Earnings Management and Long-Run Stock Underperformance of Private Placements

The study investigates whether private placement issuers manipulate their earnings around the time of issuance and the effect of earnings management on the long-run stock performance. We find that managers of U.S. private placement issuers tend to engage in income-increasing earnings management in the year prior to the issuance of private placements. We further speculate that earnings management serves as a likely source of investor over-optimism at the time of private placements. To support this speculation, we find evidence suggesting that the income-increasing accounting accruals made at the time of private placements predict the post-issue long-term stock underperformance. The study contributes to the large body of literature on earnings manipulation around the time of securities issuance

Particle swarm optimization with composite particles in dynamic environments

This article is placed here with the permission of IEEE - Copyright @ 2010 IEEEIn recent years, there has been a growing interest in the study of particle swarm optimization (PSO) in dynamic environments. This paper presents a new PSO model, called PSO with composite particles (PSO-CP), to address dynamic optimization problems. PSO-CP partitions the swarm into a set of composite particles based on their similarity using a "worst first" principle. Inspired by the composite particle phenomenon in physics, the elementary members in each composite particle interact via a velocity-anisotropic reflection scheme to integrate valuable information for effectively and rapidly finding the promising optima in the search space. Each composite particle maintains the diversity by a scattering operator. In addition, an integral movement strategy is introduced to promote the swarm diversity. Experiments on a typical dynamic test benchmark problem provide a guideline for setting the involved parameters and show that PSO-CP is efficient in comparison with several state-of-the-art PSO algorithms for dynamic optimization problems.This work was supported in part by the Key Program of the National Natural Science Foundation (NNSF) of China under Grant 70931001 and 70771021, the Science Fund for Creative Research Group of the NNSF of China under Grant 60821063 and 70721001, the Ph.D. Programs Foundation of the Ministry of education of China under Grant 200801450008, and by the Engineering and Physical Sciences Research Council of U.K. under Grant EP/E060722/1

Statistical characterization of the fatigue behavior of composite lamina

A theoretical model was developed to predict statistically the effects of constant and variable amplitude fatigue loadings on the residual strength and fatigue life of composite lamina. The parameters in the model were established from the results of a series of static tensile tests and a fatigue scan and a number of verification tests were performed. Abstracts for two other papers on the effect of load sequence on the statistical fatigue of composites are also presented

Determination of load sequence effects on the degradation and failure of composite materials

A theoretical model was established to predict the fatigue behavior of composite materials, with emphasis placed on predictions of the degradation of residual strength and residual stiffness during fatigue cycling. The model parameters were evaluated from three test series including static strength fatigue life and residual strength tests. The tests were applied to two graphite/epoxy laminates. Load sequence effects were emphasized for both laminates and the predicted results agreed quite well with subsequent verification tests. Dynamic as well as static stiffness reduction data were collected by use of a PDP11-03 computer, which performed quite satisfactorily and permitted the recording of a substantial amount of dynamic stiffness reduction data