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The resource-based view posits that firms achieve competitive advantage from value creation through firm-specific investments held by key stakeholders: employees, suppliers, and customers. Shareholder-dominant (agency) theory holds that all aresidual income claimant rights belong to shareholders, circumscribing other key stakeholders' ability to appropriate value from their investment. However, recent enhancements to stakeholder theory grounded in property rights suggest that such stakeholders may need protection for implicit residual claims. A central purpose of this article is to build a model of the protection devices used to ensure these implicit rights. Individual ex ante devices such as stakeholder ownership only partially incentivize stakeholders' firm-specific investments because they are subject to two types of uncertainties-behavioral and environmental- and individual devices aimed at reducing one type of uncertainty may exacerbate the other. We therefore expand on efforts to establish a stakeholder theory of strategic management by proposing an integrated model of protection devices,which seeks to overcome the incentive dilemma in reducing both uncertainties by reducing barriers to stakeholder firm-specific investment. Our model also explores the conflicts and complementarities associated with device implementation. Finally, we discuss theoretical and practical implications, as well as future research opportunities associated with our model. [ABSTRACT FROM AUTHOR]

During the 3D printing of graphene platelet inclusion in resin, residual stresses due to thermal loading can cause wrinkle/distortion of final part. This paper presents a multi-scale modeling approach to reduce the residual thermal stress at the interphase between inclusion and resin. Material characterization is performed utilizing an integrated multi-scale modeling approach: (a) nano modeling examines effect of defects such as void shape/size/distribution, platelet orientation, etc.); (b) micro-mechanics examines constituents (platelet/matrix/interphase, residual stress); (c) macro-mechanics examines the delamination and debonding. De-homogenized multi-scale modeling approach provides detailed stiffness/strength to Finite Element Model (FEM) for full structural/thermal progressive failure analysis to address wrinkling/distortion, damage and delamination evolution via cohesive traction separation. [ABSTRACT FROM AUTHOR]

We track the dividend initiation (DI) decisions from a sample of 6,588 firms that went public during the period 1979–2005 and find that 873 of them initiated dividends. Our primary objective is to determine whether information signaling can explain the DI decision. We find that variables suggested by the dividend-signaling models of John and Williams (1985) and Allen, Bernardo, and Welch (2000) are significant determinants of the DI decision and the associated announcement-period stock price effect. We also find support for the residual, agency, tax, clientele, transaction costs, catering, and life-cycle explanations of dividend policy. [ABSTRACT FROM PUBLISHER]

In corporate finance and asset pricing empirical work. researchers are often confronted with panel data. In these data sets, the residuals may be correlated across firms or across time. and OLS standard errors can be biased. Historically, researchers in the two literatures have used different solutions to this problem. This paper examines the different methods used in the literature and explains when the different methods yield the same (and correct) standard errors and when they diverge. The intent is to provide intuition as to why the different approaches sometimes give different answers and give researchers guidance for their use. [ABSTRACT FROM AUTHOR]

This study investigated whether the disclosure in accounting reports of information on risk and its management affects, at the margin, firm valuations in the Brazilian capital market. It questioned the existence of value relevance in the disclosure of information related to risk factors and risk management structures. The importance of the topic arises from the documentation that disclosure on risk factors plays a statistically significant role in valuing firms in a context marked by economic and political uncertainty, as is the case of the Brazilian market. The findings confirmed that information about risk shows informational relevance for firm valuations. Information on risk management in a firm, in turn, was not shown to be significant in terms of affecting company share valuations. The investigation of detailed reports with different risk factors indicated that individualized information shows different degrees of relevance for company valuations. It is inferred that the disclosure of risk factors affects the perception of investors, who also base their estimates of return on the availability and detail of such information. It is also observed that information on risk management structure was not shown to be value relevant; moreover, few firms published information on the establishment of this type of entity in their management structures. The residual income valuation (RIV) model (Ohlson, 1995) was applied using regressions with panel data estimation related to the three years covering 2012 to 2014. The sample, which was randomly delimited, was formed of 100 companies. The data on disclosure of risk and disclosure of risk management were collected from the companies' Reference Forms, available from the website of the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA). As an impact on the area of knowledge, broader discussions are expected regarding the utility of disclosure on the topic related to risk factors and the existence of a specific body responsible for risk management in firms, according to investors' perceptions. It also contributes by providing evidence about the quality of disclosure related to risk (factors and management) and the perception of the capital market regarding the informativeness and relevance of such elements. [ABSTRACT FROM AUTHOR]

Automated defect inspection has long been a challenging task especially in industrial applications, where collecting and labeling large amounts of defective samples are usually harsh and impracticable. In this paper, we propose an approach to detect and localize defects with only defect-free samples for model training. This approach is carried out by reconstructing image patches with convolutional denoising autoencoder networks at different Gaussian pyramid levels, and synthesizing detection results from these different resolution channels. Reconstruction residuals of the training patches are used as the indicator for direct pixelwise defect prediction, and the reconstruction residual map generated in each channel is combined to generate the final inspection result. This novel method has two prominent characteristics, which benefit the implementation of automatic defect inspection in practice. First, it is absolutely unsupervised that no human intervention is needed throughout the inspection process. Second, multimodal strategy is utilized in this method to synthesize results from multiple pyramid levels. This strategy is capable of improving the robustness and accuracy of the method. To evaluate this approach, experiments on convergence, noise immunity, and defect inspection accuracy are conducted. Furthermore, comparative tests with some excellent algorithms on actual and simulated data sets are performed. Experimental results demonstrated the effectiveness and superiority of the proposed method on homogeneous and nonregular textured surfaces. [ABSTRACT FROM AUTHOR]

The paper tests the assumptions underlying the inference‐in‐residuals method as an estimation framework for detecting and classifying suspects of earnings management. We derive several systematic biases that are shown to confound inference‐in‐residuals and, depending on the data, could render the method a futile exercise. This is not a matter of model specification, but a limitation of the statistical method. Also, it is shown that the method of using estimated residuals in a second stage regression on economic determinants of earnings management suffers considerably, especially when residuals are estimated by industry classification in the first stage. [ABSTRACT FROM AUTHOR]

This paper studies U.S. house prices across 45 metropolitan areas from 1980 to 2012. It applies a version of the Gordon dividend discount model for long-run 'fundamentals' and uses Mean Group and Pooled Mean Group estimation to estimate long-run and short-run determinants of house prices. We find great similarity across cities in that the long-run house prices are largely explained by the same fundamentals; the long-run rent to price ratio is approximately 5% plus 0.75 times the real interest rate (which is on the order of 2%). However, adjustments to deviations from the fundamentals are slow, in the long-run, closing the gap at a rate of around 10% per year. We find sharp differences in short-run adjustments (momentum) away from the fundamentals across cities, and the differences are correlated with local supply elasticities (more momentum with lower elasticity). Analysis of residuals suggests strong cyclical deviations, which are mean-reverting. [ABSTRACT FROM AUTHOR]

It is widely accepted that the fossil record suffers from various sampling biases - diversity signals through time may partly or largely reflect the rock record - and many methods have been devised to deal with this problem. One widely used method, the 'residual diversity' method, uses residuals from a modelled relationship between palaeodiversity and sampling (sampling-driven diversity model) as 'corrected' diversity estimates, but the unorthodox way in which these residuals are generated presents serious statistical problems; the response and predictor variables are decoupled through independent sorting, rendering the new bivariate relationship meaningless., Here, we use simple simulations to demonstrate the detrimental consequences of independent sorting, through assessing error rates and biases in regression model coefficients., Regression models based on independently sorted data result in unacceptably high rates of incorrect and systematically, directionally biased estimates, when the true parameter values are known. The large number of recent papers that used the method are likely to have produced misleading results and their implications should be reassessed., We note that the 'residuals' approach based on the sampling-driven diversity model cannot be used to 'correct' for sampling bias, and instead advocate the use of phylogenetic multiple regression models that can include various confounding factors, including sampling bias, while simultaneously accounting for statistical non-independence owing to shared ancestry. Evolutionary dynamics such as speciation are inherently a phylogenetic process, and only an explicitly phylogenetic approach will correctly model this process. [ABSTRACT FROM AUTHOR]

To study the presence of a risk-taking channel in the U.S., we build a comprehensive data set from the syndicated corporate loan market and measure monetary policy using different measures, most notably Taylor (1993) and Romer and Romer (2004) residuals. We identify a negative relation between monetary policy rates and bank risk-taking, especially in the run up to the 2007 financial crisis. However, this effect is purely supply-side driven only when using Taylor residuals and an ex ante measure of bank risk-taking. Our results highlight the sensitivity of the potency of the risk-taking channel to the measures of monetary policy innovations. [ABSTRACT FROM AUTHOR]

This study uses a sample of dividend paying firms from the most recent 12-year period to test a simple residual income model and attempts to determine the key features of dividend payout. The results show moderate support for the model. A comparison of the period before and after the 2008 financial crisis indicates factor stability with minimal impact. [ABSTRACT FROM AUTHOR]

Chapter 3 of the book "Foundations & Trends in Accounting" is presented. Topics discussed include equity valuation known as the residual income model (RIM); key elements of fundamental value including profitability and growth, cheapness, and earnings quality; and the use of Joel Greenblatt's Magic Formula.

The article focuses on the U.S. Court of Appeals for the Fourth Circuit case United States v. Mobley, which interprets the framework of universal residual clause in the U.S. It discusses significance of the Armed Career Criminal Act (ACCA) of 1986 and the Career Offender provision under the Sentencing Guidelines issued by the U.S. Sentencing Commission. It offers alternative solutions to provide a framework for interpreting future residual clause offenses pertaining to the case.

The article focuses on the decisions of the U.S. Court of International Trade given under 28 U.S.C. § 1581 (I) of the U.S. Trade Act of 1974 to testify the limits of residual jurisdiction. It analyzes the controversial aspects of the U.S. trade remedies law which deals with residual claims. It discusses the court case of Furniture Brands International, Inc. v. United States in which the eligibility for disbursements are analyzed under the Continued Dumping and Subsidy Offset Act (CDSOA).

Climate change impacts on soil organic carbon sequestration rate were simulated by agroecological model DAISY. Daily meteorological data for the Danubian Lowland up to 2100 were generated according to emission scenarios SRES A2 and B1 using general circulation model CGCM3.1. Effect of gradual increase of CO2 concentration in the atmosphere was taken into account. Various crop rotations as well as various management practices including irrigation and crop residuals incorporation were considered in three variants: i/ rainfed, residuals not incorporated, ii/ irrigated, residuals not incorporated, iii/ summer crops irrigated and residuals incorporated. Modelling outputs confirm that conventional rainfed agro-technical practices without incorporation of crop residues resulted to significant loss of soil organic carbon in soil profile towards more distanced time slices. The irrigation and the incorporation of crop residuals including stems and leaves can reduce soil organic carbon losses. If it is combined with proper crop rotation the soil organic carbon stock in soil profile can even increase [ABSTRACT FROM AUTHOR]

We demonstrate a methodology for estimating, with a specified probability, the interval within which the true DEA efficiency of an individual Decision Making Unit occurs. With this procedure, decisions based on DEA scores are made under conditions of risk, as opposed to the current practice in which decisions are made under uncertainty. The method applies statistical Panel Data Analysis (PDA), which provides proven and powerful methodologies for diagnostic testing of residuals and estimation of confidence intervals. Using PDA, we demonstrate, with a sample of real-world data, that DEA score residuals sometimes are independent and Normally distributed, and estimate confidence intervals based on these validated assumptions. Then, using another sample of real-world data in which violations of these assumptions do occur, we demonstrate well-known PDA Generalized Least Squares statistical models that account for the violations in the estimation of confidence intervals. [ABSTRACT FROM AUTHOR]

Due to the near unit-root behavior of interest rates, changes in individual interest-rate series are difficult to forecast. We propose an innovative way of applying dynamic term structure models to predict future changes in interest-rate portfolios. Instead of directly forecasting the movements based on the estimated factor dynamics, we use the dynamic term structure model as a decomposition tool and decompose each interest-rate series into two components: a persistent component captured by the dynamic factors, and a strongly mean-reverting component given by the pricing residuals of the model. With this decomposition, we form interest-rate portfolios that are first-order neutral to the persistent dynamic factors, but are exposed to the strongly mean-reverting residuals. We show that the predictability on the changes of these interest-rate portfolios is significant both statistically and economically. We explore the implications of the predictability in future interest-rate modeling. [ABSTRACT FROM AUTHOR]

The empirical literature on production and cost functions is divided into two strands. The neoclassical approach concentrates on model parameters, while the frontier approach decomposes the disturbance term to a symmetric noise term and a positively skewed inefficiency term. We propose a theoretical justification for the skewness of the inefficiency term, arguing that this skewness is the key testable hypothesis of the frontier approach. We propose to test the regression residuals for skewness in order to distinguish the two competing approaches. Our test builds directly upon the asymmetry of regression residuals and does not require any prior distributional assumptions. [ABSTRACT FROM AUTHOR]

Among business valuation methodologies, the most widely used models are based on discounted cash flow and residual income methodologies. Each model has its own particular characteristics and supplies different information. But, theoretically, they should give equivalent financial results if the same data base is used. The objective of this study is to determine if there are methodological conflicts among the models when the same basic data is used or if the results are the same. A real case analysis of a public utility company was carried out, using the discounted cash flow and the residual income models, the results were compared to the negotiated price, which was adjusted to represent 100% of equity. The results show great differences among the values themselves and with the sales price of the company under study. [ABSTRACT FROM AUTHOR]

This investigation elucidates the feasibility of monitoring a process for which observational data are largely autocorrelated. Special causes typically affect not only the process mean but also the process variance. The EWMA control chart has recently been developed and adopted to detect small shifts in the process mean and/or variance. This work extends the EWMA control chart, called the generally weighted moving average (GWMA) control chart, to monitor a process in which the observations can be regarded as a first-order autoregressive process with a random error. The EWMA and GWMA control charts of residuals used to monitor process variability and to monitor simultaneously the process mean and variance are considered to evaluate how average run lengths (ARLs) differ in each case. [ABSTRACT FROM AUTHOR]

The proportional hazards model makes two major assumptions: the hazard ratio is constant over time, and the relationship between the hazard and continuous covariates is log-linear. Methods exist for checking and relaxing each of these assumptions, but in both cases the methods rely on the other assumption being true. Problems can occur if neither of the assumptions is appropriate, or even if only one of the assumptions is appropriate but it is not known which. We propose a new kind of residual for checking the two assumptions simultaneously. The smoothed residuals provide a flexible estimate of the hazard ratio, which may deviate from the standard proportional hazards model by having a time-dependent hazard ratio, transformed covariates or both. The methods are illustrated using data from the Medical Research Council's myeloma trials. [ABSTRACT FROM AUTHOR]