On the relevance of earnings components in valuation and forecasting

Pre-print also submitted to SSRN Archive. The final publication is available at Springer via http://dx.doi.org/ 10.1007/s11156-013-0347-yThis paper articulates the links between relevance of an earnings component in forecasting (abnormal) earnings and its relevance in valuation in a nonlinear framework. The analysis shows that forecasting relevance does not imply valuation relevance even though valuation irrelevance is implied by forecasting irrelevance. Firstly, I consider an accounting information system where earnings components "add up" to a fully informative earnings number. Secondly, I analyze two accounting systems where a "core" earnings component is the relevant earnings construct for valuation and the second earnings component is irrelevant but may be predictable and relevant in forecasting other accounting items. I find that dividend displacement effect on earnings and the dynamics of individual earnings components are critical in this analysis

The valuation of European financial firms

We extend the recent literature concerning accounting based valuation models to investigate financial firms from six European countries with substantial financial sectors: France, Germany, Italy, Netherlands, Switzerland and the UK. Not only are these crucial industries worthy of study in their own right, but unusual accounting practices, and inter-country differences in those accounting practices, provide valuable insights into the accounting-value relationship. Our sample consists of 7,714 financial firm/years observations from 1,140 companies drawn from 1989-2000. Sub-samples include 1,309 firm/years for banks, 650 for insurance companies, 1,705 for real estate firms, and 3,239 for investment companies. In most countries we find that the valuation models work as well or better in explaining cross-sectional variations in the market-to-book ratio for financial firms as they do for industrial and commercial firms in the same countries, although Switzerland is an exception to this generalization. As expected, the results are sensitive to industrial differences, accounting regulation and accounting practices. In particular, marking assets to market value reduces the relevance of earnings figures and increases that of equity

Food intakes of 2,189 women in five north central states

Nearly 2,200 women, ranging in age from 30 to more than 90 years, living in five North Central states, provided the 24-hour dietaries from which data summarized in this bulletin were obtained. The women interviewed in Iowa and South Dakota were selected by area-probability sampling methods, so that they represented all women over 29 years of age in each of these two states. Four other samples were drawn from three urban centers: one from Urbana, Illinois; two (one white, one Negro) from Lansing-East Lansing, Michigan; and one from St. Paul, Minnesota. The mean nutritive values of 24-hour dietaries reported by the white women in the five samples were similar: Food energy values ranged from 1,665 to 1,780 Cal.; protein values from 53 to 64 gm.; calcium, from 0.44 to 0.64 gm.; iron, from 9.9 to 11.9 mg.; ascorbic acid, from 53 to 75 mg.; thiamine, from 0.9 to 1.1 mg.; riboflavin, from 1.1 to 1.4 mg.; niacin, from 9.2 to 11.0 mg.; vitamin A value, from 4,425 to 6,730 I.U. Individual intakes within each sample varied considerably. Days\u27 diets of Negro women in the Lansing-East Lansing sample supplied mean amounts of food energy and of all nutrients except vitamin A that were lower than those of dietaries of any group of white women studied

Luz e temperatura na germinação de sementes de pimenta longa (Piper hispidinervum) e pimenta-de-macaco (Piper aduncum).

As espécies Piper hispidinervum e Piper aduncum destacam-se como produtoras de óleos essenciais ricos em compostos de interesse às indústrias de perfumaria e produtos fitossanitários, como o safrol e dilapiol. Essas espécies encontram-se em processo de domesticação e estudos sobre o processo germinativo de suas sementes são escassos. Assim, objetivou-se com o presente trabalho avaliar a viabilidade de sementes de P. hispidinervum e P. aduncum, buscando determinar um protocolo eficiente para a realização do teste de germinação para cada espécie estudada. O trabalho foi conduzido no período de julho a agosto de 2008, sendo as sementes submetidas a diferentes combinações de temperatura e de luz: 20 °C e 25 °C sob luz branca e difusa; e 20-30 °C alternando escuro (16 h) e claro (8 h), totalizando cinco tratamentos. O tratamento utilizando a temperatura de 25 °C com incidência de luz branca foi o que produziu melhores resultados, com maiores valores de porcentagem e velocidade de germinação sendo, portanto, indicado para avaliação da qualidade fisiológica das sementes de pimenta longa e pimenta-de-macaco

National culture and earnings management in developed and emerging countries

Purpose This study investigates how the association between national culture and earnings management compares between developed and emerging countries. Design/methodology/approach The empirical analysis relies on a sample of 6,313 firm-year observations from 11 emerging markets and 27,605 firm-year observations from 22 developed countries. The authors use ordinary least squares regression methods to test the hypotheses of the study. Findings Based on Hofstede's (2011) cultural dimensions, the authors find that firms from countries with a higher level of uncertainty avoidance and individualism are less likely to engage in earnings management, but the effect of uncertainty avoidance (individualism) is more (less) pronounced in the emerging countries. Moreover, the authors demonstrate that firms from emerging (developed) countries with higher levels of power distance and masculinity are less (more) likely to engage in earnings management. Finally, the authors find evidence of a trade-off between accruals-based and real earnings management in firms from countries with greater long-term orientation and an indulgence cultural dimension. Originality/value This paper adds to the literature by theoretically discussing and empirically analysing the role that developed and emerging countries' development plays on the effect of national culture on earnings management.info:eu-repo/semantics/acceptedVersio

Mandatory adoption of IFRS and earnings management in emerging countries: the role of national culture

This study examines whether the characteristics of national culture, as proposed by Hofstede, Hofstede and Minkov (2010), are moderating factors on the potential impact of IFRS mandatory adoption on the quality of accounting information in emerging countries. The quality of information was measured through earnings management by accruals, based on the model of Jones (1991) modified by Dechow, Sloan and Sweeney (1995). Through a sample of 2,458 companies from 13 countries, totaling 18,163 firm-year observations, we identified that the dimensions of individualism, masculinity, aversion to uncertainty, long-term orientation and indulgence moderates the impact of IFRS adoption on earnings management levels in emerging countries. It was not possible to identify evidence that the power distance dimension exerts such influence. Overall, this study adds to the literature on the effect of cultural factors on accounting quality.info:eu-repo/semantics/publishedVersio

Jets and jet-like correlations studies from STAR

I present recent results from jets and jet-like correlation measurements from STAR. The pp data are compared to those from Au-Au collisions to attempt to infer information on the medium produced and how hard scattered partons interact with this matter. Results from d-Au events are utilized to investigate the magnitude of cold nuclear matter effects on hard scatterings. The evolution of the underlying event from pp to d-Au collisions is studied. In heavy-ion collisions, background fluctuations are the major source of systematic uncertainties in jet measurements. Detailed studies are therefore being made of these fluctuations and recent progress in our understanding is reported. Jet and jet-hadron correlations results are presented and give clear indications that partonic fragmentation at RHIC is highly modified in the presence of a strongly coupled coloured medium, resulting in a significant broadening and softening of the jet fragments correlation. Finally di-hadron correlations utilizing identified particles as triggers indicate that the "ridge" is stronger for p+K than for pi but that the near-side peak per-trigger yield remains unaltered from d-Au to Au-Au collisions.Comment: Proceedings for QM201

Salmonella Pathogenesis and Processing of Secreted Effectors by Caspase-3

The enteric pathogen Salmonella enterica serovar Typhimurium causes food poisoning resulting in gastroenteritis. The S. Typhimurium effector Salmonella invasion protein A (SipA) promotes gastroenteritis by functional motifs that trigger either mechanisms of inflammation or bacterial entry. During infection of intestinal epithelial cells, SipA was found to be responsible for the early activation of caspase-3, an enzyme that is required for SipA cleavage at a specific recognition motif that divided the protein into its two functional domains and activated SipA in a manner necessary for pathogenicity. Other caspase-3 cleavage sites identified in S. Typhimurium appeared to be restricted to secreted effector proteins, which indicates that this may be a general strategy used by this pathogen for processing of its secreted effectors

Visceral Adiposity Index: A reliable indicator of visceral fat function associated with cardiometabolic risk

Objective: To individuate a novel sex-specific index, based on Waist Circumference (WC), Body Mass Index (BMI), Triglycerides (TG) and HDL cholesterol (HDL), indirectly expressing visceral fat function. Research design and Methods: Visceral Adiposity Index (VAI) was first modelled on 315 non-obese healthy subjects. Using two multiple logistic regression models, VAI was retrospectively validated in 1,498 primary care patients in comparison to classical cardio and cerebrovascular risk factors. Results: All components of metabolic syndrome increased significantly across VAI quintiles. VAI was independently associated with both cardiovascular (OR:2.45; 95%CI: 1.52-3.95; p<0.001) and cerebrovascular events (OR:1.63; 95%CI: 1.06-2.50; p=0.025). VAI also showed significant inverse correlation with insulin sensitivity during euglycemic-hyperinsulinemic clamp in a subgroup of patients (R(s)= -0.721; p<0.001). By contrast, no correlations were found for WC and BMI. Conclusions: Our study suggests VAI is a valuable indicator of "visceral adipose function" and insulin sensitivity, and its increase is strongly associated with cardiometabolic risk