The growth companies puzzle: can growth opportunities measures predict firm growth?

While numerous empirical studies include proxies for growth opportunities in their analyses, there is limited evidence as to the validity of the various growth proxies used. Based on a sample of 1942 firm-years for listed UK companies over the 1990-2004 period, we assess the performance of eight growth opportunities measures. Our results show that while all the growth measures show some ability to predict growth in company sales, total assets, or equity, there are substantial differences between the various models. In particular, Tobin's Q performs poorly while dividend-based measures generally perform best. However, none of the measures has any success in predicting earnings per share growth, even when controlling for mean reversion and other time-series patterns in earnings. We term this the 'growth companies puzzle'. Growth companies do grow, but they do not grow in the key dimension (earnings) theory predicts. Whether the failure of 'growth companies' to deliver superior earnings growth is attributable to increased competition, poor investments, or behavioural biases, it is still a puzzle why growth companies on average fail to deliver superior earnings growth

Vegetation Re-development After Fen Meadow Restoration by Topsoil Removal and Hay Transfer

We investigated the effects of different restoration treatments on the development of fen meadow communities: (1) depth of topsoil removal, with shallow (circa 20 cm) and deep (circa 40 cm) soil removal applied, (2) transfer of seed-containing hay, and (3) access of large animals. We carried out a full factorial experiment with all combinations of these factors and monitored it for 4 years. We studied the effect of seed availability in the soil seed bank on species abundance in the vegetation and compared it to the effect of species introduction by hay. We observed large differences in species composition between different treatments after 4 years. The combination of hay transfer, deep soil removal, and exclusion of large animals resulted in a community with highest similarity to the target vegetation. We found that the transfer of seeds with hay had a larger effect on species abundance than the soil seed bank. Hay transfer appeared to have important consequences on vegetation development because it speeded up the establishment of the target vegetation.

Calculations of the Knight Shift Anomalies in Heavy Electron Materials

We have studied the Knight shift $K(\vec r, T)$ and magnetic susceptibility $\chi(T)$ of heavy electron materials, modeled by the infinite U Anderson model with the NCA method. A systematic study of $K(\vec r, T)$ and $\chi(T)$ for different Kondo temperatures $T_0$ (which depends on the hybridization width $\Gamma$) shows a low temperature anomaly (nonlinear relation between $K$ and $\chi$) which increases as the Kondo temperature $T_0$ and distance $r$ increase. We carried out an incoherent lattice sum by adding the $K(\vec r)$ of a few hundred shells of rare earth atoms around a nucleus and compare the numerically calculated results with the experimental results. For CeSn_3, which is a concentrated heavy electron material, both the ^{119}Sn NMR Knight shift and positive muon Knight shift are studied. Also, lattice coherence effects by conduction electron scattering at every rare earth site are included using the average-T matrix approximation. Also NMR Knight shifts for YbCuAl and the proposed quadrupolar Kondo alloy Y_{0.8}U_{0.2}Pd_{3} are studied.Comment: 31 pages of RevTex, 22 Postscript figures, submmitted to PRB, some figures are delete

Enigmatic presence of mitochondrial complex I in Trypanosoma brucei bloodstream forms

The presence of mitochondrial respiratory complex I in the pathogenic bloodstream stages of Trypanosoma brucei has been vigorously debated: increased expression of mitochondrially encoded functional complex I mRNAs is countered by low levels of enzymatic activity that show marginal inhibition by the specific inhibitor rotenone. We now show that epitope-tagged versions of multiple complex I subunits assemble into α and β subcomplexes in the bloodstream stage and that these subcomplexes require the mitochondrial genome for their assembly. Despite the presence of these large (740- and 855-kDa) multisubunit complexes, the electron transport activity of complex I is not essential under experimental conditions since null mutants of two core genes (NUBM and NUKM) showed no growth defect in vitro or in mouse infection. Furthermore, the null mutants showed no decrease in NADH:ubiquinone oxidoreductase activity, suggesting that the observed activity is not contributed by complex I. This work conclusively shows that despite the synthesis and assembly of subunit proteins, the enzymatic function of the largest respiratory complex is neither significant nor important in the bloodstream stage. This situation appears to be in striking contrast to that for the other respiratory complexes in this parasite, where physical presence in a life-cycle stage always indicates functional significance

A log N(HI) = 22.6 DLA in a dark gamma-ray burst: the environment of GRB 050401

The optical afterglow spectrum of GRB050401 (at z=2.8992+/-0.0004) shows the presence of a DLA, with log(nHI)=22.6+/-0.3. This is the highest column density ever observed in a DLA, and is about five times larger than the strongest DLA detected so far in any QSO spectrum. From the optical spectrum, we also find a very large Zn column density, allowing us to infer an abundance of [Zn/H]=-1.0+/-0.4. These large columns are supported by the X-ray spectrum from Swift-XRT which shows a column density (in excess of Galactic) of log(nH)=22.21^{+0.06}_{-0.08} assuming solar abundances (at z=2.9). The comparison of this X-ray column density, which is dominated by absorption due to alpha-chain elements, and the HI column density derived from the Ly-alpha absorption line, allows us to derive a metallicity for the absorbing matter of [alpha/H]=-0.4+/-0.3. The optical spectrum is reddened and can be well reproduced with a power-law with SMC extinction, where A_V=0.62+/-0.06. But the total optical extinction can also be constrained in a way which is independent of the shape of the extinction curve: from the optical-to-X-ray spectral energy distribution we find, 0.5<~A_V<~4.5. However, even this upper limit, independent of the shape of the extinction curve, is still well below the dust column that is inferred from the X-ray column density, i.e. A_V=9.1^{+1.4}_{-1.5}. This discrepancy might be explained by a small dust content with high metallicity (low dust-to-metals ratio). `Grey' extinction cannot explain the discrepancy since we are comparing the metallicity to a measurement of the total extinction (without reference to the reddening). Little dust with high metallicity may be produced by sublimation of dust grains or may naturally exist in systems younger than a few hundred Myr.Comment: 28 pages, 5 figures, accepted for ApJ, scheduled for November 20 issue, missing author adde

Achieving temperature-size changes in a unicellular organism.

The temperature-size rule (TSR) is an intraspecific phenomenon describing the phenotypic plastic response of an organism size to the temperature: individuals reared at cooler temperatures mature to be larger adults than those reared at warmer temperatures. The TSR is ubiquitous, affecting >80% species including uni- and multicellular groups. How the TSR is established has received attention in multicellular organisms, but not in unicells. Further, conceptual models suggest the mechanism of size change to be different in these two groups. Here, we test these theories using the protist Cyclidium glaucoma. We measure cell sizes, along with population growth during temperature acclimation, to determine how and when the temperature-size changes are achieved. We show that mother and daughter sizes become temporarily decoupled from the ratio 2:1 during acclimation, but these return to their coupled state (where daughter cells are half the size of the mother cell) once acclimated. Thermal acclimation is rapid, being completed within approximately a single generation. Further, we examine the impact of increased temperatures on carrying capacity and total biomass, to investigate potential adaptive strategies of size change. We demonstrate no temperature effect on carrying capacity, but maximum supported biomass to decrease with increasing temperature