Secrecy culture and audit opinion: Some international evidence

We examine whether and how auditors respond to audit risks arising from secrecy culture when making audit opinion decisions. Using a sample of international Big N auditors from 33 countries, we find strong and robust evidence that auditors are more likely to issue modified audit opinions to clients domiciled in countries with a strong secrecy culture. In addition, we find that the association between secrecy culture and auditors' propensity to issue modified audit opinions is less pronounced in countries with strong investor protection than that in countries with weak investor protection

Internal control and stock price crash risk: Evidence from China

This paper examines the role played by internal control and its five components (i.e., control environment, risk assessment, control activities, information and communication, and monitoring) in alleviating future stock price crash risk. Using a unique dataset from China, we find evidence that internal control is negatively associated with future stock price crash risk. Specifically, control environment and monitoring are significantly and negatively associated with future stock price crash risk. Moreover, the negative association between internal control and crash risk is significantly more pronounced in firms with weak internal and external governance (i.e., audited by non-Big 4 auditors, located in provinces with low market development, and less conservative in accounting) and with poor ability to mitigate impacts of extreme negative events (i.e., non-state-owned enterprises). Our study highlights the delicate role of internal control as a mechanism in preventing crash of stock price

The orbifold cohomology of moduli of genus 3 curves

In this work we study the additive orbifold cohomology of the moduli stack of smooth genus g curves. We show that this problem reduces to investigating the rational cohomology of moduli spaces of cyclic covers of curves where the genus of the covering curve is g. Then we work out the case of genus g=3. Furthermore, we determine the part of the orbifold cohomology of the Deligne-Mumford compactification of the moduli space of genus 3 curves that comes from the Zariski closure of the inertia stack of M_3.Comment: 29 pages, 2 figures. Minor changes, to appear in Manuscripta Mat

Numerical renormalization group study of the 1D t-J model

The one-dimensional (1D) $t-J$ model is investigated using the density matrix renormalization group (DMRG) method. We report for the first time a generalization of the DMRG method to the case of arbitrary band filling and prove a theorem with respect to the reduced density matrix that accelerates the numerical computation. Lastly, using the extended DMRG method, we present the ground state electron momentum distribution, spin and charge correlation functions. The $3k_F$ anomaly of the momentum distribution function first discussed by Ogata and Shiba is shown to disappear as $J$ increases. We also argue that there exists a density-independent $J_c$ beyond which the system becomes an electron solid.Comment: Wrong set of figures were put in the orginal submissio

Linear in-plane magnetoconductance and spin susceptibility of a 2D electron gas on a vicinal silicon surface

In this work we have studied the parallel magnetoresistance of a 2DEG near a vicinal silicon surface. An unusual, linear magnetoconductance is observed in the fields up to $B = 15$ T, which we explain by the effect of spin olarization on impurity scattering. This linear magnetoresistance shows strong anomalies near the boundaries of the minigap in the electron spectrum of the vicinal system.Comment: (accepted to Phys. Rev. B

Relativistic Two-stream Instability

We study the (local) propagation of plane waves in a relativistic, non-dissipative, two-fluid system, allowing for a relative velocity in the "background" configuration. The main aim is to analyze relativistic two-stream instability. This instability requires a relative flow -- either across an interface or when two or more fluids interpenetrate -- and can be triggered, for example, when one-dimensional plane-waves appear to be left-moving with respect to one fluid, but right-moving with respect to another. The dispersion relation of the two-fluid system is studied for different two-fluid equations of state: (i) the "free" (where there is no direct coupling between the fluid densities), (ii) coupled, and (iii) entrained (where the fluid momenta are linear combinations of the velocities) cases are considered in a frame-independent fashion (eg. no restriction to the rest-frame of either fluid). As a by-product of our analysis we determine the necessary conditions for a two-fluid system to be causal and absolutely stable and establish a new constraint on the entrainment.Comment: 15 pages, 2 eps-figure

Numerical approximation of the Euler-Poisson-Boltzmann model in the quasineutral limit

This paper analyzes various schemes for the Euler-Poisson-Boltzmann (EPB) model of plasma physics. This model consists of the pressureless gas dynamics equations coupled with the Poisson equation and where the Boltzmann relation relates the potential to the electron density. If the quasi-neutral assumption is made, the Poisson equation is replaced by the constraint of zero local charge and the model reduces to the Isothermal Compressible Euler (ICE) model. We compare a numerical strategy based on the EPB model to a strategy using a reformulation (called REPB formulation). The REPB scheme captures the quasi-neutral limit more accurately

Variational state based on the Bethe ansatz solution and a correlated singlet liquid state in the one-dimensional t-J model

The one-dimensional t-J model is investigated by the variational Monte Carlo method. A variational wave function based on the Bethe ansatz solution is newly proposed, where the spin-charge separation is realized, and a long-range correlation factor of Jastrow-type is included. In most regions of the phase diagram, this wave function provides an excellent description of the ground-state properties characterized as a Tomonaga-Luttinger liquid; Both of the amplitude and exponent of correlation functions are correctly reproduced. For the spin-gap phase, another trial state of correlated singlet pairs with a Jastrow factor is introduced. This wave function shows generalized Luther-Emery liquid behavior, exhibiting enhanced superconducting correlations and exponential decay of the spin correlation function. Using these two variational wave functions, the whole phase diagram is determined. In addition, relations between the correlation exponent and variational parameters in the trial functions are derived.Comment: REVTeX 3.0, 27 pages. 7 figures available upon request ([email protected]). To be published in Phys. Rev. B 5

Luttinger Liquid Instability in the One Dimensional t-J Model

We study the t-J model in one dimension by numerically projecting the true ground state from a Luttinger liquid trial wave function. We find the model exhibits Luttinger liquid behavior for most of the phase diagram in which interaction strength and density are varied. However at small densities and high interaction strengths a new phase with a gap to spin excitations and enhanced superconducting correlations is found. We show this phase is a Luther-Emery liquid and study its correlation functions.Comment: REVTEX, 11 pages. 4 Figures available on request from [email protected]