Religion and Stock Price Crash Risk Callen, Jeffrey L.; Fang, Xiaohua
Journal of financial and quantitative analysis,
04/2015, Volume:
50, Issue:
1-2
Journal Article
Peer reviewed
This study examines whether religiosity at the county level is associated with future stock price crash risk. We find robust evidence that firms headquartered in counties with higher levels of ...religiosity exhibit lower levels of future stock price crash risk. This finding is consistent with the view that religion, as a set of social norms, helps to curb bad-news-hoarding activities by managers. Our evidence further shows that the negative relation between religiosity and future crash risk is stronger for riskier firms and for firms with weaker governance mechanisms measured by shareholder takeover rights and dedicated institutional ownership.
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BFBNIB, CEKLJ, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
► We test two views of institutional investors—monitoring vs. short-termism. ► Institutional investor stability is negatively associated with future crash risk. ► The finding is consistent with the ...monitoring theory of institutional investors. ► Legal types of institutional investors affect future crash risk.
This study tests two opposing views of institutional investors—monitoring versus short-termism. We present evidence that institutional investor stability is negatively associated with 1-year-ahead stock price crash risk, consistent with the monitoring theory of institutional investors but not the short-termism theory. Our findings are shown to be robust to alternative empirical specifications, estimation methods and endogeneity concerns. In addition, we find that institutional ownership by public pension funds (bank trusts, investment companies, and independent investment advisors) is significantly negatively (positively) associated with future crash risk, consistent with findings that pension funds more actively monitor management than other types of institutions.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
This study investigates whether local gambling norms are associated with audit pricing. Using a religion-based measure of local social gambling norms, we find strong evidence that public firms ...located in U.S. counties with more liberal gambling norms exhibit higher levels of audit fees. This result is consistent with our view that, as an important external risk factor, clients' local gambling norms influence audit pricing decisions. Our findings are robust to a battery of sensitivity tests, including non-religion based measures of liberal gambling norms and a natural experiment.
This study examines whether the term of the auditor–client relationship (i.e., auditor tenure) is associated with future stock price crash risk measured both ex ante and ex post. Using a large sample ...of U.S. public firms with Big 4 auditors, we find robust evidence that auditor tenure is negatively related to one‐year‐ahead stock price crash risk. The evidence is consistent with monitoring‐by‐learning where development of client‐specific knowledge over the term of the auditor–client relationship enhances auditors’ ability to detect and deter bad news hoarding activities by clients, thereby reducing future crash risk. This result holds even after controlling for endogeneity of the tenure/crash risk relation. We further provide evidence indicating that option market investors do not fully incorporate the information contained in the term of auditor–client relationship in predicting future stock price crash risk. Our empirical results have important policy implications for regulators concerned with ensuring auditor independence.
Risque d'effondrement et relation auditeur‐client
Les auteurs se demandent si la durée de la relation auditeur‐client (soit la durée du mandat de l'auditeur) est en relation avec le risque d'effondrement futur du cours des actions, évalué ex ante et ex post. En étudiant un vaste échantillon de sociétés des États‐Unis faisant appel public à l’épargne qui ont recours aux services des Quatre Grands cabinets d'audit, ils recueillent des preuves convaincantes que la durée du mandat de l'auditeur est en relation négative avec le risque d'effondrement du cours des actions une année à l'avance. Ces preuves sont conformes à la pratique de la « surveillance par l'apprentissage », le perfectionnement des connaissances relatives au client pendant la durée de la relation auditeur‐client améliorant l'aptitude des auditeurs à déceler et prévenir chez les clients le comportement de thésaurisation des mauvaises nouvelles, ce qui a pour effet de réduire le risque d'effondrement futur. Ces résultats persistent même une fois contrôlée l'endogénéité de la relation entre la durée du mandat et le risque d'effondrement. Les auteurs produisent d'autres preuves que les investisseurs sur le marché des options n'incorporent pas entièrement l'information que recèle la durée de la relation auditeur‐client dans la prévision du risque d'effondrement futur du cours des actions. Les résultats empiriques de l’étude ont d'importantes conséquences au chapitre des politiques pour les autorités de réglementation soucieuses de l'indépendance des auditeurs.
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FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
The shape of deposits obtained from drying drops containing colloidal particles matters for technologies such as inkjet printing, microelectronics, and bioassay manufacturing. In this work, the ...formation of deposits during the drying of nanoliter drops containing colloidal particles is investigated experimentally with microscopy and profilometry, and theoretically with an in-house finite-element code. The system studied involves aqueous drops containing titania nanoparticles evaporating on a glass substrate. Deposit shapes from spotted drops at different pH values are measured using a laser profilometer. Our results show that the pH of the solution influences the dried deposit pattern, which can be ring-like or more uniform. The transition between these patterns is explained by considering how DLVO interactions such as the electrostatic and van der Waals forces modify the particle deposition process. Also, a phase diagram is proposed to describe how the shape of a colloidal deposit results from the competition among three flow patterns: a radial flow driven by evaporation at the wetting line, a Marangoni recirculating flow driven by surface tension gradients, and the transport of particles toward the substrate driven by DLVO interactions. This phase diagram explains three types of deposits commonly observed experimentally, such as a peripheral ring, a small central bump, or a uniform layer. Simulations and experiments are found in very good agreement.
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IJS, KILJ, NUK, PNG, UL, UM
Grain size is an important agronomic trait in determining grain yield. However, the molecular mechanisms that determine the final grain size are not well understood. Here, we report the functional ...analysis of a rice (Oryza sativa L.) mutant, dwarf and small grain1 (dsg1), which displays pleiotropic phenotypes, including small grains, dwarfism and erect leaves. Cytological observations revealed that the small grain and dwarfism of dsg1 were mainly caused by the inhibition of cell proliferation. Map‐based cloning revealed that DSG1 encoded a mitogen‐activated protein kinase (MAPK), OsMAPK6. OsMAPK6 was mainly located in the nucleus and cytoplasm, and was ubiquitously distributed in various organs, predominately in spikelets and spikelet hulls, consistent with its role in grain size and biomass production. As a functional kinase, OsMAPK6 interacts strongly with OsMKK4, indicating that OsMKK4 is likely to be the upstream MAPK kinase of OsMAPK6 in rice. In addition, hormone sensitivity tests indicated that the dsg1 mutant was less sensitive to brassinosteroids (BRs). The endogenous BR levels were reduced in dsg1, and the expression of several BR signaling pathway genes and feedback‐inhibited genes was altered in the dsg1 mutant, with or without exogenous BRs, indicating that OsMAPK6 may contribute to influence BR homeostasis and signaling. Thus, OsMAPK6, a MAPK, plays a pivotal role in grain size in rice, via cell proliferation, and BR signaling and homeostasis.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
•TiO2, CeO2, and ZnO nanoparticles showed increasing cytotoxicity in sequence.•Cell membrane integrity was not a sensitive indicator of nanoparticle cytotoxicity.•Intracellular metal content ...increased after cells’ exposure to its nanosized oxide.•Increase of nanoparticle concentration would not always elevate its cytotoxicity.
Nanosized TiO2 (n-TiO2), CeO2 (n-CeO2), and ZnO (n-ZnO) and bulk ZnO were chosen for a 4-h exposure study on a model ammonia oxidizing bacterium, Nitrosomonas europaea. n-ZnO displayed the most serious cytotoxicity while n-TiO2 was the least toxic one. The change of cell morphologies, the retardance of specific oxygen uptake rates and ammonia oxidation rates, and the depression of amoA gene expressions under NP stresses were generally observed when the cell densities and membrane integrities were not significantly impaired yet. The TEM imaging and the synchrotron X-ray fluorescence microscopy of the NPs impacted cells revealed the increase of the corresponding intracellular Ti, Ce or Zn contents and suggested the intracellular NP accumulation. The elevation of intracellular S contents accompanied with higher K contents implied the possible activation of thiol-containing glutathione and thioredoxin production for NP stress alleviation. The NP cytotoxicity was not always a function of NP concentration. The 200mgL−1 n-TiO2 or n-CeO2 impacted cells displayed the similar ammonia oxidation activities but higher amoA gene expression levels than the 20mgL−1 NPs impacted ones. Such phenomenon further indicated the possible establishment of an anti-toxicity mechanism in N. europaea at the genetic level to redeem the weakened AMO activities along with the NP aggregation effects.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
Abstract In the rapidly evolving landscape of Internet of Things (IoT), Zigbee networks have emerged as a critical component for enabling wireless communication in a variety of applications. Despite ...their widespread adoption, Zigbee networks face significant security challenges, particularly in key management and network resilience against cyber attacks like distributed denial of service (DDoS). Traditional key rotation strategies often fall short in dynamically adapting to the ever-changing network conditions, leading to vulnerabilities in network security and efficiency. To address these challenges, this paper proposes a novel approach by implementing a reinforcement learning (RL) model for adaptive key rotation in Zigbee networks. We developed and tested this model against traditional periodic, anomaly detection-based, heuristic-based, and static key rotation methods in a simulated Zigbee network environment. Our comprehensive evaluation over a 30-day period focused on key performance metrics such as network efficiency, response to DDoS attacks, network resilience under various simulated attacks, latency, and packet loss in fluctuating traffic conditions. The results indicate that the RL model significantly outperforms traditional methods, demonstrating improved network efficiency, higher intrusion detection rates, faster response times, and superior resource management. The study underscores the potential of using artificial intelligence (AI)-driven, adaptive strategies for enhancing network security in IoT environments, paving the way for more robust and intelligent Zigbee network security solutions.
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IZUM, KILJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK
Accurate specification of ionization production by energetic electron precipitation is critical for atmospheric chemistry models to assess the resultant atmospheric effects. Recent model‐observation ...comparison studies have increasingly highlighted the importance of considering precipitation fluxes in the full range of electron energy and pitch angle. However, previous parameterization methods were mostly proposed for isotropically precipitation electrons with energies up to 1 MeV, and the pitch angle dependence has not yet been parameterized. In this paper, we first characterize and tabulate the atmospheric ionization response to monoenergetic electrons with different pitch angles and energies between ∼3 keV and ∼33 MeV. A generalized method that fully accounts for the dependence of ionization production on background atmospheric conditions, electron energy, and pitch angle has been developed based on the parameterization method of Fang et al. (2010, https://doi.org/10.1029/2010GL045406). Moreover, we validate this method using 100 random atmospheric profiles and precipitation fluxes with monoenergetic and exponential energy distributions, and isotropic and sine pitch angle distributions. In a suite of 6,100 validation tests, the error in peak ionization altitude is found to be within 1 km in 91% of all the tests with a mean error of 2.7% in peak ionization rate and 1.9% in total ionization. This method therefore provides a reliable means to convert space‐measured precipitation energy and pitch angle distributions into ionization inputs for atmospheric chemistry models.
Key Points
We tabulate the atmospheric ionization response to monoenergetic beams of precipitating electrons with different pitch angles
We report a method to derive the ionization profile under any Earth atmosphere condition by any electron energy and pitch angle distribution
This method provides a reliable means to convert space measurements of precipitation into ionization input in atmospheric chemistry modeling
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
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