Determinants of voluntary audit and voluntary full accounts in micro- and non-micro small companies in the UK

This is an Author's Accepted Manuscript of an article published in Accounting and Business Research, 42(4), 441 - 468, 2012, copyright Taylor & Francis, available online at: http://www.tandfonline.com/10.1080/00014788.2012.667969.This study investigates the link between the auditing and filing choices made by a sample of 592 small private companies, which includes 419 micro-companies. It examines decisions made in connection with the 2006 accounts following UK's adoption of the maximum EU size thresholds in 2004, and the impact of the proposed Directive on the annual accounts of micro-companies. The research extends the model of cost, management and agency factors associated with voluntary audit, and develops a complementary model for voluntary full accounts. The results show the benefits of placing full audited accounts on public record that outweigh the costs for a significant proportion of companies. In non-micro small companies, voluntary audit is determined by cost and agency factors, whereas in micro-companies it is driven by cost, management and agency factors. In both groups, the predictors of voluntary full accounts include management and agency factors, and choosing voluntary audit is one of the key factors. The study provides models that can be tested in other jurisdictions to provide evidence of the needs of micro-companies, and the discussion of the methodological challenges for small company researchers in the UK makes further contribution to the literature

CEO pay, shareholder returns, and accounting profits

We assess the impact on CEO pay (including salary, cash bonus, and benefits in kind) of changes in both accounting and shareholder returns in 99 British companies in the years 1972-89. After correcting for heterogeneity biases inherent in the standard specifications of the problem, we find a strong positive relationship between CEO pay and within-company changes in shareholder returns, and no statistically significant relationship between CEO pay and within-company changes in accounting returns. Differences between firms in long-term average profitability do appear to have a substantial effect on CEO pay, while differences between firms in shareholder returns add nothing to the within-firm pay dynamics.These findings call into question the rationale for explicitly share-based incentive schemes

Development of SMAP Mission Cal/Val Activities

The Soil Moisture Active Passive (SMAP) mission is a NASA directed mission to map global land surface soil moisture and freeze-thaw state. Instrument and mission details are shown. The key SMAP soil moisture product is provided at 10 km resolution with 0.04cubic cm/cubic cm accuracy. The freeze/thaw product is provided at 3 km resolution and 80% frozen-thawed classification accuracy. The full list of SMAP data products is shown

Characterization of Forest Opacity Using Multi-Angular Emission and Backscatter Data

This paper discusses the results from a series of field experiments using ground-based L-band microwave active/passive sensors. Three independent approaches are employed to the microwave data to determine vegetation opacity of coniferous trees. First, a zero-order radiative transfer model is fitted to multi-angular microwave emissivity data in a least-square sense to provide "effective" vegetation optical depth. Second, a ratio between radar backscatter measurements with the corner reflector under trees and in an open area is calculated to obtain "measured" tree propagation characteristics. Finally, the "theoretical" propagation constant is determined by forward scattering theorem using detailed measurements of size/angle distributions and dielectric constants of the tree constituents (trunk, branches, and needles). The results indicate that "effective" values underestimate attenuation values compared to both "theoretical" and "measured" values

Impact of Conifer Forest Litter on Microwave Emission at L-Band

This study reports on the utilization of microwave modeling, together with ground truth, and L-band (1.4-GHz) brightness temperatures to investigate the passive microwave characteristics of a conifer forest floor. The microwave data were acquired over a natural Virginia Pine forest in Maryland by a ground-based microwave active/passive instrument system in 2008/2009. Ground measurements of the tree biophysical parameters and forest floor characteristics were obtained during the field campaign. The test site consisted of medium-sized evergreen conifers with an average height of 12 m and average diameters at breast height of 12.6 cm. The site is a typical pine forest site in that there is a surface layer of loose debris/needles and an organic transition layer above the mineral soil. In an effort to characterize and model the impact of the surface litter layer, an experiment was conducted on a day with wet soil conditions, which involved removal of the surface litter layer from one half of the test site while keeping the other half undisturbed. The observations showed detectable decrease in emissivity for both polarizations after the surface litter layer was removed. A first-order radiative transfer model of the forest stands including the multilayer nature of the forest floor in conjunction with the ground truth data are used to compute forest emission. The model calculations reproduced the major features of the experimental data over the entire duration, which included the effects of surface litter and ground moisture content on overall emission. Both theory and experimental results confirm that the litter layer increases the observed canopy brightness temperature and obscure the soil emission

High-Resolution Soil-Moisture Maps Over Landslide Regions in Northern California Grassland Derived From SAR Backscattering Coefficients

Slow-moving landslides are destabilized by accumulated precipitation and consequent soil moisture. Yet, the continuous high-resolution soil-moisture measurements needed to aid the understanding of landslide processes are generally absent in steep terrain. Here, we produce soil-moisture time-series maps for a seasonally active grassland landslide in the northern California coast ranges, USA, using backscattering coefficients from NASA's uninhabited aerial vehicle synthetic aperture radar at 6-m resolution. A physically based radar scattering model is used to retrieve the near-surface (5-cm depth) soil moisture for the landslide. Both forward modeling (backscattering estimation) and the retrieval (soil-moisture validation) show good agreement. The root-mean-square errors (RMSE) for vertical transmit vertical receive (VV) and horizontal transmit horizontal receive (HH) polarizations in forward model comparison are 1.93 dB and 1.88 dB, respectively. The soil-moisture retrieval shows unbiased RMSE of 0.054 m³/m³. Our successful retrieval benefits from the surface and double-bounce scattering, which is common in grasslands. The retrieved maps show saturated wetness conditions within the active landslide boundaries. We also performed sensitivity tests for incidence angle and found that the retrieval is weakly dependent on the angle, especially while using copolarized HH and VV together. Using the two copolarized inputs, the retrieval is also not sensitive to the change of orientation angles of grass cylinders. The physical model inversion presented here can be generally applied for soil-moisture retrieval in areas with the same vegetation cover types in California

Effective Tree Scattering at L-Band

For routine microwave Soil Moisture (SM) retrieval through vegetation, the tau-omega [1] model [zero-order Radiative Transfer (RT) solution] is attractive due to its simplicity and eases of inversion and implementation. It is the model used in baseline retrieval algorithms for several planned microwave space missions, such as ESA's Soil Moisture Ocean Salinity (SMOS) mission (launched November 2009) and NASA's Soil Moisture Active Passive (SMAP) mission (to be launched 2014/2015) [2 and 3]. These approaches are adapted for vegetated landscapes with effective vegetation parameters tau and omega by fitting experimental data or simulation outputs of a multiple scattering model [4-7]. The model has been validated over grasslands, agricultural crops, and generally light to moderate vegetation. As the density of vegetation increases, sensitivity to the underlying SM begins to degrade significantly and errors in the retrieved SM increase accordingly. The zero-order model also loses its validity when dense vegetation (i.e. forest, mature corn, etc.) includes scatterers, such as branches and trunks (or stalks in the case of corn), which are large with respect to the wavelength. The tau-omega model (when applied over moderately to densely vegetated landscapes) will need modification (in terms of form or effective parameterization) to enable accurate characterization of vegetation parameters with respect to specific tree types, anisotropic canopy structure, presence of leaves and/or understory. More scattering terms (at least up to first-order at L-band) should be included in the RT solutions for forest canopies [8]. Although not really suitable to forests, a zero-order tau-omega model might be applied to such vegetation canopies with large scatterers, but that equivalent or effective parameters would have to be used [4]. This requires that the effective values (vegetation opacity and single scattering albedo) need to be evaluated (compared) with theoretical definitions of these parameters. In a recent study [9], effective vegetation opacity of coniferous trees was compared with two independent estimates of the same parameter. First, a zero-order RT model was fitted to multiangular microwave emissivity data in a least-square sense to provide effective vegetation optical depth as done in spaceborne retrieval algorithms. Second, a ratio between radar backscatter measurements with a corner reflector under trees and in an open area was calculated to obtain measured tree propagation characteristics. Finally, the theoretical propagation constant was determined by forward scattering theorem using detailed measurements of size/angle distributions and dielectric constants of the tree constituents (trunk, branches, and needles). Results indicated that the effective attenuation values are smaller than but of similar magnitude to both the theoretical and measured values. This study will complement the previous work [9] and will focus on characterization of effective scattering albedo by assuming that effective vegetation opacity is same as theoretical opacity. The resultant effective albedo will not be the albedo of single forest canopy element anymore, but it becomes a global parameter, which depends on all the processes taking place within the canopy including multiple scattering as described

Soil Moisture Active Passive (SMAP) Calibration and Validation Plan and Current Activities

The primary objective of the SMAP calibration and validation (Cal/Val) program is demonstrating that the science requirements (product accuracy and bias) have been met over the mission life. This begins during pre-launch with activities that contribute to high quality products and establishing post-launch validation infrastructure and continues through the mission life. However, the major focus is on a relatively short Cal/Val period following launch. The general approach and elements of the SMAP Cal/Val plan will be described and along with details on several ongoing or recent field experiments designed to address both near- and long-term Cal/Val

A panel analysis of UK industrial company failure

We examine the failure determinants for large quoted UK industrials using a panel data set comprising 539 firms observed over the period 1988-93. The empirical design employs data from company accounts and is based on Chamberlain’s conditional binomial logit model, which allows for unobservable, firm-specific, time-invariant factors associated with failure risk. We find a noticeable degree of heterogeneity across the sample companies. Our panel results show that, after controlling for unobservables, lower liquidity measured by the quick assets ratio, slower turnover proxied by the ratio of debtors turnover, and profitability were linked to the higher risk of insolvency in the analysis period. The findings appear to support the proposition that the current cash-flow considerations, rather than the future prospects of the firm, determined company failures over the 1990s recession

Evaluation of SMAP Level 2 Soil Moisture Algorithms Using SMOS Data

The objectives of the SMAP (Soil Moisture Active Passive) mission are global measurements of soil moisture and land freeze/thaw state at 10 km and 3 km resolution, respectively. SMAP will provide soil moisture with a spatial resolution of 10 km with a 3-day revisit time at an accuracy of 0.04 m3/m3 [1]. In this paper we contribute to the development of the Level 2 soil moisture algorithm that is based on passive microwave observations by exploiting Soil Moisture Ocean Salinity (SMOS) satellite observations and products. SMOS brightness temperatures provide a global real-world, rather than simulated, test input for the SMAP radiometer-only soil moisture algorithm. Output of the potential SMAP algorithms will be compared to both in situ measurements and SMOS soil moisture products. The investigation will result in enhanced SMAP pre-launch algorithms for soil moisture