Earnings Management and Long-Run Stock Underperformance of Private Placements

The study investigates whether private placement issuers manipulate their earnings around the time of issuance and the effect of earnings management on the long-run stock performance. We find that managers of U.S. private placement issuers tend to engage in income-increasing earnings management in the year prior to the issuance of private placements. We further speculate that earnings management serves as a likely source of investor over-optimism at the time of private placements. To support this speculation, we find evidence suggesting that the income-increasing accounting accruals made at the time of private placements predict the post-issue long-term stock underperformance. The study contributes to the large body of literature on earnings manipulation around the time of securities issuance

Constraint satisfaction adaptive neural network and heuristics combined approaches for generalized job-shop scheduling

Copyright @ 2000 IEEEThis paper presents a constraint satisfaction adaptive neural network, together with several heuristics, to solve the generalized job-shop scheduling problem, one of NP-complete constraint satisfaction problems. The proposed neural network can be easily constructed and can adaptively adjust its weights of connections and biases of units based on the sequence and resource constraints of the job-shop scheduling problem during its processing. Several heuristics that can be combined with the neural network are also presented. In the combined approaches, the neural network is used to obtain feasible solutions, the heuristic algorithms are used to improve the performance of the neural network and the quality of the obtained solutions. Simulations have shown that the proposed neural network and its combined approaches are efficient with respect to the quality of solutions and the solving speed.This work was supported by the Chinese National Natural Science Foundation under Grant 69684005 and the Chinese National High-Tech Program under Grant 863-511-9609-003, the EPSRC under Grant GR/L81468

Solitary Waves Bifurcated from Bloch Band Edges in Two-dimensional Periodic Media

Solitary waves bifurcated from edges of Bloch bands in two-dimensional periodic media are determined both analytically and numerically in the context of a two-dimensional nonlinear Schr\"odinger equation with a periodic potential. Using multi-scale perturbation methods, envelope equations of solitary waves near Bloch bands are analytically derived. These envelope equations reveal that solitary waves can bifurcate from edges of Bloch bands under either focusing or defocusing nonlinearity, depending on the signs of second-order dispersion coefficients at the edge points. Interestingly, at edge points with two linearly independent Bloch modes, the envelope equations lead to a host of solitary wave structures including reduced-symmetry solitons, dipole-array solitons, vortex-cell solitons, and so on -- many of which have never been reported before. It is also shown analytically that the centers of envelope solutions can only be positioned at four possible locations at or between potential peaks. Numerically, families of these solitary waves are directly computed both near and far away from band edges. Near the band edges, the numerical solutions spread over many lattice sites, and they fully agree with the analytical solutions obtained from envelope equations. Far away from the band edges, solitary waves are strongly localized with intensity and phase profiles characteristic of individual families.Comment: 23 pages, 15 figures. To appear in Phys. Rev.

On Lagrangian and vortex-surface fields for flows with Taylor–Green and Kida–Pelz initial conditions

For a strictly inviscid barotropic flow with conservative body forces, the Helmholtz vorticity theorem shows that material or Lagrangian surfaces which are vortex surfaces at time t = 0 remain so for t > 0. In this study, a systematic methodology is developed for constructing smooth scalar fields φ(x, y, z, t = 0) for Taylor–Green and Kida–Pelz velocity fields, which, at t = 0, satisfy ω·∇φ = 0. We refer to such fields as vortex-surface fields. Then, for some constant C, iso-surfaces φ = C define vortex surfaces. It is shown that, given the vorticity, our definition of a vortex-surface field admits non-uniqueness, and this is presently resolved numerically using an optimization approach. Additionally, relations between vortex-surface fields and the classical Clebsch representation are discussed for flows with zero helicity. Equations describing the evolution of vortex-surface fields are then obtained for both inviscid and viscous incompressible flows. Both uniqueness and the distinction separating the evolution of vortex-surface fields and Lagrangian fields are discussed. By tracking φ as a Lagrangian field in slightly viscous flows, we show that the well-defined evolution of Lagrangian surfaces that are initially vortex surfaces can be a good approximation to vortex surfaces at later times prior to vortex reconnection. In the evolution of such Lagrangian fields, we observe that initially blob-like vortex surfaces are progressively stretched to sheet-like shapes so that neighbouring portions approach each other, with subsequent rolling up of structures near the interface, which reveals more information on dynamics than the iso-surfaces of vorticity magnitude. The non-local geometry in the evolution is quantified by two differential geometry properties. Rolled-up local shapes are found in the Lagrangian structures that were initially vortex surfaces close to the time of vortex reconnection. It is hypothesized that this is related to the formation of the very high vorticity regions