FIRMS’ NON-RELIANCE JUDGMENT, RESTATEMENT VENUE CHOICE, AND LITIGATION RISK

This paper examines the determinants of firms’ non-reliance judgment and the effect of restatements disclosure venue choice on future litigation risk. The Securities and Exchange Commission (SEC) requires firms to disclose any error that will undermine investors’ reliance on previously issued financial statements in Item 4.02 of Form 8-K starting on August 23, 2004. The requirements for non-reliance judgments lack clear guidelines; raising concerns that firms are cloaking errors and mistakes through opaque disclosure venues instead of the more prominent Form 8-K. This paper is the first to investigate the quantitative and qualitative criteria that firms use for non-reliance judgments and estimate the likelihood of specific disclosure venue choice. Applying this estimation into securities class-action litigation setting with controls for restatement characteristics and potential self-selection biases, I find that a more prominent restatement disclosure venue is associated with higher future litigation risk. This finding provides a plausible explanation for the current popularity of so-called ‘stealth restatements.’ These findings are robust to the exclusion of a transition period of the new regulation, firms with multiple restatements, and dismissed lawsuits

THE IMPACT OF MARKET REFORMS ON SPATIAL VOLATILITY OF MAIZE PRICE IN TANZANIA

The impacts of market reforms on prices volatility in developing countries are not well understood because analysts have not been able to predict the impacts. This study investigates whether the reforms have exacerbated the degree of spatial volatility of maize price in Tanzania using ARCH-M model. Results indicate that developed regions might have experienced less volatile prices than less developed regions. Infrastructure development to increase the volume of trade between the regions is recommended.Demand and Price Analysis,

Zombie Vortex Instability. II. Thresholds to Trigger Instability and the Properties of Zombie Turbulence in the Dead Zones of Protoplanetary Disks

In Zombie Vortex Instability (ZVI), perturbations excite critical layers in stratified, rotating shear flow (as in protoplanetary disks), causing them to generate vortex layers, which roll-up into anticyclonic zombie vortices and cyclonic vortex sheets. The process is self-sustaining as zombie vortices perturb new critical layers, spawning a next generation of zombie vortices. Here, we focus on two issues: the minimum threshold of perturbations that trigger self-sustaining vortex generation, and the properties of the late-time zombie turbulence on large and small scales. The critical parameter that determines whether ZVI is triggered is the magnitude of the vorticity on the small scales (and not velocity), the minimum Rossby number needed for instability is $Ro_{crit}\sim0.2$ for $\beta\equiv N/\Omega = 2$, where $N$ is the Brunt-V\"ais\"al\"a frequency. While the threshold is set by vorticity, it is useful to infer a criterion on the Mach number, for Kolmogorov noise, the critical Mach number scales with Reynolds number: $Ma_{crit}\sim Ro_{crit}Re^{-1/2}$. In protoplanetary disks, this is $Ma_{crit}\sim10^{-6}$. On large scales, zombie turbulence is characterized by anticyclones and cyclonic sheets with typical Rossby number $\sim$0.3. The spacing of the cyclonic sheets and anticyclones appears to have a "memory" of the spacing of the critical layers. On the small scales, zombie turbulence has no memory of the initial conditions and has a Kolmogorov-like energy spectrum. While our earlier work was in the limit of uniform stratification, we have demonstrated that ZVI works for non-uniform Brunt-V\"ais\"al\"a frequency profiles that may be found in protoplanetary disks.Comment: Submitted to Ap

On the Feature Discovery for App Usage Prediction in Smartphones

With the increasing number of mobile Apps developed, they are now closely integrated into daily life. In this paper, we develop a framework to predict mobile Apps that are most likely to be used regarding the current device status of a smartphone. Such an Apps usage prediction framework is a crucial prerequisite for fast App launching, intelligent user experience, and power management of smartphones. By analyzing real App usage log data, we discover two kinds of features: The Explicit Feature (EF) from sensing readings of built-in sensors, and the Implicit Feature (IF) from App usage relations. The IF feature is derived by constructing the proposed App Usage Graph (abbreviated as AUG) that models App usage transitions. In light of AUG, we are able to discover usage relations among Apps. Since users may have different usage behaviors on their smartphones, we further propose one personalized feature selection algorithm. We explore minimum description length (MDL) from the training data and select those features which need less length to describe the training data. The personalized feature selection can successfully reduce the log size and the prediction time. Finally, we adopt the kNN classification model to predict Apps usage. Note that through the features selected by the proposed personalized feature selection algorithm, we only need to keep these features, which in turn reduces the prediction time and avoids the curse of dimensionality when using the kNN classifier. We conduct a comprehensive experimental study based on a real mobile App usage dataset. The results demonstrate the effectiveness of the proposed framework and show the predictive capability for App usage prediction.Comment: 10 pages, 17 figures, ICDM 2013 short pape

The Meaning of 'Free Access to Legal Information': A Twenty Year Evolution

Free online access to legal information is approaching maturity in some parts of the world, after two decades of development, but elsewhere is still in its early stages of development. Nowhere has it been realised fully.  The main question asked in this paper is “what should 'free access' mean in relation to legal information in order for it to be fully effective?” As with software, we must ask whether free access to law is ‘free as in beer, or free as in speech?’ The six most significant attempts over the last twenty years to answers this question are analysed to show that a substantial degree of international consensus has developed on what ‘free access to legal information’ now means. Of thirty separate identifiable principles, most are found in more than one statement of principles, and many are now relatively common in the practices of both States and providers of free access to legal information (government and NGO). Many concern measure to avoid the development of monopolies in publication of the core legal documents of a jurisdiction. Which principles are essential to the meaning of ‘free access to legal information’, and which are only desirable, is usually clear. Two complementary meanings of ‘free access to legal information’ emerge. The first states the obligations of the State in relation to ensuring free access to legal information – but not necessarily providing it. The key elements concern the right of republication. The second meaning states the conditions under which an organisation can correctly be said to be a provider of free access to legal information. We argue that a better definition is needed than the ‘consensus’ suggests, and propose one based on the avoidance of conflicts with maximisation of the quality and quantity of free access. One use of such a set of principles is to help evaluate the extent to which any particular jurisdiction has implemented free access to legal information. A brief example is given of Australia, a county with a generally good record but some deficiencies. Finally the paper considers what steps should be taken to most effectively realise a reformulated concept of ‘free access to legal information’, by civil society, by States at the national level, and at the international level