Miracle-dz/UniFAR-FTUs huggingface dataset:
Leasing as a Mitigation Channel of Capital Misallocation

We document that leased capital accounts for about 20% of the total productive physical assets used by U.S. public listed firms, and this proportion is even higher among small and financially constrained firms - over 40%. However, operating lease has been recorded as an off-balance-sheet item until the recent IFRS 16 lease accounting rule change (effective from 1 January 2019). Therefore, leased capital is an important ''unmeasured'' capital which leads to a significant mis-measurement in firms' capital productivity, and in quantifying capital misallocation (Hsieh and Klenow, 2009). In this paper, we argue that leasing is an important mitigation channel of credit-constraint-induced capital misallocation. First, we develop a general equilibrium model with heterogeneous firms, collateral constraint and an explicit buy versus lease decision to demonstrate a novel economic mechanism: the possibility for firms to rent capital when they are financially constrained mitigates capital misallocation. Second, we empirically show that ignoring leased capital and its mitigation effect leads to a significant overestimate of capital misallocation.
Sentiment Analysis of Major News Announcements to Predict the Aggregate Market Indicators Amid COVID-19 Outbreak

The COVID-19 Pandemic (a Black Swan event) whose impact on more than 180 countries led to the disruption of certainty. The Corona Virus started its contagious spree from the Chinese city of Wuhan<br><br>It impacted healthcare, education system, Corporations, Employment, Production, and the very nature of hygiene and cleanliness. The news of the Contagious Virus hit the Stock Market and other Financial Markets hard indicating the risk in the expected future cash flows. The Stock market nose-dived in March 2020 indicating the sentiment of the general public rather than rational decision making. The fundamentals of Corporations cannot explain such massive drops but the sentiment of the general public can help in explaining such volatility<br><br>This Paper highlights and measures the volatility of public sentiment and leverage it to predict the benchmark indices of seven countries amid the COVID-19 pandemic with the help of Machine Learning Algorithms.
Crash Risk and ESG Disclosure Quality

This study examines whether the breadth of ESG (environmental, social and governance) disclosure influences firm-specific crash risk. Our main research hypothesis postulates that further information disclosure about ESG activities and risks should contribute to a decline in crash risk owing to lower opacity and information asymmetry between managers and outside investors, as well as facilitating the assessment of environmental and social risks and concerns faced by the firm. The analysis covers advanced economies and the period spanning 2006-2016. Overall, our findings confirm that breadth of ESG disclosure lowers (future) firm-specific crash risk. The results are robust to different model specifications employed by previous research. The impact of the breadth of ESG disclosure on crash risk is concentrated on firms with lower sustainability performance. Finally, a cross-country analysis also shows that ESG disclosure influence on crash risk is not homogeneous across countries.
Neural Networks in Finance: A Descriptive Systematic Review

Traditional statistical methods pose challenges in data analysis due to irregularity in the financial data. To improve accuracy, financial researchers use machine learning architectures for the past two decades. Neural Networks (NN) are a widely used architecture in financial research. Despite the wider usage, NN application in finance is yet to be well defined. Hence, this descriptive study classifies and examines the NN application in finance into four broad categories i.e., investment prediction, credit evaluation, financial distress, and other financial applications. Likewise, the review classifies the NN methods used under each category into standard, optimized and hybrid NN. Further, accuracy measures used by the research work widely differ, in turn, pose challenges for comparison of a NN under each category and reduces the scope of formalizing a theory to choose optimum network model under each category. JEL Classification Codes: G1, G17, M150.
No Firm Is an Island? How Industry Conditions Shape Firms’ Expectations

We study how firms’ expectations and actions are affected by both aggregate and industry-specific conditions using a survey of French manufacturing firms. We document an important new stylized fact. In response to industry-level shocks that have no aggregate effects, firms’ aggregate expectations respond persistently. This is consistent with “island” models in which firms use the local prices they observe to make inferences about broader aggregate conditions. We then assess the extent to which these patterns are related to observable characteristics of firms and the industries in which they reside. Finally, we extend the analysis to firms’ expectations over their own future price changes and document how these respond to both industry and aggregate variation.
Off Track Monetary Policy and Housing

We find significant evidence of model mis-specification, in the form of neglected serial correlation, in the econometric model of the U.S. housing market used by Taylor (2007) in his critique of monetary policy following the 2001 recession. When we model that serial correlation, his model fails to replicate the historical paths of housing starts and house price inflation. Further modifications in the model allow us to capture both the housing boom and the bust. Our analysis suggests that a counterfactual monetary policy proposed by Taylor (2007) would not have averted the pre-financial crisis collapse in the housing market.
Collective Communication Versus Small Group Communication – Gender Differences in Performance Improvement Under Uncertainty

A vast number of people can be reached via online platforms which in turn benefit from the intelligence of these collectives to solve a diverse set of problems, especially in situations where there is uncertainty. A crucial task for organizations is the selection of the optimal problem-solving design in small groups and collectives. This study aims to identify whether communication improves performance in situations of uncertainty. The main focus is the comparison of performance improvement through small group or collective communication by gender. Results, based on an experiment conducted on about 800 business students from a large Western European University, suggest that topic-specific knowledge has a positive impact on performance under uncertainty in the absence of communication. In addition, small group, as well as collective communication, has been found to improve performance. Finally, comparison of performance improvement showed that best communication type varies by gender. Gender-based differences in communication style, as well as topic-specific interest, determine what communication type is most suitable. These results complement existing research which investigated communication effects as well as the design of small group and collective problem solving. The role of gender, which has not been investigated previously, is also underscored by the results of this study. Furthermore, practical implications for choosing either collective or small group communication are outlined.
Does EMR Adoption by Nursing Homes Decrease Hospitalization Costs?

Electronic Medical Records (EMR) have the potential to reduce medical expenditures by increasing communication between healthcare providers and avoiding unnecessary tests and medical errors. Using a three-year panel of Medicaid spending (hospitalization costs) for long-term care patients in nursing homes, we analyze the effect of nursing home EMR adoption on out-of-home healthcare expenditures for their residents. We find a strong and persistent reduction of hospitalization costs when hospital and nursing homes both adopt EMR, a savings of about 13% of Medicaid expenditure on average for those patients (and as much as 35% for the subset of hospitals that are part of a hospital system). This is above the 3.5%-14% direct effect of nursing home adoption alone. Given the networked nature of healthcare delivery for long-term care patients or patients with chronic conditions, our findings underscore the importance of looking outside the adopting institution when accounting for health IT (HIT) value.
Underpricing of Ipos that Follow Private Placements

This study addresses the question of the effectiveness of private placements in mitigating the information asymmetry problem faced by IPO firms, and their impacts on issuing costs, both underpricing and underwriting spreads, of IPOs. We examine the underpricing of initial public offerings by firms that made private placements prior to their IPOs (PP IPO firms). We find that PP IPOs experience significantly lower underpricing. They also have smaller offer price revisions following the book building process. Furthermore, PP IPOs are associated with more reputable underwriting syndicates and lower underwriting spreads. These findings persist after we control for known factors that impact underpricing in the regression analysis. We conclude that the results are consistent with the information asymmetry explanation for the global phenomenon of IPO underpricing, and lend support to the notion that prior private placements help reduce information asymmetry, thus resulting in lower issuing costs for IPO firms.
'503 Service Unavailable': When Acquiring Information Goes Wrong

Investors increasingly rely on digital infrastructure to acquire information and we study how a large, unexpected server outage of the SEC’s EDGAR system affects liquidity to characterize the resilience and capital market effect of information acquisition in the digital age. The SEC’s EDGAR system receives millions of requests per day for information on publicly listed firms and we find that liquidity worsens for firms more strongly affected by its outage. This effect is stronger when failed requests stem from funds and financial institutions, when they are algorithmic in nature, and when they target information not easily available elsewhere.
Further Evidence on the Efficiency of the Chinese Stock Markets

This paper examines the relative efficiency of the Chinese A- and B-share markets following the deregulation of the B-share market which widened ownership to include domestic investors. Applying both parametric and non-parametric variance ratio tests to the daily data of 304 A-shares and 66 B-shares over the period 1 January 1996 to 30 April 2005, the paper finds that A-shares are characterised by a greater level of efficiency than are B-shares, although the efficiency of both markets has improved following the regulatory change. Overall, the results suggest that the Chinese stock markets are characterised by information asymmetry, although the timely access to high quality information that domestic investors in the A-share market enjoy, has improved the efficiency with which information is incorporated into the prices of B-shares.
Optimization of Systemic Risk: Reallocation of Assets Based on Bank Networks

In this paper, we investigate the optimization of systemic risk based on Debt Rank by considering two contagion channels: interbank lending and common asset holdings. The optimization of systemic risk is realized through the reallocation of assets in these two networks (interbank lending and common asset holdings), and China’s interbank lending and sector loans data from 2017 is used to verify this scenario. The results show that under bank shock and asset shock, systemic risk can be signiﬁcantly reduced through the reallocation of assets in these two networks; the density of the optimized network is signiﬁcantly higher than that of the original network; and the scale of interbank assets of large-scale banks decreases, while the scale of common asset holdings increases in the optimized network. In addition, the results suggest that systemic risk can be lowered by reducing the existence of a high concentration of bank or sector portfolios, and that a low Herﬁndahl–Hirschman Index (HHI) plays a role in risk-sharing when there is a less high HHI.
Multipin EHD dryer: Effect of electrode geometry on charge and mass transfer

ABSTRACT Electrohydrodynamic (EHD) drying is considered as energy-efficient nonthermal technology suitable for dewatering of heat-sensitive materials. This technology relies on the ionic discharge from the vertical pin or fine horizontal wire, impinging wet material deposited on the plate electrode of opposite polarity. The critical issue for the scaling of EHD dryer is the geometry of a multipin/wire discharge and collecting electrodes, in particular the spacing between pins/wires and the gap between discharge electrode and material surface. This paper presents the results of experimental study and mathematical simulation of multipin discharge current to maximize total charge and mass transfer at the material surface. A mathematical model for discharge current based on Poisson’s and Warburg fundamental equations was developed and validated in experiments with multipin electrodes of different spacing (1, 2, 3, 4, and 6 cm) and gaps from 2 to 4 cm. It was demonstrated that linear relationship between total electric current and drying rate is valid for any spacing and any gap with the range from 2 to 4 cm. It was experimentally documented that the judiciously selected geometry of the multipin discharge electrode could mitigate adverse effect of interference between neighboring ionic jets and bring the concept of EHD dryer to industrial practice.
Determinants of Premiums Paid in European Banking Mergers and Acquisitions

This study aims at analysing the determinants of the premium paid in European banking mergers and acquisitions (M&A). This analysis will highlight the reasons for the bank M&A wave during the 1990s. The empirical study analyses a sample of 81 European banking mergers and acquisitions from 1994 to 2000. The results show that there are different variables that make the target bank attractive for the acquirer, such as the percentage of equity, the percentage of loans and financial profitability. However, geographical and product diversification have not been considered by the acquirers as a reason to pay higher premiums. Moreover, when analysing a sub-sample of savings banks and cooperatives, it is found that M&A deals have been used as a protection measure to avoid being acquired, since these acquisitions aim at attaining a great size, what implies higher premiums are paid for mergers between equals, for acquisitions of higher banks and by those who show lower growth.
The Importance of Partner Naming when Examining Auditor Independence and Non-Audit Services

We examine whether the naming of partners provides a benefit to the public in the context of allowing researchers to empirically collect evidence on the economic importance of non-audit services (NAS) at the partner level. We provide evidence showing that auditor independence is impaired when auditors provide higher NAS using actual auditor provided NAS fees and the type and dollar value of those fees. Specific NAS are not banned and the identity of the audit engagement partner, NAS fees and description of the type and value of NAS from the audit firm are publicly disclosed in Australia. These data allow us to examine actual auditor provided NAS fees and type and dollar value of fees at the partner, office and firm level in an environment where NAS is not constrained by regulation. We find that higher NAS fee-based client importance is associated with fewer going concern opinions at the partner, office and firm level for distressed firms, and more earnings management at the partner level. In additional tests, we find that the observed associations are driven by non-tax NAS fee-based measures of client importance to the audit engagement partner. Hierarchical linear modelling analyses also show that reduced audit quality associated with higher NAS fees is mainly explained by partner, rather than firm and office level fees.
How Do Independent Directors View Corporate Social Responsibility (CSR)? Evidence from a Quasi-Natural Experiment

We investigate how independent directors view corporate social responsibility (CSR). Exploiting the passage of the Sarbanes-Oxley Act (SOX) and the associated exchange listing requirements as an exogenous regulatory shock, we document that independent directors view CSR activities unfavorably. In particular, firms forced to raise board independence reduce CSR engagement significantly relative to those not required to increase board independence. Our results are consistent with the risk-mitigation view and the agency cost hypothesis where managers over-invest in CSR to mitigate their own exposure to non-systematic risk. The over-investments in CSR are curbed in the presence of a stronger, more independent, board of directors. Several robustness checks confirm the results, including fixed-effects and random-effects regressions, dynamic panel data analysis, instrumental-variable analysis, and propensity score matching, Lewbel’s (2012) heteroscedastic identification, and Oster’s (2017) method for coefficient stability. We also confirm the risk-mitigation hypothesis by showing that CSR activities reduce firm risk significantly. Our research design is much less vulnerable to endogeneity and is therefore likely to show a causal effect of board independence on CSR.
Palladium–Rhenium Catalysts for Selective Hydrogenation of Furfural: Evidence for an Optimum Surface Composition

Bimetallic catalysts comprising a platinum-group metal (e.g., Pt, Pd, Ru) and rhenium (Re) have important applications in petroleum refining, industrial chemicals production, and biomass conversion. In this work, a series of PdRe/Al2O3 catalysts was investigated for selective hydrogenation of furfural to furfuryl alcohol (FAL) at 150 °C and 1 atm in a differential reactor. The results demonstrate that PdRe/Al2O3 catalysts have greater FAL selectivity and activity than Pd/Al2O3 catalysts. Over the bimetallic catalysts, decreased furan production is accompanied by a marked increase in hydrogenation activity. PdRe 1:1 catalysts prepared using [Pd(NH3)4](NO3)2 are significantly more active than catalysts prepared using Pd(NO3)2. PdRe 1:2 catalysts are more selective to FAL but less active than 1:1 catalysts prepared using the same precursors. The superior activity of PdRe/Al2O3 catalysts for selective hydrogenation of furfural is inferred to result from Re surface modification of Pd nanoparticles—disrupting P.
Concentration of the Mobile Telecommunications Markets and Countries' Competitiveness

Developing a database that includes 59 countries, our study sheds light on the role of mobile telecommunications markets' concentration on countries' competitiveness. <br><br>Performing several estimations and using an instrumental variable that aims to explain the degree of concentration in mobile phone markets, we find that the higher is the concentration in this industry, the lower is the use of the information technology and communication (ICT). On the other hand, we also find that the use of ITC is positively correlated to countries' competitiveness. Thus, our results reveal positive spillover effects of the mobile phone industry on countries' competitiveness and suggest that all policies that aim to reduce concentration and market power in the mobile phone industry is welcomed.
Words Speak as Loudly as Actions: Central Bank Communication and the Response of Equity Prices to Macroeconomic Announcements

While the literature has already widely documented the effects of macroeconomic news announcements on asset prices, as well as their asymmetric impact during good and bad times, we focus on the reaction to news based on the description of the state of the economy as painted by the Federal Open Market Committee (FOMC) statements. We develop a novel FOMC sentiment index using textual analysis techniques, and find that news has a bigger (smaller) effect on equity prices during bad (good) times as described by the FOMC sentiment index. Our analysis suggests that the FOMC sentiment index offers a reading on current and future macroeconomic conditions that will affect the probability of a change in interest rates, and the reaction of equity prices to news depends on the FOMC sentiment index which is one of the best predictors of this probability.
Using Oxidation–Reduction Potential as Septicity Control Parameter During Reclaimed Wastewater Transportation

During wastewater transportation, chemical and biological transformations may occur. Aerobic, anoxic, and anaerobic conditions exist depending on the presence or absence of dissolved oxygen and oxidized nitrogen compounds. The occurrence of anaerobic conditions has a negative effect on wastewater transportation because of the usual subsequent sulfide generation process. In Tenerife, Spain, reclaimed wastewater used for agricultural purposes is transported via a completely filled gravity pipe, 0.6 m in diameter and 61 km long. Because of the long residence time (approximately 30 to 40 hours), anaerobic conditions typically occur after 5 to 10 hours of flow. Field studies during transportation were conducted from November 1994 to July 1997. This paper describes a study of the evolution of septic conditions (aerobic, anoxic, and anaerobic) and the relationship between septicity and oxidation–reduction potential (ORP), which can predict the occurrence of anaerobic conditions.
Do Executives Have Fixed-Effects on Firm-Level Stock Price Crash and Jump Risk? Evidence From the CEOs and CFOs

This paper investigates whether individual CEOs and CFOs have “styles” (i.e. managers’ fixed- effects) when it comes to withholding bad and good corporate news, which is captured using the firm-level future stock price crash and jump risk. Tracking managers that move across firms and employing a manager fixed effect model, we find that both CEOs and CFOs have fixed-effects on firm-level future stock price crash and jump risk, using multiple crash (jump) risk measures adopted from previous studies (for example, Kim et al. 2011a,b). Such effects are subjected to a battery of robustness tests, including using a placebo data. In addition, we document that besides bad news withholding channels suggested in the existing literature (e.g. earnings management, management guidance, and tax avoidance), managers have fixed-effects on “other channels” of news withholding, which is measured parsimoniously using a crash risk residual. We also find that CEOs have stronger fixed-effects than CFOs in affecting firm-level stock price crash and jump risk. Lastly, we find that certain demographic characteristics, including past professional qualifications (CPA license), educational background (MBA and JD degree), past military experience, and family status are associated with the crash and jump risk of the firm. <br>