The long-term performance of Hong Kong share-only and unit initial public offerings (IPOs)

This study examines the long-term price performance of share-only versus unit IPOs issued on the Hong Kong Stock Exchange during 1990–2002. Our main objective is to test the extent to which the agency cost and signaling models explain the reasons for unit IPOs issuance using the long-term price performance approach. The agency cost model suggests that firms include warrants in their offerings to bind managers to optimal investment decisions. Under this model, unit IPOs are expected to possess better quality projects and, therefore, generate higher long-term risk-adjusted returns than share-only IPOs. The signaling model expects unit IPOs to be riskier than share-only IPOs. To compensate investors for bearing the extra risk, unit IPOs should yield higher returns than share-only IPOs in the long run. Thus, the signaling model expects unit IPOs to outperform share-only IPOs at least before conducting appropriate risk adjustments. Our long-term price performance evidence rejects the predictions of both models

CEO Dismissal, Compensation and Topics of Board Meetings: The Case of China

Our paper examines the relationship between the frequency of board meetings on particular topics, and CEO dismissal/compensation and performance sensitivities. We utilize a unique dataset of specific topics discussed at board meetings, drawn from the reports of independent directors of listed firms in China over the period of 2003 to 2010. Our results show that turnover-performance sensitivity is weaker when there is a higher frequency of board meetings discussing the nomination of directors and top management. Moreover, the link between CEO compensation and firm performance is enhanced only when directors meet more often to discuss growth strategies for the use of IPO proceeds, investment and acquisitions. The paper provides support for agency theories on the effectiveness of board monitoring. It sheds lights on what makes boards more effective, and how board monitoring of different decisions at board meetings modifies the connection between CEO interests and firm performance

Causal connectivity abnormalities of regional homogeneity in children with attention deficit hyperactivity disorder: a rest-state fMRI study

The present study aimed to investigate individual differences of causal connectivity between brain regions in attention deficit hyperactivity disorder (ADHD) which was a psychiatric disorder. Resting-state functional magnetic resonance imaging (R-fMRI) data of typically-developing controls (TDC) children group and combined ADHD (ADHD-C) children group were distinguished by the support vector machine (SVM) with linear kernel function, based on regional homogeneity (ReHo), amplitude of low frequency fluctuation (ALFF) and fractional ALFF (FALFF). The highest classification accuracy yielded by ReHo was 90.91 %. Furthermore, the granger causality analysis (GCA) method based on the classified weight map of regions of interesting (ROIs) showed that five causal flows existed significant difference between TDC and ADHD-C. That is, the averaged GCA values of three causal connections (i.e. left VLPFC left CC1, right PoCG left CC1, and right PoCG right CC2) for ADHD-C were separately stronger than those for TDC. And the other two connections (i.e. right FEF right SOG and right CC1 right SOG) were weaker for ADHD-C than those for TDC. In addition, only two causality flows (i.e. left VLPFC left CC1 and right PoCG right CC2) presented that their GCA values were positively correlation with ADHD index scores, respectively. Our findings revealed that ADHD children represented widespread abnormalities in the causality connectivity, especially involved in the attention and memory related regions. And further provided evidence that the potential neural causality flows could play a key role in characterizing individual’s ADHD

Explore postgraduate biomedical engineering course integration between medical signal processing and drug development: example for drug development in brain disease

Medical signal processing is a compulsory course in our university’s undergraduate biomedical engineering programme. Recently, application of medical signal processing in supporting new drug development has emerged as a promising strategy in neurosciences. Here, we discuss the curriculum reformation in biomedical signal processing course in the context of drug development and application in central nervous system, with a particular emphasis in knowledge integration

Specific frequency bands of amplitude low-frequency fluctuations in memory-related cognitive impairment: predicting Alzheimer’s disease

Resting-state functional magnetic resonance imaging was utilized to measure the amplitude low frequency fluctuations (ALFF) in human subjects with Alzheimer’s disease (AD) and normal control (NC). Two specific frequency bands (Slow5: 0.01-0.027Hz and Slow4: 0.027-0.073Hz) were analysed in the main cognitive control related four subregions of the right ventral lateral prefrontal cortex (VLPFC), i.e. IFJ, posterior-VLPFC, mid-VLPFC, and anterior-VLPFC. Differences in ALFF values between the AD and the NC group were found throughout the subregions of the right VLPFC. Compared to normal control group, decreased ALFF values were observed in AD patients in the IFJ (in two given frequency bands), and the mid-VLPFC (in Slow5). In contrast, increased ALFF valued were observed in AD patients in the posterior- and anterior-VLPFC (in both Slow5 and Slow4), and also in the mid-VLPFC in Slow4. Moreover, significant ALFF differences between the IFJ and three other subregions of the right VLPFC were found. Furthermore, ALFF values in the right VLPFC showed significant correlations with the time course of disease. Taken together, our findings suggest that AD patients have largely abnormalities in intrinsic neural oscillations which are in line with the AD pathophysiology, and further reveal that the abnormalities are dependent on specific frequency bands. Thus, frequency-domain analyses of the ALFF may provide a useful tool to investigate the AD pathophysiology

Strength degradation mechanism of iron coke prepared by mixed coal and Fe2O3

Iron coke, as a new type of blast furnace burden is helpful for energy saving, emission reduction and green production of iron making. This study aims to investigate the strength degradation mechanism of iron coke prepared by mixed coal and Fe2O3 to provide a theoretical direction to improve its strength. Coking and pyrolysis experiments of mixed coal and Fe2O3 were carried out between 400 and 500 ℃ temperature. Gieseler plastometer and derivative thermogravimetric (DTG) showed that added Fe2O3 inhibited the thermoplasticity and pyrolysis process of mixed coal during coking. X-ray diffraction (XRD) and Fourier transform infrared spectroscopy (FT-IR) results showed that added Fe2O3 decreased the aromaticity and average stacking height, but increased the interlayer spacing of crystallite, aliphatic chain length and hydrocarbon-generating potential of mixed coal during coking. Further, gas chromatography-mass spectrometer (GCsingle bondMS) analysis suggested that the added Fe2O3 inhibited the cleavage of Calsingle bondO, Calsingle bondS, Calsingle bondN, Calsingle bondCar and Calsingle bondCal bonds, reduced the generation of ethylbenzene, o-xylene and unbranched alkanes with carbon atoms in 24–26, thus decreased the amount of fluid phase generated in coking and ultimately degraded the strength of iron coke

Characterization of Non-heading Mutation in Heading Chinese Cabbage (Brassica rapa L. ssp. pekinensis)

Heading is a key agronomic trait of Chinese cabbage. A non-heading mutant with flat growth of heading leaves (fg-1) was isolated from an EMS-induced mutant population of the heading Chinese cabbage inbred line A03. In fg-1 mutant plants, the heading leaves are flat similar to rosette leaves. The epidermal cells on the adaxial surface of these leaves are significantly smaller, while those on the abaxial surface are much larger than in A03 plants. The segregation of the heading phenotype in the F2 and BC1 population suggests that the mutant trait is controlled by a pair of recessive alleles. Phytohormone analysis at the early heading stage showed significant decreases in IAA, ABA, JA and SA, with increases in methyl IAA and trans-Zeatin levels, suggesting they may coordinate leaf adaxial-abaxial polarity, development and morphology in fg-1. RNA-sequencing analysis at the early heading stage showed a decrease in expression levels of several auxin transport (BrAUX1, BrLAXs, and BrPINs) and responsive genes. Transcript levels of important ABA responsive genes, including BrABF3, were up-regulated in mid-leaf sections suggesting that both auxin and ABA signaling pathways play important roles in regulating leaf heading. In addition, a significant reduction in BrIAMT1 transcripts in fg-1 might contribute to leaf epinastic growth. The expression profiles of 19 genes with known roles in leaf polarity were significantly different in fg-1 leaves compared to wild type, suggesting that these genes might also regulate leaf heading in Chinese cabbage. In conclusion, leaf heading in Chinese cabbage is controlled through a complex network of hormone signaling and abaxial-adaxial patterning pathways. These findings increase our understanding of the molecular basis of head formation in Chinese cabbage

Stock price reaction to profit warnings: The role of time-varying betas

This study investigates the role of time-varying betas, event-induced variance and conditional heteroskedasticity in the estimation of abnormal returns around important news announcements. Our analysis is based on the stock price reaction to profit warnings issued by a sample of firms listed on the Hong Kong Stock Exchange. The standard event study methodology indicates the presence of price reversal patterns following both positive and negative warnings. However, incorporating time-varying betas, event-induced variance and conditional heteroskedasticity in the modelling process results in post-negative-warning price patterns that are consistent with the predictions of the efficient market hypothesis. These adjustments also cause the statistical significance of some post-positive-warning cumulative abnormal returns to disappear and their magnitude to drop to an extent that minor transaction costs would eliminate the profitability of the contrarian strategy

Index revisions, systematic liquidity risk and the cost of equity capital

This study investigates the impact of FTSE100 index revisions on firms' systematic liquidity risk and the cost of equity capital. We show that index membership enhances all aspects of liquidity, whereas stocks that leave the index exhibit no significant liquidity change. We also show that the liquidity risk premium and the cost of equity capital decline significantly after additions, but do not exhibit any significant change following deletions. The control sample analysis indicates that observed decline in liquidity premium and the cost of equity capital is not driven by factors other than index revisions. Our evidence is consistent with Journal of Financial Economics, 1, 17 (1986)'s argument that since liquidity is priced, an increase in liquidity will result in lower expected returns. Furthermore, the asymmetric impact of additions and deletions on stock liquidity and cost of capital is consistent with the view that the benefits of index membership are permanent (see, e.g. Journal of Finance, 59, No. 4 1901-29, August 2004; Journal of Investment Management 4, 23-37, 2006)