Litigation Risk and Abnormal Accruals

In this paper, we examine the relation between auditor litigation risk and abnormal accruals over the 1989-2007 time period. We address potential endogeneity in prior studies by jointly modeling abnormal accruals and litigation risk in a simultaneous equation system. Our findings suggest that client-specific litigation risk affects auditor incentives to acquiesce to client demands for earnings management, i.e., the higher the risk of auditor litigation, the greater the auditor’s restraining influence on the abnormal accruals reported by the client. We also find evidence that abnormal accruals increase the likelihood of auditor litigation. We also document that the 1995 Public Securities Litigation Reform Act (PSLRA) lowered the client-specific risk of auditor litigation. Litigation reform remains a topic of ongoing interest. Our findings contribute to a better understanding of the effects of litigation reform (and related changes in legal exposure) on auditor incentives and earnings management.: Litigation risk, abnormal accruals, auditor incentives

Impact of Job Complexity and Performance on CFO Compensation

Prior research suggests that Big 4 auditors provide higher quality audits by virtue of their large size. Still, the recent reforms mandated by the Sarbanes Oxley Act – by increasing client and auditor incentives for accurate reporting – may have narrowed audit quality differences across auditor groups. In this paper, we examine audit quality for Big 4 and Mid-tier auditors during 2003-06 and include clients of other smaller audit firms for comparison purposes. We examine actual audit quality (as proxied by earnings management metrics) as well as perceived audit quality (as proxied by the client- and year-specific eloading and ex ante equity risk premium metrics). We include in our analysis only those Big 4 clients for whom the Mid-tier firms are potentially viable as auditors. Relative to other smaller audit firm clients, we find Big 4 and Mid-tier audit clients to have (1) lower levels of accrual management, (2) higher levels of real earnings management, and (3) higher levels of investor-perceived accruals quality. In each case, we were unable to reject the null that Big 4 and Mid-tier audits are similar. However, we find Big 4 audit clients to have a lower client-specific ex ante equity risk premium relative to both Mid-tier and other smaller audit firm clients. Collectively, our findings indicate that in situations where a Mid-tier auditor is potentially viable, Big 4 clients could utilize a Mid-tier firm without adversely affecting audit quality. Still, the results suggest that Big 4 clients have a lower ex ante cost of equity capital which is likely related to the insurance considerations (“deep pockets”) – rather than the audit quality -- associated with having a Big 4 auditor.Auditor concentration, Audit quality, Earnings management, Cost of equity capital.

Comparing electronic monitoring regimes: Length, breadth, depth and weight equals tightness

This paper compares the use of electronic monitoring in three European jurisdictions – Belgium, England and Wales and the Netherlands. It suggests that rates of use, the accepted method of comparison in relation to imprisonment and a proxy measure of ‘punitiveness’ provide a misleading picture when applied to electronic monitoring. This paper transforms Crewe's concept of ‘tightness’ from a dimension of weight to encompass the overlapping elements of length, breadth, depth and weight to provide a framework for analysing how electronic monitoring regimes are designed to disrupt the lives of monitored individuals. Electronic monitoring regimes are diverse and ‘tightness’ varied as much, if not more, within as between jurisdictions. Comparisons of ‘tightness’ also inverted the scale of ‘punitiveness’ produced using rates of use

Shock and Awe: Functional Strength Training to Improve Balance and Function in a Patient Post Electrocution

The purpose of this case study is to study the effects of functional strength training rehabilitation in a patient post electrocution suffering from a concurrent stroke.https://soar.usa.edu/flsasummer2018/1017/thumbnail.jp

Factors Related to Marketing Successes for Fibre Producers in Middle Asia

Following the collapse of the Soviet Union in the early 1990s, the economic well-being of livestock producers of Kazakhstan and Kyrgyzstan declined dramatically (see Kerven 2003; Kerven et al., 2003). Like the economies in general, the livestock economies are slowly recovering and restructuring. Livestock producers have been encouraged by international market prices to raise sheep, goats, camels, and animals producing specialty fibre. Fine-fibre sheep and goats remain in Kazakhstan and Kyrgyzstan, but marketing of fibres from the region is not ideal. As examples, sheep pelts are not sorted and graded, which is expected by international buyers, and cashmere is shorn and sold in bulk. Lastly, marketing opportunities are limited, technology, transportation infrastructure, and market information is lacking, and the bargaining power of individual fibre producers is weak. Under support from the U.S. AID Global Livestock-Collaborative Research Support Program (GL-CRSP) project, Developing institutions and capacity for sheep and fibre marketing in Central Asia, we seek to understand the spatial relationships that can help determine success in fibre marketing

Monitoring Spacecraft Telemetry Via Optical or RF Link

A patent disclosure document discusses a photonic method for connecting a spacecraft with a launch vehicle upper-stage telemetry system as a means for monitoring a spacecraft fs health and status during and right after separation and deployment. This method also provides an efficient opto-coupled capability for prelaunch built-in-test (BIT) on the ground to enable more efficient and timely integration, preflight checkout, and a means to obviate any local EMI (electromagnetic interference) during integration and test. Additional utility can be envisioned for BIT on other platforms, such as the International Space Station (ISS). The photonic telemetry system implements an optical free-space link with a divergent laser transmitter beam spoiled over a significant cone angle to accommodate changes in spacecraft position without having to angle track it during deployment. Since the spacecraft may lose attitude control and tumble during deployment, the transmitted laser beam interrogates any one of several low-profile meso-scale retro-reflective spatial light modulators (SLMs) deployed over the surface of the spacecraft. The return signal beam, modulated by the SLMs, contains health, status, and attitude information received back at the launch vehicle. Very compact low-power opto-coupler technology already exists for the received signal (requiring relatively low bandwidths, e.g., .200 kbps) to enable transfer to a forward pass RF relay from the launch vehicle to TDRSS (Tracking and Data Relay Satellite System) or another recipient. The link would be active during separation and post-separation to monitor spacecraft health, status, attitude, or other data inventories until attitude recovery and ground control can be re-established. An optical link would not interfere with the existing upper stage telemetry and beacon systems, thus meeting launch vehicle EMI environmental constraints

Balloon-borne radiometer measurement of Northern Hemisphere mid-latitude stratospheric HNO3 profiles spanning 12 years

Low-resolution atmospheric thermal emission spectra collected by balloon-borne radiometers over the time span of 1990–2002 are used to retrieve vertical profiles of HNO3, CFC-11 and CFC-12 volume mixing ratios between approximately 10 and 35 km altitude. All of the data analyzed have been collected from launches from a Northern Hemisphere mid-latitude site, during late summer, when stratospheric dynamic variability is at a minimum. The retrieval technique incorporates detailed forward modeling of the instrument and the radiative properties of the atmosphere, and obtains a best fit between modeled and measured spectra through a combination of onion-peeling and global optimization steps. The retrieved HNO3 profiles are consistent over the 12-year period, and are consistent with recent measurements by the Atmospheric Chemistry Experiment-Fourier transform spectrometer satellite instrument. This suggests that, to within the errors of the 1990 measurements, there has been no significant change in the HNO3 summer mid-latitude profile

The calibration of photographic and spectroscopic films: 1: A microscopic analysis of IIaO films. 2: The effects of agitation and soaking on IIaO films. 3: The effects of electric field on IIaO films. 4: The effects of X-ray radiation on IIaO films

The grain structure of the emulsion using both reflected and transmission light was examined along with the effects of soaking. The effect of a static charge by a Tesla-coil, and the effects of airport equipment, and dental X-rays on the film were also analyzed