Abnormal Fees and Timely Loss Recognition - A Long-Term Perspective

This is the author accepted manuscript. The final version is available from the American Accounting Association via the DOI in this recordWe examine the relation between timely loss recognition and abnormal audit, non-audit, and total fees over a long period (2001–2007 and 2010–2015). We use positive abnormal audit fees as a measure of abnormal audit effort, and positive abnormal non-audit fees as a measure of economic bond between the auditor and the auditee. Using the Ball and Shivakumar (2006) model, we report some evidence suggesting audit effort is associated with slower loss recognition in accruals before the Sarbanes–Oxley Act (SOX) became effective. However, we find stronger evidence that audit effort is associated with slower loss recognition post-SOX when clients raise substantial external funds or when the auditor is not an industry specialist. Using C_Score, we find a negative association between changes in abnormal audit fees and total fees, and changes in C_Score post-SOX, but not pre-SOX. We find no sample-wide evidence that abnormal non-audit fees are associated with the speed of loss recognition. Collectively, the results suggest post-SOX auditors exert more effort when losses are delayed and that non-audit services do not compromise auditor independence

Are auditors independent of their clients? A review of past research and discussion of research opportunities in Europe

A review of auditing research and discussion of main research questions. In addition, the presentation highlights opportunities for further research

A Two-Dimensional MagnetoHydrodynamics Scheme for General Unstructured Grids

We report a new finite-difference scheme for two-dimensional magnetohydrodynamics (MHD) simulations, with and without rotation, in unstructured grids with quadrilateral cells. The new scheme is implemented within the code VULCAN/2D, which already includes radiation-hydrodynamics in various approximations and can be used with arbitrarily moving meshes (ALE). The MHD scheme, which consists of cell-centered magnetic field variables, preserves the nodal finite difference representation of div(\bB) by construction, and therefore any initially divergence-free field remains divergence-free through the simulation. In this paper, we describe the new scheme in detail and present comparisons of VULCAN/2D results with those of the code ZEUS/2D for several one-dimensional and two-dimensional test problems. The code now enables two-dimensional simulations of the collapse and explosion of the rotating, magnetic cores of massive stars. Moreover, it can be used to simulate the very wide variety of astrophysical problems for which multi-D radiation-magnetohydrodynamics (RMHD) is relevant.Comment: 22 pages, including 11 figures; Accepted to the Astrophysical Journal. Higher resolution figures available at http://zenith.as.arizona.edu/~burrows/mhd-code

Features of the Acoustic Mechanism of Core-Collapse Supernova Explosions

In the context of 2D, axisymmetric, multi-group, radiation/hydrodynamic simulations of core-collapse supernovae over the full 180$^{\circ}$ domain, we present an exploration of the progenitor dependence of the acoustic mechanism of explosion. All progenitor models we have tested with our Newtonian code explode. We investigate the roles of the Standing-Accretion-Shock-Instability (SASI), the excitation of core g-modes, the generation of core acoustic power, the ejection of matter with r-process potential, the wind-like character of the explosion, and the fundamental anisotropy of the blasts. We find that the breaking of spherical symmetry is central to the supernova phenomenon and the blasts, when top-bottom asymmetric, are self-collimating. We see indications that the initial explosion energies are larger for the more massive progenitors, and smaller for the less massive progenitors, and that the neutrino contribution to the explosion energy may be an increasing function of progenitor mass. The degree of explosion asymmetry we obtain is completely consistent with that inferred from the polarization measurements of Type Ic supernovae. Furthermore, we calculate for the first time the magnitude and sign of the net impulse on the core due to anisotropic neutrino emission and suggest that hydrodynamic and neutrino recoils in the context of our asymmetric explosions afford a natural mechanism for observed pulsar proper motions. [abridged]Comment: Accepted to the Astrophysical Journal, 23 pages in emulateapj format, including 12 figure

Hydrodynamic singularities and clustering in a freely cooling inelastic gas

We employ hydrodynamic equations to follow the clustering instability of a freely cooling dilute gas of inelastically colliding spheres into a well-developed nonlinear regime. We simplify the problem by dealing with a one-dimensional coarse-grained flow. We observe that at a late stage of the instability the shear stress becomes negligibly small, and the gas flows solely by inertia. As a result the flow formally develops a finite time singularity, as the velocity gradient and the gas density diverge at some location. We argue that flow by inertia represents a generic intermediate asymptotic of unstable free cooling of dilute inelastic gases.Comment: 4 pages, 4 figure

Formation and evolution of density singularities in hydrodynamics of inelastic gases

We use ideal hydrodynamics to investigate clustering in a gas of inelastically colliding spheres. The hydrodynamic equations exhibit a new type of finite-time density blowup, where the gas pressure remains finite. The density blowups signal formation of close-packed clusters. The blowup dynamics are universal and describable by exact analytic solutions continuable beyond the blowup time. These solutions show that dilute hydrodynamic equations yield a powerful effective description of a granular gas flow with close-packed clusters, described as finite-mass point-like singularities of the density. This description is similar in spirit to the description of shocks in ordinary ideal gas dynamics.Comment: 4 pages, 3 figures, final versio

Earnings Management in Domestic and Foreign IPOs in the United States: Do Home Country Institutions Matter?

This is the author accepted manuscript. The final version is available from Taylor & Francis via the DOI in this recordUsing a large sample of domestic and foreign IPOs in the US, we investigate how threats of enforcement by the Securities and Exchange Commission (SEC) and private litigation influence earnings management in IPO prospectuses. We propose that perceptions of foreign institutions may influence SEC enforcement action and private litigation. We provide evidence that enforcement and litigation threats are negatively related to the strength of legal institutions in the foreign IPO’s country of origin. We find earnings management is more pronounced in foreign IPOs from countries with strong legal institutions. We further explore whether earnings management is priced in the IPO market and find no relation between IPO proceeds and earnings management. Our results are consistent with upward earnings management as in Stein (1989), the magnitude of which is reduced when the anticipated cost of enforcement and litigation is higher. Collectively, our results cast doubt on the validity of the bonding hypothesis

Belowground carbon transfer across mycorrhizal networks among trees: Facts, not fantasy

The mycorrhizal symbiosis between fungi and plants is among the oldest, ubiquitous and most important interactions in terrestrial life on Earth. Carbon (C) transfer across a common mycorrhizal network (CMN) was demonstrated over half a century ago in the lab (Reid and Woods 1969), and later in the field (Simard et al. 1997). Recent years have seen ample progress in this research direction, including evidence for ecological significance of carbon transfer (Klein et al. 2016). Furthermore, specific cases where the architecture of mycorrhizal networks have been mapped (Beiler et al. 2015) and CMNC transfer from mature trees to seedlings has been demonstrated (Orrego 2018) have suggested that trees in forests are more connected than once thought (Simard 2021). In a recent Perspective, Karst et al. (2023) offered a valuable critical review warning of overinterpretation and positive citation bias in CMN research. It concluded that while there is evidence for C movement among plants, the importance of CMNs remains unclear, as noted by others too (Henriksson et al. 2023). Here we argue that while some of these claims are justified, factual evidence about belowground C transfer across CMNs is solid and accumulating

COMPTEL upper limits for the 56Co gamma-ray emission from SN1998bu

Supernova 1998bu in the galaxy M96 was observed by COMPTEL for a total of 88 days starting 17 days after the explosion. We searched for a signal in the 847 keV and 1238 keV lines of radioactive 56Co from this type Ia supernova. Using several different analysis methods, we did not detect SN1998bu. Our measurements should have been sensitive enough to detect 60Co gamma-rays as predicted from supernova models. Our 2-sigma flux limit is 2.3 10^{-5} photons cm^{-2} s^{-1}; this would correspond to 0.35 solar mass of ejected 56Ni, if SN1998bu were at a distance of 11.3 Mpc and transparent to MeV gamma rays for the period of our measurements. We discuss our measurements in the context of common supernova models, and conclude disfavoring a supernova event with large mixing and major parts of the freshly-generated radioactivity in outer layers.Comment: 8 pages, 6 EPS-figures, Latex2e, aa.cls needed, accepted for publication in A&

Circumstellar Na I and Ca II lines of type Ia supernovae in symbiotic scenario

Formation of circumstellar lines of Na I and Ca II in type Ia supernovae is studied for the case, when supernova explodes in a binary system with a red giant. The model suggests a spherically-symmetric wind and takes into account ionization and heating of the wind by X-rays from the shock wave and by gamma-quanta of ^{56}Ni radioactive decay. For the wind density typical of the red giant the expected optical depth of the wind in Na I lines turnes out too low (\tau<0.001}) to detect the absorption. For the same wind densities the predicted optical depth of Ca II 3934 \AA is sufficient for the detection (\tau>0.1). I conclude that the absorption lines detected in SN 2006X cannot form in the red giant wind; they are rather related to clouds at distances larger than the dust evaporation radius (r>10^{17} cm). From the absence in SN 2006X of Ca II absorption lines not related with the similar Na I components I derive the upper limit of the mass loss rate by the wind with velocity u: \dot{M}<10^{-8}(u/10 km/s) M_{\odot} yr^{-1}.Comment: 10 pages, 6 figures, Astronomy Letters (accepted