The role of financial reporting in reducing financial risks in the market

Accounting ; Financial markets ; Financial crises ; Transparency

A bi-directional charged particle telescope to observe flux, energy spectrum and angular distribution of relativistic and non-relativistic particles

A Charged Particle Telescope (CPT) was designed, fabricated and calibrated to make the following observations: (1) discrimination between various singly charged particles, e.g., electrons, muons and protons, in about 5 to 100 MeV energy range; (2) measurement of the flux and the energy of the charged particles incident to the telescope from two opposite directions and stopping in the telescope, thus obtaining flux and energy spectrum of downward and upward moving charged particles; and (3) measurement of the broad angular distribution of selected particles as a function of azimuthal angle. This telescope can be used to study low energy electron, muon and proton energy spectra. The experiment was flown in a high altitude balloon from Hyderabad, India, in December 1984. This same equipment is also useful in ground level electron, muon spectrum study

Econometrics of the Basu Asymmetric Timeliness Coefficient and Accounting Conservatism

A substantial literature investigates conditional conservatism, defined as asymmetric accounting recognition of economic shocks (“news”), and how it depends on various market, political, and institutional variables. Studies typically assume the Basu [1997] asymmetric timeliness coefficient (the incremental slope on negative returns in a piecewise-linear regression of accounting income on stock returns) is a valid conditional conservatism measure. We analyze the measure's validity, in the context of a model with accounting income incorporating different types of information with different lags, and with noise. We demonstrate that the asymmetric timeliness coefficient varies with firm characteristics affecting their information environments, such as the length of the firm's operating and investment cycles, and its degree of diversification. We particularly examine one characteristic, the extent to which “unbooked” information (such as revised expectations about rents and growth options) is independent of other information, and discuss the conditions under which a proxy for this characteristic is the market-to-book ratio. We also conclude that much criticism of the Basu regression misconstrues researchers’ objectives

Cross-Border Financing by the Industrial Sector Increases Competition in the Domestic Banking Sector

We predict that access to cross-border financing by the industrial sector reduces firms' reliance on domestic banks, thereby leading to lower rents for banks and greater competition in the domestic banking sector. We also predict that banks take on more risk to offset these lost rents and remain competitive. Using mandatory adoption of International Financial Reporting Standards (IFRS) to identify variation in cross-border financing, we find evidence consistent with our hypotheses. Additional tests verify that the effects emanate from the demand side (i.e., firms not relying on banks) rather than the supply side (i.e., banks not willing to lend to firms). Overall, we document how competition from overseas financial markets influences the domestic banking sector

How Much Do Firms Hedge With Derivatives?

For 234 large non-financial corporations using derivatives, we report the magnitude of their risk exposure hedged by financial derivatives. If interest rates, currency exchange rates, and commodity prices change simultaneously by three standard deviations, the median firm\u27s derivatives portfolio, at most, generates $15 million in cash and$31 million in value. These amounts are modest relative to firm size, and operating and investing cash flows, and other benchmarks. Corporate derivatives use appears to be a small piece of non-financial firms’ overall risk profile. This suggests a need to rethink past empirical research documenting the importance of firms’ derivative use

Upregulated wnt-11 and mir-21 expression trigger epithelial mesenchymal transition in aggressive prostate cancer cells

Prostate cancer (PCa) is the second-leading cause of cancer-related death among men. microRNAs have been identified as having potential roles in tumorigenesis. An oncomir, miR-21, is commonly highly upregulated in many cancers, including PCa, and showed correlation with the Wnt-signaling axis to increase invasion. Wnt-11 is a developmentally regulated gene and has been found to be upregulated in PCa, but its mechanism is unknown. The present study aimed to investigate the roles of miR-21 and Wnt-11 in PCa in vivo and in vitro. First, different Gleason score PCa tissue samples were used; both miR-21 and Wnt-11 expressions correlate with high Gleason scores in PCa patient tissues. This data then was confirmed with formalin-fixed paraffin cell blocks using PCa cell lines LNCaP and PC3. Cell survival and colony formation studies proved that miR-21 involves in cells’ behaviors, as well as the epithelial-mesenchymal transition. Consistent with the previous data, silencing miR-21 led to significant inhibition of cellular invasiveness. Overall, these results suggest that miR-21 plays a significant role related to Wnt-11 in the pathophysiology of PCa

Constraining a possible time variation of the gravitational constant G with terrestrial nuclear laboratory data

Testing the constancy of the gravitational constant G has been a longstanding fundamental question in natural science. As first suggested by Jofr\'{e}, Reisenegger and Fern\'{a}ndez [1], Dirac's hypothesis of a decreasing gravitational constant $G$ with time due to the expansion of the Universe would induce changes in the composition of neutron stars, causing dissipation and internal heating. Eventually, neutron stars reach their quasi-stationary states where cooling due to neutrino and photon emissions balances the internal heating. The correlation of surface temperatures and radii of some old neutron stars may thus carry useful information about the changing rate of G. Using the density dependence of the nuclear symmetry energy constrained by recent terrestrial laboratory data on isospin diffusion in heavy-ion reactions at intermediate energies and the size of neutron skin in $^{208}Pb$ within the gravitochemical heating formalism, we obtain an upper limit of the relative changing rate of $|\dot{G}/G|\le4\times 10^{-12}yr^{-1}$ consistent with the best available estimates in the literature.Comment: 27 pages, 11 figures, and 2 tables. Accepted version to appear in PRC (2007

Implications for GAAP from an analysis of positive research in accounting

Based on extant literature, we review the positive theory of GAAP. The theory predicts that GAAP’s principal focus is on control (performance measurement and stewardship) and that verifiability and conservatism are critical features of a GAAP shaped by market forces. We recognize the advantage of using fair values in circumstances where these are based on observable prices in liquid secondary markets, but caution against expanding fair values to financial reporting more generally. We conclude that rather than converging U.S. GAAP with IFRS, competition between the FASB and the IASB would allow GAAP to better respond to market forces