CEO horizon problem and characteristics of board of directors and compensation committee

Extant research finds inconclusive evidence about the CEO horizon problem. One possible explanation is that board of directors, especially compensation committees, intervene to mitigate the CEO horizon problem. In this study, we examine whether the characteristics of board of directors and compensation committee affect their effectiveness in mitigating the CEO horizon problem. We find that retiring CEOs are more likely to reduce R&D expenditures when CEOs have more power, and director tenure is longer; retiring CEOs in firms with large board of directors and compensation committee are less likely to manage accruals.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/163492/1/jcaf22446.pdfhttp://deepblue.lib.umich.edu/bitstream/2027.42/163492/2/jcaf22446_am.pd

Why Non-accelerated Filers Voluntarily Comply with SOX 404b?

This paper investigates the managers’ incentives to voluntarily comply with SOX 404b and the determinants of firms who voluntarily disclose SOX 404b internal control over financial reporting assessment. We find that voluntary SOX 404b reporting non-accelerated filers are more likely to receive effective internal control over financial reporting opinion than accelerated filers and large accelerated filers. We find that voluntary SOX 404b reporting non-accelerated filers are more likely to hire Big Four as independent auditors than non-SOX 404b reporting non-accelerated filers. We also predict and found substantially sufficient cases where non-accelerated filers which used to be, or ex-post became accelerated filers or large accelerated filers, and non-accelerated filers with parent companies complying with SOX 404b are motivated to voluntarily comply with SOX 404b

The Effect of Shortened Reporting Lag on the Usefulness of Form 20-F

This study examines the impact of the Securities and Exchange Commission’s (SEC) decision to accelerate the Form 20-F (20-F) filing deadline on the usefulness of 20-Fs. I find that only the large and medium firms experienced a significant increase in market reaction when they accelerated their 20-F filing deadlines to four months after the year-end, while no significant change in market reaction is detected for small firms. I also find that the market did not appear to have reacted to firms who voluntarily further shortened their 20-F reporting lag to less than four months after the year-end. Finally, I find that firms that comply with the SEC’s policy to shorten the 20-F filing deadlines are more likely to restate the financial statements, but the 20-F readability and the possibility of amending their 20-Fs do not seem to be different, compared to the matched non-acceleration firms. Taken together, this study provides consistent evidence suggesting that the “four-month” 20-F filing deadline is beneficial for larger firms while causing no burdens to small firms, and that the accelerated 20-F filing deadline may increase the timeliness of 20-Fs at the expense of the reporting quality

Structure of a tetrameric MscL in an expanded intermediate state

The ability of cells to sense and respond to mechanical force underlies diverse processes such as touch and hearing in animals, gravitropism in plants, and bacterial osmoregulation. In bacteria, mechanosensation is mediated by the mechanosensitive channels of large (MscL), small (MscS), potassium-dependent (MscK) and mini (MscM) conductances. These channels act as 'emergency relief valves' protecting bacteria from lysis upon acute osmotic down-shock. Among them, MscL has been intensively studied since the original identification and characterization 15 years ago. MscL is reversibly and directly gated by changes in membrane tension. In the open state, MscL forms a non-selective 3 nS conductance channel which gates at tensions close to the lytic limit of the bacterial membrane. An earlier crystal structure at 3.5 Å resolution of a pentameric MscL from Mycobacterium tuberculosis represents a closed-state or non-conducting conformation. MscL has a complex gating behaviour; it exhibits several intermediates between the closed and open states, including one putative non-conductive expanded state and at least three sub-conducting states. Although our understanding of the closed and open states of MscL has been increasing, little is known about the structures of the intermediate states despite their importance in elucidating the complete gating process of MscL. Here we present the crystal structure of a carboxy-terminal truncation mutant (Delta95–120) of MscL from Staphylococcus aureus (SaMscL(CDelta26)) at 3.8 Å resolution. Notably, SaMscL(CDelta26) forms a tetrameric channel with both transmembrane helices tilted away from the membrane normal at angles close to that inferred for the open state, probably corresponding to a non-conductive but partially expanded intermediate state

Efficient Trajectory Planning and Control for USV with Vessel Dynamics and Differential Flatness

Unmanned surface vessels (USVs) are widely used in ocean exploration and environmental protection fields. To ensure that USV can successfully perform its mission, trajectory planning and motion tracking are the two most critical technologies. In this paper, we propose a novel trajectory generation and tracking method for USV based on optimization theory. Specifically, the USV dynamic model is described with differential flatness, so that the trajectory can be generated by dynamic RRT* in a linear invariant system expression form under the objective of optimal boundary value. To reduce the sample number and improve efficiency, we adjust the trajectory through local optimization. The dynamic constraints are considered in the optimization process so that the generated trajectory conforms to the kinematic characteristics of the under-actuated hull, and makes it easier to be tracked. Finally, motion tracking is added with model predictive control under a sequential quadratic programming problem. Experimental results show the planned trajectory is more in line with the kinematic characteristics of USV, and the tracking accuracy remains a higher level

Mining of nutritional ingredients in food for disease analysis

Suitable nutritional diets have been widely recognized as important measures to prevent and control non-communicable diseases (NCDs). However, there is little research on nutritional ingredients in food now, which are beneficial to the rehabilitation of NCDs. In this paper, we profoundly analyzed the relationship between nutritional ingredients and diseases by using data mining methods. First, more than 7,000 diseases were obtained and we collected the recommended food and taboo food for each disease. Then, referring to the China Food Nutrition, we used noise-intensity and information entropy to find out which nutritional ingredients can exert positive effects on diseases. Finally, we proposed an improved algorithm named CVNDA_Red based on rough sets to select the corresponding core ingredients from the positive nutritional ingredients. To the best of our knowledge, this is the first study to discuss the relationship between nutritional ingredients in food and diseases through data mining based on rough set theory in China. The experiments on real-life data show that our method based on data mining improves the performance compared with the traditional statistical approach, with the precision of 1.682. Additionally, for some common diseases such as Diabetes, Hypertension and Heart disease, our work is able to identify correctly the first two or three nutritional ingredients in food that can benefit the rehabilitation of those diseases. These experimental results demonstrate the effectiveness of applying data mining in selecting of nutritional ingredients in food for disease analysis

Business Education of CEO-CFO and Annual Report Readability

Financial report readability captures the transparency and effectiveness of information communicated by firms’ executives. It’s interesting to investigate whether business knowledge, cognitive preferences, and professional ethics taught by a business education will shape the CEO/ CFO’s thinking in determining words, languages, paragraphs, and contents presented in financial reports when the self-interested CEO/CFO tends to influence the interpretation of financial information users. Using a sample of S&P 1500 CEOs and CFOs, we find that the CEO (CFO) with a business degree is associated with better (worse) readability of annual reports and the positive (negative) relation is strengthened (moderated) by internal corporate governance and external analyst following. Furthermore, we explore the interaction between CEO’s and CFO’s education background and provide additional evidence for the conflict of interest between CEOs and CFOs on financial reporting strategies. Our findings suggest business education, although has no direct impact on financial reporting quality, is beneficial to CEOs for strengthening their monitoring role in firm’s financial reporting activities. Also, we consider that the ethical topics in business education can enhance financial executives’ awareness to conduct practice under the ethical codes. Our study has implications for academic literature, business education, industry practitioners, and standards setting