Differential Reliance Research Articles

What are the Benefits of Audited Disclosures to Equity Market Participants?

This study documents that the market places more reliance on earnings announcements with a completed audit than on earnings announcements with an incomplete audit. The PCAOB’s Auditing Standards No. 2 and 3 (AS2/3) resulted in the majority of firms issuing annual earnings announcements prior to audit completion. Prior research documents an increase in earnings revisions around the implementation of AS2/3, a negative market reaction to earnings revisions, and lower investor reliance on earnings announcements that foreshadow an impending earnings revision. We argue that the issuance of earnings announcements with a completed versus an incomplete audit has a more fundamental impact on the market. Specifically, earnings announcements with an incomplete audit lead investors to perceive lower financial reporting quality and to place less reliance on the earnings announcement even in the absence of an impending or ex post earnings revision. Using both difference-in-difference and cross-sectional analyses, we find that earnings announcements with a completed audit are associated with a larger market reaction than earnings announcements with an incomplete audit. This differential market reliance on earnings announcements with a completed versus an incomplete audit persists after the implementation of AS2/3 into a more steady-state regulatory environment from 2007 through 2013.

The Moore's Ford Lynching Reenactment: Affective Memory and Race Trauma

This essay offers a close reading of the 2008 reenactment of the 1946 Moore's Ford Lynching of four African Americans in Walton County, Georgia. Throughout this fieldwork, we were ethnographically positioned as co-performative witnesses, both “a part of” and “apart from,” mirroring the tensions between the intellectual remove of much rhetorical scholarship and the embodied engagement and understanding of performance studies. A complex and sophisticated repertoire of invention shared by the coalition of activists who planned and staged the performance enabled reenactors to mobilize their bodies to construct the ineffability of traumatic memory, challenge official accounts of the lynching, and advocate hope and healing for the future. Through the “cross-temporal slippage” of reenactment, all in attendance were invited to occupy the subject location of moral witness. A fracture in the coalition along lines of racial privilege/subordination and gender politics revealed the differential reliance upon archival and embodied knowledge, again mirroring the tensions that bind rhetoric and performance.

One size does not fit all: Entrepreneurial families’ reliance on family offices

Family offices are organisations dedicated to the management of entrepreneurial families’ private wealth. Based on agency theory, we analyse types of family offices with regard to the families’ goals and the control mechanisms used to ensure goal achievement. Family-dominant management and private client structures involve stronger emphasis on non-financial goals in single and multi-family offices than in non-family-dominant management and open client structures. Variations in family involvement, ranging from family dominance to the complete absence of family ownership and/or management, and diverse client structures justify the differential reliance on formal and informal control mechanisms.

Differential Reliance on the Duchenne Marker During Smile Evaluations and Person Judgments

When evaluating the smiles of other people (regarding amusement, authenticity, spontaneity, or intensity), perceivers typically rely on Orbicularis oculi activity that causes wrinkles around a target’s eyes. But does this so-called Duchenne marker also impact more generalized judgments of person characteristics (e.g., regarding a target’s attractiveness, intelligence, dominance, and trustworthiness)? To address this issue, the current study asked participants to provide the above smile evaluations and person judgments for a series of Duchenne and non-Duchenne smiles. The results showed that smile evaluations uniformly increased during Duchenne marker presence. The marker’s effect on person judgments, in contrast, was judgment dependent. While attractiveness, dominance and intelligence ratings showed the expected enhancement, trustworthiness ratings remained unaffected by the facial cue of interest. The findings suggest that the Duchenne marker’s role as a cue of social relevance during target perception depends on the type of person inference under consideration.

Differential working memory correlates for implicit sequence performance in young and older adults

Our recent work has revealed that visuospatial working memory (VSWM) relates to the rate of explicit motor sequence learning (Bo and Seidler in J Neurophysiol 101:3116-3125, 2009) and implicit sequence performance (Bo et al. in Exp Brain Res 214:73-81, 2011a) in young adults (YA). Although aging has a detrimental impact on many cognitive functions, including working memory, older adults (OA) still rely on their declining working memory resources in an effort to optimize explicit motor sequence learning. Here, we evaluated whether age-related differences in VSWM and/or verbal working memory (VWM) performance relates to implicit performance change in the serial reaction time (SRT) sequence task in OA. Participants performed two computerized working memory tasks adapted from change detection working memory assessments (Luck and Vogel in Nature 390:279-281, 1997), an implicit SRT task and several neuropsychological tests. We found that, although OA exhibited an overall reduction in both VSWM and VWM, both OA and YA showed similar performance in the implicit SRT task. Interestingly, while VSWM and VWM were significantly correlated with each other in YA, there was no correlation between these two working memory scores in OA. In YA, the rate of SRT performance change (exponential fit to the performance curve) was significantly correlated with both VSWM and VWM, while in contrast, OA's performance was only correlated with VWM, and not VSWM. These results demonstrate differential reliance on VSWM and VWM for SRT performance between YA and OA. OA may utilize VWM to maintain optimized performance of second-order conditional sequences.

Event congruency and episodic encoding: A developmental fMRI study

A known contributor to adults’ superior memory performance compared to children is their differential reliance on an existing knowledge base. Compared to those of adults, children's semantic networks are less accessible and less established, a difference that is also thought to contribute to children's relative resistance to semantically related false alarms. Using the “congruency effect” – the memory advantage of congruity, we manipulated the encoded stimuli in the present experiment such that the use of the knowledge base at encoding was more – or less – accessible in both children and adults. While being scanned, 15 children (ages 8–11) and 18 young adults saw printed noun/color combinations and were asked to indicate whether each combination existed in nature. A subsequent recognition test was administered outside of the scanner. Behaviorally, although overall memory was higher in the adult group compared to the children, both age groups showed the congruency effect to the same extent. A comparison of the neural substrates supporting the congruency effect between adults and children revealed that whereas adults recruited regions primarily associated with semantic-conceptual processing (e.g., the left PFC and parietal and occipito-temporal cortices), children recruited regions earlier in the processing stream (e.g., the right occipital cortex). This evidence supports the hypothesis that early in development, episodic encoding depends more on perceptual systems, whereas top-down frontal control and parietal structures become more prominent in the encoding process with age. This developmental switch contributes to adults’ superior memory performance but may render adults more vulnerable to committing semantically based errors.

Regulation of mammalian Gli proteins by Costal 2 and PKA in Drosophila reveals Hedgehog pathway conservation

Hedgehog (Hh) signaling activates full-length Ci/Gli family transcription factors and prevents Ci/Gli proteolytic processing to repressor forms. In the absence of Hh, Ci/Gli processing is initiated by direct Pka phosphorylation. Despite those fundamental similarities between Drosophila and mammalian Hh pathways, the differential reliance on cilia and some key signal transduction components had suggested a major divergence in the mechanisms that regulate Ci/Gli protein activities, including the role of the kinesin-family protein Costal 2 (Cos2), which directs Ci processing in Drosophila. Here, we show that Cos2 binds to three regions of Gli1, just as for Ci, and that Cos2 functions to silence mammalian Gli1 in Drosophila in a Hh-regulated manner. Cos2 and the mammalian kinesin Kif7 can also direct Gli3 and Ci processing in fly, underscoring a fundamental conserved role for Cos2 family proteins in Hh signaling. We also show that direct PKA phosphorylation regulates the activity, rather than the proteolysis of Gli in Drosophilia, and we provide evidence for an analogous action of PKA on Ci.

Variation in nitrogen use strategies and photosynthetic pathways among vascular epiphytes in the Brazilian Central Amazon

The variation in nitrogen use strategies and photosynthetic pathways among vascular epiphyte families was addressed in a white-sand vegetation in the Brazilian Central Amazon. Foliar nitrogen and carbon concentrations and their isotopic composition (δ15N and δ13C, respectively) were measured in epiphytes (Araceae, Bromeliaceae and Orchidaceae) and their host trees. The host tree Aldina heterophylla had higher foliar N concentration and lower C:N ratio (2.1 ± 0.06% and 23.6 ± 0.8) than its dwellers. Tree foliar δ15N differed only from that of the orchids. Comparing the epiphyte families, the aroids had the highest foliar N concentration and lowest C:N ratios (1.4 ± 0.1% and 34.9 ± 4.2, respectively). The orchids had more negative foliar δ15N values (-3.5 ± 0.2‰) than the aroids (-1.9 ± 0.7‰) and the bromeliads (-1.1 ± 0.6‰). Within each family, aroid and orchid taxa differed in relation to foliar N concentrations and C:N ratios, whereas no internal variation was detected within bromeliads. The differences in foliar δ15N observed herein seem to be related to the differential reliance on the available N sources for epiphytes, as well as to the microhabitat quality within the canopy. In relation to epiphyte foliar δ13C, the majority of epiphytes use the water-conserving CAM-pathway (δ13C values around -17‰), commonly associated with plants that live under limited and intermittent water supply. Only the aroids and one orchid taxon indicated the use of C3-pathway (δ13C values around -30‰).

Brain Correlates of Mathematical Competence in Processing Mathematical Representations

The ability to extract numerical information from different representation formats (e.g., equations, tables, or diagrams) is a key component of mathematical competence but little is known about its neural correlate. Previous studies comparing mathematically less and more competent adults have focused on mental arithmetic and reported differences in left angular gyrus (AG) activity which were interpreted to reflect differential reliance on arithmetic fact retrieval during problem solving. The aim of the present functional magnetic resonance imaging study was to investigate the brain correlates of mathematical competence in a task requiring the processing of typical mathematical representations. Twenty-eight adults of lower and higher mathematical competence worked on a representation matching task in which they had to evaluate whether the numerical information of a symbolic equation matches that of a bar chart. Two task conditions without and one condition with arithmetic demands were administered. Both competence groups performed equally well in the non-arithmetic conditions and only differed in accuracy in the condition requiring calculation. Activation contrasts between the groups revealed consistently stronger left AG activation in the more competent individuals across all three task conditions. The finding of competence-related activation differences independently of arithmetic demands suggests that more and less competent individuals differ in a cognitive process other than arithmetic fact retrieval. Specifically, it is argued that the stronger left AG activity in the more competent adults may reflect their higher proficiency in processing mathematical symbols. Moreover, the study demonstrates competence-related parietal activation differences that were not accompanied by differential experimental performance.

Differential Cone Pathway Influence on Intrinsically Photosensitive Retinal Ganglion Cell Subtypes

A small subset of ganglion cells in the mammalian retina express the photopigment melanopsin and are intrinsically photosensitive (ipRGCs). These cells are the primary conduits through which photic information is relayed to non-image-forming visual centers that mediate behaviors such as the pupillary light reflex and circadian entrainment. M1 and M2 cells comprise distinct morphological subpopulations of ipRGC, and possess physiological diversity in their intrinsic membrane properties and intrinsic light responses. Additionally, evidence now indicates that all ipRGCs receive photic information from rods/cones via synaptic signaling. It has recently been reported that Off-stratifying M1 cells paradoxically receive input from the On pathway within the Off sublamina of the inner plexiform layer. The purpose of the current study was to examine the functional consequences of cone pathway signaling to M1 and M2 cells. Using pharmacological tools and single-cell recordings of synaptic responses in wild-type and melanopsin-null mice, we found that the On pathway forms the primary excitatory synaptic input to both M1 and M2 cells. This input was much more influential in shaping the light-evoked responses and resting membrane properties of M2 cells than M1 cells. These findings indicate a surprising differential reliance upon cone-mediated phototransduction by ipRGC subpopulations. These findings also suggest that ipRGC subtypes signal diverse photic information to various non-image-forming visual centers.

Orthographic characteristics speed Hindi word naming but slow Urdu naming: evidence from Hindi/Urdu biliterates

Two primed naming experiments tested the orthographic depth hypothesis in skilled biliterate readers of Hindi and Urdu. These languages are very similar on the spoken level but differ greatly in script; Hindi is a highly transparent script, whereas Urdu is more opaque. It was accordingly hypothesized that form-based priming would be greater for Hindi than Urdu, reflecting greater reliance on a phonological assembly route in the more transparent Hindi script. Proficient Hindi/Urdu biliterate readers were presented with primes either in Hindi or Urdu script (Exp. 1), or in Roman transcription (Exp. 2), while targets were always in blocks of Hindi or Urdu. Across both experiments, form-based priming was observed only in Hindi. Additionally, target words were named significantly faster and better in Hindi than in Urdu. The results are taken as support for the hypothesis of differential reliance on phonological assembly as a function of script transparency. Further, the greater graphemic complexity of Urdu script relative to Hindi appears to have contributed to slower and less accurate overall single word reading for Urdu than Hindi, despite the fact that Urdu was the first learned script.

E2F1 and E2F2 have opposite effects on radiation-induced p53-independent apoptosis in Drosophila

The ability of ionizing radiation (IR) to induce apoptosis independent of p53 is crucial for successful therapy of cancers bearing p53 mutations. p53-independent apoptosis, however, remains poorly understood relative to p53-dependent apoptosis. IR induces both p53-dependent and p53-independent apoptoses in Drosophila melanogaster, making studies of both modes of cell death possible in a genetically tractable model. Previous studies have found that Drosophila E2F proteins are generally pro-death or neutral with regard to p53-dependent apoptosis. We report here that dE2F1 promotes IR-induced p53-independent apoptosis in larval imaginal discs. Using transcriptional reporters, we provide evidence that, when p53 is mutated, dE2F1 becomes necessary for the transcriptional induction of the pro-apoptotic gene hid after irradiation. In contrast, the second E2F homolog, dE2F2, as well as the net E2F activity, which can be depleted by mutating the common cofactor, dDp, is inhibitory for p53-independent apoptosis. We conclude that p53-dependent and p53-independent apoptoses show differential reliance on E2F activity in Drosophila.

Overly Optimistic? Investor Sophistication and the Role of Affective Reactions to Financial Information in Investors' Stock Price Judgments

This study investigates the difference in unsophisticated and sophisticated investors' affective reactions to a firm's positive earnings announcement. The study also investigates the variation in the stock price judgments of these two groups as a result of a differential reliance on the affective reaction. It contributes to the literature by providing a further understanding of the differential interpretation and reaction to financial data by investors with varying levels of knowledge and experience. In the experiment, participants were asked to review background financial information about a company, evaluate the company's earnings announcement and make stock price judgments. Results indicate that unsophisticated investors interpret a positive earnings announcement as more favorable than do sophisticated investors. The affective reaction to the earnings announcement was more influential on the stock price judgments of unsophisticated investors when compared to the stock price judgments made by sophisticated investors. This differential effect leads unsophisticated investors to make stock price judgments that exceed stock price judgments made by sophisticated investors. From a back to basics standpoint, these results suggest that investment-related knowledge and experience play a significant role in how individual investors react to and rely on basic financial information, which may be of interest to standard setters and regulators.

Modality-specificity of sensory aging in vision and audition: Evidence from event-related potentials

Major accounts of aging implicate changes in processing external stimulus information. Little is known about differential effects of auditory and visual sensory aging, and the mechanisms of sensory aging are still poorly understood. Using event-related potentials (ERPs) elicited by unattended stimuli in younger (M=25.5 yrs) and older (M=71.3 yrs) subjects, this study examined mechanisms of sensory aging under minimized attention conditions. Auditory and visual modalities were examined to address modality-specificity vs. generality of sensory aging. Between-modality differences were robust. The earlier-latency responses (P1, N1) were unaffected in the auditory modality but were diminished in the visual modality. The auditory N2 and early visual N2 were diminished. Two similarities between the modalities were age-related enhancements in the late P2 range and positive behavior–early N2 correlation, the latter suggesting that N2 may reflect long-latency inhibition of irrelevant stimuli. Since there is no evidence for salient differences in neuro-biological aging between the two sensory regions, the observed between-modality differences are best explained by the differential reliance of auditory and visual systems on attention. Visual sensory processing relies on facilitation by visuo-spatial attention, withdrawal of which appears to be more disadvantageous in older populations. In contrast, auditory processing is equipped with powerful inhibitory capacities. However, when the whole auditory modality is unattended, thalamo-cortical gating deficits may not manifest in the elderly. In contrast, ERP indices of longer-latency, stimulus-level inhibitory modulation appear to diminish with age.

Linking Visual Attention and Number Processing in the Brain: The Role of the Temporo-parietal Junction in Small and Large Symbolic and Nonsymbolic Number Comparison

There exists a long-standing debate regarding whether small and large numerosities engage different networks of processing. The ability to rapidly enumerate small (1-4) numerosities is referred to as "subitizing" and is thought to be qualitatively different from large numerosity processing. Functional neuro-imaging studies have attempted to dissociate neural correlates of small and large number processing by contrasting subitizing with counting of numerosities just outside the subitizing range. In the present study, we used functional magnetic resonance imaging (fMRI) to contrast the processing of numerosities in the "subitizing range" with numerosities requiring estimation. Participants compared sequentially presented slides of either dots or Arabic numerals for their relative magnitude. We show that comparison of nonsymbolic numerosities in the subitizing range led to activation of the right temporo-parietal junction, while at the same time this region was found to be suppressed during large numerosity processing. Furthermore, relative suppression of this region was strongly associated with faster response times. In previous studies, this region has been implicated in stimulus-driven attention. We therefore contend that activation of the temporo-parietal junction during small number processing and the suppression thereof during large numerosity comparisons reflects differential reliance on stimulus-driven versus goal-directed attentional networks in the brain.

An order-specific monoclonal antibody to Diptera reveals the impact of alternative prey on spider feeding behavior in a complex food web

Generalist predators have the capacity to restrict pest population growth, especially early in the season before densities increase. However, their polyphagous feeding habits sometimes translate into reduced pest consumption when they target alternative prey. An order-specific monoclonal antibody was developed to examine the strength of trophic connections between Diptera, a major category of non-pest prey, and linyphiid spiders in alfalfa. We report the development and characterization of a monoclonal antibody with order-level specificity to Diptera. This antibody elicited strong absorbance to 22 Diptera from 13 families, no false-positive reactivity to non-dipteran invertebrates, and antigen detection periods following prey consumption that were comparable between spiders. Over 900 field-collected females of the linyphiid spiders Erigone autumnalis and Bathyphantes pallidus were screened for Diptera antigen. Significantly more B. pallidus screened positive for Diptera (40%) compared to E. autumnalis (16%), indicating differential reliance on these prey. In parallel with the collection of spiders for gut-content analysis, prey availability was estimated at web sites. The two spiders exhibited different feeding responses to prey availability. Consumption of Diptera by B. pallidus was strongly correlated with Diptera abundance whilst the availability of other potential prey did not influence predation rates. Conversely, E. autumnalis did not prey upon Diptera in proportion to availability, but increased Collembola activity-density reduced dipteran consumption. Integration of molecular gut-content analysis with precise sampling of prey demonstrated how two closely related linyphiid spiders exhibit different feeding responses to the availability of prey under natural field conditions. Elucidating the feeding preferences of natural enemies is critical to effective incorporation of biological control by generalist predators in the management of agricultural pests.

Self‐Monitoring and Consumer Psychology

Research on the relations between self-monitoring differences and two important areas of consumer behavior, reactions to specific advertising approaches and product evaluation strategies, is reviewed and evaluated. First, research on the responsiveness of high and low self-monitors to image-oriented and product-quality-based advertising attempts is addressed. Although findings generally indicate that high self-monitors are more responsive to image-oriented ads and that low self-monitors are more responsive to quality-based appeals, these results have not been robust. Possible reasons for this inconsistency are explored. Second, research on the means by which high and low self-monitors evaluate consumer products is examined. Findings suggest that when judging product quality, low self-monitors tend to rely on product performance and high self-monitors more likely use the product's image-enhancing capabilities. Additionally, research indicates that self-image/product-image congruency is generally a more important concern for low self-monitors, but high and low self-monitors' differential reliance on this congruency might be moderated by the situations in which the product is typically used. Additional possible delimiting conditions of these general findings are discussed.

Information Flow and Voter Decision Making in the 2001 Australian Federal Election: The Role of International and Domestic Issues

This article examines the role of TV coverage in voter decision making during the 2001 Australian federal election campaign, called just weeks after a major asylum seeker incident and the September 11 terrorist attacks. It does so by exploring voters’ differential reliance on two distinct, high profile sets of issues that dominated media election campaign coverage: the domestic issues that had been the focus throughout the election year (especially health, education, and taxes) and the international issues that assumed centre stage just before the election was called (refugees and asylum seekers, terrorism, and defence and national security). Using an original content analysis of TV coverage and the 2001 Australian election survey, interaction effects models yield significantly different patterns of reliance on international and domestic for groups of voters. These effects are distinguished by the timing of individuals’ vote choice, and the level of their existing political interest and information. Moder...

Information Flow and Voter Decision Making in the 2001 Australian Federal Election: The Role of International and Domestic Issues

This article examines the role of TV coverage in voter decision making during the 2001 Australian federal election campaign, called just weeks after a major asylum seeker incident and the September 11 terrorist attacks. It does so by exploring voters’ differential reliance on two distinct, high profile sets of issues that dominated media election campaign coverage: the domestic issues that had been the focus throughout the election year (especially health, education, and taxes) and the international issues that assumed centre stage just before the election was called (refugees and asylum seekers, terrorism, and defence and national security). Using an original content analysis of TV coverage and the 2001 Australian election survey, interaction effects models yield significantly different patterns of reliance on international and domestic for groups of voters. These effects are distinguished by the timing of individuals’ vote choice, and the level of their existing political interest and information. Moderately interested voters, who largely decided their vote choice about the time the election was called, were the most likely to cite international issues as the key to their vote choice. Voters with lower levels of political interest, deciding just before or on election day, were significantly more reliant on domestic issues. These patterns represent a variant on Zaller’s (1989) model of campaign information flow, and suggest a single, high-intensity campaign—especially in Australia’s compulsory voting system, which forces the participation of the country’s least interested and informed individuals—can sustain within it two distinct issue agendas which voters with different cognitive skills and responsiveness to TV cues differentially utilize to inform their vote choice.

Incidental and Task‐Related Affect: A Re‐Inquiry and Extension of the Influence of Affect on Choice

We examine the interplay between incidental affect and task-related affect in the context of consumer choice. Specifically, we examine the differential impact of two discrete negative affective states—anger and sadness—vis-a-vis a neutral affective state. We replicate Luce's ([1998][1]) finding that people are more likely to rely on a status quo option when they have to make emotionally difficult trade-offs. However, incidental affect moderates this effect such that angry individuals are more influenced by task-related affect, while sadness is less influenced by it. These findings support our thesis that consumers experiencing different negative emotions display differential reliance on avoidance choice strategies such as choosing the status quo. [1]: #ref-13