Area Law from Loop Quantum Gravity

We explore the constraints following from requiring the Area Law in the entanglement entropy in the context of loop quantum gravity. We find a unique solution to the single link wave-function in the large j limit, believed to be appropriate in the semi-classical limit. We then generalize our considerations to multi-link coherent states, and find that the area law is preserved very generically using our single link wave-function as a building block. Finally, we develop the framework that generates families of multi-link states that preserve the area law while avoiding macroscopic entanglement, the space-time analogue of "Schroedinger cat". We note that these states, defined on a given set of graphs, are the ground states of some local Hamiltonian that can be constructed explicitly. This can potentially shed light on the construction of the appropriate Hamiltonian constraints in the LQG framework.Comment: 6+5 pages, 2 figures, presentation improved, appendices added, revised version accepted for publication in Physical Review

Area law from loop quantum gravity

We explore the constraints following from requiring the area law in the entanglement entropy in the context of loop quantum gravity. We find a unique solution to the single-link wave function in the large j limit, believed to be appropriate in the semiclassical limit. We then generalize our considerations to multilink coherent states, and find that the area law is preserved very generically using our single-link wave function as a building block. Finally, we develop the framework that generates families of multilink states that preserve the area law while avoiding macroscopic entanglement, the space-time analogue of "Schrödinger's cat." We note that these states, defined on a given set of graphs, are the ground states of some local Hamiltonian that can be constructed explicitly. This can potentially shed light on the construction of the appropriate Hamiltonian constraints in the LQG framework

Reflections on the 20-year anniversary of worldwide IFRS adoption

At the Ninth International Conference of the Journal of International Accounting Research, Editor Steve Lin organized a plenary session titled “20 Years of IFRS Research” to commemorate the 20th anniversary of the worldwide adoption of International Financial Reporting Standards (IFRS). During the session, each panelist presented their views on what we have learned from researching IFRS for the past 20 years and where we should go from here. This article presents a short essay from each panelist summarizing their comments, as well as related issues that were not fully explored at the conference

The effect of mandatory CSR disclosure on information asymmetry: Evidence from a quasi-natural experiment in China

Using a quasi-natural experiment that mandates a subset of listed firms to issue corporate social responsibility (CSR) reports, this paper examines the effect of mandatory CSR disclosure on market information asymmetry in China, where we estimate information asymmetry using high frequency trade and quote data. We find that contrary to the criticism that mandatory CSR disclosure lacks credibility and relevance in emerging markets, mandatory CSR reporting firms experience a decrease in information asymmetry subsequent to the mandate. We also find that consistent with the assertion that CSR disclosure is informative about firms’ political and social prospects, the decrease in information asymmetry is more pronounced for firms with lower government ownership, weaker political connections, and smaller corporate donation. In addition, we find that analyst following increases subsequent to the mandatory CSR reporting and firms with less analyst coverage experience a greater decrease in information asymmetry subsequent to the CSR mandate

Investor Protection and Corporate Governance: Evidence from Worldwide CEO Turnover

Recent research asserts that an essential feature of good corporate governance is strong investor protection, where investor protection is defined as the extent of the "laws" that protect investors' rights and the strength of the legal institutions that facilitate "law enforcement". The purpose of this study is to test this assertion by investigating whether these measures of investor protection are associated with an important role of good corporate governance: identifying and terminating poorly performing CEOs. Our tests indicate that "strong law enforcement institutions" significantly improve the association between CEO turnover and poor performance, whereas "extensive investor protection laws" do not. In addition, we find that in countries with strong law enforcement, CEO turnover is more likely to be associated with poor stock returns when stock prices are more informative. Finding that strong law enforcement institutions are associated with improved CEO turnover-performance sensitivity is consistent with good corporate governance requiring law enforcement institutions capable of protecting shareholders' property rights (i.e., protecting shareholders from expropriation by insiders). Finding that investor protection laws are not associated with improved CEO turnover-performance sensitivity is open to several explanations. For example, investor protection laws may not be as important as strong law enforcement in fostering good governance, the set of laws we examine may not be the set that are most important in promoting good governance, or measurement error in our surrogate for extensive investor protection laws may reduce the power of our test of this variable. Copyright University of Chicago on behalf of the Institute of Professional Accounting, 2004.

The Impact of Mandatory IFRS Adoption on IPOs in Global Capital Markets

This study examines the impact of mandatory IFRS adoption on IPO underpricing and the relative amount of IPO capital raised in foreign markets. Using a difference-in-differences design, we find a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following mandatory IFRS adoption. We also find that mandatory IFRS adoption has a greater impact on IPO underpricing and relative foreign proceeds for firms in countries with a larger number of accounting changes, and this relation is more pronounced among firms in countries with stronger implementation credibility. In addition, we find that the decrease in underpricing associated with mandatory IFRS adoption holds for both domestic IPOs and global IPOs, and this effect is more pronounced for global IPOs than for domestic IPOs. Overall, our study contributes to the literature by documenting the impact of changes in financial accounting standards on IPO underpricing and capital market globalization