bluuebunny/crossref_metadata_2025 huggingface dataset:
Post‐translational dual regulation of cytochrome P450 aromatase at the catalytic and protein levels by phosphorylation/dephosphorylation
Authors: Hayashi Takanori , Harada Nobuhiro
Published: August 2014

The post‐translational regulation of aromatase has not been well characterized as compared with transcriptional regulation. Several studies of post‐translational regulation have focused on decreases in catalytic activity following phosphorylation. We report here dual post‐translational regulation of aromatase, at the catalytic activity and protein levels. Microsomal aromatase prepared from JEG‐3 cells was rapidly inactivated and subsequently degraded in the presence of a cytosolic fraction with calcium, magnesium, and ATP. In a reconstituted system consisting of microsomal and cytosolic fractions, aromatase was protected from protein degradation by treatment with alkaline phosphatase, whereas degradation was enhanced by treatment with calcineurin inhibitors (FK506 and cyclosporin A). Furthermore, aromatase was protected from degradation by treatment with kinase inhibitors, especially the calcium/calmodulin kinase inhibitors KN62 and KN93. Similarly to the reconstituted system, aromatase in cultured JEG‐3 cells was protected from degradation by KN93, whereas FK503 increased degradation in the presence of cycloheximide, although cellular aromatase mRNA levels were unchanged by these reagents. Knockdown of calcineurin and calcium/calmodulin kinase II (CaMKII) with small interfering RNAs resulted in a dose‐dependent increase in aromatase degradation and protection from degradation, respectively. The cytosol fraction‐dependent phosphorylation of microsomal aromatase was inhibited by calcineurin, KN62, and KN93, and promoted by CaMKII and FK506. These results indicate that aromatase is regulated acutely at the catalytic activity level and subsequently at the enzyme content level by CaMKII/calcineurin‐dependent phosphorylation/dephosphorylation.
Roles of Edc3 in the oxidative stress response and CaMCA1‐encoded metacaspase expression in Candida albicans
Authors: Jung Jong‐Hwan , Kim Jinmi
Published: August 2014

The Edc3 protein is an enhancer of mRNA decapping, and acts as a scaffold protein for the mRNA granules that are known as processing bodies in yeast. In the pathogenic yeast Candida albicans, various stresses, such as glucose depletion, oxidative stress, and filamentation defects, induce the accumulation of processing bodies. Here, we report that the edc3/edc3 deletion strain showed increased resistance to various stresses, including hydrogen peroxide, acetic acid, and high temperature. Oxidative stress is known to induce the intracellular accumulation of reactive oxygen species (ROS) and apoptotic cell death in C. albicans. We found that the ROS level was lower in edc3/edc3 cells than in wild‐type cells following oxidative stress. We also observed that expression of the metacaspase gene CaMCA1 was decreased in edc3/edc3 cells. Overexpression of CaMCA1 suppressed the decreased accumulation of ROS and the increased resistance to hydrogen peroxide in edc3/edc3 cells. The catalase Cat1 and the superoxide dismutase Sod1 were upregulated in edc3/edc3 cells as compared with wild‐type cells. On the basis of these findings, we suggest that EDC3 plays a critical role in the expression of CaMCA1 and the oxidative stress response in C. albicans.
Fear‐related behaviors in Lurcher mutant mice exposed to a predator
Authors: Lorivel T. , Roy V. , Hilber P.
Published: August 2014

The Lurcher mutant mice are characterized by massive cerebellar cortex degeneration. Besides their motor and cognitive disturbances, they exhibit both exaggerated blood corticosterone (CORT) level surge and behavioral disinhibition when confronted to anxiogenic conditions (i.e. to a potential threat). In this study, we assessed if such physiological and behavioral hyperactivity was also detectable in a fear‐eliciting situation (actual threat). For this purpose, the behaviors and CORT level elevations in Lurcher mice were compared with those of littermate controls in the predator exposure test: mice were exposed either to a rat (exposure) or to a brief wave of the experimenter's hand (sham exposure). While the basal CORT concentrations (24 h before testing) were not significantly different between mice of both genotypes, the post‐exposure ones were higher in Lurcher than in control mice whatever the condition of the experimental design (exposure or sham exposure). Predator exposure did not provoke significant increase of CORT levels whatever the genotype. On the contrary, our data clearly showed that fear‐related behaviors of cerebellar mutants facing a real threat were exacerbated in comparison to those of control mice. These results suggest that the cerebellar cortex not only participates to fear conditioning and anxiety but also actively contributes to the modulation of the innate fear‐related behaviors.
Climate‐related genetic variation in drought‐resistance of Douglas‐fir (Pseudotsuga menziesii)
Authors: Bansal Sheel , Harrington Constance A. , Gould Peter J. , St.Clair J. Bradley
Published: August 2014

There is a general assumption that intraspecific populations originating from relatively arid climates will be better adapted to cope with the expected increase in drought from climate change. For ecologically and economically important species, more comprehensive, genecological studies that utilize large distributions of populations and direct measures of traits associated with drought‐resistance are needed to empirically support this assumption because of the implications for the natural or assisted regeneration of species. We conducted a space‐for‐time substitution, common garden experiment with 35 populations of coast Douglas‐fir (Pseudotsuga menziesiivar.menziesii) growing at three test sites with distinct summer temperature and precipitation (referred to as ‘cool/moist’, ‘moderate’, or ‘warm/dry’) to test the hypotheses that (i) there is large genetic variation among populations and regions in traits associated with drought‐resistance, (ii) the patterns of genetic variation are related to the native source‐climate of each population, in particular with summer temperature and precipitation, (iii) the differences among populations and relationships with climate are stronger at the warm/dry test site owing to greater expression of drought‐resistance traits (i.e., a genotype × environment interaction). During midsummer 2012, we measured the rate of water loss after stomatal closure (transpirationmin), water deficit (% below turgid saturation), and specific leaf area (SLA, cm2 g−1) on new growth of sapling branches. There was significant genetic variation in all plant traits, with populations originating from warmer and drier climates having greater drought‐resistance (i.e., lower transpirationmin, water deficit andSLA), but these trends were most clearly expressed only at the warm/dry test site. Contrary to expectations, populations from cooler climates also had greater drought‐resistance across all test sites. Multiple regression analysis indicated that Douglas‐fir populations from regions with relatively cool wintersandarid summers may be most adapted to cope with drought conditions that are expected in the future.
A systematic review and conceptual framework for the mechanistic pathways of nurse plants
Authors: Filazzola Alessandro , Lortie Christopher J.
Published: August 2014

Aim

To conceptualize the mechanistic pathways of the nurse‐plant syndrome by life‐form and to identify the implications of positive plant–plant interactions for landscape and evolutionary ecology.

Location

Global.

Methods

We conducted a quantitative review examining 298 articles to categorize the literature on nurse‐plant interactions based on geographic region, mechanism of facilitation, ecological hypothesis and nurse life‐form.

Results

A total of nine different nurse mechanisms were identified and two were classified as meta‐mechanisms. We found that shrubs were the dominant nurse life‐form (46% of total studies) and that studies of positive plant interactions were most frequent in areas of high abiotic stress. Nurse‐plant studies were also distributed unevenly around the globe with nearly a quarter in the South American Andes and Spain. Studies testing the direct nurse–protégé interactions were the most frequently performed, including the ecophysiological responses of protégé species (32.2%). Research gaps identified in the nurse‐plant literature included indirect interactions and seed trapping as well as the large‐scale implications for landscape ecology and evolution.

Main conclusions

Nurse plants are often considered keystone species because they commonly structure plant communities. This is an important confirmatory finding in many respects, but it is also novel in that it challenges traditional plant ecology theory and has important implications for landscape‐level dynamics over time. The categorization of mechanisms proposed provides a conceptual framework useful for organizing the research to date and can accelerate linkages with theory and application by identifying important connections. It is becoming increasingly apparent that future studies of the nurse‐plant syndrome must decouple and consider multiple mechanisms of interaction to explain the processes that influence community structure, particularly in high‐stress conditions, given a changing climate and potential shifts in biodiversity.
Metagenetic analysis of patterns of distribution and diversity of marine meiobenthic eukaryotes
Authors: Fonseca Vera G. , Carvalho Gary R. , Nichols Ben , Quince Christopher , Johnson Harriet F. , Neill Simon P. , Lambshead John D. , Thomas W. Kelley , Power Deborah M. , Creer Simon
Published: August 2014

Aim

Meiofaunal communities that inhabit the marine benthos offer unique opportunities to simultaneously study the macroecology of numerous phyla that exhibit different life‐history strategies. Here, we ask: (1) if the macroecology of meiobenthic communities is explained mainly by dispersal constraints or by environmental conditions; and (2) if levels of meiofaunal diversity surpass existing estimates based on morphological taxonomy.

Location

UK and mainland European coast.

Methods

Next‐generation sequencing techniques (NGS; Roche 454 FLX platform) using 18S nuclear small subunit ribosomal DNA (rDNA) gene. Pyrosequences were analysed using AmpliconNoise followed by chimera removal using Perseus.

Results

Rarefaction curves revealed that sampling saturation was only reached at 15% of sites, highlighting that the bulk of meiofaunal diversity is yet to be discovered. Overall, 1353 OTUs were recovered and assigned to 23 different phyla. The majority of sampled sites had c. 60–70 unique operational taxonomic units (OTUs) per site, indicating high levels of beta diversity. The environmental parameters that best explained community structure were seawater temperature, geographical distance and sediment size, but most of the variability (R2 = 70%–80%) remains unexplained.

Main conclusions

High percentages of endemic OTUs suggest that meiobenthic community composition is partly niche‐driven, as observed in larger organisms, but also shares macroecological features of microorganisms by showing high levels of cosmopolitanism (albeit on a much smaller scale). Meiobenthic communities exhibited patterns of isolation by distance as well as associations between niche, latitude and temperature, indicating that meiobenthic communities result from a combination of niche assembly and dispersal processes. Conversely, isolation‐by‐distance patterns were not identified in the featured protists, suggesting that animals and protists adhere to radically different macroecological processes, linked to life‐history strategies.
Life cycle assessment of beef cow‐calf systems with and without grazing on abandoned cultivated lands in Japan
Authors: Tsutsumi Michio , Hikita Kumiko , Takahashi Yoshitaka , Yamamoto Naoyuki
Published: August 2014

Beef production contributes to environmental problems, such as climate change, air pollution and water pollution. Our objective was to determine how much the introduction of beef cow grazing on abandoned lands into a housing system (housed in barns throughout the year) alters environmental impacts. We used life cycle assessment to evaluate the environmental impacts of beef cow‐calf systems with and without grazing on abandoned cultivated lands, on 11 Japanese farms. The functional unit was one marketed beef calf (Japanese Black) at 8 months of age. A reduction of global warming potential (GWP), acidification potential (AP) and eutrophication potential (EP) was found in all five grazing systems (including an experimental farm), compared with the average values for housing systems. A reduction of energy consumption was also found in the five grazing systems; however, the reduction was not large in one farm. Feed transportation and production were the main contributors to energy consumption, and unless there is a decrease in the energy consumption associated with these two processes, the energy consumption throughout the life cycle will not decrease. Thus, the introduction of grazing on abandoned lands can reduce environmental impacts, but the effects can be weakened or offset depending on the amount of imported feed. In the experimental farm with a grazing system, the reduction of GWP, AP, EP and energy consumption compared with the average values for the housing systems was 32, 48, 48 and 45%, respectively. In the four commercial farms with grazing systems, the reduction of GWP, AP, EP and energy consumption was 11–24, 13–22, 19–24 and 2–21%, respectively, which we regard as possible reductions in a real life situation. We conclude that a large reduction of environmental impacts could not be achieved solely through the introduction of grazing.
Answering relevant research questions via careful observation of clinical practice: a fresh look at the old way forward
Authors: Matino D. , Iorio A.
Published: August 2014

Although many aspects of inhibitor development have been elucidated, the role of switching FVIII product concentrate in the risk of inhibitors development in previously treated patients is still under discussion. To provide their contribution, Aznar et al [9] transparently showed the numerous different brands used over time and the number of patients treated with one or another class of concentrates in their center. This way of inclusively reporting data as generated in routine clinical practice would need to be adopted more broadly among hemophilia treater and scientists. Strength and limitations of the approach are discussed.
Ictal Epileptic Headache: A Review of Current Literature and Differentiation From Migralepsy and Other Epilepsies
Authors: Saitowitz Zacharry , Flamini Robert , Berenson Frank
Published: August 2014

Ictal headaches are increasingly becoming the focus of research as more data demonstrate headaches existing as a sole manifestation of an epileptic event. Due to the difficulty in diagnosing the event as an epileptic phenomenon as opposed to a migraine, the condition is often misdiagnosed. This paper seeks to review the current published literature on ictal epileptic headaches as well as provide differentiation between ictal headaches and similarly presenting conditions. In doing so, we hope to improve the diagnosis of ictal headaches and thus improve patient care. We review two case studies that exemplify the potential of multiple conditions with comparable symptoms to ictal headaches, and discuss how to differentiate the variable diagnoses. As of the writing of this paper, there is no universally agreed upon set of features of ictal headaches; however, reviewing the current literature, there do seem to be several features that should be noted when treating patients. More research on the pathophysiology of ictal epileptic headaches needs to be done before the condition can be fully understood.
Black Britain and the Politics of Race in the 20th Century
Authors: Hammond Perry Kennetta
Published: August 2014

This essay examines a growing literature on postcolonial Black Britain that seeks to suture the ties between prewar and postwar histories of Black political activity in Britain. By examining how people of African descent articulated the political conditions of being Black in metropolitan Britain during the 20th century, recent studies have shown how non‐state actors shaped ideas about the relationship between race and citizenship. In unearthing the myriad of ways that people of African descent navigated the politics of being both Black and British, this body of work has begun to offer critical perspectives on postcolonial Black Britain's place within the political history of the African Diaspora. Moreover, this essay argues that new work on Black Britain and the politics of race yields fruitful ground for dismantling some of the artificial historiographical partitions that have oftentimes separated metropolitan race politics in the postwar era from the broader history of empire, decolonization, and transnational anti‐racist movements organized around the pursuit of Black freedom.
Taiwan under Japanese Rule. Showpiece of a Model Colony? Historiographical Tendencies in Narrating Colonialism
Authors: Heé Nadin
Published: August 2014

There is a tendency within research on Japanese Colonialism to idealize Taiwan under Japanese rule as a “model colony.” This paper questions such narratives and asks what implications this assumption has for historiographical studies on colonial Taiwan. Research based on the idea of Taiwan as a “model colony” promotes the idea of a linear modernization during colonial rule in Taiwan and leads to the assumption that uprisings or colonial violence occurred only at the beginning of colonial rule. With a few exceptions, most recent studies use cultural‐historical approaches and focus on colonial modernity or colonial governmentality, agency, and hybridity on the basis of postcolonial studies and their theoretical agenda. Therefore, the so‐called scientific colonialism – often seen as the specific characteristic of colonial rule in Taiwan – is not linked to colonial violence. The thesis of this paper, however, is that scientific colonialism as a form of rule did not exhaust itself in ‘civilizational achievements’ such as the introduction of contemporary medical treatments or road construction. Rather, a reciprocal relationship emerged between knowledge production and the use of violence. On the one hand, the aim of knowledge production was to pacify the island and keep violence in check. On the other hand, however, the government instrumentalized the knowledge it had gained, subsequently using it to perpetrate further violence. Taiwan, therefore, did not see a linear civilizing progression and, moreover, violence did not decline steadily.
Relationships between the antibacterial activity of sodium hypochlorite and treatment time and biofilm age in early Enterococcus faecalis biofilms
Authors: Chau N. P. T. , Chung N. H. , Jeon J. G.
Published: August 2014

Aim

To determine the relationships between the antibacterial activity of NaOCl and treatment time and biofilm age in early Enterococcus faecalis biofilms using a linear fitting procedure.

Methodology

Enterococcus faecalis biofilms were formed on hydroxyapatite discs. To investigate the relationship between the antibacterial activity of NaOCl and biofilm age, 22‐, 46‐, 70‐ and 94‐h‐old biofilms were exposed to NaOCl (0–3%) for 5 min. To investigate the relationship between the antibacterial activity of NaOCl and treatment time, 70‐h‐old biofilms were exposed to NaOCl (0–3%) for 1, 3, 5 and 7 min. After treatment, colony‐forming units (CFUs) were counted. To determine the relationships between these variables, linear fitting was performed.

Results

The change in the minimum biofilm eradication concentration (MBEC) of NaOCl followed a linear pattern of biofilm age (R = 0.941, R2 = 0.886) or treatment time dependence (R = −0.948, R2 = 0.898). Below the MBEC, the fitting lines for bacterial CFU count versus NaOCl concentration (R ≤ −0.973, R2 ≥ 0.948) in the 22‐, 46‐, 70‐ and 94‐h‐old biofilms implied that the antibacterial activity of NaOCl decreased as the biofilm age increased. The fitting lines for bacterial CFU count versus NaOCl concentration (R ≤ −0.970, R2 ≥ 0.942) in the 1‐, 3‐, 5‐ and 7‐min treatments implied that the antibacterial activity of NaOCl increased with treatment time.

Conclusions

These results suggest that the antibacterial activity of NaOCl against early E. faecalis biofilms in root canals may follow a linear pattern depending on biofilm age or treatment time.
INFLATION, SECURITY VALUES, AND RISK PREMIA
Authors: Lewellen Wilbur G. , Ang James S.
Published: August 2014

The impact of stochastic inflation on the cross‐sectional structure of nominal securities yields is examined. The analysis indicates that equilibrium required returns on debt and equity securities are affected differently by inflation and that the “Fisher Effect” is more likely to hold for equity returns than for debt yields. Implications for empirical investigations of portfolio performance and the real interest rate are explored.
GROWTH, BETA AND AGENCY COSTS AS DETERMINANTS OF DIVIDEND PAYOUT RATIOS
Authors: Rozeff Michael S.
Published: August 2014

A model of optimal dividend payout is presented in which increased dividends lower agency costs but raise the transactions cost of external financing. The optimal dividend payout minimizes the sum of these two costs. A cross‐sectional test of the model relates dividend payout to the fraction of equity held by insiders, the past and expected future revenue growth of the firm, the firm's beta coefficient, and the number of common stockholders. The coefficients of all variables are significant in the predicted directions. The results indicate that investment policy influences dividend policy.
DIVERSIFICATION AND SKEWNESS IN OPTION PORTFOLIOS
Authors: Sears R. Stephen , Trennepohl Gary L.
Published: August 2014

Skewness in returns is relevant to option investors. Because options possess positively skewed distributions, the traditional maxim of diversification, which can destroy positive skewness, is not necessarily consistent with investment objectives. The results indicate that the majority of skewness in option portfolios is diversified with a relatively small portfolio size, suggesting a strategy of antidiversification for option investors. Even though the investment performance of options is inferior to stocks on a risk‐return basis, the data indicate the suitability of option portfolios in an environment where an investor's utility is measured by the return, risk, and skewness of the return distribution.
MARKET TIMING AND MUTUAL FUND PORTFOLIO COMPOSITION
Authors: Ferri Michael G. , Oberhelman H. Dennis , Roenfeldt Rodney L.
Published: August 2014

This study uses a methodology that is independent of beta estimates to provide empirical evidence on the success of market timing by mutual fund managers. A fund's success at market timing is evaluated by determining if the percentage of the portfolio invested in stocks increases prior to an upturn in the general level of stock market prices and declines prior to a downturn in the level of stock prices. No evidence is found that managers possess, as a group, any market timing ability.
INTRADAY AND OVERNIGHT RETURNS AND DAY‐OF‐THE‐WEEK EFFECTS
Authors: McInish Thomas H. , Wood Robert A.
Published: August 2014

This paper examines intra‐trading‐day and overnight returns constructed from a transactions data base. Day‐of‐the‐week effects are examined for firms classified by level of thin trading. Results indicate that thin trading masks day‐of‐the‐week effects. Day‐of‐the‐week effects are much more pronounced for actively traded stocks. The importance of controlling for thin trading in studies where segmentation of returns into distinct periods is important is illustrated through an examination of day‐of‐the‐week effects for firms classified by size.
MARKOWITZ ALLOCATION–FIXED INCOME SECURITIES
Authors: Barnes Tom
Published: August 2014

The Markowitz allocation model has not been properly tested with individual corporate bonds. Several authors have argued theoretically that the expectations necessary for the model cannot be formed from ex post time series data because the distribution of bond returns is not stationary. A methodology under which corporate bonds can be included in tests of the Markowitz model is presented in this study. Five sets of naive expectations are used, and as the distribution problem is removed from the data, the risk‐adjusted performance of the Markowitz model becomes potentially very useful.
A NEW APPROACH TO CONTROLLING FOR THIN TRADING
Authors: McInish Thomas H. , Wood Robert A.
Published: August 2014

Recent research has shown that thin trading can seriously bias beta estimates. Present techniques for controlling this bias in research designs involve the adjustment of OLS betas. This paper presents a new methodology that controls for this bias by forming portfolios where the level of thin trading is held constant, while the difference of another variable, pertinent to a specific research design, is maximized across the portfolios. Directly controlling the level of thin trading avoids reliance on beta adjustment techniques. Further, the linear programming model permits the control of the mean and higher moments of additional variables across portfolios.
HUMAN CAPITAL AND LIFE‐CYCLE EFFECTS ON RISK AVERSION
Authors: Bellante Don , Saba Richard P.
Published: August 2014

This paper provides additional evidence on life‐cycle patterns of relative risk aversion, using spline functions generated on Consumer Expenditure Survey data. Human capital is hypothesized to affect relative risk aversion; age has been used in previous work as a proxy for human capital. The objective of this study is to determine whether there is a life‐cycle pattern that is independent of the effect of human capital. The results suggest an affirmative answer. Moreover, this independent life‐cycle pattern is the opposite of that estimated in a previous study that used age as a proxy.
SELECTIVITY, MARKET TIMING, AND RANDOM BETA BEHAVIOR OF MUTUAL FUNDS: A GENERALIZED MODEL
Authors: Chen Carl R. , Stockum Steve
Published: August 2014

This paper presents a generalized varying parameter model to investigate the performance of mutual funds. The model allows beta nonstationarity to include both market timing and random beta behavior; therefore, it can be regarded as a general case of previous research. Forty‐three funds with a wide range of objectives are examined. The generalized varying parameter results indicate that about 30 percent of the funds show selectivity, 19 percent have random betas, and 14 percent indicate significant, yet negative, market timing performance. Therefore, mutual funds, as a group, show no market timing ability. The apparent ability to select undervalued securities, however, seems to conflict with the efficient markets hypothesis.
FLATTENING OF BOND YIELD CURVES
Authors: Livingston Miles
Published: August 2014

Putting no restrictions on forward interest rates, earlier research has shown that yield curves for coupon‐bearing bonds will become flat for long maturities. This paper shows that weak restrictions on forward rates imply flattening of bond yield curves for maturities of 10 to 15 years.
PRICING FAST‐PAY MORTGAGES: SOME SIMULATION RESULTS
Authors: Shilling James D. , Sirmans C. F.
Published: August 2014

The mortgage market has undergone rapid change in recent years, particularly in the introduction of alternative mortgage instruments. This paper explores one such instrument, the fast‐pay (early equity) mortgage. Specifically, in this paper the focus is on how this type of mortgage would be priced relative to the standard conventional mortgage using historical yield data.
STOCK MARKET SIGNALS OF CHANGES IN EXPECTED INFLATION
Authors: Leonard David C. , Solt Michael E.
Published: August 2014

This paper examines the relationship between stock returns and several measures of expected inflation. The proxies include the inflation forecasts extracted from U.S. Treasury bill yields, the mean forecast of surveys conducted by the Institute for Social Research, and the predictions from a rolling time‐series model. Unlike recent studies, there does not appear to be a significant negative relationship between stock returns and expected inflation at the beginning of the period. The results are consistent with the hypothesis that stock returns signal changes in expected inflation.
ARBITRAGE PRICING MODELS: THE SUFFICIENT NUMBER OF FACTORS AND EQUILIBRIUM CONDITIONS
Authors: Ehrhardt Michael C.
Published: August 2014

The typical methodology for estimating an Arbitrage Pricing Model is inadequate with respect to two issues. First, the statistical tests used to determine the sufficient number of factors are inappropriate and may actually overstate the relevant number of factors. Second, the methodology fails to determine whether the estimated model satisfies equilibrium conditions. A simple test that corrects both deficiencies is developed in this paper.
THE EFFECT OF THE WPPSS CRISIS ON THE TAX‐EXEMPT BOND MARKET
Authors: Peavy John W. , Hempel George H.
Published: August 2014

The 1983 default of the Washington Public Power Supply System (WPPSS) was the largest municipal default. Some writers contend that the default affected the entire municipal bond market. This study examines the effect of key WPPSS‐related events on the general municipal market, tax‐exempt public power district bonds, and WPPSS bonds, respectively. The results show that although certain events significantly affected all WPPSS bonds, these events did not affect the general municipal bond market or non‐WPPSS public power bonds. The use of a standard event‐time methodology with daily bond prices (as opposed to monthly yields) appears to provide a more powerful test of the effect of a municipal crisis on the tax‐exempt bond market.
COMPOUND DISTRIBUTION MODELS OF STOCK RETURNS: AN EMPIRICAL COMPARISON
Authors: Akgiray Vedat , Booth G. Geoffrey
Published: August 2014

The study provides empirical tests and comparison of mixed diffusion‐jump processes and finite mixtures of normal processes as models of stock price behavior. For weekly returns, both specifications have significantly higher descriptive validity than a stationary normal distribution, and, in most cases, mixed diffusion‐jump processes are empirically superior to finite normal mixtures. The distribution of monthly returns, however, can be safely assumed to be approximately normal.
LEVERAGED BUYOUTS AND SHAREHOLDER RETURNS
Authors: Torabzadeh Khalil M. , Bertin William J.
Published: August 2014

This study examines the risk‐adjusted stock returns realized by shareholders of firms acquired through leveraged buyouts to assess the economic gains associated with this type of acquisition. Stockholders of firms acquired through leveraged buyouts realize significant positive abnormal returns as a result of the buyout announcement. The findings support the notion of value creation in leveraged buyouts.
EVIDENCE OF THE EFFECT ON SHAREHOLDER WEALTH OF CORPORATE SPINOFFS: THE CREATION OF ROYALTY TRUSTS
Authors: Davidson Wallace N. , McDonald James L.
Published: August 2014

Corporate spinoffs and divestitures cause positive revaluation of the firm by the market. This paper examines a particular kind of spinoff, one of mineral interests into a royalty trust. Royalty trusts are associated with abnormal returns that come from positive market revalution and from special tax incentives inherent to trusts.
Mortgage Terminations and Pool Characteristics: Some Additional Evidence
Authors: Heuson Andrea J.
Published: August 2014

The amount and timing of unscheduled principal amortization determines the ex‐post yield to holders of mortgage‐backed securities. In this paper, the relationship between pool characteristics and the early return of principal is addressed. Empirical results are based on actual terminations from June 1985 to June 1986 on a sample of all GNMA pools. The relative termination experience of pools with loan rates close to the refinancing rate faced by the underlying borrower is examined in detail. The impact of pool age and size is also considered. Unscheduled termination depends on the refinancing rate, as well as the specific characteristics of a pool.
THE COUPON EFFECT ON TERM PREMIUMS
Authors: Brooks Robert , Levy Haim , Livingston Miles
Published: August 2014

Monthly holding period returns for U.S. Treasury bills and notes of identical maturity indicate a significant coupon effect upon term premiums. Hotelling's T2 test of the vectors of mean term premiums indicates that term premiums are not statistically significant for notes but are significant for bills. Mean‐variance and stochastic dominance criteria indicate an investment preference for bills over notes on a pretax basis. Because the data set is Treasury bills and notes, which are identical except for coupon level, these results are evidence of a coupon effect on term premiums.
THE COST OF CAPITAL, MACAULAY'S DURATION, AND TOBIN'S q
Authors: Ben‐Horim Moshe , Callen Jeffrey L.
Published: August 2014

It is shown empirically that the cost of equity capital estimated from the dividend discount model and Tobin's q are negatively related. The theoretical relationship between these variables is exploited to determine alternative estimates of the cost of equity capital and Macaulay's duration without having to estimate the growth rate g in the conventional manner. This new approach can readily be implemented for large firms reporting SFAS No. 33 data.
THE COST OF INCLUDING A CALL PROVISION IN MUNICIPAL DEBT CONTRACTS
Authors: Spivey Michael F.
Published: August 2014

Municipal bond market studies testing for the effect of a call provision on new‐issue borrowing cost fail to examine if the cost of the call provision is sensitive to expected changes in interest rates. This may explain why some studies find that the presence of a call provision increases municipal borrowing costs while others find no effect. Another possible reason for the contradictory findings may be a failure to correct for a self‐selection bias that results when some issuers choose to include a call provision and others do not. To correct for the potential self‐selection problem, a two‐stage probit switching regression technique is used here to estimate the cost of a call provision to municipal issuers. Results indicate municipal issuers pay a premium for the call privilege at the time of issue and that the size of the premium is sensitive to expected changes in interest rates.
BOOTSTRAPPING THE NUMBER OF FACTORS IN THE ARBITRAGE PRICING THEORY
Authors: Chatterjee Sangit , Pari Robert A.
Published: August 2014

The number of factors in the APT are re‐examined through a new methodology called the bootstrap, which provides a nonparametric alternative to the chi‐square test used in prior research. Results suggest that the number of statistically significant factors does not increase when the number of firms increases. Moreover, only the first factor is consistently significant across sample sizes of thirty, sixty, and ninety firms.
TRANSACTION COSTS AND DAY‐OF‐THE‐WEEK EFFECTS IN THE OTC/NASDAQ EQUITY MARKET
Authors: Fortin Rich
Published: August 2014

A potential explanation is examined here for the observed day‐of‐the‐week effect in equity returns—systematic daily patterns in percentage bid‐ask spreads. Using OTC/NASDAQ data over 1973–1985, strong return day‐of‐the‐week effects are documented while mean dealer percentage spreads are essentially unchanged over the week. These results provide evidence that systematic percentage spread changes do not contribute to the observed return anomaly.
THE PRICING OF FUTURES CONTRACTS AND THE ARBITRAGE PRICING THEORY
Authors: Chang Jack S. K. , Loo Jean C. H. , Wu Chang Carolyn C.
Published: August 2014

When interest rates are stochastic, the cash flows of futures and forward contracts differ because of the marking‐to‐market requirement of futures contracts. The price effect of this difference is examined here by applying the risk and return model of the arbitrage pricing theory. The resulting futures pricing equation is preference free, and is obtainable using other no‐arbitrage approaches. The pricing equation suggests that the price difference is due to the covariance of spot asset returns and interest rates. An empirical study is conducted on the Major Market Index futures from October 1, 1984 to September 27, 1985. Results indicate that the covariance, extracted by the Kalman filter according to the pricing equation, is significant in the pricing of futures contracts.
INFLATION, INVESTMENT, AND DEBT
Authors: Prezas Alexandros P.
Published: August 2014

In this paper the effect of inflation on firms' investment and debt‐financing decisions is examined. Inflation affects optimal investment and financing directly through the probability of accounting loss and the real value of depreciation and interest tax shields. In addition, when corporate and differential personal taxes cause investment and financing decisions to interact, inflation has indirect effects on these decisions through their interactions. In general, the overall effects of inflation on optimal investment and debt are ambiguous in sign. For tax‐exempt firms, however, optimal investment and debt are independent of inflation. For firms that are always in a tax‐paying position, higher inflation reduces optimal investment without affecting optimal debt. Furthermore, inflation causes total firm value to decrease if the depreciation rate exceeds the firm's debt/asset ratio.
THE MAGNITUDE OF PRICING ERRORS IN THE ARBITRAGE PRICING THEORY
Authors: Robin Ashok , Shukla Ravi
Published: August 2014

In this paper the arbitrage pricing theory (APT) pricing errors for individual securities are estimated employing maximum likelihood factor analysis and Fama‐MacBeth style aggregation. Results show that the pricing errors are large and statistically significant and that there is a high degree of variability in pricing errors across securities. This evidence contradicts the prevailing APT intuition that the pricing errors can be ignored as negligible. Pricing errors are also found to be related to residual variance and firm size.
BOND REFUNDING IN EFFICIENT MARKETS: A DYNAMIC ANALYSIS WITH TAX EFFECTS
Authors: Chiang Raymond C. , Narayanan M. P.
Published: August 2014

This paper provides a dynamic analysis of the bond refunding problem in an efficient market setting with corporate taxes and transaction costs. A new methodology is developed to analyze the optimal exercise problem in the presence of imperfections. This analysis enables prediction of the effect of changes in corporate tax laws on the refunding decision. It also explains the empirical observation that bonds are often called when the bond price is below the call price.
DEFAULT RISK PREMIA IN THE NEAR‐CASH INVESTMENT MARKET: THE CASE OF AUCTION RATE PREFERRED STOCK VERSUS COMMERCIAL PAPER
Authors: Winkler Daniel T. , Flanigan George B.
Published: August 2014

Auction rate preferred stock (ARPS) is often regarded as an alternative to other near‐cash instruments such as commercial paper while the dividend exclusion for ARPS offers tax advantages to corporate purchasers. The mean default risk premium for ARPS, relative to commercial paper, is estimated at 83 basis points during stable financial markets. This default premium appears to surge during unstable equity markets, having jumped by 192 basis points in November 1987. Lower‐rated ARPS shows even larger changes, with yields 40–50 basis points above yields on high‐rated ARPS, adjusted for the normal risk premium differential. The perceived risk change of ARPS underscores how quickly market participants re‐evaluate default risk, and even the importance of the priority order among debt and equity claimants. Findings suggest ARPS and commercial paper are not an acceptable substitute for commercial paper during times of unsettled equity markets.
BENCHMARK ERROR AND THE SMALL FIRM EFFECT: A REVISIT
Authors: Wei K. C. John , Stansell Stanley R.
Published: August 2014

In this study benchmark error is tested for as a source of the small firm effect by comparing the results from ordinary least squares and instrumental variable methods. Although the instrument is not perfect, results show that benchmark error could be a cause of the overall (all months) small firm effect. Results from the instrumental variable method indicate that large January abnormal returns are still present, but that they are offset by negative non‐January abnormal returns. As a result, the instrumental variable results show that there is no longer a significant overall “effect,” merely a seasonal effect. It is also found that the results are not sensitive to the choice of the market index.
EQUITY ISSUES AND TOBIN'S Q: NEW EVIDENCE REGARDING ALTERNATIVE INFORMATION RELEASE HYPOTHESES
Authors: Brous Peter A. , Kini Omesh
Published: August 2014

Announcements of seasoned equity offerings are associated with a statistically significant negative market reaction. This finding is consistent with both the cash flow signaling and the free cash flow hypotheses. We test these hypotheses by examining whether revisions in analyst earnings forecasts and abnormal stock returns associated with equity offering announcements are related to the issuing firm's q‐ratio. We find an inverse relation between revisions in analysts' earnings forecasts and q‐ratios, and no relation between announcement‐period abnormal returns and q‐ratios. These findings provide direct evidence of the cash flow signaling hypothesis and, at best, indirect evidence of the free cash flow hypothesis.
THE IMPACT OF THE INSIDER TRADING SCANDAL ON THE INFORMATION CONTENT OF THE WALL STREET JOURNAL'S “HEARD ON THE STREET” COLUMN
Authors: Liu Pu , Smith Stanley D. , Syed Azmat A.
Published: August 2014

We examine the impact of a scandal on the information content in the “Heard on the Street” column of the Wall Street Journal. Following the scandal in 1984, the column is found to have a reduced impact on stock prices for both buy and sell recommendations. However, the stock price response to information later published in the column before the publication day is smaller for the post‐scandal period. This result suggests that after the scandal, editors and authors may have become more cautious in guarding against information leaks in the column. The scandal does not appear to have changed the impact of the column on trading volume.
THE ANALYTICS OF RELATIVE HOLDING‐PERIOD RISKS FOR BONDS
Authors: Stock Duane
Published: August 2014

The relation between default risk measures and holding‐period risk measures for bonds is confusing for bond investors. Past studies show that lower‐credit‐quality bonds exhibit lower holding‐period risk. In this research I develop models to decompose the risk of corporate bonds and specify the conditions necessary for lower credit quality to result in lower holding‐period risk measures. Additionally, I offer insight into the seemingly haphazard pattern of holding‐period risk as related to credit quality.
VALUATION EFFECT OF ISSUING NONSUBORDINATED VERSUS SUBORDINATED DEBT
Authors: Tang Alex P. , Singer Ronald F.
Published: August 2014

Recent studies analyzing stock market reaction to announcements of straight debt offerings report, in general, insignificant abnormal stock returns. In this study we examine the effect of debt seniority on market reaction. The evidence shows weakly positive abnormal returns upon the announcements of nonsubordinated straight debt offerings. In contrast, announcements of subordinated straight debt offerings induce significantly negative abnormal returns. Our findings generally support the information release hypothesis.
INSIDERS, OUTSIDERS, OR TREND CHASERS?: AN INVESTIGATION OF PRE‐TAKEOVER TRANSACTIONS IN THE SHARES OF TARGET FIRMS
Authors: Eyssell Thomas H. , Arshadi Nasser
Published: August 2014

In this study we examine pre‐takeover volume run‐ups preceding tender offer announcements from 1982 to 1985 and consider three possible explanations for the run‐ups: (1) they are due primarily to registered insiders, (2) they are due to market anticipation of the impending event by informed outsiders, and (3) they are due (at least in part) to “positive feedback” investors—i.e., those who observe early price and volume increases and buy to “chase the trend.” Our results suggest that pre‐announcement volume run‐ups are largely due to trading by registered insiders. We explain this phenomenon in the context of the relatively lax regulatory environment during the period studied.
THE COSTS OF EQUITY ISSUES SINCE RULE 415: A CLOSER LOOK
Authors: Denis David J.
Published: August 2014

In this paper I re‐examine the effect of shelf registration (SEC Rule 415) on the underwriter fees of firms issuing equity. The data indicate that lower fees cannot be obtained by typical firms using the shelf procedure. Rather, previously documented evidence of lower underwriter spreads for shelf issues appears to be due to a selection bias in the firms choosing shelf registration. These firms enjoy a comparative cost advantage over other firms regardless of the registration procedure used.
A TEST OF THE EASTERBROOK HYPOTHESIS REGARDING DIVIDEND PAYMENTS AND AGENCY COSTS
Authors: Born Jeffery A. , Rimbey James N.
Published: August 2014

Easterbrook (1984) argues that dividend payments may be an ambiguous signal unless the market can distinguish growing firms from disinvesting firms. Shares of growing firms that announce both financing and dividend increases are predicted to rise more in value than shares of firms announcing a dividend increase alone. We examine the relation between prior financing activity and the market response to initial dividends and find evidence consistent with the Easterbrook agency cost model.
ON IMPROVING THE PERFORMANCE OF THE MARKET MODEL
Authors: Robin Ashok J.
Published: August 2014

Data on 4,087 securities from 1988 to 1990 are used to test the relation between market model R2 and trading volume. Eliminating high‐volume observations increases R2 by about 10 percent, confirming results previously reported. This study indicates that this improvement is possible by eliminating a small number of observations. It also indicates that this relation between R2 and volume is unrelated to firm size.
THE DIVIDEND PAYOUTS OF PRIVATE FIRMS: EVIDENCE FROM TAX COURT DECISIONS
Authors: Rao Ramesh K. S. , White Susan A.
Published: August 2014

To study the dividend payouts of private firms we extend the agency cost/external financing cost trade‐off model of dividend payouts to include the accumulated earnings tax (AET). The firm's optimal dividend policy trades off the benefits from lower agency costs against external financing costs and the AET. Information from tax court records reveals that private firms' payouts are influenced by both agency costs and the AET.
THE VALUATION EFFECTS OF OUT‐OF‐THE‐MONEY CALLS OF CONVERTIBLE SECURITIES
Authors: Tang Alex P. , Kadapakkam Palani‐Rajan , Singer Ronald F.
Published: August 2014

We examine the valuation effects of out‐of‐the‐money calls of convertible securities. In general, out‐of‐the‐money calls generate positive abnormal stock returns. These returns are higher when the call price exceeds the market value of the called securities (positive premium calls), compared with when the market value exceeds the call price (negative premium calls). Furthermore, Value Line Investment Survey net operating income forecasts are significantly higher after call announcements for positive premium calls, while the revision is insignificant for negative premium calls. The results are consistent with the hypothesis that positive premium calls signal positive information.