Essays on Corporate Governance and the Quality of Disclosed Earnings: Across Transitional Europe

A growing body of empirical research examines the structure and effectiveness of corporate governance systems around the world. An important insight from this literature is that corporate governance mechanisms address the excessive use of managerial discretionary powers to get private benefits by expropriating the value of shareholders. One possible way of expropriation is to reduce the quality of disclosed earnings by manipulating the financial statements. This lower quality of earnings should then be reflected by the stock price of firm according to value relevance theorem. Hence, instead of testing the direct effect of corporate governance on the firm’s market value, it is important to understand the causes of the lower quality of accounting earnings. This thesis contributes to the literature by increasing knowledge about the extent of the earnings management – measured as the extent of discretionary accruals in total disclosed earnings - and its determinants across the Transitional European countries. The thesis comprises of three essays of empirical analysis of which first two utilize the data of Russian listed firms whereas the third essay uses data from 10 European economies. More specifically, the first essay adds to existing research connecting earnings management to corporate governance. It testifies the impact of the Russian corporate governance reforms of 2002 on the quality of disclosed earnings in all publicly listed firms. This essay provides empirical evidence of the fact that the desired impact of reforms is not fully substantiated in Russia without proper enforcement. Instead, firm-level factors such as long-term capital investments and compliance with International financial reporting standards (IFRS) determine the quality of the earnings. The result presented in the essay support the notion proposed by Leuz et al. (2003) that the reforms aimed to bring transparency do not correspond to desired results in economies where investor protection is lower and legal enforcement is weak. The second essay focuses on the relationship between the internal-control mechanism such as the types and levels of ownership and the quality of disclosed earnings in Russia. The empirical analysis shows that the controlling shareholders in Russia use their powers to manipulate the reported performance in order to get private benefits of control. Comparatively, firms owned by the State have significantly better quality of disclosed earnings than other controllers such as oligarchs and foreign corporations. Interestingly, market performance of firms controlled by either State or oligarchs is better than widely held firms. The third essay provides useful evidence on the fact that both ownership structures and economic characteristics are important factors in determining the quality of disclosed earnings in three groups of countries in Europe. Evidence suggests that ownership structure is a more important determinant in developed and transparent countries, while economic determinants are important determinants in developing and transitional countries.

Analysis of the performance characteristics of a two-inertia power transmission system with a plate clutch

The performance of a plate clutch in a two-inertia power transmission system is analysed assuming negligible compliance and using a piecewise linear function to represent the clutch torque characteristic. Expressions defining, for all linear segments of the clutch torque characteristic, dimensionless input and output velocities of the clutch and dimensionless slip period are presented. The use of these expressions in preparing design charts to aid analysis and design of the plate clutch is outlined.

Overconfidence and investor size

Recent research documents that institutional or large investors act as antagonists to other investors by showing opposite behavior following disclosure of new information. Using an extremely comprehensive official transactions data set from Finland, we set out to explore the interrelation between investor size and behavior. More specifically, we test whether investor size is positively (negatively) correlated with investor reaction following positive (negative) news. We document robust evidence of that investor size affects investor behavior under new information, as larger investors on average react more positively (negatively) to good (bad) news than smaller investors. In the light of this study it seems increasingly feasible that several recent findings of heterogeneous investor behavior are functions of differences in overconfidence.

Effect of natural ventilation on the boundary layer separation and near-wake vortex shedding characteristics of a sphere

Experiments were conducted in water and wind tunnels on spheres in the Reynolds number range 6 x 10(3) to 6.5 x 10(5) to study the effect of natural ventilation on the boundary layer separation and near-wake Vortex shedding characteristics. In the subcritical range of Re (<2 x 10(5)), ventilation caused a marginal downstream shift in the location of laminar boundary layer separation; there was only a small change in the vortex shedding frequency. In the supercritical range (Re > 4 x 10(5)), ventilation caused a downstream shift in the mean locations of boundary layer separation and reattachment; these lines showed significant axisymmetry in the presence of venting. No distinct vortex shedding frequency was found. Instead, a dramatic reduction occurred in the wake unsteadiness at all frequencies. The reduction of wake unsteadiness is consistent with the reduction in total drag already reported. Based on the present results and those reported earlier, the effects of natural ventilation on the flow past a sphere can be categorized in two broad regimes, viz., weak and strong interaction regimes. In the weak interaction regime (subcritical Re), the broad features of the basic sphere are largely unaltered despite the large addition of mass in the near wake. Strong interaction is promoted by the closer proximity of the inner and outer shear layers at supercritical Re. This results in a modified and steady near-wake flow, characterized by reduced unsteadiness and small drag.

Polarization Characteristics of Porous Electrode Systems with Adsorbed Intermediates Participating in the Electrode Reaction

Current-potential relationships are derived for porous electrode systems following a homogeneous model and whenadsorbed intermediates participate in the electrode reaction. Limiting Tafel slopes were deduced and compared with thecorresponding behavior on planar electrode systems. The theoretical results showed doubling of Tafel slopes when theslow-step is a charge-transfer reaction and a nonlogarithmic current-voltage behavior when the slow-step is a chemical reaction.Comparison of the experimental results with theory for the case of oxygen reduction on carbon surfaces in alkalinemedia indicates that a slow chemical reaction following the initial charge-transfer reaction to be the likely rate-controllingstep. Theoretical relationships are utilized to determine the exchange current density and the surface coverage by the adsorbedintermediates during the course of oxygen reduction from alkaline solutions on "carbon." Tafel slope measurementson planar and porous electrodes for the same reaction are suggested as one of the diagnostic criteria for elucidatingthe mechanistic pathways of electrochemical reactions.

I–U Characteristics of MOS Structures on Polycrystalline Silicon

Current-voltage (I–U) characteristics of MOS structures on polycrystalline silicon are investigated. A model based on the carrier transport through the traps in the oxide is described to explain the I–U characteristics.Es werden Strom-Spannungs(I–U)-Charakteristiken von MOS-Strukturen auf polykristallinem Silizium untersucht. Ein Modell zur Erklärung der I–U-Charakteristiken wird beschrieben, das auf dem Ladungstransport über Oxidtraps beruht.

Nonlinear I-V characteristics of nanocrystalline SnO2

Current versus voltage characteristics (I-V) of nanocrystalline SnO2 materials have been investigated in air at room temperature. The samples were prepared by the inert gas condensation technique (IGCT) as well as by chemical methods. X-ray diffraction studies showed a tetragonal rutile structure for all the samples. Microstructural studies were performed with transmission electron microscopy. All the samples exhibited nonlinear I-V characteristics of the current-controlled negative resistance (CCNR) type. The results show that the threshold field (break down) voltage is higher for the samples prepared by the IGCT method than for those prepared by the chemical method due to the formation of a tin oxide layer over the crystalline tin. It is also found that the threshold field increases with the decrease in grain size.

Molecular and Clinical Characteristics of Pituitary Adenoma Predisposition (PAP)

Pituitary adenomas are common benign neoplasms. Although most of them are sporadic, a minority occurs in familial settings. Heterozygous germline mutations in the aryl hydrocarbon receptor interacting protein (AIP) gene were found to underlie familial pituitary adenomas, a condition designated as pituitary adenoma predisposition (PAP). PAP confers incomplete penetrance of mostly growth hormone (GH) secreting adenomas in young patients, who often lack a family history of pituitary adenomas. This thesis work aimed to clarify the molecular and clinical characteristics of PAP. Applying the multiplex ligation-dependent probe amplification assay (MLPA), we found large genomic AIP deletions to account for a subset of PAP. Therefore, MLPA could be considered in PAP suspected patients with no AIP mutations found with conventional sequencing. We generated an Aip mouse model to examine pituitary tumorigenesis in vivo. The heterozygous Aip mutation conferred complete penetrance of pituitary adenomas that were mostly GH-secreting, rendering the phenotype of the Aip mouse similar to that of PAP patients. We suggest that AIP may function as a candidate gatekeeper gene in somatotrophs. To clarify molecular mechanisms of tumorigenesis, we elucidated the expression of AIP-related molecules in human and mouse pituitary tumors. The expression of aryl hydrocarbon receptor nuclear translocator (ARNT) was reduced in mouse Aip-deficient adenomas, and similar ARNT reduction was also evident in human AIP mutation positive adenomas. This suggests that in addition to participating in the hypoxia pathway, estrogen receptor signaling and xenobiotic response pathways, ARNT may play a role in AIP-related tumorigenesis. We also studied the characteristics and the response to therapy of PAP patients and found them to have an aggressive disease phenotype with young age at onset. Therefore, improvement in treatment outcomes of PAP patients would require their efficient identification and earlier diagnosis of the pituitary adenomas. The possible role of the RET proto-oncogene in tumorigenesis of familial AIP mutation negative pituitary adenomas was evaluated, but none of the found RET germline variants were considered pathogenic. Surprisingly, RET immunohistochemistry suggested possible underexpression of RET in AIP mutation positive pituitary adenomas an observation that merits further investigation.