THE ROLE OF EARNINGS PERSISTENCE IN VALUATION ACCURACY AND THE TIME HORIZON

ABSTRACT Based on the assumption that earnings persistence has implications for both financial analysis and compensation contracts, the aim of this paper is to investigate the role of earnings persistence assuming that (i) more persistent earnings are likely to be a better input to valuation models and (ii) more persistent earnings are likely to serve as a proxy for long-term market and managerial orientation. The analysis is based on Brazilian listed firms from 1995 to 2013, and while we document strong support for the relevance of earnings persistence in financial analysis and valuation, we fail to document a significant relationship between earnings persistence and long-term value orientation. These results are sensitive to different specifications, and additional results suggest that firms' idiosyncratic risk (total risk) is relevant to explain the focus on short-term outcomes (short-termism) across firms. The main contribution of this paper is to offer empirical evidence for the relevance of accounting numbers in both valuation and contractual theories in an emergent market.

Mangrove sedimentary characteristics and implications for crab Ucides cordatus (Crustacea, Decapoda, Ucididae) distribution in an estuarine area of the Amazonian region

At the coastal zone sediments, water and organisms interact intensely. At equatorial tidal-dominated coast mangroves are abundant. These areas are well-known for their ecological importance. Considering the mangroves of Atlantic South America, the mangrove crab, Ucides cordatus has ecological and economic prominence. High densities of this crab are found on the Amazon coast. This study investigates the sediment distribution of the Bragança mangrove area (Amazon coast, Brazil) and its correlations with vegetation and mangrove crab distribution. Sediments of 47 sites, as well as crabs from sites with different sediment and vegetation, were sampled. Results show that surface sediment of the area is mainly composed by silt (59%), with 21% sand and 20% clay. Variations in sorting and skewness are the product of local variations in clay and sand content. The vegetation type was significantly correlated to mangrove crab characteristics, abundance and weight/size. Sediment characteristics are also substantially different according to the vegetation type. Areas where Avicennia germinans prevails have more sand and clay than areas of Rizophora mangle, in which silt is dominant and crabs were significantly heavier. The present results have showed that the distribution of sediments, crabs and vegetation at mangrove areas are strongly correlated. Thus, they should be studied in conjunction.

A spectral analysis of the myoelectric activity of the left colon in patients with schistosomiasis mansoni

The objective of the present study was to perform a spectral analysis of the electrical activity of the left colon of patients with hepatosplenic schistosomiasis. Thirty patients were studied, divided into 2 groups: group A was composed of 14 patients (9 males and 5 females) with hepatosplenic schistosomiasis and group B was composed of 16 female patients without schistosomiasis mansoni. Three pairs of electrodes were implanted in the left colon at the moment of the surgical treatment. The signals of the electric activity of the colon were captured after postoperative recovery from the ileus and fed into a computer by means of a DATAQ data collection system which identified and captured frequencies between 0.02 and 10 Hz. Data were recorded, stored and analyzed using the WINDAQ 200 software. For electrical analysis, the average voltage of the electrical wave in the three electrodes of all patients, expressed as millivolts (mV), was considered, together with the maximum and minimum values, the root mean square (RMS), the skewness, and the results of the fast Fourier transforms. The average RMS of the schistosomiasis mansoni patients was 284.007 mV. During a long period of contraction, the RMS increased in a statistically significant manner from 127.455 mV during a resting period to 748.959 mV in patients with schistosomiasis mansoni. We conclude that there were no statistically significant differences in RMS values between patients with schistosomiasis mansoni and patients without the disease during the rest period or during a long period of contraction.