Relational Enforcement of Stock Exchange Rules

Stock exchanges, as regulating entities supervised by the Securities and Exchange Commission (SEC), have wielded their rulemaking power on various corporate governance issues, ranging from the independent board committee requirement adopted in 2003 to the board diversity requirement approved in 2021. Simultaneously, as for-profit corporate entities, major stock exchanges have been competing against each other to attract and retain more companies. This dual status of stock exchanges — as regulators and as profit driven entities — brings into question the stock exchanges\u27 incentive to enforce their own rules against listed companies. What happens if a listed company violates stock exchange rules? As the first study that offers an analysis of original hand collected data on 838 enforcement actions by stock exchanges in 2019, this Article finds that (1) stock exchanges\u27 detection of noncompliance is mostly on the failure to meet mechanical criteria, such as the $1.00 minimum stock price requirement; (2) listed companies tend to self-report violations of corporate governance requirements before the stock exchanges detect them; and (3) even after noncompliance is detected, stock exchanges tend to extend cure periods and rarely impose the only substantive sanction for stock exchange rule violations: delisting. Focusing on stock exchanges\u27 corporate governance requirements for listed companies, our analysis of S&P 1500 companies\u27 board composition data shows that most companies diligently comply with the stock exchanges\u27 requirements despite this low likelihood of detection and enforcement. This Article argues that this curious coexistence of lax enforcement and diligent compliance can be explained as an extension of the relational contract theory to the relationship between a regulator and a regulated. Competition among stock exchanges makes a long-term, interactive relationship between stock exchanges and their listed companies valuable to both sides. The fact that the stock exchanges\u27 enforcement mechanism relies on a single, drastic measure of terminating the relationship (i.e., delisting) and that listed companies\u27 noncompliance rarely triggers delisting incentivize cooperative compliance between the regulator and the regulated. Such relational enforcement of stock exchange rules indicates that where there is an extended regulatory relationship that offers a substantial benefit to the regulated entity, diligent compliance can be regulated entity, diligent compliance can be expected even in the absence of rigorous, formal policing

Relational Enforcement of Stock Exchange Rules

Stock exchanges, as regulating entities supervised by the Securities and Exchange Commission (SEC), have wielded their rulemaking power on various corporate governance issues, ranging from the independent board committee requirement adopted in 2003 to the board diversity requirement approved in 2021. Simultaneously, as for-profit corporate entities, major stock exchanges have been competing against each other to attract and retain more companies. This dual status of stock exchanges - as regulators and as profit-driven entities - brings into question the stock exchanges' incentive to enforce their own rules against listed companies. What happens if a listed company violates stock exchange rules

Experimental investigation of plasmofluidic waveguides

Plasmofluidic waveguides are based on guiding light which is strongly confined in fluid with the assistance of a surface plasmon polariton. To realize plasmofluidic waveguides, metal-insulator-silicon-insulator-metal (MISIM) waveguides, which are hybrid plasmonic waveguides fabricated using standard complementary metal-oxide-semiconductor technology, are employed. The insulator of the MISIM waveguide is removed to form 30-nm-wide channels, and they are filled with fluid. The plasmofluidic waveguide has a subwavelength-scale mode area since its mode is strongly confined in the fluid. The waveguides are experimentally characterized for different fluids. When the refractive index of the fluid is 1.440, the plasmofluidic waveguide with 190-nm-wide silicon has propagation loss of 0.46 dB/mu m; the coupling loss between it and an ordinary silicon photonic waveguide is 1.79 dB. The propagation and coupling losses may be reduced if a few fabrication-induced imperfections are removed. The plasmofluidic waveguide may pave the way to a dynamically phase-tunable ultracompact device.open0

Description of the Diadegma fenestrale (Hymenoptera: Ichneumonidae: Campopleginae) Attacking the Potato Tuber Moth, Phthorimaea operculella (Lep.: Gelechiidae) New to Korea

Diadegma fenestrale is known as a parasitoid of the potato tuber moth, Phthorimaea operculella. The potato tuber moth, Phthorimaea operculella (Zeller) is one of the most destructive pest of potatoes. Also, we found this species attacking the diamondback moth, Plutella xylostella (Lepidoptera: Plutellidae). Ratio of parasitism is 20-30% and cocoon of lepidopteran was parasitic ichneumonid species after 3 days. This species and the genus Diadegma are recorded for the first time from Korea. In this paper, description of the parasitoid and photographs of the diagnostic characteristics are provided

Meteorin regulates mesendoderm development by enhancing nodal expression

During gastrulation, distinct lineage specification into three germ layers, the mesoderm, endoderm and ectoderm, occurs through an elaborate harmony between signaling molecules along the embryonic proximo-distal and anterior-posterior axes, and Nodal signaling plays a key role in the early embryonic development governing embryonic axis formation, mesoderm and endoderm specification, and left-right asymmetry determination. However, the mechanism by which Nodal expression is regulated is largely unknown. Here, we show that Meteorin regulates Nodal expression and is required for mesendoderm development. It is highly expressed in the inner cell mass of blastocysts and further in the epiblast and extra-embryonic ectoderm during gastrulation. Genetic ablation of the Meteorin gene resulted in early embryonic lethality, presumably due to impaired lineage allocation and subsequent cell accumulation. Embryoid body culture using Meteorin-null embryonic stem (ES) cells showed reduced Nodal expression and concomitant impairment of mesendoderm specification. Meteorin-null embryos displayed reduced levels of Nodal transcripts before the gastrulation stage, and impaired expression of Goosecoid, a definitive endoderm marker, during gastrulation, while the proximo-distal and anterior-posterior axes and primitive streak formation were preserved. Our results show that Meteorin is a novel regulator of Nodal transcription and is required to maintain sufficient Nodal levels for endoderm formation, thereby providing new insights in the regulation of mesendoderm allocation.open1113sciescopu

Bacterial community analysis of sediment seep in Kagoshima Bay, Japan

1902-1906Microorganisms in the deep-sea environments such as hydrothermal vent and cold-seep regions are primary energy producers and an important community in these ecosystems. We have used 454-Pyrosequencing and 16S rDNA clone library methods to determine the diversity of bacteria in the sediment of the seep regions around the vestimentiferan tubeworm habitat at Kagoshima Bay. Taxonomic composition from both libraries suggested that 454-Pyrosequencing methods can represent more diverse groups than the conventional clone library methods. Most abundant taxa with higher folds were Proteobacteria and Bacteroidetes found in both methods. Through the 454-Pyrosequencing method, we were able to detect underrepresented taxa as well as non-detectable taxa. This analyses and comparison provide bacterial taxonomic group detection efficiency of both library types and emphasize the different uses and utilities for exploring the unknown microbial domain