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Mutual funds and exchange-traded funds (ETFs) differ in significant ways. ETFs trade on exchanges whereas mutual funds do not. ETFs generate few, if any, capital gains that are passed through to shareholders which makes them tax efficient. Alternatively, mutual funds often generate capital gains that are passed through to shareholders, and this makes them tax inefficient. To correct this tax inefficiency, Vanguard astutely added an ETF share class to many of its mutual funds back in 2001. They patented this structure and recently the patent expired. Several fund sponsors have applied to the Securities and Exchange Commission (SEC) to create this structure for their own funds. If approved, this would change the operation of affected funds in ways that are important to investors. [ABSTRACT FROM AUTHOR]

The SEC's 2016 Concept Release summarizes the ongoing debate regarding the usefulness of market risk disclosures and calls for additional discussion. We respond to the SEC's call and investigate market risk disclosures. Using textual analysis, we evaluate and classify the qualitative content of market risk disclosures and expect that more informative disclosures are associated with improved liquidity, consistent with disclosure theory. We find that informative textual contents of market risk disclosures are associated with higher liquidity levels and lower liquidity uncertainty (i.e., an improved investors' information environment). Our study is relevant to the ongoing discussion regarding the usefulness of market risk disclosures, calls for more detailed regulatory guidance for market risk disclosures, and contributes to the literature on stock liquidity and risk factor disclosures. [ABSTRACT FROM AUTHOR]

With the global expansion of business operations, many U.S. corporations now operate internationally. While these multinational corporations (MNCs) rely on information about their operations to allocate resources, this information is likely dispersed within the firm, leading to internal information asymmetry between top executives and divisional managers. Meanwhile, audits of these geographically dispersed MNCs are challenging, and parts of these audits are sometimes outsourced to local foreign auditors who have no experience serving as opinion-issuing auditors for U.S. issuers ("inexperienced component auditors"). In this article, we examine whether involving such inexperienced component auditors is associated with MNCs' internal information environment. We find that, relative to a matched control sample, Securities and Exchange Commission (SEC) issuers with the participation of inexperienced component auditors have higher internal information asymmetry and lower internal capital allocation efficiency. Our results suggest that audit quality matters not only to a firm's external financial statement users but also to its internal users. [ABSTRACT FROM AUTHOR]

The increasing complexity of 10-K reporting has caused difficulties for investors seeking to understand and analyze a company's financial reports. In this study, we examine whether the SEC's comment letter process, consistent with its mission to improve public company disclosure, reduces reporting complexity in subsequent filings. We find comment letter receipt has a competing impact on two distinct dimensions of reporting complexity. Specifically, reporting complexity related to accounting concepts decreases after comment letter receipt, but linguistic reporting complexity increases. Validating this competing impact, we find that both changes to complexity are associated with changes in firms' information asymmetry in the expected directions. Further analysis of the increase in linguistic reporting complexity suggests that managers obfuscate following comment letter receipt, where the increase is unnecessary and not occurring in response to changes in the firms' accounting or underlying economics/operations. Overall, results suggest that while the comment letter process simplifies the presentation of reported accounting information, it also has the unintended consequence of decreasing the readability of reports. This nuance is important to understand, given that the federal government dedicates significant resources to the comment letter process. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study introduces a new measure of ex ante litigation risk using scrutiny of SEC filings by the source of securities litigation (plaintiffs' lawyers) to reduce measurement error, relative to existing measures. We show that plaintiff-lawyer views proxy for the largely unobservable factors that make firms more likely to face litigation risk. Lagged views precede the public bad news revelation that triggers litigation and predicts future realized litigation risk (i.e., securities class actions filings and plaintiff-lawyer investigations) and stock market outcomes. Finally, we provide new insights into the plaintiff-lawyer case selection process that otherwise cannot be observed. [ABSTRACT FROM AUTHOR]

We demonstrate that investors in initial public offering (IPO) firms value revenues and that the number of U.S. Securities and Exchange Commission (SEC) revenue recognition comment letters issued on the S-1 registration statement are positively associated with reported revenues. We also find that IPO managers report revenues opportunistically in the fiscal year just prior to the offer. In additional analysis, we find that discretionary revenues are associated with significantly higher first day IPO stock returns but significantly lower 1 year stock returns. Our results are consistent with the incentives of managers to report revenues opportunistically outweighing the higher monitoring and regulatory scrutiny pre-IPO. [ABSTRACT FROM AUTHOR]

This article studies how changes in investor protection regulations affect local entrepreneurial activity, relying on the heterogeneous impact of a 2011 SEC regulation change on the definition of accredited investors across U.S. cities. Using a difference-in-differences approach, I show that cities more affected by the regulation change experienced a significantly larger decrease in local angel financing, entrepreneurial activity, innovation output, employment, and sales. I find that small business loans and second-lien mortgages became entrepreneurs' partial substitutes for angel investment. My cost-benefit analysis suggests that the costs of protecting angel investors through the 2011 regulation change outweigh its benefits. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We show that political contributions are associated with reduced civil and criminal sanctions for fraudulent executives. These managers benefit more from contributions if their firm also gained from the fraud, if they occupy top positions in firms with weak boards, or if they contribute to powerful politicians. Political contributions reduce budgetary resources for government enforcers and lengthen the Securities and Exchange Commission's case time-to-resolution. They also facilitate penalty transfer from fraudulent managers to the firm, resulting in their entrenchment and long-term destruction of shareholder value. Our findings highlight an agency cost of political contributions and a mechanism undermining the disciplining effect of regulations. [ABSTRACT FROM AUTHOR]

We analyze the partisanship of Commissioners at the SEC and Governors at the Federal Reserve Board. Using recent advances in machine learning, we identify partisan phrases in Congress, such as "red tape" and "climate change," and observe their usage among regulators. Although the Fed has remained relatively nonpartisan throughout our sample period (1930–2019), we find that partisanship among SEC Commissioners rose to an all-time high during the 2010-2019 period, driven by more-partisan Commissioners replacing less-partisan ones. Partisanship at the SEC appears in both the language of new SEC rules and the voting behavior of SEC Commissioners. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Insiders must disclose indirect trades made through accounts they control, including family, trust, retirement, and foundation accounts. Indirect trades through these accounts are more profitable than direct trades in the insider's own account. They are also more likely to be made by "opportunistic" insiders who make nonroutine trades, or who trade profitably before earnings announcements, or who have a short investment horizon. These trades contain more predictive information about earnings surprises and large price changes, and they tend to be made by insiders at firms with high information asymmetry. Insiders also make fewer indirect trades following periods of intense regulatory scrutiny. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We provide the first evidence after Regulation G on firms' non-GAAP EPS denominator choices and whether they are informative or opportunistic. From 2013 to 2019, 17 percent of annual non-GAAP EPS numbers use denominators different from that of GAAP diluted EPS, which makes denominator adjustments among the most prevalent individual types of non-GAAP adjustments. For firms reporting GAAP and non-GAAP profits or GAAP losses and non-GAAP profits, we provide evidence consistent with denominator adjustments increasing non-GAAP EPS informativeness. Our evidence also suggests that opportunism in denominator choices is concentrated in firms reporting GAAP losses and non-GAAP profits and failing to adjust the denominator. Such nonadjustment is inconsistent with SEC requirements to report non-GAAP EPS "on a diluted basis" because the EPS denominator for a GAAP loss excludes dilutive claims. Although the SEC largely overlooks such firms, they are more likely, on average, to report non-GAAP EPS that analysts consider inflated. JEL Classifications: M40; M41; M48. [ABSTRACT FROM AUTHOR]

We examine the effect of the U.S. Securities and Exchange Commission's (SEC) oversight on the cost of equity. We argue that companies near regulatory oversight by the SEC are subject to increased scrutiny. Such heightened scrutiny, which is associated with enhanced disclosure quality, ultimately leads to a reduction in the cost of equity. We find empirical evidence supporting this hypothesis. Importantly, the cost of equity declines significantly when firms relocate their headquarters close to SEC office. Our results suggest that SEC effective external monitoring lowers the cost of equity for firms with weak governance. [ABSTRACT FROM AUTHOR]

Relations between REIT CEO compensation, firm stock performance and risk, after FASB accounting changes and additional SEC compensation disclosure requirements in 2006, are examined. Total compensation becomes more weighted to bonus payments and stock grants and away from options and salary. The majority of REIT CEO compensation comes from bonus payments and stock grants. REIT CEO compensation is found to be positively correlated with lagged firm stock performance, but not lagged firm risk measures. A new metric related to the REIT dividend requirement, dividends paid to CEOs from share ownership, is positively related to CEO total compensation, and the positive relation is driven by a strong association between cash dividends to CEOs and their equity-based compensation. These findings suggest that REIT CEOs trade-off certainty in cash compensation for equity-based wealth and related cash flows. Most important, our results suggest that REIT CEOs are paid for performance and are less likely to earn windfalls that have been associated with the use of options and mis-priced firm risk in non-REIT firms. [ABSTRACT FROM AUTHOR]

Purpose: Press reports have indicated that firms frequently underprice restricted stock and employee stock options. I test for underpricing of stock and options. Design/methodology/approach: I examined a sample of 5,333 private firm stock and option issuances between 1985 and 2017. I tested for underpricing using two approaches: assuming investors have no special market-timing ability and assuming instead they have perfect market-timing ability. Findings: I find evidence of widespread stock and option underpricing by private firms before they go public reflecting large discounts that exceed reasonable compensation for lack of marketability. Unreported underpricing is more frequent in the last pre-IPO private equity transactions that offer the last opportunity to give such discounts before the stock is publicly traded, but the discounts are greater in the earlier pre-IPO transactions where unreported discounts are presumably tougher for the SEC to detect. Underpricing is still detected even when the actual DLOMs are tested against a benchmark that assumes investors have perfect market-timing ability. Research limitations/implications: Firms frequently underprice restricted stock and employee stock options. Firms tend to underprice stock options more frequently than restricted stock, but restricted stock tends to be priced at deeper discounts when recipients are assumed not to have any special market-timing ability. Practical implications: Private firms issue restricted stock and options as incentive compensation. Lowballing the valuation transfers wealth from outside stockholders to employees/insiders. Wealth transfers take place through the issuance of equity claims to employees/insiders before firms go public. I found that more than a quarter of the DLOMs exceed the theoretical maximum by, on average, between 16% (median) and 20% (mean). This finding raises two questions worthy of investigation. First, to what extent do the frequency and magnitude of DLOMs above the theoretical maximum depend on whether a board of directors obtains an independent appraisal of a stock's fair market value? Second, if DLOMs above the theoretical maximum are observed even when the stock is independently appraised, how do appraisers justify such large DLOMs? Social implications: The wealth transfers that take place through the issuance of equity claims to employees/insiders before firms go public benefit employees/insiders at the expense of outside shareholders. Originality/value: My paper is the first to furnish evidence of widespread stock and option underpricing by private firms before they go public; demonstrate that the unreported underpricing is more frequent in the last pre-IPO private equity transactions that offer the last opportunity to give such discounts before the stock is publicly traded and show that the discounts are greater in the earlier pre-IPO transactions where unreported discounts are presumably tougher for the SEC to detect. [ABSTRACT FROM AUTHOR]

AbstractA new model of reserve, the Sensory, Emotional, and Cognitive Reserve (SEC) model, has been recently proposed, but so far this model has not been operationalized in instruments to evaluate the different domains of the reserve. This study introduces the SEC reserve inventory (SECri) along with preliminary data obtained from a study involving 57 adults, aged 35 and older. The SECri assesses the SEC domains using specific proxies: (a) sensory reserve (SR) through sensory acuity and sensory perception proxies; (b) emotional reserve (ER) through life events, resilience, and emotional regulation proxies; and (c) cognitive reserve (CR) through education, occupation, socioeconomic status, bilingualism, leisure activities, and personality traits proxies. Key features of SECri include self- and informant-report forms, fine-grained response scales, and the evaluation of reserve development across the lifespan. Findings on the acceptability, convergent validity between SECri domains and validated tests for the same constructs, internal consistency of each domain, and predictive validity of Montreal Cognitive Assessment scores support further research with this inventory. Future studies should consider determining SECri’s psychometric properties in clinical and subclinical conditions to evaluate its prognostic value in cases of neurocognitive decline. [ABSTRACT FROM AUTHOR]

The article discusses a recent regulatory change by the U.S. Securities & Exchange Commission (SEC) to the Names Rule for mutual funds, which mandates that funds' investments must align with their names. Topics include the implications of the updated Names Rule, the use of value at risk calculations for assessing investment risks, and the broader application of the Black-Scholes-Merton model to various stochastic processes beyond geometric Brownian motion.

We examine the effect of digital financial reporting on firm productivity. Information frictions represent a constraint that impedes efficient resource allocation and a major source of such frictions stems from the fact that firms' production functions (the conversion from inputs to outputs) are not observable to corporate outsiders. Digital communication of corporate financial data fundamentally changes how firm-specific information is disclosed, released, and disseminated by mitigating information asymmetry between corporate insiders and outsiders and facilitates the processing of such information. We use the staggered implementation of the SEC's Electronic Data Gathering and Analysis Retrieval (EDGAR) system to investigate the impact of digital financial reporting on firms' productivity. We show that the implementation of EDGAR results in an economically meaningful and statistically significant increase on firms' productivity, measured by total factor productivity (TFP). By focusing on the role of information dissemination in coordinating investments and production, our findings provide evidence on the real effects of "going digital" in corporate reporting. [ABSTRACT FROM AUTHOR]

We show that analyst behavior changes in response to a randomly assigned shock that exogenously varies the timeliness and cost of accessing mandatory disclosures in the cross-section of investors: analysts reduce coverage and issue less optimistic, more accurate, less bold, and less informative forecasts. Our evidence indicates that analysts reduce a strategic component of their behavior: the changes are stronger among analysts with more strategic incentives like affiliated or retail-focused analysts. We conclude that mandatory disclosure can substitute for analyst information production, which is constrained by investors' ability to verify forecasts using corporate filings. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Upon the revelation of corporate misconduct by firms in their portfolios, institutional investors experience a significant discount in the market value of their portfolios, excluding misconduct firms, creating a short-term spillover that averages $92.7 billion losses per year. We examine an expansive set of channels under which this spillover to nontarget firms can occur, and find that it reflects the loss of the embedded value of monitoring by a common institutional owner, enforcement wave activity, and industry peer and business relationships. Institutional investors also experience a significant abnormal outflow of funds in the year following the misconduct event. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the midst of the Great Depression, the U.S. government created the Securities and Exchange Commission (SEC) to help control questionable business practices and prevent future economic crises. The SEC remains responsible for the administration of securities laws and enforcement actions against violators but has increasingly gained enforcement capacities over its lifespan. This research uses a grounded theory approach to explore themes across the way the SEC proceedings against detected. Publicly available litigation releases available through the agency's website are used. Overall, the SEC is observed to operate in a generally predictable and equitable manner in which most of those who are charged are ultimately sanctioned in some way. Particularly interesting interactions were observed between entities and sanctioning outcomes. 1 [ABSTRACT FROM AUTHOR]

We contrast the investment strategies of hedge funds and mutual funds around mergers and acquisitions (M&A). We find that hedge funds, on average, increase their holdings of soon‐to‐be takeover targets by 7.5% during the quarter before M&A announcements. Conversely, mutual funds, on average, reduce their equity holdings in impending targets by 3.0% over the same time period. The reduction in M&A holdings by mutual funds is less pronounced for more actively managed funds. Our results suggest that hedge funds enjoy superior access to private information or possess superior ability to process public information related to M&A transactions. [ABSTRACT FROM AUTHOR]

Executive compensation was the subject of two final regulations issued by the SEC at the end of 2022. The first set of regulations direct the national securities exchanges to adopt listing requirements that mandate most listed companies to establish and comply with written clawback policies and to provide disclosures regarding such policies. The second set of final regulations amend Rule 10b5-1(c)(1) to provide new requirements, including the requirement of a 90-day cooling-off period, for the adoption of Rule 10b5-1 plans by insiders in order to defend against claims of insider trading. Both of these regulations will have a significant impact on incentive-based and equity compensation. [ABSTRACT FROM AUTHOR]

This study is the first to examine the litigation-disclosure modifications of legal proceedings (i.e., Item 103) and contingency-note disclosures (i.e., Accounting Standards Codification [ASC] 450) in the 10-K. Litigation-disclosure modifications are defined as the amount of litigation content disclosed in year t but not in year t – 1. I first confirm the Securities and Exchange Commission's (SEC) and the Financial Accounting Standards Board's (FASB) concern that firms are providing less litigation-disclosure modifications. I then find firms with higher proprietary cost, higher litigation risk, and non-Big 4 auditors to be associated with more litigation-disclosure modifications. I also find that although firms are providing less litigation-disclosure modifications in the two litigation sections, such disclosures do predict future occurrence of litigation cases and are complementary in providing litigation information to investors. Results indirectly support the FASB's 2012 decision to not precede with disclosure policy changes in contingency-note disclosures. [ABSTRACT FROM AUTHOR]

We investigate how bankers use information from lending relationships to help borrowers find partners for strategic alliances. Firms that have borrowed from the same banker or share an indirect connection through a network of bankers are significantly more likely to enter an alliance. Consistent with bankers overcoming informational frictions, their ability to facilitate alliances decreases with banker-network distance, and is stronger for opaque borrowers. Firms connected to more potential partners via banker networks enter more alliances. These alliances are associated with positive announcement returns, and brokering banks are more likely to receive future underwriting mandates. [ABSTRACT FROM AUTHOR]

Natural products received much attention as an environmentally beneficial solution for pest management. Therefore, the extracts of invasive silverleaf nightshade (Solanum elaeagnifolium Cav.) weeds using their berries parts (seeds, peels and mucilage) supported by bioassay-guided fractionation were tested against both the greater wax moth (Galleria mellonella) and Erwinia carotovora pv. carotovora causes of the blackleg of potatoes. The seeds and peels of S. elaeagnifolium were successively extracted by maceration using dichloromethane (DCM), ethyl acetate (EtOAc), and ethanol (EtOH), respectively. While, its mucilage was extracted using EtOAc. The successive EtOH extract of the plant seeds had promising inhibition efficacy and the best minimal inhibition concentration (MIC) of 50 µg/ml against E. Carotovora amongst other extracts (DCM and EtOAc of the plant berries parts). Depending on dose response activity, EtOH extract had G. mellonella larval mortality and pupal duration rates (LC50; 198.30 and LC95; 1294.73 µg/ml), respectively. Additionally, this EtOH extract of seeds was fractionated using preparative TLC to three characteristic bands. The insecticidal and bacterial activities of these isolated bands (SEA, SEB, and SEC) were evaluated at a dose of 100 µg/ml, causing mortality by 48.48, 62.63 and 92.93% (G. mellonella larvae) and inhibition by 15.22, 0.00 and 31.66 mm (E. carotovora), respectively. Moreover, the separated major three bands were tentatively identified using LC-ESI-MS analysis revealing the presence of two phenolic acids; chlorogenic acid (SEA) and dicaffeoyl quinic acid (SEB) in addition to one steroidal saponin (SEC) annotated as borassoside E or yamoscin. Finally, the plant seeds' successive EtOH extract as well as its active constituents, exhibited potential broad-spectrum activity and the ability to participate in future pest management initiatives. A field study is also recommended to validate its bio-efficacy against selected pests and to develop its formulations. [ABSTRACT FROM AUTHOR]

7P/Pons–Winnecke is a near-Earth short-period comet of a moderate activity level. In this paper, we present the analysis of observations performed during a favorable apparition of the comet in 2021, indicating its status as a transitional ageing comet. The sublimation starts when the comet is close to the Sun, at a distance of RON = 1.76 ± 0.1 AU, and continues for ~13 months, which is apparently caused by residual reserves of water ice. The dust production rate of the comet is not high even at perihelion (<150 kg/s), and the 1.4-percent active portion of the nucleus area is sufficient to provide this mass loss. The photometric age of the comet is PAGE = 54.4 comet years; being combined with a light curve amplitude of ASEC(1;1) = 5.5m, this age corresponds to the state of a transitional middle-aged comet. [ABSTRACT FROM AUTHOR]

Copyright of NTU Management Review is the property of NTU Management Review and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The optimization of the cobalt electrowinning process is crucial to enhance the quality of metallic deposits, as cobalt plays a fundamental role in the manufacturing of high-tech materials. Thus, the effect of the additives sodium lauryl sulfate (SLS), boric acid, and Cl− ions on the physical and chemical properties of cobalt deposits obtained by electrowinning are scarce in the literature. The present study investigated the effect of additive concentrations on current efficiency (CE), specific energy consumption (SEC), and the physical and chemical properties of cobalt deposits (crystalline phases, grain and crystallite sizes, morphology, purity, and microhardness) produced through electrodeposition tests in presence of a cobalt sulfate solution at 200 A m−2, 60 °C, and pH 4. The results indicated that the presence of 0.05 g L−1 of SLS in the solution led to the best values for CE (95.5 pct) and SEC (1.80 kWh kg−1), as well as the production of uniform deposits. Cracks were identified in the cross-sectional area of the metallic deposits under all evaluated conditions, with the detection of oxygen in these areas, except for Cl− ions. Higher concentrations of SLS and boric acid resulted in the production of deposits with low microhardness and less fragility, attributed to the increased of crystallite and grain sizes. The predominant crystalline phase for all deposits was hexagonal close-packed (HCP), but the presence of SLS and Cl− ions led to the rise of significant percentages of the face-centered cubic (FCC) phase. Furthermore, the increase of Cl− ions concentration led to an increase of residual deformations in the crystalline structure of cobalt deposits, while the increase of SLS and boric acid concentrations led to a decrease of these residual deformations. [ABSTRACT FROM AUTHOR]

In the financial sphere, there is a wealth of accumulated unstructured financial data, such as the textual disclosure documents that companies submit on a regular basis to regulatory agencies, such as the Securities and Exchange Commission. These documents are typically very long and tend to contain valuable soft information about a company's performance that is not present in quantitative predictors. It is therefore of great interest to learn predictive models from these long textual documents, especially for forecasting numerical key performance indicators. In recent years, there has been great progress in natural language processing via pre-trained language models (LMs) learned from large corpora of textual data. This prompts the important question of whether they can be used effectively to produce representations for long documents, as well as how we can evaluate the effectiveness of representations produced by various LMs. Our work focuses on answering this critical question, namely, the evaluation of the efficacy of various LMs in extracting useful soft information from long textual documents for prediction tasks. In this article, we propose and implement a deep learning evaluation framework that utilizes a sequential chunking approach combined with an attention mechanism. We perform an extensive set of experiments on a collection of 10-K reports submitted annually by U.S. banks, and another dataset of reports submitted by U.S. companies, to investigate thoroughly the performance of different types of language models. Overall, our framework using LMs outperforms strong baseline methods for textual modeling as well as for numerical regression. Our work provides better insights into how utilizing pre-trained domain-specific and fine-tuned long-input LMs for representing long documents can improve the quality of representation of textual data and, therefore, help in improving predictive analyses. [ABSTRACT FROM AUTHOR]

Copyright of Petroleum Geology & Oilfield Development in Daqing is the property of Editorial Department of Petroleum Geology & Oilfield Development in Daqing and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Non-GAAP financial measures are disclosed by companies to provide information to investors and other stakeholders beyond what is required by traditional GAAP-based financial statements. Although these voluntary non-GAAP measures may provide useful information for decision-making, their limited regulation and standardization may mislead investors. This case exposes students to several aspects of non-GAAP measures. First, students will be able to locate, compare, and analyze differences in GAAP and non-GAAP measures in various disclosure mediums and subsequently describe the benefits and disadvantages in different contexts. Next, using EDGAR, students will be able to locate and discuss specific issues regulators have taken with these disclosures by analyzing SEC comment letters. Finally, students will be able to compare the usefulness of GAAP and non-GAAP measures using the FASB conceptual framework. Overall, this case provides students with an increased understanding of how companies use differential financial disclosures in the broader financial reporting environment. [ABSTRACT FROM AUTHOR]

During 2005–2007, the Securities and Exchange Commission conducted a randomized trial in which it removed short-sale restrictions from one third of the Russell 3000 firms. Early studies found modest market microstructure effects of removing the restrictions but no effect on short interest, stock returns, volatility, or price efficiency. More recently, many studies have attributed a wide range of indirect outcomes to this experiment, mostly without assessing the causal channels for those outcomes. We examine the three most often cited causal channels for these indirect effects: short interest, returns, and managerial fear. We find no evidence to support these channels. We then reexamine the principal findings in four recent studies using a sample that closely matches the actual experiment and a common research design and find minimal support for the reported indirect effects. Our findings highlight the importance of confirming a causal channel or an economic mechanism and show that sample selection and specification choices can produce statistical significance even without an underlying economic mechanism. This paper was accepted by David Sraer, finance. Supplemental Material: The internet appendix and data are available at https://doi.org/10.1287/mnsc.2023.4918. [ABSTRACT FROM AUTHOR]

The Securities and Exchange Commission's 2016 Tick Size Pilot Program was a natural experiment that imposed increases in tick size for randomly selected small-cap firms. Using a difference-in-differences research design, we examine the effect of this increase in tick size on earnings guidance. We find that after initiation of the program, treatment firms provide significantly less earnings guidance. We provide further evidence that this decrease is driven by increases in investors' fundamental information acquisition and in firms' financial reporting quality, consistent with firms reducing earnings guidance when investors are already more informed. The decrease is stronger for firms with higher proprietary costs of disclosure, consistent with firms being more likely to reduce costly disclosure when investors are more informed. In contrast, the decrease is weaker for firms with greater external financing needs, consistent with these firms continuing to seek the benefits of disclosure, even when investors are more informed. Taken together, our results suggest that an increase in tick size makes investors more informed, which, in turn, reduces the need for firms to provide earnings guidance, though the extent of the reduction depends on the costs and benefits of providing earnings guidance. This paper was accepted by Suraj Srinivasan, accounting. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.4930. [ABSTRACT FROM AUTHOR]

To address the increasingly dire climate crisis, the SEC will require public companies to reveal their business's environmental impact to the market through climate disclosures. Businesses and states challenged the required disclosures as compelled, politically motivated speech that risks putting First Amendment doctrine into further jeopardy. In the past five years, the U.S. Supreme Court has demonstrated an increased propensity to hear compelled speech cases and rule in favor of litigants claiming First Amendment protection from disclosing information that they disagree with or believe to be a politically charged topic. Dissenting liberal Justices have decried these practices as "weaponizing the First Amendment" to evade government regulation. The threshold question--whether certain types of speech such as securities regulations implicate the First Amendment--is rarely addressed by the Court and has never been affirmatively decided. Historically, commercial speech (expression by a corporation about an economic transaction) receives lower levels of protection relative to political or individual speech. The Court has held that compelled commercial disclosures of a factual and uncontroversial nature required only rational basis review. The Court, however, has never ruled on protections for corporations when the compelled speech is potentially of a political, rather than purely factual, nature and has continually avoided this question with narrow holdings and carved out exceptions. A First Amendment challenge to climate disclosures would force them to confront it directly. If the challenges to the SEC climate disclosures reach the Court, it will need to consider its precedents in both commercial and compelled speech cases and incorporate the most applicable First Amendment theory. This Note argues that the compelled speech doctrine is the appropriate First Amendment analysis in deciding whether a corporation can be forced to speak and add more speech to the marketplace. By relying upon compelled speech doctrine and addressing the unnatural fit between speaker rights and corporate law, this Note ultimately concludes that corporations do not have personal First Amendment rights, and, as a result, climate regulations should only be subject to rational basis review. [ABSTRACT FROM AUTHOR]

Background: Serous endometrial carcinoma (SEC) is a high-risk subtype of endometrial cancer. The effectiveness of multiple adjuvant therapies, namely chemotherapy (CT), radiotherapy (RT), and sequential/concurrent chemotherapy with radiotherapy (CRT), have previously been investigated. However, optimal management of early-stage SEC remains unclarified. Methods: All cases of early-stage SEC (FIGO 2009 stages I–II) treated in our institution from 2002 to 2019 were identified. Patient data were documented until September 2023. Overall survival (OS) and disease-free survival (DFS) were computed using Kaplan–Meier estimates and Cox's proportional hazard model; descriptive statistical analysis was performed. Results: A total of 50 patients underwent total hysterectomy-bilateral salpingo-oophorectomy and omentectomy, displaying stage IA (60%), IB (24%), and II (16%) disease. The median follow-up was 90.9 months. Patients underwent adjuvant CRT (n = 36, 72%), CT (n = 6, 12%), or RT (n = 6, 12%). Two patients were observed and excluded from analyses. The 42 patients who received radiotherapy had pelvic external beam radiotherapy (n = 10), vaginal brachytherapy (n = 21), or both (n = 11). CRT had better OS (HR 0.14, 95%CI 0.04–0.52, p < 0.005) and DFS (HR 0.25, 95%CI 0.07–0.97, p = 0.05) than CT alone. RT displayed no OS or DFS benefits compared to CT/CRT. Recurrences were mostly distant. Acute and late G3-4 toxicities were primarily hematologic. Conclusions: Our data underline the challenge of treating SEC. CRT appears to be superior to CT alone but not to RT. Most recurrences were distant, highlighting the need for optimized systemic treatment options. [ABSTRACT FROM AUTHOR]

The aim of the research was to determine whether the Socioemotional Competencies (SEC) of teachers are strengthened throughout their professional experience, comparing the SEC of teachers in training in the bachelor's degree in education with experienced teachers in education leading a classroom group. Non-experimental descriptive quantitative research was conducted, in which a sample of 22 teachers in the final stage of pedagogical training in the bachelor's degree in teaching and Learning for Tele Secondary Education and 36 experienced teachers in the classroom without initial teacher training, currently working within the Mexican educational system, participated. Both groups were administered the Emotional Quotient Inventory test, resulting in a difference in the overall emotional quotient score that demonstrates that experienced teachers present more developed SEC. This difference is significant, despite not having had formal teacher training. [ABSTRACT FROM AUTHOR]

Striving for the highest quality food product in the shortest time with the least energy expenditure is the cornerstone of the food drying process. Furthermore, the geometric properties of the product significantly influence the efficiency of the drying process. Therefore, in this study, peach slices of three different thicknesses were dried in three different dryer types. The drying of peaches was carried out using a solar energy drying system, a thermal energy storage solar dryer, and a dryer with a heat pump. The drying performances of peach slices of three different thicknesses were investigated. Moisture extraction rates (MER), specific moisture extraction rates (SMER), and specific energy consumption (SEC), which relate to the amount of removed moisture and the amount of consumed energy at the end of the drying studies, were calculated. Food analyses, such as moisture content, color, texture, and water activity were performed. Considering the amount of energy consumed, it is seen that the heat pump system consumes more energy than the solar energy system. In addition, by using the heat storage system, the drying time is shortened, and the energy consumption is reduced. A decrease in SEC values was observed with the activation of the heat storage solar dryer. [ABSTRACT FROM AUTHOR]

The physicochemical properties of high-molecular weight compounds based on N,N-diallyl-N′-acyllhydrazines were studied. Based on the results of thermal analysis it was established that sorbents are stable up to 160–210 °C; the destruction of the initial N,N-diallyl-N′-acyllhydrazines starts at lower temperatures. The stability of sorbents in various media, the values of static exchange capacities for hydrogen ions and hydroxide ions ( SEC H + and SEC OH − ), and isoelectric points of the surface were determined. Samples for further study of the rare earth metals sorption were selected. [ABSTRACT FROM AUTHOR]

The article explores the legal framework, partisan structure, and authority of the U.S. Securities and Exchange Commission (SEC) with regard to its proposed climate change disclosure requirements.

The article explores the proposed changes to the disclosure requirements of the U.S. Securities and Exchange Commission (SEC) regarding man-made climate change-related risks to investors.

The article provides an overview of the history of cryptocurrency and the current taxation and regulatory framework for cryptocurrencies. It discusses the conflicting views of the SEC and the IRS on whether cryptocurrencies should be classified as securities or property. The article highlights the challenges and shortcomings of current tax policies regarding cryptocurrencies, including the lack of specialized tax rules and the inapplicability of certain provisions. It suggests that the IRS should create a new classification for cryptocurrencies and update its tax system to effectively tax them. However, due to the unique nature of cryptocurrencies, there may never be a perfect solution. [Extracted from the article]

In 2010, the so-called "Flash Crash" of the U.S. stock market brought the overlooked practice of high-frequency trading into the spotlight for the first time. Initial efforts to study and curtail the practice, including a transaction fee pilot attempted by the Securities and Exchange Commission in 2018, have been unsuccessful. After outlining the substantial benefits market participants gain from the activities of high-frequency traders, this article argues that there are three potent and readily available tools for limiting the harmful excesses of those traders: (i) aggressively bring market manipulation charges under § 9(a)(2) of the Exchange Act against those who attempt to manipulate the market; (ii) to bring enforcement actions under § 78f(b)(5) of the Exchange Act against national exchanges that fail to "protect investors and the public interest" by giving special benefits to those traders; and (iii) utilize § 19 of the Exchange Act to oversee exchange colocation rules designed to benefit those traders which do not reflect fair access and transparency. With these proposals implemented, markets will continue to function at historically low costs for all investors with the aid of healthy competition between high-frequency traders. [ABSTRACT FROM AUTHOR]

We examine whether the increased quantity of public information has a spillover impact on equity sales by private industry peer firms. To capture an increase in the quantity of public peer information, we use corporate spin‐offs as these events cause an increase in the number of independent public entities that mandatorily disclose financial reports. Using a unique dataset on private firms' equity sales extracted from the Securities and Exchange Commission filings pursuant to Regulation D, we find that private industry peers sell more equity following spin‐offs, but the increase is not statistically significant. When we divide our spin‐off sample based on the availability of segment information on subsidiaries before spin‐offs, however, we find a significant an increase in private firms' equity sales after spin‐offs when parent firms did not previously disclose segment reports. Additional test results suggest that our inferences regarding private industry peers are not entirely explained by an industry‐wide demand shock. Overall, we contribute to the literature by establishing an information spillover channel, incremental to the effect of common industry shocks, flowing from the public to private markets. [ABSTRACT FROM AUTHOR]