Does media exposure affect financial reporting quality through auditors?

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Non-GAAP earnings and stock price crash risk

Lee Kong Chian Fellowship, SM

Feasibility analysis of storing solar energy in heterogeneous deep aquifer by hot water circulation: Insights from coupled hydro-thermo modeling

Storing solar energy in the subsurface as heat is a promising way for energy storage and conversion, which has a great potential to address the temporal and spatial mismatch between energy demand and supply. Thermal energy storage in deep aquifers can convert intermittent solar energy into stable high temperature geothermal energy. In this study, a new solar energy storage and conversion system is proposed where solar energy is firstly converted into heat using parabolic troughs and then stored in deep aquifers by high temperature hot water circulation. The geostatistical modelling and hydro-thermo coupling simulations are adopted to investigate the feasibility and efficiency of solar energy storage in deep aquifers. Specifically, how rock permeability heterogeneity (in terms of autocorrelation length and global permeability heterogeneity) impacts the temporal and spatial evolution of temperature distribution and storage efficiency is examined. The simulation results indicate that increased horizontal autocorrelation length and global heterogeneity may accelerate thermal breakthrough, deteriorating storage efficiency. High permeability heterogeneity may also lead to high injection pressure. Deep aquifers with small horizontal autocorrelation lengths and low global heterogeneity tend to have higher storage efficiency. These findings may improve our understanding of solar energy storage mechanism in deep aquifers and guide field applications.Document Type: Original articleCited as: Wang, Y., Zhong, K., Gao, Y., Sun, Z., Dong, R., Wang, X. Feasibility analysis of storing solar energy in heterogeneous deep aquifer by hot water circulation: Insights from coupled hydro-thermo modeling. Advances in Geo-Energy Research, 2023, 10(3): 159-173. https://doi.org/10.46690/ager.2023.12.0

Management forecast consistency

We posit that management forecasts, which are predictable transformations of realized earnings without random errors, are more informative than unbiased forecasts, which manifest small but unpredictable errors, even if biased forecasts are less accurate. Consistent with this intuition, we find that managers who make consistent forecasting errors have a greater ability to influence investor reactions and analyst revisions, even after controlling for the effect of accuracy. This effect is more economically significant and statistically robust than that of forecast accuracy. More sophisticated investors and experienced analysts are found to have a better understanding of the benefits of consistent management forecasts

Shareholder litigation and corporate disclosure: Evidence from derivative lawsuits

Using the staggered adoption of universal demand (UD) laws in the United States, we study the effect of shareholder litigation risk on corporate disclosure. We find that disclosure significantly increases after UD laws make it more difficult to file derivative lawsuits. Specifically, firms issue more earnings forecasts and voluntary 8-K filings, and increase the length of management discussion and analysis (MD&A) in their 10-K filings. We further assess the direct and indirect channels through which UD laws affect firms' disclosure policies. We find that the effect of UD laws on corporate disclosure is driven by firms facing relatively higher ex ante derivative litigation risk and higher operating uncertainty, as well as firms for which shareholder litigation is a more important mechanism to discipline managers