Depression and Social Support as Moderators of Withon-Person Relationships Between Daily Events and Daily Adjustments During Adolescence

Everyday for 2 weeks, adolescents described the events that occurred each day and provided measures of their daily self-esteem and depressogenic adjustment. Adolescents also provided trait measures of depression and social support. Within-person relationships were found between social and achievement, positive and negative daily events and daily adjustment. Depression and social support moderated specific within-person relationships. Less well-adjusted adolescents were more reactive to social positive events than better-adjusted adolescents, but surprisingly, better-adjusted adolescents were more reactive to social negative events than less well-adjusted adolescents. Better-adjusted adolescents were also more reactive to achievement positive events than less well-adjusted adolescents. Girls were more reactive to social negative events than boys, a difference that was not accounted for by gender differences in trait depression. Finally, adolescents with high social support satisfaction were less reactive to achievement negative events and social positive events than adolescents with low social support satisfaction

Valuing Loss Firms

We hypothesize that when confronted with a loss, investors price earnings conditional on the expected probability of the firm's return to profitability. We show a parsimonious model of one year-ahead loss reversal is useful in predicting the firm's return to profitability. Using the estimated probabilities of loss reversal to define samples of persistent (low probability of reversal) and transitory (high probability of reversal) losses, we show the pricing of losses, as well as their characteristics, varies as a function of their expected probability of reversal. We document a more pronounced stock price response to a transitory loss consistent with investors assessing the likelihood of exercising the abandonment option to be smaller. We also find the market responds negatively to persistent losses, especially in the latter part of the sample period. We also show the results are consistent with investors pricing the components of losses differently depending on the type of loss: they value only the aggregate accruals component of persistent losses and only the aggregate cash flow component of transitory losses. Further analysis shows the result for persistent losses relates to the presence of an increasingly larger R&D component that investors price negatively as if rewarding firms that make larger R&D outlays with larger returns. One consequence of the presence of a growing R&D component implies persistent losses become a weaker indicator of the likelihood of exercising the abandonment option