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We examine the relationship between brand capital and stock price crash risk. Crash risk, defined as the negative skewness in the distribution of returns for individual stocks, captures asymmetry in risk, and has important implications for investment choices and risk management. Using a sample of 39,685 publicly listed U.S. firm-year observations covering 1975 to 2018, we show that brand capital is significantly and negatively related to crash risk. We also use an advanced machine learning approach and confirm that brand capital is a strong predictor of future stock price crashes. Our cross-sectional analyses show that this negative relationship is more evident for subsamples with transitory poor earnings performance or persistent good earnings performance, greater corporate tax avoidance, and weak corporate governance structures. The results survive numerous robustness tests, including the use of alternative measures of brand capital, crash risk, and several endogeneity tests. In sum, our findings are consistent with agency theory, suggesting that high levels of brand capital expose firms to investor and customer scrutiny, which reduces managerial opportunistic behavior that may include the accumulation and concealment of negative information. This paper was accepted by Karl Diether, finance.

This paper investigates the relation between labor investment inefficiency and corporate tax avoidance. Employing a large sample of 61,542 U.S. firm-year observations over the 1962–2014 period, our regression results show that labor investment inefficiency is significantly positively related to tax avoidance. More specifically, we find that a one standard deviation of labor investment inefficiency leads to a 0.71% reduction in the accounting effective tax rate. Our findings are robust to endogeneity concerns, alternative proxy measures of tax avoidance and labor investment efficiency, and additional control variables pertaining to accounting quality and managerial ability. Taken together, our regression results show that labor investment inefficiency is an important determinant of corporate tax avoidance.

Purpose This paper aims to investigate whether the amount of local governments’ debt can be predicted by the level of political competition. Design/methodology/approach The study uses the artificial neural network (ANN) to test whether ANN can “learn” from the observed data and make reliable out-of-sample predictions of the target variable value (i.e. a local government’s debt level) for given values of the predictor variables. An ANN is a non-parametric prediction tool, that is, not susceptible to the common limitations of regression-based parametric forecasting models, e.g. multi-collinearity and latent non-linear relations. Findings The study finds that “political competition” is a useful predictor of a local government’s debt level. Moreover, a positive relationship between political competition and debt level is indicated, i.e. increases in political competition typically leads to increases in a local government’s level of debt. Originality/value The study contributes to public sector reporting literature by investigating whether public debt levels can be predicted on the basis of political competition while discounting factors such as “political ideology” and “fragmentation”. The findings of the study are consistent with the expectations posited by public choice theory and have implications for public sector auditing, policy and reporting standards, particularly in terms of minimising potential political opportunism.

In this study, we examine the relationship between corporate governance and the disclosure of market risk among financial firms from the Gulf Cooperation Council (GCC) region between 2007 and 2011. Using a comprehensive measure of the disclosure of market risk, our regression results suggest that the level of market risk disclosure is positively and significantly associated with the strength of a firm’s corporate governance structure. Economically, the regression coefficient implies that a 3.25% increase in market risk disclosures is associated with a one standard deviation change in the strength of corporate governance. In addition, when we decompose our corporate governance index into its constituent items, we find that directors’ independence and the dual roles of the CEO and chairman of the board reduce the extent and quality of market risk disclosures. Our results are robust to alternative specifications and endogeneity tests.

We investigate whether directors with multiple outside board directorships are related to corporate financial strategy across firm life cycle stages. Using a large sample of firms from the Gulf Cooperation Council (GCC) countries, we find that when the number of directors with multiple board seats increases, firms' level of cash holdings rises, capital expenditure declines, selling, general and administrative (SG&A) expenses increase, and firm performance decreases. We further demonstrate how the relationship varies across different stages of their life cycle. Our findings have significant implications for policy makers, regulators and stockholders in GCC countries and in other emerging markets.

Mergers and acquisitions (M&A) are an essential way for enterprises to achieve sustainable development. As large sums of money are typically involved in M&A transactions, financing is a vital factor in outcomes. This study examines the relation between equity and debt financing of M&A on subsequent performance, and the effect of ownership (state-owned enterprises versus private-owned enterprises) on M&A performance in China. We are motivated to examine the relation between financing methods and M&A performance in China because the differences in ownership, resource availability and policy support by the government for many firms may affect subsequent performance. Using a large sample of Chinese A-share listed companies between 2009 and 2016, we find that equity-financed M&A transactions lead to significantly better performance than debt-financed transactions. Equity-financed M&A transactions of state-owned enterprises (SOEs) perform significantly better as compared to debt-financed M&A, whereas equity-financed M&A transactions of private-owned enterprises (POEs) have little effect on their performance. This study extends our insights into the relation between M&A financing types and firm performance under different ownership types in the context of emerging markets.

This study examines the effect of tax haven utilization on the implied cost of equity capital (ICOE) based on a sample of publicly listed U.S. multinational firms over the 2006–2014 period. Our regression results show that tax haven utilization is significantly positively associated with the ICOE. In terms of economic significance, we find that, on average, a one-standard deviation increase in tax haven utilization leads to an increase in the ICOE for our sample firms by approximately 0.30 percent or 30 basis points. We also observe that our regression results are robust to a number of endogeneity checks. In additional analysis, we find that high agency costs are likely to magnify the positive association between tax haven utilization and the ICOE, while high independent director monitoring could moderate this association. Overall, this study provides unique insights into the effect of tax haven utilization on the ICOE.

This study examines the association between corporate social responsibility (CSR) performance and financial distress and additionally the moderating impact of firm life cycle stages on that association. Based on a sample of 651 publicly listed Australian firm-years’ data covering the 2007–2013 period, our regression results show that positive CSR activity significantly reduces financial distress of the firm. In addition, the negative association between positive CSR performance and financial distress is more pronounced for firms in mature life cycle stages. Our results are robust to alternative proxy measures of financial distress, CSR performance and life cycle stages.

This study examines the association between market risk disclosures (MRDs) and the investment efficiency of financial firms from six emerging markets in the Gulf Cooperation Council (GCC) region. Based on a sample of 553 firm-year observations over the 2007–2011 period, we find that MRDs are significantly and negatively associated with both under-investment and over-investment and that this association is more pronounced for larger firms. We also find that the association between MRDs and under-investment is moderated during periods of economic distress such as the Global Financial Crisis of 2008 and that the association between MRDs and over-investment is magnified during periods of reduced financial distress. Our results are consistent with the idea that MRDs reduce information asymmetry, which ultimately improves investment efficiency. We contribute to the literature in an emerging market context by providing empirical evidence on the association between MRDs and investment efficiency across six emerging GCC capital markets. This study also fills a gap in the literature by providing evidence on the factors affecting the investment efficiency of financial firms.

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

In this paper, we investigate the association between outside board directorships and family ownership concentration. Using a sample of 1091 firm-year observations of non-financial publicly listed firms from Gulf Cooperation Countries (GCC) during the 2005 to 2013 period, we find a positive association between family ownership and the number of outside directorships held by board members. This finding is consistent with the notion that family ownership reduces a board's monitoring capabilities. We also test whether the recent corporate governance reforms in GCC, which were designed to protect investors and minority shareholders, affect firms' incentives to establish a board nomination committee (NC). We find the existence of a board NC and the quality and characteristics of NC membership act to suppress the positive association between outside directorships and family ownership. Our results are robust to the use of alternative measures of outside directorships and family ownership and models that test for endogeneity. Overall, our results suggest that the institutional specificities of emerging economies such as those in the GCC can sustain high levels of multiple directorships, which could impair the quality of corporate governance.

This study examines whether a firm’s life cycle explains its propensity to engage in corporate tax avoidance. Based on the Dickinson (2011) model of firm life cycle stages and a large dataset of US publicly listed firms over the 1987–2013 period, we find that tax avoidance is significantly positively associated with the introduction and decline stages and significantly negatively associated with the growth and mature stages using the shake-out stage as a benchmark. We observe a U-shaped pattern in tax avoidance outcomes across the various life cycle stages in line with the predictions of dynamic resource-based theory. Our findings are consistent using several robustness checks. Overall, our results show that a firm’s life cycle stage is a significant determinant of tax avoidance.

This study empirically investigates the extent of corporate social disclosure (CSD) practices by Indian textile and apparel (TA) listed firms for the 2010-2012 time period. In spite of an upward trend in CSD practices by Indian TA listed firms, the results indicate a consistent low level of such important disclosure practices over the three year period with an overall mean disclosure of 10.44%. The overall low extent of CSD by Indian TA firms and the potential large adverse impact of this sector to the country’s social environment have major implications for future development of social reporting standards. Further analysis reveals that Indian TA listed firms commonly communicate social information relating to ‘labor practices and decent work’ while disclosure of ‘human rights’ is virtually non-existent. The finding may indicate that Indian TA firms place increasing importance in communicating labor practices related information as a possible strategy to alleviate tension amongst stakeholders in order to secure their societal legitimacy. Potential concern arises from noncommunication of social activities and related risks. Poor or non-existent disclosure may lead to questions whether Indian firms and their international brand-name affiliations have been transparent and accountable regarding their production and supply activities. The dearth of social disclosure by Indian TA firms has implications for foreign purchasers of branded products as international companies have been implicated in numerous sub-optimal social practices or incidents, at times leading to fierce criticism. The findings on the significant and positive influence of international brands and the interaction of this variable and international awards obtained on disclosure practices imply that such international exposures may put a higher level of pressure on Indian TA firms to communicate more social information as part of an overall package to better address global concerns on such crucial issues. The affiliation with international brand-name firms perhaps is the ultimate driver for the firms to provide more social information as a response to the growing awareness on such issues of their foreign renowned buyers. Firm characteristics control variables firm size, profitability and year of reporting are positively associated with the extent of CSD whereas CEO duality is negatively associated with the extent of CSD.

The purpose of this study is to examine the association between investment efficiency and corporate tax avoidance. Using a large sample of U.S. firms over the period 1993–2016, we show that there is a positive association between corporate tax avoidance activities and investment inefficiency. Moreover, we find that the association is mediated by financial statement readability, financial statement comparability and product market competition. Our results are robust to alternative measures of both tax avoidance and investment inefficiency. Propensity score matching (PSM), difference-in-difference (DID), and two-stage least squares (2SLS) regression analyses confirm our results and mitigate any potential endogeneity issues that might result from the effect of omitted variables, reverse causality or model misspecification.

© 2015, Springer Science+Business Media Dordrecht. This study examines the impact of board of director gender diversity on corporate tax aggressiveness. Based on a sample of 418 U.S. firms covering the 2006–2009 period (1672 firm-year observations), our ordinary least squares regression results show a negative and statistically significant association between female representation on the board and tax aggressiveness after controlling for endogeneity. Our results are consistent across several measures of tax aggressiveness and additional robustness checks.

© 2014 Elsevier B.V. We examine financial distress and tax aggressiveness spanning the global financial crisis (GFC) of 2008 and the impact of the interaction between board independence and firm-specific financial distress on tax aggressiveness. Our regression results show that both financial distress and the GFC are positively associated with tax aggressiveness. More importantly, we find that the positive association between financial distress and tax aggressiveness is magnified by the GFC. We also observe that the interaction between board independence and financial distress is positively associated with tax aggressiveness. Our results are robust to multiple measures of financial distress and tax aggressiveness.

Using legitimacy theory, this study investigates the extent of social and environmental disclosure (SED) of Indian textile firms over the 2010-2012 period and the factors that explain such disclosure practices. Firm-level characteristics and corporate governance variables are incorporated as key predictors for these important disclosures. This study reveals a relatively low extent of 13.57% of SED in annual reports of Indian textile firms. This finding of low overall voluntary disclosure is largely consistent with the previous studies particularly in the emerging economies setting. The results show that firm size, international brand, audit committee independence, CEO duality, profitability, international certification obtained and year of reporting are statistically significant factors in explaining the variation in extent of SED. Potential concern may arise from such a lack corporate communication related to social or environmental activities and risks as it may lead to questions whether firms domiciled in India and their international brand-name affiliations have been transparent and accountable regarding their production and supply activities. The theoretical contribution of this study is the successful testing of legitimacy theory in the context of an emerging economy. This study highlights the influence of international exposures such as brand development and corporate governance attributes have on the SED communication practices. The dearth of social and environmental disclosure by Indian textile firms has implications for foreign purchasers of branded products as international companies have been implicated in sub-optimal social or environmental practices or incidents. Such international brand-name companies may be responsible for such breaches and face significant adverse publicity if negative social or environmental impacts or breaches of rules or regulations are found subsequent to the supply of these textile products. Significant negative media publicity may have unfavourable consequences on the reputation of these firms and their directors as well as their long-term financial performance. Firms with branded textile products likely use disclosure as an important means to promote an image of them being forward thinking socially and environmentally responsible entities for preserving their legitimacy status. This research offers empirical evidence in regard to social and environmental (SED) practices that may assist regulatory bodies to introduce more focused and effective non-financial disclosure guidelines and regulations.

This study extends prior research on the willingness of firms to significantly decrease their corporate taxes. It specifically examines the associations between corporate tax avoidance and the reported significant uncertainty of a firm’s tax position, the tax expertise and tax affiliations of its directors, and the performance-based remuneration incentives of its key management personnel. Based on a dataset of 200 publicly listed Australian firms over the 2006–2010 period (1000 firm years), we find that the reported uncertainty of a firm’s tax position, the tax expertise of its directors, and the performance-based remuneration incentives of its key management personnel are significantly positively associated with tax avoidance. Conversely, firms with board members who have at least one tax-related affiliation are significantly negatively associated with tax avoidance.

This paper examines the major determinants of tax haven utilization based on a sample of 200 publicly listed Australian firms, over the 2006–2010 period (1,000 firm-years). Our regression results show that variables relating to transfer pricing, intangible assets, an interaction term between transfer pricing and intangible assets, withholding taxes, performance-based management remuneration and multinationality are positively associated with tax haven utilization. We also find that corporate governance structures are negatively associated with tax haven utilization. The magnitude and significance of the regression coefficients indicate that transfer pricing, withholding taxes, intangible assets, an interaction term between transfer pricing and intangible assets, corporate governance and multinationality are the most important drivers of tax haven utilization.

The purpose of this study is to investigate the extent of voluntary disclosures between 2006 and 2009 that transcends major regulatory and governance changes in Malaysia and to assess the association between strength of corporate governance structure, and ownership structure on the extent of voluntary disclosures of Malaysian listed firms over that period. The average level of voluntary disclosure within the annual reports of sample firms increased over the two periods. Further, the extent of voluntary disclosure is significantly positively associated with strength of corporate governance structure in both 2006 and 2009. Firms with concentrated ownership structure are associated with more extensive voluntary disclosures. These findings highlight the importance of an effective governance regime and concentrated ownership structure in reducing information asymmetry and agency costs and thereby enhancing the level of voluntary disclosures. These findings also have practical implications for policy-makers, analysts, auditors and regulators in Malaysia as well as East Asian countries

This study examines the major determinants of transfer pricing aggressiveness. Based on a hand-collected sample of 183 publicly-listed Australian firms for the 2009 year, our regression results show that firm size, profitability, leverage, intangible assets, and multinationality are significantly positively associated with transfer pricing aggressiveness after controlling for industry-sector effects. Our additional regression results also indicate that firms augment their transfer pricing aggressiveness through the joint effects of intangible assets and multinationality. © 2013 Elsevier Ltd.

This paper examines the impact of board of director oversight characteristics on corporate tax aggressiveness. Based on a 812 firm-year dataset of 203 publicly-listed Australian firms over the 2006-2009 period, our regression results show that if a firm has established an effective risk management system and internal controls, engages a big-4 auditor, its external auditor's services involve proportionally fewer non-audit services than audit services and the more independent is its internal audit committee, it is less likely to be tax aggressive. Our additional regression results also indicate that the interaction effect between board of director composition (i.e., a higher ratio of independent directors on the board) and the establishment of an effective risk management system and internal controls jointly reduce tax aggressiveness. © 2013 Elsevier Inc.

PurposeThe purpose of this paper is to investigate the impact of corporate governance on voluntary disclosure of different types of information in annual reports of Malaysian listed firms.Design/methodology/approachA linear regression model is used to test the association between the level of voluntary disclosure of five key information categories and corporate governance. The sample consists of 100 firms over three different socio‐economic periods: 1996, 2001 and 2006.FindingsThere are significant increases in all the key information categories with better communication most pronounced between 1996 and 2001, and a noticeably lower level of communication growth between 2001 and 2006. The strength of a firm's corporate governance structure clearly influences the voluntary disclosure of information relating to corporate and strategic directions, directors and senior management, financial and capital markets, forward‐looking projections and corporate social responsibility in 2001 and 2006.Research limitations/implicationsThe use of a governance index to arrive at an overall corporate governance score has the potential to mask major underlying relationships of individual governance attributes. The use of the self‐constructed disclosure indices may also omit certain information items that are employed in other prior studies. Moreover, the different categories of disclosures are solely constructed on the information disclosed in the annual reports without considering the alternative avenues.Practical implicationsThe results will assist regulators and policy‐makers to better understand the impact of corporate governance on the voluntary disclosure of different types of corporate information in Malaysia.Originality/valueThis study generates evidence of the changing scene of management voluntary disclosure practices embedded in the corporate governance framework in a developing country with an emerging capital market.

Understanding the important concepts necessary to undertake the preparation of consolidated financial statements has proven challenging for many accounting undergraduate students. As a result, the development of multimedia modelling concepts such as acquisition analysis, business combination valuation entries, reacquisition entries and intragroup transactions were embedded within an e-learning environment. The principle of modelling, derived from social cognitive theory, was applied to the design of the multimedia. A study was conducted to gauge the effectiveness of the approach and consider student perceptions with regard to learning through this approach. Quantitative data were collected from accounting undergraduate students (n= 464) enrolled across three different cohorts including international campuses (n=386), an Australian campus (n=49) and a distance education cohort (n=29). Analyses were undertaken to show significant differences between these cohorts. This research paper presents findings that indicate a positive and significant association between the number of times the videos were accessed, and the assignment score (p

This paper examines the determinants of thinly capitalized structures of publicly-listed Australian firms. Based on a hand-collected sample of 203 publicly-listed Australian firms over the 2006–2009 period (812 firm-years), our regression results indicate that the thin capitalization position of firms is significantly and positively associated with multinationality, tax haven utilization, withholding taxes and tax uncertainty. Multinationality and the use of tax havens are, in particular, strongly associated with thin capitalization. Our additional regression results provide evidence that shows that corporate governance monitoring mechanisms relating to board of director independence, institutional ownership and big-4 auditor utilization are significantly negatively associated with firms adopting thinly capitalized tax avoidance structures.

Information is stored in distributed cortical networks, but it is unclear how distributed stores are synthesized into a unified percept. Activation of local circuits in the gamma range (30 80 Hz), and distributed stores in the low theta range (3–5 Hz) may underlie perceptual binding. Words have a crucial role in semantic memory. Within memory the activation of distributed semantic stores is facilitated by conceptually related previous items, termed semantic priming. We sought to detect event-related brain oscillations (EROs) sensitive to semantic activation and priming. Here we show that low theta evoked power and inter-trial phase locking (4–5 Hz) from 250–350 msec over left hemisphere language areas was greater to related than to unrelated words. Theta band event-related oscillations over left hemisphere language areas may provide a brain signature for semantic activation across distributed stores being facilitated by semantic priming.

This paper investigates the extent of financial instrument disclosures (FIDs) within the annual reports of Australian listed extractive resource companies over a 4-year longitudinal period (2003–2006) and its association with international tax characteristics. Statistical analysis shows that thin capitalisation structures and withholding taxes are positively and significantly associated with disclosure patterns. In contrast, the occurrence of foreign sourced income and tax haven links are significantly negatively associated with FID patterns. These findings demonstrate that international tax structures can influence corporate disclosure patterns. This paper contributes to an understanding of the extent, trends and rationale behind resource firms’ financial instrument disclosure practices in Australia.

This study examines the relationship between ownership concentration and the extent of financial ratio disclosures (EFRD) in the 2007 annual reports of Australian listed firms. Using agency theory as theoretical background, it is suggested that firms with more concentrated ownership structures are less likely to provide voluntary disclosure of financial ratios information. The univariate tests demonstrate that profitable firms, those firms audited by Big4 auditors and firms belonging to financial services industry communicate more financial ratio information. OLS regressions show that more dispersed shareholding firms‟ are significantly associated with EFRD. Profitable and larger firms audited by independent and Big4 audit firms additionally reported more extensive financial ratio information.

Background: Reduced power and phase locking of the early auditory gamma-band response (EAGBR) have been reported in schizophrenia, but findings are equivocal. Further, little is known about genetic (heritability) and environmental influences on the EAGBR or its potential as an endophenotype of schizophrenia. The present study used a twin design to examine whether EAGBR power and phase locking are heritable and reduced in schizophrenic patients and their unaffected co-twins and thus putative endophenotypes of schizophrenia. Methods: The study sample included a total of 194 individuals, consisting of 15 monozygotic [MZ] twin pairs concordant for schizophrenia, 9 MZ twin pairs discordant for schizophrenia, and 42 MZ and 31 dizygotic (DZ) control pairs. Evoked power and phase-locking factor of the EAGBR were computed on Morlet wavelet-transformed electroencephalogram responses to standard tones during an auditory oddball target detection task. Structural equation modeling was applied to estimate heritability and genetic and environmental correlations with schizophrenia for the EAGBR measures. Results: Both evoked power and phase-locking phenotypes were heritable traits (power: h 2 = 0.65; phase locking: h 2 = 0.63). Impaired EAGBR measures were significantly associated with schizophrenia. Patients with schizophrenia and their unaffected identical co-twins exhibited significantly reduced EAGBR power compared with control subjects. In each phenotype, shared genetic factors were likely the source of the observed associations with schizophrenia. Conclusions: Our results support EAGBR measures as putative endophenotypes of schizophrenia, likely reflecting an ubiquitous local cortical circuit deficit. © The Author 2011. Published by Oxford University Press on behalf of the Maryland Psychiatric Research Center. All rights reserved., link_to_OA_fulltext

This study provides insights on the Financial Risk Management Disclosure (FRMD) patterns of Australian listed resource companies for the 2002–2006 period leading up to and immediately following adoption of the International Financial Reporting Standards (IFRS). Regression analysis demonstrates that corporate governance and capital raisings of firms are significant and positively associated with FRMD patterns. In contrast, overseas stock exchange listing of firms is significantly negatively associated with FRMD patterns. The findings show that the introduction of IFRS changes corporation’s willingness to communicate risk information.

This study examines the individual and joint effects of multinationality, tax havens, and intangible assets on transfer pricing aggressiveness. Based on a hand-collected sample of 286 publicly listed U.S. multinational firms over the 2006–2012 period (2,002 firm-year observations), the regression results indicate that multinationality, tax haven utilization, and intangible assets are significantly positively associated with transfer pricing aggressiveness. The regression results also show that firms magnify their international transfer pricing aggressiveness through the joint effects of intangible assets, multinationality, and tax havens. Overall, the empirical findings demonstrate that the utilization of tax havens and the level of intangible assets are economically important factors that assist firms in obtaining tax benefits through transfer pricing aggressiveness. Data Availability: All data are available from public sources identified in the paper.

Firms have the incentive to engage in corporate tax avoidance when the marginal benefits exceed the marginal costs. In fact, when firms are under financial distress, the benefits of tax avoidance outweigh the costs, increasing the incentive to avoid tax. The Global Financial Crisis (GFC) of 2008 provides a unique setting to consider whether tax avoidance differs from the pre-GFC and post-GFC periods, and whether firm management is compelled to engage in aggressive tax avoidance during periods of severe financial distress. This study examines the impact of financial distress on tax avoidance and in particular, the impact of the GFC on the association between financial distress and tax avoidance. Based on a sample of 203 publicly-listed Australian firms covering the 2006–2010 period, the regression results show that financial distress is significantly and positively associated with tax avoidance across several proxy measures of tax avoidance and financial distress. More importantly, according to the regression results, the association between financial distress and tax avoidance was magnified on account of the GFC.

Background: Abnormalities in coherent cortical circuit functioning, reflected in gamma band activity (~ 40 Hz), may be a core deficit in schizophrenia. The early auditory gamma band response (EAGBR) is a neurophysiologically simple probe of circuit functioning in primary auditory cortex. We examined the EAGBR in first hospitalized schizophrenia to assess whether it was reduced at first hospitalization. Method: Wavelet evoked power and intertrial phase locking of the EAGBR at Fz to standard tones during an oddball target detection task were examined in 28 first hospitalized schizophrenia patients (10 female) and 44 control subjects (17 female). Results: At first hospitalization EAGBR trial-to-trial phase locking and evoked power were significantly reduced in patients. Although reduced overall in patients, greater total symptoms were significantly associated with greater gamma phase locking and power. Additionally, greater EAGBR power was marginally associated with greater positive factor scores, hallucinations, and thinking disturbance. Conclusions: Abnormalities of gamma band functioning in local auditory sensory circuits are present in schizophrenia at first hospitalization further evidence that basic sensory processes are impaired in schizophrenia. It remains to be determined whether the EAGBR becomes permanently impaired with disease progression, and if its reduction is specific to schizophrenia.

Information is stored in distributed cortical networks, but it is unclear how distributed stores are synthesized into a unified percept. Activation of local circuits in the gamma range (30 80 Hz), and distributed stores in the low theta range (3-5 Hz) may underlie perceptual binding. Words have a crucial role in semantic memory. Within memory, the activation of distributed semantic stores is facilitated by conceptually related previous items, termed semantic priming. We sought to detect event-related brain oscillations (EROs) sensitive to semantic activation and priming. Here, we show that low theta evoked power and intertrial phase locking (4-5 Hz) from 250-350 msec over left hemisphere language areas was greater to related than to unrelated words. Theta band event-related oscillations over left hemisphere language areas may provide a brain signature for semantic activation across distributed stores being facilitated by semantic priming.

Background: The P50 event–related potential sensory gating deficit, a failure to inhibit responses to repeated stimuli, is a leading endophenotype for schizophrenia (SZ). Both gamma and beta event–related oscillations (EROs) are major contributors to the auditory P50 response. However, the topographic distribution of gamma and beta ERO responses to initial (S1) and repeat (S2) stimuli and the association of these oscillations with P50 sensory gating are not clear. Methods: A total of 51 schizophrenic patients, 25 unaffected first-degree relatives, and 34 healthy comparison subjects were tested using a paired-click paradigm. Evoked power of gamma- and beta-band responses using wavelet analyses to S1 and S2 stimuli and gating of EROs and P50 were the main outcome measures. Results: A P50 gating deficit was found in patients (P < .001) and at a trend level in relatives (P = .087). Patients showed widely distributed reductions in gamma and beta EROs to S1 stimuli and S2 stimuli, respectively, and impaired gating in both frequencies. Reduced gamma and beta ERO activity in patients was associated primarily with age of onset. Relatives did not differ significantly from control subjects in either EROs power or gating. Gating of P50, gamma, and beta were not significantly correlated (r = .18–.19, P > .05). Conclusions: These results suggest that ERO deficits in gamma to S1 and beta to S2 stimuli and impaired ERO gating are associated with SZ, but are not related to genetic liability for the illness. The components of information processing assessed by gamma- and beta gating appear to be independent from those mediated by P50 suppression.

This paper examines the impact of corporate governance and ownership structure on voluntary disclosure practices of Malaysian listed firms. The extent of voluntary disclosure is determined for a matched-sample of 100 listed firms in three different disclosure regimes during 1996, 2001 and 2006. The findings suggest that regulatory reforms over the 1996 to 2006 period resulted in enhanced corporate transparency and accountability as reflected in more extensive voluntary disclosures. We provide empirical evidence that the extent of voluntary disclosures is significantly associated with the strength of corporate governance structure in 2001 and 2006 and with ownership structure in 1996, 2001 and 1996. The findings of this study are of use to regulators in terms of guiding policy development regarding corporate transparency of publicly listed firms.

Paralysis of the muscles of deglutition is a well known cause of difficulty in swallowing. Although it has been fairly well recorded in recent textbooks on the esophagus,1-4 much of the literature on the subject has appeared in publications dealing with the ear, nose , and throat, and may not have come to the attention of many physicians and surgeons. Since the esophagus has now become s uch an important organ from the point of view of medical and surgical manage­ ment, a brief review of the subject seems