cssi/SciSciGPT-SciSciNet huggingface dataset:
The missing link in sarbanes-oxley: Enactment of the "change of control board" concept, or extension of the audit committee provisions to mergers and acquisitions

To address (1) the conflicts of interest that can anse in the acquisition of publicly held target corporations in various types of hostile and consensual merger and acquisition ("MA thus, this proposal is a logical extension of those audit committee provisions. In the event Congress does not enact the Change of Control Board proposal, many of the concepts underlying the proposal should be implemented by the SEC through its rulemaking authority under the audit committee provisions.
Patent Invalidity versus Noninfringement

Most patent scholars agree that the Patent and Trademark Office grants too many invalid patents and that these patents impose a significant tax upon industry and technological innovation. Although policymakers and scholars have proposed various ways to address this problem, including better ex ante review by patent examiners and various forms of ex post administrative review, district courts invalidating patents in litigation remain a core defense against bad patents.
Leveling Localism and Racial Inequality in Education Through the No Child Left Behind Act Public Choice Provision

Error! Bookmark not defined. Introduction 3 I. Localism and Education 10 A. Theoretical Justifications For Localism 12 i. Citizen Participation 12 ii. Efficiency 13 iii. A Critique of Citizen Participation and Efficiency Justifications for Localism in the Education Context 14 II. The Federal Judiciary’s Affirmation of Localism in School Desegregation and School Finance Cases 17 A. Brown I and II : A Localist beginning to School Desegregation 18 B. Green and beyond : A Brief Retreat From Localism 20 C. San Antonio v. Rodriguez and Milliken v. Bradley: A Return to Defensive Localism 21 i. San Antonio v. Rodriguez Error! Bookmark not defined.1 ii. Milliken v. Bradley Error! Bookmark not defined.2 D. After Rodriguez and Milliken : Localism As A Near Constitutional Norm Error! Bookmark
Nonprofit Sector and Part-Time Work: An Analysis of Employer-Employee Matched Data of Child Care Workers

This paper uses a rich employer-employee matched data set to investigate the existence and the extent of nonprofit and part-time wage and compensation differentials in child care. The empirical strategy adjusts for workers' self-selection into the for-profit or the nonprofit sector and into full-time or part-time work, as well as for unobserved worker heterogeneity, using a discrete factor model. We find differences between the regimes (full-time for-profit, full-time nonprofit, part-time for-profit, part-time nonprofit) in the manner in which human capital characteristics of the workers are rewarded. There is substantial variation in wages as a function of employee characteristics, and there is variation in wages within sectors. The results indicate that part-time jobs are good jobs in center-based child care, and there exist nonprofit wage and compensation premia, which support the property-rights hypothesis.
A glass half full look at the changes in the American legal market

Abstract The American legal profession finds itself in the midst of dizzying changes. What was once viewed as a brief downturn now looks like a much more substantial restructuring and downsizing. The main commentators on these trends have been those most likely to be affected: law professors and corporate lawyers, and they have largely presented these trends as disastrous. This Essay argues that while these changes will be painful in the near term, they will prove beneficial overall. The obvious reason for optimism is that America will be significantly better off if we spend less on legal services. Whatever else the future holds it seems likely that legal services will be more widely available to more people at lower prices. This trend starts at the top with corporate law firms and bubbles up from the bottom with LegalZoom and other on-line forms providers and will eventually reach the entire market. Expenditures on law are typically just transaction costs and everyone is better off when transaction costs shrink. If you have enjoyed the digital revolution in music or photography, you will likewise enjoy the legal market of the future. Legal services will be cheaper, more accessible and better. These changes are bad for lawyers in the same way digital photography was bad for Kodak. Nevertheless, it is outstanding news for the country as a whole. Less obviously, the trends identified in Larry Ribstein's “Death of Big Law” and the ripple effect through law schools will, ironically, lead us to a leaner, happier profession. For years the hope of securing a job in BigLaw, the easy availability of student loans, and the misperception of what lawyers do and what law school is like have drawn many ill-suited individuals into law. This has had a number of deleterious effects on those individuals and on the practice as a whole. Current market forces and news coverage, however, will eventually result in a profession staffed by individuals who chose law despite a substantial headwind, rather than because they did not know what else to do and they thought it would guarantee a high salary for life. This will make the profession as a whole healthier than it has been in years.
Environmental amenities and quality of life across the United States

Abstract This paper investigates the spatial variation in subjective well-being across the United States. We match individual-level survey data from the Behavioral Risk Factor Surveillance System (BRFSS) that includes a life-satisfaction question, to county-level local amenities between 2005 and 2010. We show that life satisfaction varies widely across U.S. counties (even if these are in the same state and after controlling for individual characteristics), which suggests that housing price and wage differentials are not fully compensating for differences in amenities across locations. We also show that local amenities including climate, geography, environmental externalities, and other local public goods, explain a sizable fraction of this variation, stressing the importance of environmental management across space.
Relative information asymmetry as a determinant of the market reaction to corporate financing announcements

Information-asymmetry-based models predict that the market should react negatively to unanticipated external financing. Previous empirical studies lend limited support to these conjectures. This study examines the anticipation issue using financial analysts' earnings-forecast errors as a proxy for information available prior to the external-financing announcement. The conjecture is that external financing would be less anticipated for firms which financial analysts cannot accurately predict their earnings. Event study results indicate that high-prediction-error firms exhibit significantly lower announcement period returns than lowprediction-error firms for non-convertible debt, convertible debt, and common stock offerings.
Different approaches to corporate reporting regulation: How jurisdictions differ and why

Abstract This paper discusses differences in countries’ approaches to reporting regulation and explores the reasons why they exist in the first place as well as why they are likely to persist. I first delineate various regulatory choices and discuss the trade‐offs associated with these choices. I also provide a framework that can explain differences in corporate reporting regulation. Next, I present descriptive and stylised evidence on regulatory and institutional differences across countries. There are robust institutional clusters around the world. I discuss that these clusters are likely to persist given the complementarities among countries’ institutions. An important implication of this finding is that reporting practices are unlikely to converge globally, despite efforts to harmonise reporting standards. Convergence of reporting practices is also unlikely due to persistent enforcement differences around the world. Given an ostensibly strong demand for convergence in reporting practices for globally ...
Crumbling Pillar? Declining Union Density in Japan

Abstract This paper seeks to understand the recent decline of union density in Japan from 35% in 1975 to 28% in 1987. The decline in density is analyzed in terms of the changing proportion of workers in high and low unionization groups and the changes in density within those groups. Then using a stock-flow relationship we look at how the organizing rate of new unions affects the overall density. A regression model assesses our interpretation of changes in Japanese density. Our principal findings are: (1) Structural shifts in the composition of employment and of the demographics of the work force account for only a modest proportion of the drop in Japanese density. As in the United States, most changes in density occur within industries and among defined demographic groups of workers. (2) Much of the decline in density is associated with the inability of Japanese unions to organize new establishments. We attribute this in part to lowered worker interest and stiffened management opposition to unionism following the oil shock, buttressed by unfavorable changes in the political and legal environment for collective bargaining and for union organization, and to other management actions, such as creating additional pseudo-managerial posts for older male workers.
The Localized Uses of Federal Sentencing Guidelines in Four U.S. District Courts: Evidence of Processual Order

The federal criminal justice system applies a single set of federal statutes and identical rules of procedure in a variety of local district jurisdictions. It is an underexplored research setting rich with potential to advance our theoretical understanding of how important sociological and political processes work. In particular, the sentencing and case processing practices of federal district courts are governed by the U.S. Sentencing Guidelines, which are in part supposed to impose uniformity and predictability in federal criminal sentencing. Guided by a processual order perspective that views courts as communities with their own distinct organizational culture, practices, and relationships, I explore the localized meaning and uses of key provisions of the sentencing guidelines, such as guideline departures for “substantial assistance” to law enforcement, sentence reductions for “acceptance of responsibility,” and the role of federal probation presentence reports. Data for this study come from field interviews with federal prosecutors, judges, public and private defense attorneys, and probation officers in four U.S. District Courts. I supplement these interview data with quantitative sentencing data that show substantial variation in criminal punishment between these four courts. I argue that federal criminal courts, like state courts, are best conceptualized as communities with distinctive processual orders.
Managerial Traits and Capital Structure Decisions

This article incorporates well-documented managerial traits into a tradeoff model of capital structure to study their impact on corporate financial policy and firm value. Optimistic and/or overconfident managers choose higher debt levels and issue new debt more often but need not follow a pecking order. The model also surprisingly uncovers that these managerial traits can play a positive role. Biased managers' higher debt levels restrain them from diverting funds, which increases firm value by reducing this manager-shareholder conflict. Although higher debt levels delay investment, mildly biased managers' investment decisions can increase firm value by reducing this bondholder-shareholder conflict.
The Corporate Transformation of Medical Specialty Care: The Exemplary Case of Neonatology

The key to wealth in health care is the physician, who certifies to third-party payers that health care items and services are necessary for patient care. To compete more effectively for this wealth, physician specialists are organizing their practices into for-profit corporations and employing other physicians. Focusing on neonatology, this article describes the prevailing business model of these for-profit medical groups as controlling employed physicians through restrictive employment contract provisions, e.g., non-compete and mandatory arbitration clauses. With this business model and because of deficiencies in current law, for-profit medical groups eliminate competition from other physician specialists to the detriment of patients and consumers.
Improved contiguity of the threespine stickleback genome using long-read sequencing

While the cost and time for assembling a genome has drastically decreased, it still remains a challenge to assemble a highly contiguous genome. These challenges are rapidly being overcome by the integration of long-read sequencing technologies. Here, we use long-read sequencing to improve the contiguity of the threespine stickleback fish (Gasterosteus aculeatus) genome, a prominent genetic model species. Using Pacific Biosciences sequencing, we assembled a highly contiguous genome of a freshwater fish from Paxton Lake. Using contigs from this genome, we were able to fill over 76.7% of the gaps in the existing reference genome assembly, improving contiguity over fivefold. Our gap filling approach was highly accurate, validated by 10X Genomics long-distance linked-reads. In addition to closing a majority of gaps, we were able to assemble segments of telomeres and centromeres throughout the genome. This highlights the power of using long sequencing reads to assemble highly repetitive and difficult to assemble regions of genomes. This latest genome build has been released through a newly designed community genome browser that aims to consolidate the growing number of genomics datasets available for the threespine stickleback fish.
Public Spending and Outcomes: Does Governance Matter?

The authors examine the role of governance-measured by level of corruption and quality of bureaucracy-and ask how it affects the relationship between public spending and outcomes. Their main innovation is to see if differences in efficacy of public spending can be explained by quality of governance. The authors find that public health spending lowers child and infant mortality rates in countries with good governance. The results also indicate that as countries improve their governance, public spending on primary education becomes effective in increasing primary education attainment. These findings have important implications for enhancing the development effectiveness of public spending. The lessons are particularly relevant for developing countries, where public spending on education and health is relatively low, and the state of governance is often poor.
Bitcoin spot and futures market microstructure

We study Bitcoin (BTC) trading at the Chicago Mercantile Exchange (CME) and four settlement spot exchanges that transact $146 million per day in the BTC/USD pair. Spot market median trade sizes are under $1,300 but exceed $18,000 on the CME. Bid‐ask spreads average 0.0298%. Trade sizes of over $1 million move markets by less than 1%. 2.5% of trades and 15.5% of cancellations on Coinbase take place within 50 ms. Bid‐ask spreads exceed 0.8% for only 226 s. Most executions trade‐through better quotes, with estimated losses of $36 million. The CME leads price discovery. BTC leads Ethereum price adjustment.
Capital Market Efficiency and Arbitrage Efficacy

Efficiency in the capital markets requires that capital flows are sufficient to arbitrage anomalies away. We examine the relation between flows to a quantitative (quant) strategy that is based on capital market anomalies and the subsequent performance of this strategy. When these flows are high, quant funds are able to implement arbitrage strategies more effectively, which in turn leads to lower profitability of market anomalies in the future, and vice versa. Thus, the degree of cross-sectional equity market efficiency varies across time with the availability of arbitrage capital.
Investors' Evaluations of Strategic Prior-Period Benchmark Disclosures in Earnings Announcements

Schrand and Walther's (2000) archival evidence suggests that managers strategically disclose prior‐period benchmarks in current earnings announcements, which, in turn, influences investors' judgments. Using a controlled experimental setting, I present evidence confirming that a transparent description of a transitory prior‐period gain or loss affects how investors apply prior‐period earnings when evaluating currentperiod earnings. I also provide evidence that this effect is likely to be unintentional on the part of investors, resulting from limitations in their memory for the prior‐period event. Overall, the experimental results suggest that a quantitative description of the transitory prior‐period gain or loss in a current earnings announcement helps investors to evaluate company performance. The results also highlight the need for consistency in reporting non‐GAAP financial performance measures.
School enrollment in Iraq during the U.S.-led invasion: A statistical analysis

Abstract Little is known about the educational consequences in Iraq during the U.S.-led invasion of 2003–2010. This study examines school enrollment based on the 2007 Iraq Household Socio-Economic Survey. There are three main findings. First, a population-weighted analysis indicates that the school enrollment rate (72.3%) is lower than past Iraqi rates but comparable to that in neighboring Arab countries. Second, a multivariate analysis shows that boys and rural children are far more likely to be enrolled. Last, household opinions suggest that a key reason for non-enrollment is lack of child or parent interest. An analysis of adult labor force participants suggests that the lack of interest is attributable to weak employment prospects for educated youth. Data limitations, however, prevent an adequate inquiry into the plight of the internally displaced.
An Empirical Evaluation of the Usefulness of Non-GAAP Accounting Measures in the Real Estate Investment Trust Industry

We conduct three sets of analyses to compare the usefulness of net income, based on generally accepted accounting principals (GAAP), and the industry-advanced funds from operations (FFO) in the context of the real estate investment trust (REIT) industry. In our first set of tests, we find that FFO is more strongly associated with one-year ahead FFO and one-year ahead operating cash flows than is net income. Conversely, we find that net income explains more variation in one-year ahead net income and current stock price than does FFO. Second, in support of the claim that some REITs manipulate FFO, we document that young REITs and REITs that are likely to access capital markets are more likely to manage FFO. Third, we find that, for a sample of firms that disclose current value information, both net income and FFO fail to reflect holding gains or losses on unsold properties in a timely manner. Overall, our analyses suggest that the REIT industry's claim that FFO is more useful than net income is premature because the superiority of one measure over the other is highly contextual.
The Fox and the Raven: The European Union and Hungary Renegotiate the Margins of "Europe"

A series of diplomatic exchanges has recently unfolded between the Hungarian government and the Commission of the European Union. The stakes are historic for the Hungarian side. Hungary formally applied for full membership in the European Union on March 31, 1994, the first country to announce such intentions among the successor states of the former Soviet bloc.2 Two years later, the Commission sent a lengthy questionnaire about the "state of the applicant" to all-by then, ten-central and east European applicant states. The Hungarian side filed its comprehensive response three months after the receipt of the questionnaire. The Commission waited until all responses were in and acknowledged the Hungarian answer in a document, issued another year later, whose purpose was to determine whether to recommend that the EU Council should start negotiations with the individual candidate countries about full membership. The forty-four months that elapsed between Hungary's initial application and the issuance of the Commission's Opinion represent the longest waiting time3 in the history of accessions to either the European Union or its predecessor, the European Communities. This was a clear rebuttal to the repeated requests of the Hungarian government for a speedy process,4 a request based on Hungary's perceived status as a forerunner of market and democratic reforms among the states of the former state socialist bloc during the last fifteen years. Hungary's application was processed considerably more slowly than that of fellow
“Temporary” Tax Provisions and Uncertainty: Evidence from a Survey of Professional Tax Preparers

INTRODUCTION Toward the end of 2012, the popular press was awash with reports about the ‘‘fiscal cliff’’ and the efforts to avert it. A major aspect of this ‘‘cliff’’ was the expiration of many temporary tax provisions. Most of these tax laws had—temporarily?—reduced taxes for individuals and businesses. Thus, some politicians, lobbyists, and tax experts believed that they were contributing to the growing national deficit. However, for most of the expiring provisions, this was hardly the first time they faced expiration. Some have been extended so many times that taxpayers could be excused for believing they were permanent aspects of the tax code. During November of 2012, we conducted a comprehensive survey that asked Certified Public Accountants (‘‘CPAs’’) and other tax professionals to describe their opinions about the continuance of ‘‘temporary’’ provisions in the tax code. Our objective was to see if the multiple extensions of many of these temporary provisions have led CPAs (and their clients) to conclude that these provisions are to be treated as if permanent. Further, we wanted to know if the tax professionals’ opinion on these tax laws affects the advice they give to their clients. We find that in November of 2012, professionals, on average, believed that many provisions would be temporarily extended, but only few made permanent. This finding is not substantially different for responses received before versus after the 2012 elections (November 6, 2012). Since its last major overhaul in 1986, the Internal Revenue Code (‘‘IRC,’’ ‘‘tax code,’’ or ‘‘Code’’) has increasingly taken on a vast array of temporary provisions. Congress passed some of these provisions as temporary because they filled a need that was seen as temporary (such as an economic stimulus during an economic downturn). Other tax laws are, or were, temporary because there was no bipartisan support for a more permanent tax code change (such as the Bush era tax rate changes and the elimination of the estate tax for the year 2010 with a ‘‘sunset’’ provision). Regardless of the reason why these provisions were adopted into the Code ‘‘temporarily,’’ lawmakers have extended many of them multiple times. Furthermore, the Code includes various sections that tax professionals and politicians generally acknowledge as being outdated (such as the alternative minimum tax, ‘‘AMT’’) or in need of inflation adjustment, but without bipartisan
Retail Short Selling and Stock Prices

Using proprietary data on millions of trades by retail investors, we provide the first large-scale evidence that retail short selling predicts negative stock returns. A portfolio that mimics weekly retail shorting earns an annualized risk-adjusted return of 9%. The predictive ability of retail short selling lasts for one year and is not subsumed by institutional short selling. In contrast to institutional shorting, retail shorting best predicts returns in small stocks and those that are heavily bought by other retail investors. Our findings are consistent with retail short sellers having unique insights into the retail investor community and small firms’ fundamentals.
Law, religiosity and earnings opacity internationally

This paper investigates the relationship between earnings opacity across 24 countries and elements of law and religiosity. The picture shows earnings opacity is negatively related to both the degree of law enforcement and church attendance. While church attendance was negatively related to earnings opacity, belief in heaven was found to have an insignificant impact. Earnings opacity appears to be associated with the extent of belonging and not on the extent of believing. It is negatively related to the input of the religiosity sector-church attendance and not to the output-belief in heaven. In summary, earnings opacity is negatively related to both the inputs of the law and religion sector – the degree of law enforcement and church attendance.
COMPLEX OWNERSHIP STRUCTURES AND CORPORATE VALUATIONS

The bulk of corporate governance theory examines the agency problems that arise from two extreme ownership structures: 100% small shareholders or one large, controlling owner combined with small shareholders. In this paper, we question the empirical validity of this dichotomy. In fact, one-third of publicly listed firms in Europe have multiple large owners, and the market value of firms with multiple blockholders differs from firms with a single large owner and from widely held firms. Moreover, the relationship between corporate valuations and the distribution of cash-flow rights across multiple large owners is consistent with the predictions of recent theoretical models.
WTO Dispute Settlement and the Missing Developing Country Cases: Engaging the Private Sector

The poorest WTO member countries almost universally fail to engage as either complainants or interested third parties in formal dispute settlement activity related to their market access interests. This paper focuses on costs of the WTO's extended litigation process as an explanation for the potential but 'missing' developing country engagement. We provide a positive examination of the current system, and we catalogue and analyze a set of proposals encouraging the private sector to provide DSU-specific legal assistance to poor countries. We investigate the role of legal service centres, non-governmental organizations, development organizations, international trade litigators, economists, consumer organizations, and law schools to provide poor countries with the services needed at critical stages of the WTO's extended litigation process. In the absence of systemic rules reform, the public-private partnership model imposes a substantial cooperation burden on such groups as they organize export interests, estimate the size of improved market access payoffs, prioritize across potential cases, engage domestic governments, prepare legal briefs, assist in evidentiary discovery, and pursue the public relations effort required to induce foreign political compliance. Copyright 2005, Oxford University Press.
The impact of electronic financial payments on crime

Abstract In this paper, we test the hypothesis that access to electronic payments may reduce crime. Our results suggest that there is a negative and significant statistical relationship between access to electronic payments and the incidence of economic crimes such as robbery and burglary, while electronic transactions do little to reduce the incidence of non-economic crimes such as homicide and rape. This paper provides evidence that policies and technologies that enable the proliferation of cashless transactions have the desired impact of deterring crime.
Grave secrets: legal and ethical analysis of postmortem confidentiality.

*A young man finds a letter from his recently deceased's mother's therapist and calls the psychologist to get information about whether his mother sought counseling because of difficulties in their relationship. The therapist reassures the son that his mother came for help in dealing with her terminal illness. *A now-adult child sues her deceased father's physician for failing to warn her that her father's death when she was 10 years old was due to colon cancer, a potentially inheritable disease. *Following the death of Linda McCartney, a number of newspapers reporters, suspecting physician-assisted suicide, demanded access to her death certificate or other medical records. The legal and ethical protections regarding confidentiality of health information have undergone significant scrutiny in the past few years and a variety of new legislation as well as changes to current legislation has recently been promulgated at both the federal and state levels. Developments in electronic media as well as advances in genetic medicine have challenged our traditional understanding of personal information. The result has been a variety of attempts to craft privacy protections in different settings. But despite all the attention directed at this topic, there has been one area that has been largely ignored-protections of confidentiality after death. There is no reason to think that confidentiality protections automatically cease upon a patient's death, and yet keeping information perpetually secret may be similarly untenable. This article evaluates the nature of the interests in both privacy and disclosure and argues that the extent of the protections should vary depending on the sensitivity of the information in question, the time elapsed since death, and the strength of the interest in disclosure.
The IRS' Double-Bogey: Goosen v. Commissioner Remains a Fairway to Characterize Endorsement Income for Nonresident Alien Athletes in Garcia v. Commissioner

The article discusses the taxation by the United States of endorsement income earned by non-resident alien athletes worldwide. Specifically, it tracks the evolution of relevant jurisprudence through its culmination in the recent Tax Court decision, Garcia v. Commissioner of Internal Revenue, which builds upon its previous Goosen v. Commissioner of Internal Revenue. In doing so, the article notes the specific changes over time essential to distinguishing whether earnings should be classified as "endorsement" or "personal services" income, and whether they are "effectively connected" with a U.S. trade or business for tax purposes. Moreover, the author argues the need for a balance between the ability to promote domestic events and the ability for governments to adequately collect tax on income earned domestically, and how an imbalance recently caused issues in the United Kingdom leading up to the 2012 London Olympic Games.
Does government funding alter nonprofit governance? Evidence from New York City nonprofit contractors

Government contracting has raised a collection of issues with respect to adequate oversight and accountability. This paper explores one avenue through which contracting agencies may achieve these tasks: through the governance practices of the contractor's board. Oversight and monitoring are a board's key responsibilities, and influencing a board's practices is one way a governmental agency can help to insure quality performance. Agencies could thus use both their selection process and their post-contracting power to influence board practice. Using a new, rich data set on the nonprofit contractors of New York City, a series of hypotheses were tested on the relationship between government funding and board practices. Significant differences were found to exist in board practices as a function of government funding levels, differences that mark a shift of energy away from some activities (i.e., traditional board functions, such as fund-raising) towards others (financial monitoring and advocacy). This suggests that government agencies may indeed use their contracting choices with an eye to particular governance practices. This increased emphasis on such activities appears to crowd out other activities, and is not unambiguously to the benefit of nonprofit board governance. © 2002 by the Association for Public Policy Analysis and Management.
The indelible science of law

It is often remarked that, with the rise of the judicial resolution of constitutional questions, European constitutional systems have come to resemble a variation on the common law, as cases decided by constitutional tribunals appear to be imbued with an oracular quality with regard to constitutional meaning. Notwithstanding this widespread assimilation of a common law mindset, there is value in an older tradition of legal science that persists in some circles — primarily in Continental Europe — and forms the backbone of legal education and scholarship. Where the tradition persists, case law may be relevant, and authoritative, only if the ideas it produces can be ratifi ed on the basis of a “ scientifi c ” structure of conceptual differentiation. This approach — which might be described as the pursuit of excellence in thinking—is not a mere intellectual conceit; rather, this essay argues, in a “ postdemocratic ” era, legal science may offer opportunities for empowerment of a public that fi nds itself disenfranchised by overconfi dent courts.
Credibility of Management Forecasts

We examine how the market's ability to assess the truthfulness of management earnings forecasts affects how managers bias their forecasts, and we evaluate whether the market's response to management forecasts is consistent with it identifying predictable forecast bias. We find managers' willingness to misrepresent their forwardlooking information as a function of their incentives varies with the market's ability to detect misrepresentation. We examine incentives induced by the litigation environment, insider trading activities, firm financial distress, and industry concentration. With regard to the stock price response to forecasts, we find the market varies its response with the predictable bias in the forecast. The efficiency of the market's response, however, varies with the forecast news.
Nonsectarian Welfare Statements

How can we measure whether national institutions in general, and regulatory institutions in particular, are dysfunctional? A central question is whether they are helping a nation's citizens to live good lives. A full answer to that question would require a great deal of philosophical work, but it should be possible to achieve an incompletely theorized agreement on a kind of nonsectarian welfarism, emphasizing the importance of five variables: subjective well-being, longevity, health, educational attainment, and per capita income. In principle, it would be valuable to identify the effects of new initiatives (including regulations) on all of these variables. In practice, it is not feasible to do so; assessments of subjective well-being present particular challenges. In their ideal form, Regulatory Impact Statements should be seen as Nonsectarian Welfare Statements, seeking to identify the consequences of regulatory initiatives for various components of welfare. So understood, they provide reasonable measures of regulatory success or failure, and, hence, a plausible test of dysfunction. There is a pressing need for improved evaluations, including both randomized controlled trials and ex post assessments.
On Normative Effects of Immigration Law

Can laws shape and mold our attitudes, values, and social norms, and if so, how do immigration laws affect our attitudes or views toward minority groups? I explore these questions through a randomized laboratory experiment that examines whether and to what extent short-term exposures to anti-immigration and proimmigration laws affect people’s implicit and explicit attitudes toward Latinos. My analysis shows that exposure to an anti-immigration law is associated with increased perceptions among study participants that Latinos are unintelligent and law-breaking. In contrast, I find no evidence that exposure to pro-immigration laws promoted positive attitudes toward Latinos. Taken together, these results suggest that exposure to anti-immigration laws can easily trigger negative racial attitudes, but fostering positive racial attitudes through pro-immigration laws might be substantially more difficult. I argue that a fuller appreciation of the impacts of immigration laws requires an understanding of their normative effects. I conclude by discussing the directions for future research on law, racial attitudes, and intergroup relations, and the policy implications of my findings. ON NORMATIVE EFFECTS OF IMMIGRATION LAW Emily Ryo, JD, PhD Assistant Professor of Law & Sociology (by courtesy) University of Southern California Gould School of Law *I am grateful to former Dean Larry Kramer and Dean Liz Magill at Stanford Law School for their generous funding support. I am also grateful to Lynny Chin, Shelley Correll, David Grusky, and Efren Perez for their valuable guidance on research design. I thank Carolyn Ybarra and the Stanford Institute for Research in the Social Sciences for data collection support. I also thank Catherine Albiston, Scott Altman, Adam Cox, Sam Erman, Deep Gulasekaram, Gillian Hadfield, Dan Klerman, Marty Levine, Tom Lyon, Janice Nadler, Camille Gear Rich, Michael Rosenfeld, and Abby Wood for their insightful comments and suggestions on earlier versions of this article. Ian Day, Damian Gomez, Andrew Lau, and Lev Tsukerman provided excellent research assistance. Direct all correspondence to Emily Ryo, USC Gould School of Law, 699 Exposition Blvd Los Angeles, CA 90089. Email: eryo@law.usc.edu. Hosted by The Berkeley Electronic Press 2016 ON NORMATIVE EFFECTS 1 ON NORMATIVE EFFECTS OF IMMIGRATION LAW
The Externality of Victim Care

In a world with no transaction costs, tort law would not be necessary. Instead, injurers and victims would bargain among themselves to produce the mix of activities and care that would maximize their own and thus society's wealth.1 Of course, transaction costs do exist, and they are of sufficient magnitude to prevent bargaining between injurer and victim: for example, pedestrians cannot identify and write contracts with each driver that might injure them. In this "real world," the economist's ideal regime of tort law would generate liability rules that induce injurer and victim alike to choose the activities and levels of care they would have chosen in a world without transaction costs.3 For three decades, lawyers and economists have expended significant effort evaluating the economic consequences of various common law liability rules. In so doing they have sought to determine which liability rule(s), if any, will maximize social wealth, that is, induce injurers and victims to replicate the mix of care and activities for which they would have bargained in the absence of transaction costs.4 This
Should Ideology Matter in Selecting Federal Judges? Ground Rules for the Debate

The Constitution confers on the President the power to appoint federal judges “by and with the Advice and Consent of the Senate.”1 While these words leave relatively little room for litigation challenging the constitutionality of judicial appointments,2 debate continues to rage over the criteria Presidents and Senators should use in selecting judges. Particularly contentious is the relevance of what sometimes is described as a prospective judge’s ideology or judicial philosophy and views on substantive questions of law. During President George W. Bush’s administration, for example, Senate hearings examined the question “Should Ideology Matter?,”3 Senate Republicans staged a thirty-nine hour filibuster protesting the Democrats’ filibuster of four of President Bush’s nominees,4 and President Bush extolled the Supreme Court’s two most conservative Justices as his models for future appointments. This is but the latest round in a debate of venerable heritage. In the famous Lincoln-Douglas debates of 1858, then-Senate candidate Abraham Lincoln pledged that if elected he would seek the overruling
Second-Generation Monopolization: Parallel Exclusion in Derivatives Markets

The reluctance of antitrust to condemn parallel exclusion permits oligopolies to be entrenched. This is because parallel exclusion—multiple-firm conduct that inhibits market entrants—cannot satisfy the current strictures on monopolization, which are understood to prohibit single-firm conduct. Yet this is an outdated way of conceptualizing monopolization. An expansion of monopolization—to cover parallel, non-collusive acts by an oligopoly—is due. To push the law toward recognizing parallel exclusion, this Article examines concentration in the markets for financial derivatives, which are perennially dominated by the same big banks. Even after losses under first-generation antitrust claims, the dominant derivatives dealers have found ways to retain market power. This Article therefore delves into the market power dynamics that traditional theories have sidestepped. As a technical exercise, this Article illustrates the relevance of market definition as a paradigm—particularly for illuminating blind spots in financial regulation. As a doctrinal endeavor, this Article buttresses the efforts of other scholars to frame parallel exclusion as a form of monopolization.
Dynamic Incorporation of Foreign Law

Lawmaking bodies in one polity sometimes incorporate the law of another polity “dynamically,” so that when the law of the foreign jurisdiction changes, the law of the incorporating jurisdiction changes automatically. Dynamic incorporation can save lawmaking costs, lead to better legal rules and standards, and solve collective action problems. Thus, the phenomenon is widespread. Dynamic incorporation does, however, delegate lawmaking power. Further, as the formal and practical barriers to revocation of the act of dynamic incorporation become higher, that act comes closer to a cession of sovereignty, and for democratic polities, such cessions entail a democratic loss. Accordingly, dynamic incorporation of foreign law has proven controversial both within federal systems and at the international level. The problem is most acute when nation states agree to delegate lawmaking power to a supranational entity. In order to gain the reciprocal benefits of cooperation and coordination, the delegation must be functionally irrevocable or nearly so. Representation of the member nation states within the decision-making structures of the supranational entity can ameliorate, but cannot fully compensate for, the resulting democratic losses
Credit, Vacancies and Unemployment Fluctuations !

Abstract Propagation in equilibrium models of search unemployment is altered when vacancy costs require some external financing on frictional credit markets. The easing of financing constraints during an expansion as firms accumulate net worth reduces the opportunity cost for resources allocated to job creation. The dynamics of market tightness are affected by (i) a cost channel, increasing the incentive to recruit for a given benefit from a new hire, and (ii) a wage channel, whereby firms' improved bargaining position limits the upward pressure of market tightness on wages. Agency related credit frictions endogenously generate persistence in the dynamics of labor-market tightness, and have a moderate endogenous effect on amplification.
Corporate Financing Activities and Contrarian Investment

This paper investigates the risk versus mispricing explanation of superior returns to contrarian strategies using the interactions between value-to-market indicators and corporate financing transactions that increase or decrease a firm's outstanding equity. Portfolio-level analyses and firm-level cross-sectional regressions indicate that the well-documented contrarian profits soar when value stocks which repurchase shares (value repurchasers) and growth stocks which issue shares (growth issuers) are considered. Various risk measures indicate that value repurchasers are not riskier than growth issuers. Furthermore, time-series of realized growth rates, analysts' long-term growth estimates, and sensitivity of portfolio returns to investor sentiment support the misvaluation explanation. Copyright 2010, Oxford University Press.
Normative Dimensions of Sustainable Energy Policy

Drawing a link between energy policy and sustainable development, this paper explores the normative dimensions of policy analysis that inform energy sector decision-making, and how these norms fall short of incorporating adequate considerations of sustainability. The discussion focuses on the obligations that our present generation has to conserve for future generations, the decision of which discount rate to use, and the importance of citizen-oriented preferences in economic valuation. This analysis concludes with the claim that if sustainability insights are applied to conventional methods of approaching these issues, we may be better prepared to address issues that are unconventional and complex, such as those involving the production and use of energy resources.
Corporate Purpose and Financial Performance

We construct a measure of corporate purpose within a sample of U.S. companies based on approximately 500,000 survey responses of worker perceptions about their employers. We find that this measure ...
Reconsidering Antitrust's Goals

Antitrust policy today is an anomaly. On the one hand, antitrust is thriving internationally. On the other hand, antitrust’s influence has diminished domestically. Over the past thirty years, there have been fewer antitrust investigations and private actions. Today the U.S. Supreme Court complains about antitrust suits and places greater faith in the antitrust function being subsumed in a regulatory framework. Two important factors contributed to this decline. The first is the salience of the U.S. antitrust goals. In the past thirty years, enforcers and courts abandoned antitrust’s political, social, and moral goals in their quest for a single economic goal. Second, antitrust policy increasingly relied on an incomplete, distorted conception of competition by adopting the Chicago School’s simplifying assumptions of self-correcting markets composed of rational, selfinterested market participants. In this current economic climate, the United States is ripe for a new antitrust policy cycle. The quest for a single economic goal failed. Further, four oft-cited economic goals (ensuring an effective competitive process, promoting consumer welfare, maximizing efficiency, and ensuring economic freedom) never unified antitrust analysis. This Article proposes how to integrate antitrust’s multiple policy objectives into the legal framework. It outlines a blended goal approach and describes how this approach would provide better legal standards and would revive antitrust’s relevance.
Designed PKC-targeting bryostatin analogs modulate innate immunity and neuroinflammation.

Summary Neuroinflammation characterizes multiple neurologic diseases, including primary inflammatory conditions such as multiple sclerosis and classical neurodegenerative diseases. Aberrant activation of the innate immune system contributes to disease progression, but drugs modulating innate immunity, particularly within the central nervous system (CNS), are lacking. The CNS-penetrant natural product bryostatin-1 attenuates neuroinflammation by targeting innate myeloid cells. Supplies of natural bryostatin-1 are limited, but a recent scalable good manufacturing practice (GMP) synthesis has enabled access to it and its analogs (bryologs), the latter providing a path to more efficacious, better tolerated, and more accessible agents. Here, we show that multiple synthetically accessible bryologs replicate the anti-inflammatory effects of bryostatin-1 on innate immune cells in vitro, and a lead bryolog attenuates neuroinflammation in vivo, actions mechanistically dependent on protein kinase C (PKC) binding. Our findings identify bryologs as promising drug candidates for targeting innate immunity in neuroinflammation and create a platform for evaluation of synthetic PKC modulators in neuroinflammatory diseases.