Aggregate quasi rents and auditor independence : evidence from audit firm mergers in China

Using a sample of audit firm mergers in China\u27s audit market, this paper provides evidence on the way auditor independence can be improved following audit firm mergers as a result of a change in the aggregate quasi rents that are exposed to risk (i.e., the quasi rents at stake). This setting allows us to examine the relationship between auditor independence and the aggregate quasi rents at stake directly after controlling for the confounding effects of auditor competence, audit firm brand name, and the self-selection problem that may exist in previous studies. We hypothesize that auditors become more independent in the post-merger period only if the mergers increase the aggregate quasi rents at stake. Proxying audit quality by the frequency of modified audit opinions (MAOs) and using a \u27\u27difference-in-differences\u27\u27 research design, we conduct separate tests for two types of mergers under the institutional arrangements in China: one with an increase in the aggregate quasi rents at stake and the other with little change in these rents. Consistent with our hypothesis, we observe an improvement in auditor independence, but only for mergers that increase auditors\u27 aggregate quasi rents at stake. Moreover, the post-merger increase in the propensity for MAOs in this type of merger is positively associated with the magnitude of the change in the aggregate quasi rents at stake. Our empirical findings support the theory that auditor independence is a positive function of the aggregate quasi rents at stake

Lateral Shift Makes a Ground-Plane Cloak Detectable

We examine the effectiveness of the ground-plane invisibility cloak generated from quasiconformal mapping of electromagnetic space. This cloak without anisotropy will generally lead to a lateral shift of the scattered wave, whose value is comparable to the height of the cloaked object, making the object detectable. This can be explained by the fact that the corresponding virtual space is thinner and wider than it should be. Ray tracing on a concrete model shows that for a bump with a maximum height of 0.2 units to be hidden, the lateral shift of a ray with 45 degree incidence is around 0.15 units

Anticipating Daily Intention using On-Wrist Motion Triggered Sensing

Anticipating human intention by observing one's actions has many applications. For instance, picking up a cellphone, then a charger (actions) implies that one wants to charge the cellphone (intention). By anticipating the intention, an intelligent system can guide the user to the closest power outlet. We propose an on-wrist motion triggered sensing system for anticipating daily intentions, where the on-wrist sensors help us to persistently observe one's actions. The core of the system is a novel Recurrent Neural Network (RNN) and Policy Network (PN), where the RNN encodes visual and motion observation to anticipate intention, and the PN parsimoniously triggers the process of visual observation to reduce computation requirement. We jointly trained the whole network using policy gradient and cross-entropy loss. To evaluate, we collect the first daily "intention" dataset consisting of 2379 videos with 34 intentions and 164 unique action sequences. Our method achieves 92.68%, 90.85%, 97.56% accuracy on three users while processing only 29% of the visual observation on average

Separation and extraction of bridge dynamic strain data (in Chinese)

Through comparing the measured data of dynamic strains due to loading and temperature by the strain gauge and temperature sensor at the same location, the information in the strain data was divided into three parts in the frequency domain by using the defined index named PSD (power spectra density)- ratio. The three parts are dominated respectively by temperature varying, stresses and noises and can be distinguished from the determined values of the separatirix frequencies. Then a simple algorithm was developed to separate the three types of information, and to extract the strain caused mainly by structural stresses. As an application of the proposed method, the influence of strain deformation and noises. As an application of the proposed method, the influence of strain deformation and noises on the fatigue assessment was investigated based on the separated data. The results show that, the determined values of separatrix frequencies are valuable for the monitoring data from other bridges. The algorithm is a multi resolution and hierarchical method, which has been validated as a simple and effective method for data analyses, and is suitable for the compression and pre-processing of the great amount monitoring data and easy to be integrated in the SHM's (structural health monitoring)software system. The strain due to temperature varying attributes only a little to the errors of fatigue assessment. However, the noises or random disturbance existed in the monitoring data have much responsibility for the errors, the main reason is that the random disturbance shifts the real strain/stress amplitude picked up by real structural stress or strain

Hong Kong is an impact crater: Proof from the geomorphological and geological evidence

Hong Kong is a city in southern China. The urban districts of Hong Kong, Kowloon, and Victoria Harbour are situated within Hong Kong. Hong Kong is surrounded by mountains with a diameter of 11 km. Three million people live inside the basin. The round structure of the mountains in Hong Kong has been describd as a granite dome that is deeply eroded (batholith). The circularity of the mountains, the existence of a central hill, the inner slope of the mountains being greater than the outer slope, the presence of deep layer rock inside the basin, and the depth-to-diameter ratio were studied. All this evidence shows that the Hong Kong structure satisfies the geomorphological requirement of an impact crater. Some shock metamorphic phenomena of the rocks in Hong Kong such as planar features, microspherilitic silica glass (lechaterlierite), fused margins of rock fragments, concussion fractures, impact glass in which some schlierens are consistent with pyroxene spiculites, etc., were first discovered in Oct. 1990. In Hong Kong Island, an impact melt sheet was observed from the Victoria Peak to the southern shore. Quenching fractures of quartz in Kowloon fine-grained granite was also discovered. In our work, the K-Ar age (83.34 + 1.26 m.y.) of the impact melt rock, which is younger in comparison to the K-Ar age (117 m.y.) in Hong Kong and Kowloon granite, was measured, and the phenomena indicate that after the granite body formed, there was another geologic event. Maybe it is the Hong Kong cratering event