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

A Γ\Gamma-matrix generalization of the Kitaev model

We extend the Kitaev model defined for the Pauli-matrices to the Clifford algebra of $\Gamma$-matrices, taking the $4 \times 4$ representation as an example. On a decorated square lattice, the ground state spontaneously breaks time-reversal symmetry and exhibits a topological phase transition. The topologically non-trivial phase carries gapless chiral edge modes along the sample boundary. On the 3D diamond lattice, the ground states can exhibit gapless 3D Dirac cone-like excitations and gapped topological insulating states. Generalizations to even higher rank $\Gamma$-matrices are also discussed.Comment: A revised versio

A theoretical model of the wave particle interaction of plasma in space

A theoretical model, based on the kinetic theory for the perturbation of plasma in the magnetosphere, is proposed to study the observed disturbances which are caused by both natural and artificial sources that generate wave-like perturbations propagating around the globe. The proposed model covers the wave propagation through a media of transitional (from collisional to collisionless) fully ionized magnetoactive plasma. A systematic formulation of the problem is presented and the method of solution for the transitional model of magnetosphere is discussed. The possible emission of hydromagnetic waves in the magnetosphere during the quiet and disturbed time are also discussed

Multifluids description of dynamics of upper atmosphere

A multifluids model to investigate ionospheric dynamics was established on kinetic theory. Its resultant equations are used to examine the following dynamic problems in the gamma region of 80-2000 Km of the ionosphere: (1) propagation of acoustic modes in the 500-2,000 Km of the ionosphere (two fluid model); (2) the relation between the cross field plasma drift instabilities and type I and type II ionospheric irregularities; and (3) time dependent neutral wind structure and horizontal pressure gradient

Gravitational radiations of generic isolated horizons and non-rotating dynamical horizons from asymptotic expansions

Instead of using a three dimensional analysis on quasi-local horizons, we adopt a four dimensional asymptotic expansion analysis to study the next order contributions from the nonlinearity of general relativity. From the similarity between null infinity and horizons, the proper reference frames are chosen from the compatible constant spinors for an observer to measure the energy-momentum and flux near quasi-local horizons. In particular, we focus on the similarity of Bondi-Sachs gravitational radiation for the quasi-local horizons and compare our results to Ashtekar-Kirshnan flux formular. The quasi-local energy momentum and flux of generic isolated horizons and non-rotating dynamical horizons are discussed in this paper.Comment: PRD, 15 page