQV DUH LQGLFDWHG LQ )LJXUH 7DEOH 0HDQV RQ LQWLPDF\ VFDOHV E\ WKH SUHVHQFH RU DEVHQFH RI VRPHRQH OLNH D IDWKHU 1R 5/6
PAGE 88

ILJXUH WKH GLIIHUHQFHV ZHUH VWDWLVWLFDOO\ VLJQLILFDQW ) f S ZLWK WKH GDXJKWHUV ZKR ODFNHG VRPHRQH OLNH D IDWKHU SHUFHLYLQJ PRUH ULVN DVVRFLDWHG ZLWK LQWLPDF\ 7KH GDXJKWHUV ZKRVH SDUHQWV ZHUH PDUULHG DOVR SHUFHLYHG VLJQLILFDQWO\ OHVV ULVN DVVRFLDWHG ZLWK LQWLPDF\ WKDQ GLG WKRVH ZKRVH SDUHQWV ZHUH GLYRUFHG ZLWK QR RQH HOVH OLNH D IDWKHU ) f S :KHQ FRPSDULQJ WKRVH ZKRVH SDUHQWV ZHUH PDUULHG DQG WKRVH ZKRVH SDUHQWV ZHUH GLYRUFHG ZLWK DQRWKHU IDWKHU ILJXUH SUHVHQW WKHUH ZDV QR VLJQLILFDQW GLIIHUHQFH QRWHG ) f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

PAGE 89

( ( 1 9 $ / 8 ( 6 1XPEHU )LJXUH 6FUHH SORW RI (LJHQYDOXHV 7DEOH &RUUHODWLRQ DQDO\VLV RI WKH LQWLPDF\ 5/6 '76 06,6 5,, 5/6 '76 06,6 5,,

PAGE 90

7DEOH )DFWRU $QDO\VLV 8VLQJ D 3URPD[ 5RWDWLRQ 5/6 )DFWRU )DFWRU )DFWRU )DFWRU 5/6 5/6 5/6 5/6 5/6 5/6 5/6 5/6 5/6 5/6 5/6 5/6 '76 '76 '76 '76 '76 '76 '76 '76 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 06,6 5,, 5,, 5,, 5,, 5,, 5,, 5,, 5,, 5,, 5,, 1RWH 2QO\ FRUUHODWLRQV RI ZHUH VKRZQ

PAGE 91

,Q FRQFOXVLRQ WKUHH RI WKH PHDVXUHV RI LQWLPDF\ 5XELQnV /RYH 6FDOH WKH '\DGLF 7UXVW 6FDOH DQG WKH 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH FRUUHODWHG SRVLWLYHO\ ZLWK HDFK RWKHU DQG FRUUHODWHG QHJDWLYHO\ ZLWK WKH 5LVN LQ ,QWLPDF\ ,QYHQWRU\ $OVR WKH LQWLPDF\ VFDOHV VHHPHG WR UHSUHVHQW GLIIHUHQW IDFWRUV 7KH FRUUHODWLRQV DQG IDFWRU DQDO\VLV VHHP WR LQGLFDWH WKDW WKH VFDOHV WDS LQWR GLIIHUHQW DVSHFWV RI LQWLPDF\ DQG WKH\ VXSSRUW WKH GHFLVLRQ RI WKLV DXWKRU WR XWLOL]H DOO IRXU VFDOHV

PAGE 92

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t 2VWHUEHUJ 3DULVK t :LJOH f *LYHQ WKH H[SHFWHG UHGXFWLRQ LQ WKH TXDOLW\ RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS IROORZLQJ GLYRUFH LW ZDV QRW VXUSULVLQJ WKDW GDXJKWHUV RI GLYRUFHG SDUHQWV ZKR KDG D JRRG UHODWLRQVKLS ZLWK WKHLU IDWKHUV ZHUH WKH OHDVWIUHTXHQWO\ IRXQG SDUWLFLSDQWV LQ WKLV LQYHVWLJDWLRQ 2QO\ HOHYHQ GDXJKWHUV b RI WKH GDXJKWHUV ZKRVH SDUHQWV ZHUH GLYRUFHGf UDWHG WKH UHODWLRQVKLS ZLWK WKHLU IDWKHUV DV JRRG 7KLV VHHPV D GLVWXUELQJ VWDWLVWLF EXW LW LV LPSRUWDQW WR UHPHPEHU WKDW DOO RI WKHVH SDUWLFLSDQWV ZHUH LQ WKH FXVWRG\ RI WKHLU PRWKHUV IROORZLQJ WKH GLYRUFH RI WKHLU SDUHQWV

PAGE 93

%HFDXVH RI WKH FXVWRGLDO DUUDQJHPHQW LW PD\ QRW KDYH EHHQ WRWDOO\ XQH[SHFWHG WR ILQG WKDW RQO\ b RI WKH GDXJKWHUV GLG KDYH D JRRG UHODWLRQVKLS ZLWK WKHLU IDWKHUV EHFDXVH FKLOGUHQ RI GLYRUFH ZKR DUH LQ WKH FXVWRG\ RI WKHLU PRWKHUV PD\ KDYH OHVV FRQWDFW ZLWK WKHLU IDWKHUV $PDWR DQG %RRWK f UHSRUWHG WKDW ERWK PDOHV DQG IHPDOHV IURP GLYRUFHG IDPLOLHV KDG OHVV FRQWDFW ZLWK WKHLU IDWKHUV EXW WKH GLIIHUHQFH ZDV FRQVLGHUDEO\ JUHDWHU IRU IHPDOHV WKDQ IRU PDOHV S f DQG 6RXWKZRUWK DQG 6FKZDU] f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b RI WKH IHPDOH SDUWLFLSDQWV ZKRVH SDUHQWV ZHUH GLYRUFHG ZHUH QRW VDWLVILHG ZLWK WKHLU UHODWLRQVKLS ZLWK WKHLU IDWKHUV 7KH SHUFHQWDJH RI SDUWLFLSDQWV ZKR UDWHG WKH IDWKHUGDXJKWHU UHODWLRQVKLS DV SRRU PD\ QRW EH XQH[SHFWHG EXW LW VWLOO VHHPV XQGHVLUDEOH EHFDXVH WKH IDWKHU LV LPSRUWDQW WR WKH GHYHORSPHQW RI WKH FKLOG

PAGE 94

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nV /RYH 6FDOH '\DGLF 7UXVW 6FDOH RU 0LOOHU 6RFLDO ,QWLPDF\ 6FDOH 7KHVH UHVXOWV VXSSRUWHG WKH ILQGLQJV RI *UHHQEHUJ DQG 1D\ f WKDW FKLOGUHQ IURP GLYRUFHG DQG LQWDFW IDPLOLHV ZHUH QRW VLJQLILFDQWO\ GLIIHUHQW LQ OHYHO RU JXDOLW\ RI GDWLQJ EHKDYLRU RU LQ DWWLWXGHV WR PDUULDJH EXW WKH\ FRQWUDGLFW WKH ILQGLQJV RI %RRWK HW DO f DQG +HWKHULQJWRQ f WKDW SDUHQWDO GLYRUFH DIIHFWHG WKH TXDOLW\ RI FRXUWVKLS UHODWLRQV 7KH GDWD DOVR GLG QRW VXSSRUW WKH FRQFOXVLRQV RI :HLVV f ZKR IRXQG WKDW GDXJKWHUV RI GLYRUFH WHQGHG WR EHFRPH PRUH VROLWDU\ ZLWKLQ LQWHUSHUVRQDO UHODWLRQVKLSV S f $OWKRXJK SDUHQWDO GLYRUFH GLG QRW VHHP WR KDYH DQ HIIHFW RQ ORYH G\DGLF WUXVW RU VRFLDO LQWLPDF\ WKH

PAGE 95

UHVXOWV GLG VXJJHVW WKDW GLYRUFH ZDV UHODWHG WR D KLJKHU SHUFHSWLRQ RI ULVN LQ LQWLPDF\ /XWZDN f IRXQG WKDW IHDU RI LQWLPDF\ ZDV UHODWHG WR IHDU RI PDUULDJH DQG FRPPLWPHQW VXSSRUWLQJ WKH FRQFOXVLRQV RI &DUVRQ 0DGLVRQ DQG 6DQWURFN f WKDW DGROHVFHQWV IURP GLYRUFHG IDPLOLHV ZHUH PRUH DSSUHKHQVLYH DERXW HQWHULQJ LQWR PDUULDJH %RRWK DQG (GZDUGV f DQG &DUVRQ 0DGLVRQ DQG 6DQWURFN f DOVR LQGLFDWHG WKDW WKH SHUFHSWLRQ RI ULVN DQG WKH IHDU RI LQWLPDF\ PD\ EH OLQNHG WR D JUHDWHU ZLOOLQJQHVV WR EUHDN RII DQ XQVDWLVI\LQJ UHODWLRQVKLS %DVHG RQ WKHVH HDUOLHU ILQGLQJV WKH KLJKHU OHYHO RI ULVN SHUFHLYHG DPRQJ WKH GDXJKWHUV RI GLYRUFH PD\ EH SUHGLFWLYH RI WKH LQWHUJHQHUDWLRQDO WUDQVPLVVLRQ RI GLYRUFH 7UXVW LV RQH FRPSRQHQW RI LQWLPDF\ 3LONLQJWRQ DQG 5LFKDUGVRQ f IRXQG WKH SHUFHSWLRQ RI ULVN WR EH DVVRFLDWHG ZLWK ORZHU OHYHOV RI WUXVW 7KH SUHVHQW LQYHVWLJDWLRQ DOVR WHQGHG WR VXSSRUW WKDW DVVRFLDWLRQ DV WKH VFRUHV RQ WKH '\DGLF 7UXVW 6FDOH ZKLFK PHDVXUHV G\DGLF WUXVW LQ LQWLPDWH UHODWLRQVKLSV ZHUH QHJDWLYHO\ FRUUHODWHG U f ZLWK WKH 5,, VFRUHV $V WKH SHUFHSWLRQ RI ULVN LQFUHDVHG WKH OHYHO RI G\DGLF WUXVW GHFUHDVHG 'HVSLWH WKH FRUUHODWLRQ LW LV LPSRUWDQW WR UHPHPEHU WKDW SDUHQWDO PDULWDO VWDWXV GLG QRW KDYH D VWDWLVWLFDOO\ VLJQLILFDQW LPSDFW RQ WKH VFRUH RQ WKH '\DGLF 7UXVW 6FDOH 7KH LPSDFW RI WKH IDWKHUGDXJKWHU UHODWLRQVKLS RQ LQWLPDF\ ZDV H[SORUHG QH[W 7KH UHODWLRQVKLS ZLWK WKH

PAGE 96

IDWKHU ZDV IRXQG WR KDYH OLWWOH LPSDFW RQ WKH LQWLPDF\ PHDVXUHV 7KLV ILQGLQJ FRQWUDGLFWV WKDW RI %RRWK %ULQNHUKRII DQG :KLWH f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bf WKH SHUVRQ ZKR ZDV OLNH D IDWKHU ZDV WKH

PAGE 97

VWHSIDWKHU EXW JUDQGIDWKHUV DQG RWKHUV ZHUH LQFOXGHG DV ZHOO 7KHVH ILQGLQJV VXSSRUW WKH VXJJHVWLRQ E\ REMHFW UHODWLRQV WKHRULVWV WKDW WKH IDWKHULQJ ILJXUH LV LPSRUWDQW EXW WKDW KH QHHG QRW EH WKH ELRORJLFDO IDWKHU 5RVHQEHUJHU f ,W ZDV DOVR QRWHG WKDW VRFLRHFRQRPLF VWDWXV ZDV VLJQLILFDQWO\ ORZHU LQ IDPLOLHV RI GLYRUFH WKDQ LQ LQWDFW IDPLOLHV 7KLV REVHUYDWLRQ VXSSRUWV WKH FRQFOXVLRQV RI SUHYLRXV LQYHVWLJDWLRQV WKDW LW LV LPSRUWDQW WR FRQWURO IRU VRFLRHFRQRPLF VWDWXV %LOOHU (GZDUGV *XLGXEDOGL t 3HUU\ 0XHOOHU t &RRSHU f $OWKRXJK VRFLRHFRQRPLF VWDWXV ZDV QRW WKH VXEMHFW RI WKLV VWXG\ LW PD\ KDYH D EHDULQJ RQ VRFLDOL]DWLRQ SUDFWLFHV DQG SDUHQW FKLOG UHODWLRQVKLSV (GZDUGV S f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

PAGE 98

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f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

PAGE 99

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f KDG VXJJHVWHG WKDW WKH IDWKHUnV XQDYDLODELOLW\ WR JLYH ORYH DQG WR EH ORYHG ZDV FULWLFDO WR WKH GDXJKWHUn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

PAGE 100

/LPLWDWLRQV RI WKH 6WXG\ 7KH VWXG\nV OLPLWDWLRQV ZLOO EH GLVFXVVHG DQG UHODWHG WR WKUHDWV WR WKH IROORZLQJ GLIIHUHQW IRUPV RI YDOLGLW\ LQWHUQDO VWDWLVWLFDO FRQFOXVLRQ H[WHUQDO DQG FRQVWUXFW $OWKRXJK DWWHPSWV ZHUH PDGH WR UHGXFH WKH WKUHDWV WR YDOLGLW\ WR D PLQLPXP QR UHVHDUFK SURMHFW LV SHUIHFW *HOVR f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

PAGE 101

ZRXOG KDYH EHHQ LPSRVVLEOH WR HOLPLQDWH DOO RI WKH WKUHDWV GXH WR KLVWRU\ ,QDGHTXDWH VWDWLVWLFDO SRZHU PD\ KDYH UHGXFHG WKH SUREDELOLW\ RI REWDLQLQJ VWDWLVWLFDOO\ VLJQLILFDQW UHVXOWV FUHDWLQJ D WKUHDW WR VWDWLVWLFDO FRQFOXVLRQ YDOLGLW\ +HSSQHU .LYOLJKDQ t :DPSROG f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b RI WKH RULJLQDO VDPSOHf 7KHVH SDUWLFLSDQWV ZRXOG KDYH EHHQ PRUH OLNHO\ WR KDYH KDG D EHWWHU UHODWLRQVKLS ZLWK WKHLU IDWKHUV WKDQ WKRVH LQ WKH FXVWRG\ RI WKHLU PRWKHUV +RZHYHU SDWHUQDO FXVWRG\ PD\ KDYH SURGXFHG GLIIHUHQW FKLOGKRRG H[SHULHQFHV IRU WKH GDXJKWHUV ,Q DGGLWLRQ WKH IDWKHU PLJKW KDYH EHHQ DZDUGHG FXVWRG\ EHFDXVH RI DQ H[LVWLQJ SRRU PRWKHUFKLOG UHODWLRQVKLS ,Q HLWKHU RI WKHVH WZR FDVHV WKH UDQGRP

PAGE 102

KHWHURJHQHLW\ RI WKH SDUWLFLSDQWV ZRXOG KDYH SURGXFHG PRUH YDULDELOLW\ LQ UHVSRQVHV DQG ZRXOG DOVR KDYH WKUHDWHQHG VWDWLVWLFDO FRQFOXVLRQ YDOLGLW\ +HSSQHU .LYOLJKDQ t :DPSROG f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n PHWKRG ELDV DV RQO\ VHOIUHSRUW PHDVXUHV ZHUH XWLOL]HG 6HOIUHSRUW PHDVXUHV DUH IUHTXHQWO\ XVHG LQ UHVHDUFK UHJDUGLQJ GLYRUFH EXW LQWHUYLHZV DQG REVHUYDWLRQV KDYH DOVR EHHQ XWLOL]HG 7KHUH PD\ EH VRPH ELDV LQ XVLQJ RQO\ RQH PHWKRG LI DOO SDUWLFLSDQWV WHQG WR UHVSRQG LQ D VRFLDOO\ GHVLUDEOH ZD\ WR VHOIUHSRUW PHDVXUHV +HSSQHU .LYOLJKDQ t :DPSROG f 2QH LQGLFDWLRQ WKDW WKH WHQGHQF\ WR UHVSRQG

PAGE 103

LQ D VRFLDOO\ GHVLUDEOH ZD\ PD\ KDYH EHHQ D SRVVLELOLW\ LQ WKH SUHVHQW LQYHVWLJDWLRQ ZDV WKDW YHU\ IHZ SDUWLFLSDQWV bf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

PAGE 104

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t :KLWH f 7KH UHVXOWV RI WKH SUHVHQW LQYHVWLJDWLRQ VXJJHVW WKDW WKH GDXJKWHUV RI GLYRUFH DUH DOVR DV VDWLVILHG ZLWK WKHLU GDWLQJ UHODWLRQVKLSV DQG FORVH IULHQGVKLSV DV DUH WKH GDXJKWHUV IURP LQWDFW IDPLOLHV +RZHYHU LI WKH FKLOGUHQ RI GLYRUFH SHUFHLYH JUHDWHU ULVN LQ D UHODWLRQVKLS WKDQ GR WKH FKLOGUHQ RI LQWDFW IDPLOLHV WKH\ PD\ PRUH UHDGLO\ SURWHFW WKHPVHOYHV IURP KXUW E\ H[LWLQJ D

PAGE 105

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

PAGE 106

H[DPLQHG WKH LPSDFW RI GLYRUFH RQ EHKDYLRUV )XWXUH UHVHDUFK PD\ ZDQW WR REWDLQ EHKDYLRUDO HYLGHQFH RI WKH LPSRUWDQFH RI KDYLQJ VRPHRQH OLNH D IDWKHU 7KH DWWLWXGLQDO GLIIHUHQFHV REVHUYHG ZLWKLQ WKLV VWXG\ PD\ RU PD\ QRW QRW FRUUHVSRQG WR GLIIHUHQFHV LQ EHKDYLRU /HZLV )HLULQJ DQG :HLQUDXE f DOVR VXJJHVW WKDW PDQ\ RI WKH HIIHFWV RI IDWKHU DEVHQFH FDQ EH H[SODLQHG E\ WKH GLIIHUHQFHV LQ WKH PRWKHUnV EHKDYLRU WRZDUG KHU FKLOGUHQ DV D UHVXOW RI ODFN RI VXSSRUW QRW QHFHVVDULO\ IDWKHU DEVHQFH SHU VH S f 7KH IDWKHUnV UHODWLRQVKLS ZLWK WKH FKLOG GRHV QRW RFFXU LQ LVRODWLRQ EXW LV LPEHGGHG LQ RWKHU UHODWLRQVKLSV LQ WKH IDPLO\ WKH H[WHQGHG IDPLO\ DQG WKH VRFLDO V\VWHP $FFRUGLQJO\ WKH UHODWLRQVKLS ZLWK WKH IDWKHU VKRXOG EH H[DPLQHG LQ FRQMXQFWLRQ ZLWK RWKHU VLJQLILFDQW UHODWLRQVKLSV LQFOXGLQJ WKH FKLOGnV UHODWLRQVKLS ZLWK WKH PRWKHU ,Q FRQFOXVLRQ +HWKHULQJWRQ &R[ DQG &R[ f IHOW WKDW GLYRUFH ZDV RQH RI WKH PRVW VHULRXV FULVHV LQ $PHULFDQ OLIH S f 2QH RI WKH JRDOV RI VWXG\LQJ WKH HIIHFW RI GLYRUFH RQ UHODWLRQVKLSV DQG RQ GHYHORSPHQW LV WR DWWHPSW WR UHGXFH DQ\ GHOHWHULRXV DIWHU HIIHFWV 7KH SUHVHQFH RI D IDWKHULQJ ILJXUH LV FRQVLGHUHG WR EH LPSRUWDQW WR WKH RSWLPDO GHYHORSPHQW RI WKH FKLOG :KHQ FRXQVHOLQJ GLYRUFLQJ IDPLOLHV DQ HIIRUW VKRXOG EH PDGH WR DVVXUH WKDW FKLOGUHQ KDYH WKH RSSRUWXQLW\ WR KDYH ERWK D PRWKHULQJ DQG IDWKHULQJ ILJXUH LQ WKHLU OLYHV %\ WDNLQJ WKLV QHHG LQWR

PAGE 107

FRQVLGHUDWLRQ WKH QHJDWLYH LPSDFW RI GLYRUFH RQ GDXJKWHUV PD\ EH PLQLPL]HG

PAGE 108

$33(1',; $ ,1)250(' &216(17 7KH SULPDU\ LQYHVWLJDWRU RI WKLV VWXG\ LV 'LDQH ( )UHHPDQ D GRFWRUDO VWXGHQW LQ &RXQVHOLQJ 3V\FKRORJ\ 7KLV VWXG\ LV GHVLJQHG WR OHDUQ PRUH DERXW LQWLPDWH LQWHUSHUVRQDO UHODWLRQVKLSV
PAGE 109

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

PAGE 110

$33(1',; & '(02*5$3+,& 48(67,211$,5( 2I WKH FKLOGUHQ LQ \RXU IDPLO\ DUH \RX WKH 2OGHVW 2QO\ 2WKHU +RZ PDQ\ EURWKHUV DQG VLVWHUV GR \RX KDYH"
PAGE 111

2Q D VFDOH IURP ZLWK SRRU DQG H[FHOOHQW SOHDVH UDWH WKH IROORZLQJ
PAGE 112

:KDW ZDV WKH OHQJWK RI \RXU ORQJHVW GDWLQJ UHODWLRQVKLS LQ FROOHJH" \HDUV PRQWKV ZHHNV $W ZKDW DJH GLG \RX EHFRPH VH[XDOO\ DFWLYH ,I QRW DSSOLFDEOH SOHDVH ZULWH 1$f" 'R \RX FRQVLGHU \RXUVHOI WR EH +HWHURVH[XDO +RPRVH[XDO %LVH[XDO

PAGE 113

$33(1',; 3$5(17&+,/' 5(/$7,216+,3 6859(< 3OHDVH FRPSOHWH WKH IROORZLQJ LWHPV DERXW \RXU IDWKHU +RZ PXFK WLPH GR \RX IHHO \RX VSHQG ZLWK \RXU IDWKHU" DOPRVW QRQH D JUHDW GHDOf +RZ ZHOO GR \RX IHHO \RX KDYH EHHQ DEOH WR PDLQWDLQ D VWHDG\ UHODWLRQVKLS ZLWK \RXU IDWKHU" QRW DW DOO H[WUHPHO\f +RZ PXFK GR \RX WUXVW \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf +RZ FRQILGHQW DUH \RX WKDW \RXU IDWKHU ZRXOG QRW ULGLFXOH RU PDNH IXQ RI \RX LI \RX ZHUH WR WDON DERXW D SUREOHP" QRW DW DOO H[WUHPHO\f +RZ FRQILGHQW DUH \RX WKDW \RXU IDWKHU ZRXOG KHOS \RX ZKHQ \RX KDYH D SUREOHP" QRW DW DOO H[WUHPHO\f +RZ FORVH GR \RX IHHO WR \RXU IDWKHU" YHU\ GLVWDQW YHU\ FORVHf +RZ FRPIRUWDEOH ZRXOG \RX EH DSSURDFKLQJ \RXU IDWKHU DERXW D URPDQWLF SUREOHP" QRW DW DOO H[WUHPHO\f +RZ FRPIRUWDEOH ZRXOG \RX EH WDONLQJ WR \RXU IDWKHU DERXW D SUREOHP DW VFKRRO" QRW DW DOO H[WUHPHO\f +RZ FRQIXVHG DUH \RX DERXW WKH H[DFW UROH \RXU IDWKHU LV WR KDYH LQ \RXU OLIH" QRW DW DOO D JUHDW GHDOf

PAGE 114

+RZ DFFXUDWHO\ GR \RX IHHO \RX XQGHUVWDQG \RXU IDWKHUnV IHHOLQJV WKRXJKWV DQG EHKDYLRU" QRW DW DOO D JUHDW GHDOf +RZ HDVLO\ GR \RX DFFHSW WKH ZHDNQHVVHV LQ \RXU IDWKHU" QRW DW DOO H[WUHPHO\f 7R ZKDW H[WHQW GR \RX WKLQN RI \RXU IDWKHU DV DQ DGXOW ZLWK D OLIH RI KLV RZQ DV RSSRVHG WR WKLQNLQJ RI KLP RQO\ DV \RXU IDWKHU" WKLQN RI RQO\ DV IDWKHU VHH DV DQ DGXOW ZLWK OLIH RI KLV RZQf +RZ RIWHQ GR \RX JHW DQJU\ DW \RXU IDWKHU" DOPRVW QHYHU TXLWH RIWHQf ,Q JHQHUDO KRZ PXFK GR \RX UHVHQW \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf +RZ ZHOO GR \RX FRPPXQLFDWH ZLWK \RXU IDWKHU" QRW DW DOO H[WUHPHO\f +RZ ZHOO GRHV \RXU IDWKHU XQGHUVWDQG \RXU QHHGV IHHOLQJV DQG EHKDYLRUV" QRW DW DOO H[WUHPHO\f +RZ ZHOO GRHV \RXU IDWKHU OLVWHQ WR \RX QRW DW DOO H[WUHPHO\f +RZ PXFK GR \RX FDUH IRU \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf :KHQ \RX DUH DZD\ IURP KLP KRZ PXFK GR \RX W\SLFDOO\ PLVV \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf +RZ PXFK GR \RX UHVSHFW \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf +RZ PXFK GR \RX YDOXH \RXU IDWKHUnV RSLQLRQ"

PAGE 115

QRW DW DOO D JUHDW GHDOf +RZ PXFK GR \RX DGPLUH \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf +RZ PXFK ZRXOG \RX OLNH WR EH OLNH \RXU IDWKHU" QRW DW DOO D JUHDW GHDOf +RZ PXFK ZRXOG \RX EH VDWLVILHG ZLWK \RXU IDWKHUnV OLIHVW\OH DV \RXU RZQ" QRW DW DOO D JUHDW GHDOf

PAGE 116

,I \RX OLVWHG DQRWKHU DGXOW PDOH ZKR ZDV VLJQLILFDQW LQ \RXU OLIH RU OLNH D IDWKHU WR \RX LQ WKH SUHYLRXV TXHVWLRQQDLUH SOHDVH FRPSOHWH WKH IROORZLQJ LWHPV DERXW WKLV SHUVRQ UHSODFLQJ WKH EODQN VSDFH ZLWK KLV QDPH +RZ PXFK WLPH GR \RX IHHO \RX VSHQG ZLWK DOPRVW QRQH D JUHDW GHDOf +RZ ZHOO GR \RX IHHO \RX KDYH EHHQ DEOH WR PDLQWDLQ D VWHDG\ UHODWLRQVKLS ZLWK QRW DW DOO H[WUHPHO\f +RZ PXFK GR \RX WUXVW QRW DW DOO D JUHDW GHDOf +RZ FRQILGHQW DUH \RX WKDW ZRXOG QRW ULGLFXOH RU PDNH IXQ RI \RX LI \RX ZHUH WR WDON DERXW D SUREOHP" QRW DW DOO H[WUHPHO\f +RZ FRQILGHQW DUH \RX WKDW ZRXOG KHOS \RX ZKHQ \RX KDYH D SUREOHP" QRW DW DOO H[WUHPHO\f +RZ FORVH GR \RX IHHO WR YHU\ GLVWDQW YHU\ FORVHf +RZ FRPIRUWDEOH ZRXOG \RX EH DSSURDFKLQJ DERXW D URPDQWLF SUREOHP" QRW DW DOO H[WUHPHO\f +RZ FRPIRUWDEOH ZRXOG \RX EH WDONLQJ WR DERXW D SUREOHP DW VFKRRO" QRW DW DOO H[WUHPHO\f +RZ FRQIXVHG DUH \RX DERXW WKH H[DFW UROH LV WR KDYH LQ \RXU OLIH" QRW DW DOO D JUHDW GHDOf +RZ DFFXUDWHO\ GR \RX IHHO \RX XQGHUVWDQG nV IHHOLQJV WKRXJKWV DQG EHKDYLRU" QRW DW DOO D JUHDW GHDOf

PAGE 117

+RZ HDVLO\ GR \RX DFFHSW WKH ZHDNQHVVHV LQ QRW DW DOO H[WUHPHO\f 7R ZKDW H[WHQW GR \RX WKLQN RI DV DQ DGXOW ZLWK D OLIH RI KLV RZQ DV RSSRVHG WR WKLQNLQJ RI KLP RQO\ DV \RXU WKLQN RI RQO\ DV VHH DV DGXOW ZLWK OLIH RI KLV RZQf +RZ RIWHQ GR \RX JHW DQJU\ DW DOPRVW QHYHU TXLWH RIWHQf ,Q JHQHUDO KRZ PXFK GR \RX UHVHQW QRW DW DOO D JUHDW GHDOf +RZ ZHOO GR \RX FRPPXQLFDWH ZLWK QRW DW DOO H[WUHPHO\f +RZ ZHOO GRHV XQGHUVWDQG \RXU QHHGV IHHOLQJV DQG EHKDYLRUV" QRW DW DOO H[WUHPHO\f +RZ ZHOO GRHV OLVWHQ WR \RX" QRW DW DOO H[WUHPHO\f +RZ PXFK GR \RX FDUH IRU QRW DW DOO D JUHDW GHDOf :KHQ \RX DUH DZD\ IURP KLP KRZ PXFK GR \RX W\SLFDOO\ PLVV QRW DW DOO D JUHDW GHDOf +RZ PXFK GR \RX UHVSHFW QRW DW DOO D JUHDW GHDOf +RZ PXFK GR \RX YDOXH n V RSLQLRQ" QRW DW DOO D JUHDW GHDOf +RZ PXFK GR \RX DGPLUH

PAGE 118

QRW DW DOO D JUHDW GHDOf +RZ PXFK ZRXOG \RX OLNH WR EH OLNH QRW DW DOO D JUHDW GHDOf +RZ PXFK ZRXOG \RX EH VDWLVILHG ZLWK n V OLIHVW\OH DV \RXU RZQ" QRW DW DOO D JUHDW GHDOf 6RXUFH 'U 0DUN $ )LQH 'HSDUWPHQW RI 3V\FKRORJ\ 8QLYHUVLW\ RI 'D\WRQ &ROOHJH 3DUN 'D\WRQ 2KLR &RS\ULJKWHG E\ 0DUN $ )LQH 5HSULQWHG E\ SHUPLVVLRQ

PAGE 119

$33(1',; ( 58%,1n6 /29( 6&$/( 3OHDVH FRPSOHWH WKH IROORZLQJ LWHPV ZLWK UHIHUHQFH WR \RXU FXUUHQW RU PRVW UHFHQW ER\IULHQGJLUOIULHQG 1RW DW DOO WUXH 'LVDJUHH FRPSOHWHO\ ,I ZHUH IHHOLQJ EDGO\ P\ ILUVW GXW\ ZRXOG EH WR FKHHU KLP RU KHU XS IHHO WKDW FDQ FRQILGH LQ DERXW YLUWXDOO\ HYHU\WKLQJ ILQG LW HDV\ WR LJQRUH nV IDXOWV ZRXOG GR DOPRVW DQ\WKLQJ IRU 'HILQLWHO\ WUXH $JUHH FRPSOHWHO\ IHHO YHU\ SRVHVVLYH WRZDUG ,I FRXOG QHYHU EH ZLWK ZRXOG IHHO PLVHUDEOH ,I ZHUH ORQHO\ P\ ILUVW WKRXJKW ZRXOG EH WR VHHN RXW 2QH RI P\ SULPDU\ FRQFHUQV LV nV ZHOIDUH ZRXOG IRUJLYH IRU SUDFWLFDOO\ DQ\WKLQJ

PAGE 120

,OO IHHO UHVSRQVLEOH IRU nV ZHOOEHLQJ :KHQ DP ZLWK VSHQG D JRRG GHDO RI WLPH MXVW ORRNLQJ DW KLPKHU ZRXOG JUHDWO\ HQMR\ EHLQJ FRQILGHG LQ E\ ,W ZRXOG EH KDUG IRU PH WR JHW DORQJ ZLWKRXW 6RXUFH 5XELQ = f 0HDVXUHPHQW RI 5RPDQWLF /RYH -RXUQDO RI 3HUVRQDOLW\ DQG 6RFLDO 3V\FKRORJ\ &RS\ULJKW E\ =LFN 5XELQ 3K' 5HSULQWHG E\ SHUPLVVLRQ 1RW DW DOO WUXH 'LVDJUHH &RPSOHWHO\ 'HILQLWHO\ WUXH $JUHH &RPSOHWHO\

PAGE 121

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t +XVWRQ 7/ f 7KH '\DGLF 7UXVW 6FDOH 7RZDUG XQGHUVWDQGLQJ LQWHUSHUVRQDO WUXVW LQ FORVH UHODWLRQVKLSV -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ &RS\ULJKWHG E\ WKH 1DWLRQDO &RXQFLO RQ )DPLO\

PAGE 122

5HODWLRQV &HQWUDO $YH 1( 6XLWH 0LQQHDSROLV 01 5HSULQWHG E\ SHUPLVVLRQ

PAGE 123

$33(1',; 5,6. ,1 ,17,0$&< ,19(1725< /LVWHG EHORZ DUH VHYHUDO VWDWHPHQWV WKDW UHIOHFW GLIIHUHQW DWWLWXGHV DERXW UHODWLRQVKLSV 6RPH RI WKH LWHPV UHIHU WR JHQHUDO DWWLWXGHV RU EHOLHIV DERXW UHODWLRQVKLSV 2WKHU LWHPV UHIHU WR PRUH VSHFLILF NLQGV RI LQWHUDFWLRQV VXFK DV WKRVH ZLWK DFTXDLQWDQFHV HJ VRPHRQH \RXnYH PHW RQO\ RQFH VRPHRQH \RX NQRZ RQO\ IURP FODVVf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nP DIUDLG WR JHW UHDOO\ FORVH WR VRPHRQH EHFDXVH PLJKW JHW KXUW $W EHVW FDQ KDQGOH RQO\ RQH RU WZR FORVH IULHQGVKLSV DW D WLPH ILQG LW GLIILFXOW WR WUXVW RWKHU SHRSOH DYRLG LQWLPDF\ %HLQJ FORVH WR RWKHU SHRSOH PDNHV PH DIUDLG ,nP KHVLWDQW WR VKDUH SHUVRQDO LQIRUPDWLRQ DERXW P\VHOI %HLQJ FORVH WR SHRSOH LV D ULVN\ EXVLQHVV 7KH PRVW LPSRUWDQW WKLQJ WR FRQVLGHU LQ D UHODWLRQVKLS LV ZKHWKHU PLJKW JHW KXUW

PAGE 124

6RXUFH 3LONLQJWRQ &t 5LFKDUGVRQ '5 f 3HUFHSWLRQV RI ULVN LQ LQWLPDF\ -RXUQDO RI 6RFLDO DQG 3HUVRQDO 5HODWLRQVKLSV &RS\ULJKW E\ 6DJH 3XEOLFDWLRQV /WG 5HSULQWHG E\ SHUPLVVLRQ

PAGE 125

5()(5(1&(6 $OIRUG &) f 3V\FKRDQDO\VLV DQG VRFLDO WKHRU\ 6DFULILFLQJ SV\FKRDQDOLVLV WR XWRSLD" 3V\FKRDQDO\VLV DQG &RQWHPSRUDU\ 7KRXJKW $PDWR 35 f 3DUHQWDO GLYRUFH DQG DWWLWXGHV WRZDUG PDUULDJH DQG IDPLO\ OLIH -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ $PDWR 35 t %RRWK $ f &RQVHJXHQFHV RI SDUHQWDO GLYRUFH DQG PDULWDO XQKDSSLQHVV IRU DGXOW ZHOOEHLQJ 6RFLDO )RUFHV $QGUHZV 52 t &KULVWHQVHQ +7 f 5HODWLRQVKLS RI DEVHQFH RI D SDUHQW WR FRXUWVKLS VWDWXV $ UHSHDW VWXG\ $PHULFDQ 6RFLRORJLFDO 5HYLHZ $QWRQRYVN\ $0 f 2EMHFW UHODWLRQV WKHRU\ DQG LQWHUSHUVRQDO WKHRU\ 6RPH FRPSDUDWLYH FRPPHQWV 3V\FKRDQDO\VLV DQG &RQWHPSRUDU\ 7KRXJKW $SSOHJDWH -6 f 7KHRU\ FXOWXUH DQG EHKDYLRU 2EMHFW UHODWLRQV LQ FRQWH[W &KLOG DQG $GROHVFHQW 6RFLDO :RUN $UJ\OH 0 t 'HDQ f (\H FRQWDFW GLVWDQFH DQG DIILOLDWLRQ 6RFLRPHWUY $UORZ f 2EMHFW FRQFHSW DQG REMHFW FKRLFH 6\PSRVLXP RQ REMHFW UHODWLRQV WKHRU\ DQG ORYH 3V\FKRDQDO\WLF 4XDUWHUO\ %DU
PAGE 126

%LOOHU +% f )DWKHU DEVHQFH GLYRUFH DQG SHUVRQDOLW\ GHYHORSPHQW ,Q 0( /DPE (Gf 7KH 5ROH RI WKH )DWKHU LQ &KLOG 'HYHORSPHQW 1HZ
PAGE 127

'LFNV +9 f 2EMHFW UHODWLRQV WKHRU\ DQG PDULWDO VWXGLHV %ULWLVK -RXUQDO RI 0HGLFDO 3V\FKRORJ\ 'RXYDQ ( f &DSDFLW\ IRU LQWLPDF\ ,Q $: &KLFNHULQJ (Gf 7KH PRGHUQ $PHULFDQ FROOHJH 6DQ )UDQFLVFR -RVVH\%DVV 3XEOLVKHUV 'ULOO 5/ f
PAGE 128

)LQH 0$ :RUOH\ 60 t 6FKZHEHO $, f 7KH HIIHFWV RI GLYRUFH RQ SDUHQWFKLOG UHODWLRQVKLSV -RXUQDO RI 6RFLDO %HKDYLRU DQG 3HUVRQDOLW\ )RUUHVW 7 f 3DWHUQDO URRWV RI IHPDOH FKDUDFWHU GHYHORSPHQW &RQWHPSRUDU\ 3V\FKRDQDO\VLV )UDQNOLQ .0 -DQRII%XOPDQ t 5REHUWV -% f /RQJWHUP LPSDFW RI SDUHQWDO GLYRUFH RQ RSWLPLVP DQG WUXVW &KDQJHV LQ JHQHUDO DVVXPSWLRQV RU QDUURZ EHOLHIV" -RXUQDO RI 3HUVRQDOLW\ DQG 6RFLDO 3V\FKRORJ\ )UDQ] &( t :KLWH .0 f ,QGLYLGXDWLRQ DQG DWWDFKPHQW LQ SHUVRQDOLW\ GHYHORSPHQW ([WHQGLQJ (ULNVRQnV WKHRU\ -RXUQDO RI 3HUVRQDOLW\ )URVW $. t 3DNL] % f 7KH HIIHFWV RI PDULWDO GLVUXSWLRQ RQ DGROHVFHQWV 7LPH DV D G\QDPLF $PHULFDQ -RXUQDO RI 2UWKRSV\FKLDWU\ *DEDUGL / f 'LIIHUHQFHV EHWZHHQ FROOHJH VWXGHQWV IURP GLYRUFHG DQG LQWDFW IDPLOLHV ,QWLPDWH UHODWLRQVKLSV 'RFWRUDO GLVVHUWDWLRQ &RORUDGR 6WDWH 8QLYHUVLW\ f 'LVVHUWDWLRQV $EVWUDFWV ,QWHUQDWLRQDO % *DQRQJ / &ROHPDQ 0 t %URZQ f (IIHFW RI IDPLO\ VWUXFWXUH RQ PDULWDO DWWLWXGHV RI DGROHVFHQWV $GROHVFHQFH *HOVR &f 5HVHDUFK LQ FRXQVHOLQJ 0HWKRGRORJLFDO DQG SURIHVVLRQDO LVVXHV 7KH &RXQVHOLQJ 3V\FKRORJLVW *LOOLJDQ & f ,Q D GLIIHUHQW YRLFH 3V\FKRORJLFDO WKHRU\ DQG ZRPHQnV GHYHORSPHQW &DPEULGJH 0DVVDFKXVHWWV +DUYDUG 8QLYHUVLW\ 3UHVV *OHQQ 1 t .UDPHU f 7KH SV\FKRORJLFDO ZHOOEHLQJ RI DGXOW FKLOGUHQ RI GLYRUFH -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ *OHQQ 1 t .UDPHU f 7KH PDUULDJHV DQG GLYRUFHV RI WKH FKLOGUHQ RI GLYRUFH -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ *OHQQ 1' t 6KHOWRQ %$ f 3UHDGXOW EDFNJURXQG YDULDEOHV DQG GLYRUFH $ QRWH RI FDXWLRQ DERXW RYHUUHOLDQFH RQ H[SODLQHG YDULDQFH -RXUQDO RI 0DUULDJH DQG WKH )DPLO\

PAGE 129

*UHHQEHUJ () t 1D\ :5 f 7KH LQWHUJHQHUDWLRQDO WUDQVPLVVLRQ RI PDULWDO LQVWDELOLW\ UHFRQVLGHUHG -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ *XLGXEDOGL t 3HUU\ -' Ef 'LYRUFH DQG PHQWDO KHDOWK VHTXHODH IRU FKLOGUHQ $ WZR \HDU IROORZXS RI D QDWLRQZLGH VDPSOH -RXUQDO RI WKH $PHULFDQ $FDGHP\ RI &KLOG 3V\FKLDWU\ +DLQOLQH / t )HLJ ( f 7KH FRUUHODWHV RI FKLOGKRRG IDWKHU DEVHQFH LQ FROOHJHDJHG ZRPHQ &KLOG 'HYHORSPHQW +HSSQHU 33 .LYOLJKDQ '0 -U t :DPSROG %( f 5HVHDUFK 'HVLJQ LQ &RXQVHOLQJ 3DFLILF *URYH &DOLIRUQLD %URRNV&ROH +HSZRUWK 5\GHU 5* t 'UH\HU $6 f 7KH HIIHFWV RI SDUHQWDO ORVV RQ WKH IRUPDWLRQ RI LQWLPDWH UHODWLRQVKLSV -RXUQDO RI 0DULWDO DQG )DPLO\ 7KHUDS\ +HVV 5' t &DPDUD .$ f 3RVW GLYRUFH IDPLO\ UHODWLRQVKLSV DV PHGLDWLQJ IDFWRUV LQ WKH FRQVHTXHQFHV RI GLYRUFH IRU FKLOGUHQ -RXUQDO RI 6RFLDO ,VVXHV +HWKHULQJWRQ (0 f (IIHFWV RI IDWKHU DEVHQFH RQ SHUVRQDOLW\ GHYHORSPHQW LQ DGROHVFHQW GDXJKWHUV 'HYHORSPHQWDO 3V\FKRORJ\ +HWKHULQJWRQ (0 f 'LYRUFH $ FKLOGnV SHUVSHFWLYH $PHULFDQ 3V\FKRORJLVW +HWKHULQJWRQ (0 f &RSLQJ ZLWK IDPLO\ WUDQVLWLRQV :LQQHUV ORVHUV DQG VXUYLYRUV &KLOG 'HYHORSPHQW +HWKHULQJWRQ (0 &R[ 0 t &R[ 5 f 7KH DIWHUPDWK RI GLYRUFH ,Q -+ 6WHYHQV -U t 0 0DWKHZV (GVf 0RWKHUFKLOG IDWKHUFKLOG UHODWLRQVKLSV :DVKLQJWRQ '& 1DWLRQDO $VVRFLDWLRQ IRU WKH (GXFDWLRQ RI
PAGE 130

+HWKHULQJWRQ (0 6WDQOH\+DJDQ 0 t $QGHUVRQ (5 f 0DULWDO WUDQVLWLRQV $ FKLOGnV SHUVSHFWLYH $PHULFDQ 3V\FKRORJLVW +RUQHU $f 2EMHFW UHODWLRQV DQG WKH GHYHORSLQJ HJR LQ WKHUDS\ 1RUWKYDOH 1HZ -HUVH\ -DVRQ $URQVRQ ,QF -HUVLOG $7 %URRN -6 t %URRN ': f 7KH 3V\FKRORJ\ RI $GROHVFHQFH 1HZ
PAGE 131

.LQQDLUG ./ t *HUUDUG 0 f 3UHPDULWDO VH[XDO EHKDYLRU DQG DWWLWXGHV WRZDUG PDUULDJH DQG GLYRUFH DPRQJ \RXQJ ZRPHQ DV D IXQFWLRQ RI WKHLU PRWKHUnV PDULWDO VWDWXV -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ .OLQH 0 -RKQVWRQ -5 t 7VFKDQQ -0 f 7KH ORQJ VKDGRZ RI PDULWDO FRQIOLFW $ PRGHO RI FKLOGUHQnV SRVWGLYRUFH DGMXVWPHQW -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ .XOND 5$ t :HLQJDUWHQ + f 7KH ORQJWHUP HIIHFWV RI SDUHQWDO GLYRUFH LQ FKLOGKRRG RQ DGXOW DGMXVWPHQW -RXUQDO RI 6RFLDO ,VVXHV /DU]HOHUH 5( t +XVWRQ 7/ f 7KH '\DGLF 7UXVW 6FDOH 7RZDUG XQGHUVWDQGLQJ LQWHUSHUVRQDO WUXVW LQ FORVH UHODWLRQVKLSV -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ /H&UR\ &: f 3DUHQWDGROHVFHQW LQWLPDF\ ,PSDFW RQ DGROHVFHQW IXQFWLRQLQJ $GROHVFHQFH /HRQDUG 05 f )DWKHUV DQG GDXJKWHUV 7KH VLJQLILFDQFH RI IDWKHULQJ LQ WKH SV\FKRVH[XDO GHYHORSPHQW RI WKH JLUO ,QWHUQDWLRQDO -RXUQDO RI 3V\FKRDQDO\VLV /HYLWLQ 7( f &KLOGUHQ RI 'LYRUFH $Q LQWURGXFWLRQ -RXUQDO RI 6RFLDO ,VVXHV /HYLW] -RQHV (0 t 2UORIVN\ -/ f 6HSDUDWLRQ LQGLYLGXDWLRQ DQG LQWLPDF\ FDSDFLW\ LQ FROOHJH ZRPHQ -RXUQDO RI 3HUVRQDOLW\ DQG 6RFLDO 3V\FKRORJ\ /HZLV 0 )HLULQJ & t :HLQUDXE 0 f 7KH IDWKHUnV UROH LQ WKH FKLOGnV VRFLDO QHWZRUN ,Q 0( /DPE (Gf 7KH 5ROH RI WKH )DWKHU LQ &KLOG 'HYHORSPHQW 1HZ
PAGE 132

/RSH] )* f 7KH LPSDFW RI SDUHQWDO GLYRUFH RQ FROOHJH VWXGHQW GHYHORSPHQW -RXUQDO RI &RXQVHOLQJ DQG 'HYHORSPHQW /RSH] )* &DPSEHOO 9/ t :DWNLQV &( -U f 7KH UHODWLRQ RI SDUHQWDO GLYRUFH WR FROOHJH VWXGHQW GHYHORSPHQW -RXUQDO RI 'LYRUFH /RSH] )* t :DWNLQV &( f 7KH UHODWLRQVKLS RI SRVWGLYRUFH IDPLO\ VWUXFWXUH DQG IUHTXHQF\ RI FRQWDFW ZLWK IDWKHU WR SDUHQW DQG FROOHJH VWXGHQW DWWDFKPHQWV -RXUQDO RI &ROOHJH 6WXGHQW 'HYHORSPHQW /XVVHQ /% f 7KH IHPDOH DGROHVFHQWVn XQFRQVFLRXV H[SHULHQFH RI SDUHQWDO GLYRUFH 6PLWK &ROOHJH 6WXGLHV LQ 6RFLDO :RUN /XWZDN 1 f )HDU RI LQWLPDF\ DPRQJ FROOHJH ZRPHQ $GROHVFHQFH /\QQ '% f 7KH IDWKHU +LV UROH LQ FKLOG GHYHORSPHQW 0RQWHUH\ &DOLIRUQLD %URRNV&ROH 0F$GDPV '3 f ,QWLPDF\ 7KH QHHG WR EH FORVH 1HZ
PAGE 133

1HZFRPHU 6 t 8GU\ -5 f 3DUHQWDO PDULWDO VWDWXV HIIHFWV RQ DGROHVFHQW VH[XDO EHKDYLRU -RXUQDO RI 0DUULDJH DQG WKH )DPLO\ 1LFKROVRQ % f 2EMHFW UHODWLRQV WKHRU\ UHYLVLWHG ,QWHJUDWLQJ HVVHQWLDO FRQFHSWV ZLWK GHYHORSPHQWDO SKDVH WKHRU\ -RXUQDO RI ,QGHSHQGHQW 6RFLDO :RUN 2UORIVN\ -/ 0DUFLD -( t /HVVHU ,0 f (JR LGHQWLW\ VWDWXV DQG WKH LQWLPDF\ YHUVXV LVRODWLRQ FULVLV RI \RXQJ DGXOWKRRG -RXUQDO RI 3HUVRQDOLW\ DQG 6RFLDO 3V\FKRORJ\ 3DULVK 76 f 7KH LPSDFW RI GLYRUFH RQ WKH IDPLO\ $GROHVFHQFH 3DULVK 76 f 5DWLQJV RI VHOI DQG SDUHQWV E\ \RXWK $UH WKH\ DIIHFWHG E\ IDPLO\ VWDWXV JHQGHU DQG ELUWK RUGHU" $GROHVFHQFH 3DULVK 76 t 2VWHUEHUJ f (YDOXDWLRQV RI VHOI SDUHQWV DQG IDPLO\ 9DULDWLRQV FDXVHG E\ IDPLO\ VWUXFWXUH DQG SHUVRQDO VWUHVV -RXUQDO RI 3V\FKRORJ\ 3DULVK 76 t :LJOH 6( f $ ORQJLWXGLQDO VWXG\ RI WKH LPSDFW RI SDUHQWDO GLYRUFH RQ DGROHVFHQWVn HYDOXDWLRQV RI VHOI DQG SDUHQWV $GROHVFHQFH 3HUOPDQ t )HKU % f 7KH GHYHORSPHQW RI LQWLPDWH UHODWLRQVKLSV ,Q 3HUOPDQ DQG 6 'XFN (GVf ,QWLPDWH UHODWLRQVKLSV 'HYHORSPHQW G\QDPLFV DQG GHWHULRUDWLRQ 1HZEXU\ 3DUN &DOLIRUQLD 6DJH 3XEOLFDWLRQV 3LONLQJWRQ &t 1H]OHN f 7KH SHUFHSWLRQV RI ULVN LQ LQWLPDF\ DQG H[SHULHQFHV LQ VRFLDO LQWHUDFWLRQ 3DSHU SUHVHQWHG DW WKH ,QWHUQDWLRQDO 1HWZRUN RQ 3HUVRQDO 5HODWLRQVKLSV &RQIHUHQFH 1RUPDO%ORRPLQJWRQ ,OOLQRLV 3LONLQJWRQ &t 5LFKDUGVRQ '5 f 3HUFHSWLRQV RI ULVN LQ LQWLPDF\ -RXUQDO RI 6RFLDO DQG 3HUVRQDO 5HODWLRQVKLSV 3RSH + t 0XHOOHU &: f 7KH LQWHUJHQHUDWLRQDO WUDQVPLVVLRQ RI PDULWDO LQVWDELOLW\ &RPSDULVRQV E\ UDFH DQG VH[ -RXUQDO RI 6RFLDO ,VVXHV

PAGE 134

5D\ILHOG *( /LDEUH 00 t 6WRNHV '5 f 6HOHFWHG YDULDEOHV UHODWHG WR IULHQGVKLS EHWZHHQ FROOHJH ZRPHQ -RXUQDO RI &ROOHJH 6WXGHQW 3HUVRQQHO 5HLV +7 f 6RFLDO LQWHUDFWLRQ DQG ZHOOEHLQJ ,Q 6 'XFN (Gf 3HUVRQDO UHODWLRQVKLSV 5HSDLULQJ SHUVRQDO UHODWLRQVKLSV SS f 1HZ
PAGE 135

6WHUQEHUJ 5f $ WULDQJXODU WKHRU\ RI ORYH 3V\FKRORJLFDO 5HYLHZ 6WHUQEHUJ 5t *UDMHN 6 f 7KH QDWXUH RI ORYH -RXUQDO RI 3HUVRQDOLW\ DQG 6RFLDO 3V\FKRORJ\ 6XOOLYDQ +6 f 7KH LQWHUSHUVRQDO WKHRU\ RI SV\FKLDWU\ 1HZ
PAGE 136

:DOOHUVWHLQ -6 t .HOO\ -% f &KLOGUHQ RI GLYRUFH 5HSRUW RI D WHQ\HDU IROORZ XS RI HDUO\ ODWHQF\DJH FKLOGUHQ $PHULFDQ -RXUQDO RI 2UWKRSV\FKLDWU\ :DULQJ (0 f 0HDVXUHPHQW RI LQWLPDF\ &RQVHSWXDO DQG PHWKRGRORJLFDO LVVXHV RI VWXG\LQJ FORVH UHODWLRQVKLSV 3V\FKRORJLFDO 0HGLFLQH :HLQUDXE 0 f )DWKHUKRRG 7KH P\WK RI WKH VHFRQG FODVV SDUHQW ,Q -+ 6WHYHQV t 0 0DWKHZV (GVf 0RWKHUFKLOG )DWKHUFKLOG UHODWLRQVKLSV :DVKLQJWRQ '& 1DWLRQDO $VVRFLDWLRQ IRU WKH (GXFDWLRQ RI
PAGE 137

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n EDFFDODXUHDWH VWXGHQW LQ SV\FKRORJ\ ,Q $XJXVW RI VKH HQUROOHG DV D IXOOWLPH GRFWRUDO VWXGHQW LQ FRXQVHOLQJ SV\FKRORJ\ DW WKH 8QLYHUVLW\ RI )ORULGD 'LDQH UHFHLYHG KHU 0DVWHU RI 6FLHQFH GHJUHH LQ 0D\ ,Q $XJXVW VKH EHJDQ KHU RQH\HDU LQWHUQVKLS DW WKH &RXQVHOLQJ &HQWHU RI WKH 8QLYHUVLW\ RI )ORULGD

PAGE 138

, FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLRQ LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ ;£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

PAGE 139

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

PAGE 140

81,9(56,7< 2) )/25,'$


xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID EOZY6PMC9_RDAGQQ INGEST_TIME 2017-07-12T20:45:54Z PACKAGE AA00003239_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES