Risk and Stock Prices. TheStreet.com reports that Goodyear's stock price rose on news that they concluded an accounting probe. The probe lowered previously reported earnings by about $65 million. Perhaps concluding the investigation has reduced the risk associated with the stock---helping the stock price.
The last leg of the probe found $10 million in overstatements related to the company's overseas operations. Other downward adjustments include $20 million related to workers' compensation claims, $10 million for fixed assets, $8 million for product liability, $7 million for intercompany profit elimination and $10 million for other items.