Regularities

The neoclassical q-theory is a good start to understand the cross section of returns. Under constant return to scale, stock returns equal levered investment returns that are tied directly with characteristics. This equation generates the relations of average returns with book-to-market, investment, and earnings surprises. We estimate the model by minimizing the differences between average stock returns and average levered investment returns via GMM. Our model captures well the average returns of portfolios sorted on capital investment and on size and book-to-market, including the small-stock value premium. Our model is also partially successful in capturing the post-earnings-announcement drift and its higher magnitude in small firms.

Erosion-induced massive organic carbon burial and carbon emission in the Yellow River basin, China

Soil erosion and terrestrial deposition of soil organic carbon (SOC) can potentially play a significant role in global carbon cycling. Assessing the redistribution of SOC during erosion and subsequent transport and burial is of critical importance. Using hydrological records of soil erosion and sediment load, and compiled organic carbon (OC) data, estimates of the eroded soils and OC induced by water in the Yellow River basin during the period 1950–2010 were assembled. The Yellow River basin has experienced intense soil erosion due to combined impact of natural process and human activity. Over the period, 134.2 ± 24.7 Gt of soils and 1.07 ± 0.15 Gt of OC have been eroded from hillslopes based on a soil erosion rate of 1.7–2.5 Gt yr⁻¹. Approximately 63% of the eroded soils were deposited in the river system, while only 37% were discharged into the ocean. For the OC budget, approximately 0.53 ± 0.21 Gt (49.5%) was buried in the river system, 0.25 ± 0.14 Gt (23.5%) was delivered into the ocean, and the remaining 0.289 ± 0.294 Gt (27%) was decomposed during the erosion and transport processes. This validates the commonly held assumption that 20–40% of the eroded OC would be oxidized after erosion. Erosion-induced OC redistribution on the landscape likely represented a carbon source, although a large proportion of OC was buried. In addition, about half of the terrestrially redeposited OC (49.4%) was buried behind dams, revealing the importance of dam trapping in sequestering the eroded OC. Although several uncertainties need to be better constrained, the obtained budgetary results provide a means of assessing the redistribution of the eroded OC within the Yellow River basin. Human activities have significantly altered its redistribution pattern over the past decades

Spin-dependent resonant tunneling through quantum-well states in magnetic metallic thin films

Quantum-well (QW) states in {\it nonmagnetic} metal layers contained in magnetic multilayers are known to be important in spin-dependent transport, but the role of QW states in {\it magnetic} layers remains elusive. Here we identify the conditions and mechanisms for resonant tunneling through QW states in magnetic layers and determine candidate structures. We report first-principles calculations of spin-dependent transport in epitaxial Fe/MgO/FeO/Fe/Cr and Co/MgO/Fe/Cr tunnel junctions. We demonstrate the formation of sharp QW states in the Fe layer and show discrete conductance jumps as the QW states enter the transport window with increasing bias. At resonance, the current increases by one to two orders of magnitude. The tunneling magnetoresistance ratio is several times larger than in simple spin tunnel junctions and is positive (negative) for majority- (minority-) spin resonances, with a large asymmetry between positive and negative biases. The results can serve as the basis for novel spintronic devices.Comment: 4 figures in 5 eps file