Hotel Asset and Equity Risk Before, During, and After the Global Financial Crisis

In this paper, we use asset betas and equity betas over the period January 2000 through December 2015 to investigate the operating and financial risk of hotel industry REITs and C-Corps. We conclude that, on average over our sample period, the operating risk of C-Corps exceeds that of REITs. One interpretation of this result is that management contracts between REITs and C-Corps allocate more operating risk to C-Corps than to REITs. We also find that, on average, during our sample period, the equity betas of C-Corps exceed those of REITs. However, the difference between the average equity risk of the two sectors is much smaller than is the sectors’ difference in operating risk. Because equity betas capture both operating and financial risk, these results imply that REITs have significantly less operating risk than C-Corps and offset their lower business risk with higher financial leverage. During the global financial crisis, operating risk increases in both hotel industry subsectors, and the amount by which C-Corp asset betas exceed REIT asset betas is roughly proportionate to that observed in noncrisis periods. During the financial crisis, however, REITs experienced a greater increase in finan- cial leverage than did C-Corps, with the result being that the normal relation reverses, i.e., during the global financial crisis, REIT average equity betas significantly exceeded the average equity betas of C-Corps

FINANCE THEORY AND THE NEW INVESTOR RELATIONS

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/73515/1/j.1745-6622.1993.tb00382.x.pd

Business Cycles and the Relation between Security Returns and Earnings

This paper examines business cycle variation in the earnings-returns relation. Earnings are more persistent when growth rates are high (i.e., in an expansion) than when growth rates are low (i.e., in a recession). Earnings are more persistent when production is high (i.e., in a credit crunch period) than when production is low (i.e., in a reliquification period). Relatedly, earnings response coefficients are larger in expansions (credit crunch periods) than in recessions (reliquification periods). Thus, earnings persistence and earnings response coefficients are positively associated with the rate of growth in economic activity and the level of economic activity.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47678/1/11142_2004_Article_231714.pd

In re Silicon Graphics Inc.: Shareholder Wealth Effects Resulting from the Interpretation of the Private Securities Litigation Reform Act\u27s Pleading Standard

This Article presents an empirical study of changes in shareholder wealth resulting from the Ninth Circuit Court of Appeals decision in In re Silicon Graphics Inc. Securities Litigation, which interpreted the pleading provision established in the Private Securities Litigation Reform Act of 1995 (the Reform Act ). Congress passed the Reform Act as part of an ongoing effort to protect corporations from abusive suits alleging fraud by hindsight. In such suits, plaintiffs claimed that a sudden drop in a company\u27s stock price was evidence that the issuer and its management covered up the bad news that led to the price drop. The Reform Act discourages such suits by requiring complaints alleging fraud to state with particularity facts giving rise to a strong inference that the defendant acted with the required state of mind. Courts have interpreted the Reform Act\u27s pleading standard in diverse ways. The Ninth Circuit\u27s interpretation in Silicon Graphics is the most stringent, requiring plaintiffs to allege facts that would show the defendants were deliberately reckless in making the misrepresentation that gave rise to the fraud claim. This pleading standard allows courts to dismiss fraud suits at an early stage if the court deems they lack merit, but it also increases the risk courts will dismiss meritorious suits as well

In re Silicon Graphics Inc.: Shareholder Wealth Effects Resulting from the Interpretation of the Private Securities Litigation Reform Act\u27s Pleading Standard

This Article presents an empirical study of changes in shareholder wealth resulting from the Ninth Circuit Court of Appeals decision in In re Silicon Graphics Inc. Securities Litigation, which interpreted the pleading provision established in the Private Securities Litigation Reform Act of 1995 (the Reform Act ). Congress passed the Reform Act as part of an ongoing effort to protect corporations from abusive suits alleging fraud by hindsight. In such suits, plaintiffs claimed that a sudden drop in a company\u27s stock price was evidence that the issuer and its management covered up the bad news that led to the price drop. The Reform Act discourages such suits by requiring complaints alleging fraud to state with particularity facts giving rise to a strong inference that the defendant acted with the required state of mind. Courts have interpreted the Reform Act\u27s pleading standard in diverse ways. The Ninth Circuit\u27s interpretation in Silicon Graphics is the most stringent, requiring plaintiffs to allege facts that would show the defendants were deliberately reckless in making the misrepresentation that gave rise to the fraud claim. This pleading standard allows courts to dismiss fraud suits at an early stage if the court deems they lack merit, but it also increases the risk courts will dismiss meritorious suits as well

Shareholder Wealth Effects of the Private Securities Litigation Reform Act of 1995

This paper investigates the reaction ofstock prices to enactment of the Private Securities LitigationReform Act of 1995 (PSLRA). Based on a sample of 489 high-technologyfirms, we find that the PSLRA was wealth-increasing, on average,and that the market reaction is more positive for firms at greatestrisk of being sued in a securities class action. However, wealso show that the PSLRA was less beneficial for firms likelyto be the subject of a meritorious lawsuit. Collectively, ourevidence implies that shareholders generally benefit from restrictionson private securities litigation, although these benefits aremitigated when other mechanisms for curbing fraudulent activityare inadequate.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/47702/1/11142_2004_Article_269852.pd

Comparative validation of the IPAQ and the 7-Day PAR among women diagnosed with breast cancer

BACKGROUND: The criterion-related validity and measurement bias of the long form of the International Physical Activity Questionnaire (IPAQ) was compared to the 7-Day Physical Activity Recall (PAR). METHODS: Participants were women who have been diagnosed with breast cancer and enrolled in the ongoing Women's Healthy Eating and Living Study. Women (N = 159, average age 57 years) wore an accelerometer for one week and then completed the IPAQ or the PAR. RESULTS: The validity correlation of the PAR was significantly higher (p < 0.001) than the IPAQ (0.73 vs. 0.33, respectively). The PAR and IPAQ overestimated total physical activity by 13% vs. 247%, respectively. The PAR had better sensitivity (p = 0.14) and specificity (p < .01) than the IPAQ (100% vs. 71% and 84% vs. 59%, respectively) in predicting attainment of the ACSM physical activity guideline. CONCLUSION: The PAR was superior to the IPAQ in terms of validity, measurement bias, and screening statistics

Sonographic Evaluation of Early‐Stage Breast Cancers That Undergo Neoadjuvant Chemotherapy

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/135555/1/jum2005247885.pd

Climate change promotes parasitism in a coral symbiosis.

Coastal oceans are increasingly eutrophic, warm and acidic through the addition of anthropogenic nitrogen and carbon, respectively. Among the most sensitive taxa to these changes are scleractinian corals, which engineer the most biodiverse ecosystems on Earth. Corals' sensitivity is a consequence of their evolutionary investment in symbiosis with the dinoflagellate alga, Symbiodinium. Together, the coral holobiont has dominated oligotrophic tropical marine habitats. However, warming destabilizes this association and reduces coral fitness. It has been theorized that, when reefs become warm and eutrophic, mutualistic Symbiodinium sequester more resources for their own growth, thus parasitizing their hosts of nutrition. Here, we tested the hypothesis that sub-bleaching temperature and excess nitrogen promotes symbiont parasitism by measuring respiration (costs) and the assimilation and translocation of both carbon (energy) and nitrogen (growth; both benefits) within Orbicella faveolata hosting one of two Symbiodinium phylotypes using a dual stable isotope tracer incubation at ambient (26 °C) and sub-bleaching (31 °C) temperatures under elevated nitrate. Warming to 31 °C reduced holobiont net primary productivity (NPP) by 60% due to increased respiration which decreased host %carbon by 15% with no apparent cost to the symbiont. Concurrently, Symbiodinium carbon and nitrogen assimilation increased by 14 and 32%, respectively while increasing their mitotic index by 15%, whereas hosts did not gain a proportional increase in translocated photosynthates. We conclude that the disparity in benefits and costs to both partners is evidence of symbiont parasitism in the coral symbiosis and has major implications for the resilience of coral reefs under threat of global change