Do External Auditors Perform a Corporate Governance Role in Emerging Markets? Evidence from East Asia

In emerging markets, the concentration of corporate ownership has created agency conflicts between controlling owners and minority shareholders. Conventional corporate control mechanisms such as boards of directors and takeovers are typically weak in containing the agency problem. This study examines whether external independent auditors could be employed as monitors and as bonding mechanisms to alleviate the agency conflict. Using a broad sample of firms from eight East Asian economies, we document that firms are more likely to employ Big Five auditors when they are more subject to the agency problem imbedded in their ultimate ownership structure. One possible reason that this documented relation between auditor choice and the agency problem is more evident than the inconsistent results using U.S. and U.K. data is that alternative governance mechanisms are limited in East Asia. In addition, among East Asian auditees subject to the agency problem, Big Five auditors charge a higher fee and set a lower audit modification threshold while non-Big Five auditors do not. Taken together, the evidence suggests that Big Five auditors in emerging markets do have a corporate governance role.http://deepblue.lib.umich.edu/bitstream/2027.42/39784/3/wp400.pd

Two-photon transport through a waveguide coupling to a whispering gallery resonator containing an atom and photon-blockade effect

We investigate the two-photon transport through a waveguide side-coupling to a whispering-gallery-atom system. Using the Lehmann-Symanzik-Zimmermann (LSZ) reduction approach, we present the general formula for the two-photon processes including the two-photon scattering matrices, the wavefunctions and the second order correlation functions of the out-going photons. Based on the exact results of the second order correlation functions, we analyze the quantum statistics behaviors of the out-going photons for two different cases: (a) the ideal case without the inter-modal coupling in the whispering gallery resonator; (b) the case in the presence of the inter-modal coupling which leads to more complex nonlinear behavior. In the ideal case, we show that the system consists of two independent scattering pathways, a free pathway by a cavity mode without atomic excitation, and a "Jaynes-Cummings" pathway described by the Jaynes-Cummings Hamiltonian of a single-mode cavity coupling to an atom. The free pathway does not contribution to correlated two-photon processes. In the presence of intermodal mixing, the system no longer exhibit a free resonant pathway. Instead, both the single-photon and the two photon transport properties depend on the position of the atom. Thus, in the presence of intermodal mixing one can in fact tune the photon correlation properties by changing the position of the atom. Our formalism can be used to treat resonator and cavity dissipation as well.Comment: 9 pages, 7 figure

LISP based simulation generators for modeling complex space processes

The development of a simulation assistant for modeling discrete event processes is presented. Included are an overview of the system, a description of the simulation generators, and a sample process generated using the simulation assistant