Predicting Bankruptcy After The Sarbanes-Oxley Act Using Logit Analysis

Our study proposes firm bankruptcy prediction using logit analysis after the passage of the Sarbanes-Oxley (SOX) Act using 2008-2009 U.S. data. The results of our logit analysis show an 80% (90% with one year before bankruptcy data) prediction accuracy rate using financial and other data from the 10-K report in the post-SOX period. This prediction rate is comparable to other data mining tools. Overall, our results show that, as compared to the prediction rates documented by other bankruptcy studies before SOX, firm bankruptcy prediction rates have improved since the passage of SOX. Our findings shed light on the benefits of SOX by providing evidence that legislation makes the financial reporting more informative. This study is important for regulators to implement public policy. Investors may be interested in our findings to better assess company risk when making portfolio decisions

The Determinants of Bankruptcy for Chinese Firms

The global financial crisis in 2008 increased the number of business failures in the U.S. as well as in China. The Chinese economy has also been affected by the recent global financial crisis given the fact that the Chinese economy depends heavily on international trade. Our study tries to find the determinants of bankruptcy in Chinese firms. Both logit and survival model analyses provide consistent results on the determinants in predicting distressed firms in China. Our results suggest that firms with liquidity problems and firms experiencing a decline in profits are more likely to file for bankruptcy. In addition, we find that, compared to state-owned enterprises (SOEs), collectively-owned enterprises, private-owned enterprises, and foreign-owned businesses are more likely to file for bankruptcy. This conclusion is robust after controlling for regional differences. The findings of this study show that the financial variables developed by Altman [Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance, 23(3), 589–609] and Ohlson [Financial ratios and probabilistic prediction of bankruptcy. Journal of Accounting Research, 18(1), 109–131] perform reasonably well in determining business failures of Chinese firms even though SOEs and shadow financing exist in China

The Paradoxical Effects of COVID-19 Event Strength on Employee Turnover Intention

As a global pandemic, the novel coronavirus (COVID-19) has brought enormous challenges to employees and organizations. Although numerous existing studies have highlighted that the COVID-19 pandemic is a stressful event and empirically proved its detrimental effect on employee turnover intention, few scholars have noted that this pandemic can deteriorate the external economic and employment environment simultaneously, which may further complicate employees’ intentions to leave or stay in the current organization. Drawing on event system theory and social cognitive theory, this study aims to uncover two potential cognitive mechanisms of the complex impact of COVID-19 event strength on employee turnover intention. To examine the proposed model, this study employed a three-wave and time-lagged research design and collected data from a sample of 432 employees of four Chinese companies from different industries. The findings indicated that COVID-19 event strength was negatively related to perceived external employability, and ultimately curbed employee turnover intention. Yet, COVID-19 event strength also negatively predicted perceived organizational growth, thus influencing employees to exhibit intentions to quit. Moreover, organizational identification not only attenuated the positive effect of perceived external employability on turnover intention but also amplified the negative impact of perceived organizational growth on turnover intention. Further, organizational identification moderated the indirect effects of COVID-19 event strength on turnover intention through perceived external employability and perceived organizational growth. This study provided a comprehensive insight into scholars’ understanding of the COVID-19 downstream outcomes

Enzyme-mediated surface modification of jute and its influence on the properties of jute/epoxy composites

Surface modification of jute fibers is necessary to improve the adhesion and interfacial compatibility between fibers and resin matrix before using fibers in polymer composites. In this study, dodecyl gallate (DG) was enzymatically grafted onto the jute fiber by laccase to endow the fiber with hydrophobicity. A hand lay-up technique was then adopted to prepare jute/epoxy composites. Contact angle and wetting time measurements showed that the surface hydrophobicity of the jute fabric was increased after the enzymatic graft modification. The water absorption and thickness swelling of the DG-grafted jute fabric/epoxy composite were lower than those of the other composites. The tensile and dynamic mechanical properties of the jute/epoxy composites were enhanced by the surface modification. Scanning electron microscopy images revealed stronger fibermatrix adhesion in composites with modified fibers. Therefore, the enzymatic graft modification increased the fibermatrix interface area. The fibermatrix adhesion was enhanced, and the mechanical properties of the composites were improved.Contract grant sponsor: National Natural Science Foundation of China; contract grant number: 51173071; contract grant sponsor: Program for New Century Excellent Talents in University; contract grant number: NCET-12-0883; contract grant sponsor: Fundamental Research Funds for the Central Universities; contract grant sponsor: JUSRP51312B.info:eu-repo/semantics/publishedVersio

Effect of immobilized cellulase enzyme treatment on properties of ramie fabric

In this study, Eudragit S-100 has been covalently bound to the cellulase enzyme to form immobilized cellulase enzyme and then the effect of the treatment on ramie fabric properties is studied. The ramie fabrics treated with immobilized cellulase enzyme show lower quantities of reducing sugar, weight loss, and higher tensile strength than native cellulase enzyme-treated fabrics. Scanning electron microscopic analysis shows that the surface of ramie fabrics treated with cellulase enzyme is smoother than that of the untreated sample. Furthermore, treatment by the immobilized cellulase enzyme is less damaging to the fibres. X-ray diffraction studies show that there is hardly any loss in the crystallinity of ramie fabrics. Low-stress mechanical properties evaluated by the Kawabata Evaluation System for Fabric indicate that immobilized cellulase enzyme treatment improves the softness, flexibility, and elastic recovery of the ramie fabrics

Case report: Anxiety and depression as initial symptoms in a patient with acute hypoxia and patent foramen ovale

The prevalence of patent foramen ovale (PFO) is 15–35% among adults. The role of right-to-left shunting through the PFO, anxiety, depression, and hypoxemia in the systemic circulation remains poorly understood. Herein, we present the case of a 52-year-old woman with no heart or lung disease, who was admitted due to anxiety for 5 months and had symptom exacerbation with dizziness for 4 days and presented with cyanosis. She was noted to have acute hypoxemia, with an oxygen saturation of 94.48% on room air, and arterial blood gas showed an oxygen tension of 65.64 mmHg. Agitated saline contrast echocardiography showed right-to-left shunting due to PFO. Arteriovenous fistula, pneumonia, pulmonary embolism, pulmonary hypertension, congestion peripheral cyanosis, ischemic peripheral cyanosis, and methemoglobin were excluded. Additionally, the patient improved by taking Paroxetine, Oxazepam, and Olanzapine. Her oxygen tension returned to 90.42 mmHg, and her symptoms resolved. In the case of severe anxiety and depression, right-to-left shunting through the PFO may cause acute systemic hypoxemia via a flow-driven mechanism, occasionally manifesting as cyanosis. When anxiety improved, hypoxia also improved. Thus, the treatment of anxiety and depression seems effective in improving hypoxemia. Notably, this is a rare report, and we hope to draw the attention of psychosomatic specialists, psychiatrists, and clinicians to seek the relationship between anxiety appearing as acute stress and PFO. This may be a new therapeutic method for treating severe anxiety disorder

An Experimental Investigation on the Mechanical Properties of Gangue Concrete as a Roadside Support Body Material for Backfilling Gob-Side Entry Retaining

Development of a safe and economical roadside support body (RSB) material is the key to successful backfilling gob-side entry retaining (GER). By means of laboratory tests, this paper studied the effects of the water-cement ratio, aggregate content, and age on the contractibility and resistance increasing speed, compressive strength, and postpeak carrying capacity of the concrete with gangues as an aggregate. It also discussed the rationality and adaptability of gangue concrete as a RSB material for backfilling GER. The experimental results show that the compressive strength of gangue concrete increases with age, and that the strength of gangue concrete demonstrates a nonlinear decreasing trend with the increase of the cementing material’s water-cement ratio. The water-cement ratio in the range of 0.46–0.60 has the most significant regulation effect on the strength of gangue concrete. Mixing with a certain amount of coal gangue enhances the postpeak carrying capacity of concrete, preventing the sample from impact failure. The field experimental results report that as a RSB material, gangue concrete can meet the design and application requirements of GER with gangue backfilling mining. A RSB material featuring high safety, high waste utilization rate, fast construction speed, and low costs is provided