Insignificant Reaction Research Articles

Market Responses to Credit Rating Changes Given Prior Performance and the Association with Information Asymmetry and Corporate Governance

Credit ratings are important for real estate investment trusts (REITs) given their dependence on external capital to support growth. However, relatively little research has examined how credit rating changes can impact shareholder wealth. We document new evidence showing how the market response to REIT credit rating changes is associated with prior return performance. We demonstrate that previous results indicating a negative reaction to REIT credit rating downgrades are associated with prior periods of positive performance. We report new evidence showing an insignificant reaction to downgrades for credit rating changes after periods of negative performance. We also report new findings indicating a positive market reaction to upgrades following periods of negative performance. These findings suggest the market anticipates bad news after negative performance and good news after periods of positive performance. We find higher information asymmetry (less transparency) is associated with stronger market reactions to credit rating changes. Moreover, stronger corporate governance is associated with increased transparency as reflected in milder abnormal returns to credit rating changes.

Nitrogen Addition Promotes the Accumulation of Soil Particulate Organic Carbon in a Subtropical Forest

Nitrogen (N) deposition rates of terrestrial ecosystems have gradually declined but are still high in some areas. Previous studies have reported that N addition elicits diverse impacts on soil organic carbon (SOC) pools. SOC can be divided into different functional fractions, namely, particulate organic carbon (POC) and mineral-associated organic carbon (MAOC). The responses of these fractions to N addition should be elucidated to better understand the changes in SOC pools. Here, we conducted a N addition experiment (0, 40, and 80 kg N ha−1 yr−1) in a subtropical Castanopsis fabri forest to simulate N deposition. The surface (0−10 cm) SOC fractions, aboveground litter product, fine root (diameter < 2 mm) biomass, soil exchangeable cation content, and soil enzyme activity under different N addition treatments were measured. The results showed the following: (1) N addition showed a positive effect on POC and SOC contents but did not significantly affect MAOC content; (2) POC content was negatively correlated with pH and soil enzyme activity and positively correlated with aboveground litter product, suggesting that POC accumulation was influenced by aboveground litter input and microbial decomposition; (3) a close negative relationship was observed between exchangeable Al3+ and Ca2+ or K+ contents, indicating that there is likely to be a trade-off between the mineral sorption and desorption, thus resulting in an insignificant reaction of MAOC to N addition. Overall, the accumulation of SOC under short-term N addition was found to be primarily driven by POC, and the response of different SOC functional fractions to N addition was inconsistent. By incorporating these nuances into ecosystem models, it is possible to predict SOC dynamics more accurately in response to global change.

Spillover effects of the unconventional monetary policy of the European Central Bank

We analyze the effects of the European Central Bank’s (ECB) unconventional monetary policy spillovers on the inflation-targeting Central Eastern European (CEE) countries using daily panel data from 2000 to 2019. We perform an exercise to identify these spillovers on the monetary market, calculate instantaneous short rates and term spreads, and use both Bayesian averaging panel and time-series approaches. Overall, we find that the spillovers from the unconventional ECB policy are not different from the conventional spillovers and are generally insignificant. While we find a significant reaction to inflation and an insignificant reaction to the output gap, we find that none of our ECB policy measures affect the instantaneous short interest rate nor the long-run term spreads. Our main result is that the international spillovers manifest themselves through the risk-taking channel, not the bond/interest rate channel, and have the form of volatility co-movement.

Concept and Structure of Tolerance (Experience of Theoretical Research)

Norms and values in societies are different in civilizational, historical, and ethnical aspect because they were formed according to the specific historical needs of each society. They contain the requirements for both intolerant and tolerant attitude towards ‘others’. The modern concept which social scientists use to try to grasp the sense of “peaceful coexistence in a multicultural society” is the concept of ‘tolerance’. Social science borrowed the concept of tolerance from medicine where tolerance is defined as a neutral or insignificant reaction of a living being to biologically active substances and objects that enter it. In social science itself, tolerance appears as a compromise (conflict-free) behavior in a multicultural society. According to the principles of organization, tolerance is divided into radical (fundamental non-violence) and moderate (civil society). Based on behavior, tolerance represents four levels: 1) unconscious tolerance (symbiosis); 2) conscious (educated) tolerance (indifference, conformism, understanding, consent); 3) self-serving (interaction, cooperation, solidarity); 4) actual (emotional) tolerance (affection, reciprocity, infatuation, love). In total, we get 22 (4 conscious + 3 self-serving + 4 actual) × 2 (radical and moderate) types of tolerance, plus unconscious tolerance/symbiosis. The problem of tolerance is the problem of the correlation of good and harm arising from compromise (conflict-free) behavior in a multicultural society. Therefore, tolerance is an individual measure of good/harm arising from compromise (conflict-free) behavior in a multicultural society. Values can be normative (individual measure of good/harm corresponding to their social measure) and non-normative (individual measure of good/harm not corresponding to their social measure). The absence of a definition of tolerance in modern legislation indicates the normative nature of this value. Consequently, tolerance is a non-normative value of compromise (conflict-free) behavior in a multicultural society. Aim: theoretical study and definition of the concept and structure of tolerance.
 Keywords: tolerance, value, norm, structure of tolerance

Intra-Industry Information Transfers and Firm Value: Evidence From Ghana’s Banking Industry

The purpose of this study is to estimate the economic value of intra-industry information transfers within Ghana’s banking industry due to the collapse of seven banks. This is a short-term study with an event window [−10, +10] and an estimation period of 200 trading days. The event study methodology is adopted to estimate the cumulative abnormal return (CAR) gained by other rival industry banks as well as to calculate the cumulative average abnormal return (CAAR) for the entire Ghana Stock Exchange (GSE). The results of the study show that the collapse of the seven banks does convey information that the market uses in revising stock prices. However, most of the rival banks experienced an insignificant share price reaction. This insignificant reaction can be attributed to the fact that GSE is not efficient. The study recommended among others, for the GSE to be reformed to improve the efficiency of the market and secure the flow of information to market participants.

Hydrochemical Evolution of Shallow Groundwater from Sandstone Aquifer in the Chahan Basin, China: Evidences from Chemical and Isotopic Tracers

Geochemical processes controlling hydrochemical evolution of shallow groundwater (<200 m) were studied in the Chahan Lake Basin, China. A combination of chemical and isotopic tracers (δ2H, δ18O, 87Sr/86Sr, 3H and 14C), along with inverse geochemical modeling were applied. Shallow groundwater primarily originates from local precipitation, and has negligible mixture with deep groundwater. Shallow groundwater in the recharge areas and discharge areas were recharged during the Holocene and late Pleistocene, respectively. Groundwater chemistry systematically changes along the flow path from northwest to southeast: water type evolves from Ca.Mg–HCO3 type in the recharge areas through mixed cations-HCO3 type towards Na–HCO3 and Na–HCO3.SO4 type in the discharge areas. Carbonate dissolution and cation exchange are the predominant processes controlling groundwater chemical evolution, which principally occur in the recharge areas and discharge areas, respectively. Furthermore, human activities (e.g. agricultural fertilizer) also significantly affect the chemical compositions of groundwater in the recharge areas, particularly N $${\text{O}}_{3}^{ - }$$ and Cl– contents. Silicate weathering is found to be an insignificant reaction, although the aquifer studied is composed of silicate-dominated sandstone.

Oil rents and fiscal balance in oil dependent economies: do fiscal rules matter?

In this paper, we utilize a panel of oil dependent economies from 2000 to 2015 and attempt to empirically examine the relationship between crude oil rents and fiscal balance, while controlling for other covariates. Our strategy is to highlight the importance of fiscal rules by using an instrumental variable approach based on Dynamic Panel estimators [the General Method of Moment (GMM)]. This is used in comparison with estimations from pooled OLS, LSDV fixed effects, and the IV/2SLS techniques (using each country’s share of world output as instrument). Our pre-estimation diagnostics showed that the GMM approach might not be applicable to the small sample, and we suspected that the IV/2SLS method might also be weak in testing our hypothesis for the oil dependent economies; therefore we maintained the LSDV Fixed effects estimations. Our estimation results shows that in countries with fiscal rules, there is insignificant reaction of fiscal balance to changes in oil rents shocks, and the impact is weak. We find also that welfare spending, which was captured by the real GDP per capita, affects fiscal balance, and so does the budgetary variable, i.e. debt-to-GDP ratio, and the ability of the government to curb corruption and mismanagement of funds, which is politically motivated.

The factor time in fetal heart rate monitoring and the detection of acidosis using the WAS score.

Using the naked eye evaluation of fetal heart rate (fhr) patterns remains difficult and is not complete. Computer-aided analysis of the fhr offers the opportunity to analyze fhr patterns completely and to detect all changes due to hypoxia and acidosis. It was the goal of this study to analyze the factor time in fetal monitoring and to evaluate the association between the fhr and the actual pH values in arterial umbilical blood. During a period of 11 years the FHR signals (i. e., the R-R interval of the F-ECG) of 646 fetuses were recorded with a CTG and simultaneously by a computer. The computer files were analyzed thereafter, i. e., the results did not influence our clinical management. To enter the study, all fetuses must have been delivered by the vaginal route--in consequence without a significant loss of fhr signals. During forceps and/or vacuum deliveries recordings were continued. If necessary a new electrode was inserted. In this study recordings of fetuses with chorioamnionitis, tracings of malformed neonates and tracings shorter than 30 min were excluded. Thus 484 recordings were left. We used our own computer programs written in MATLAB (USA). 3 parameters were determined electronically: 1) the mean fetal frequency [fhf, (bpm)], 2) the number of turning points (N/min) in the fhr, which we called 'microfluctuation' (micro) and 3) the oscillation amplitude, oamp (bpm). Measurements of the acid-base variables from arterial (UA) and venous (UV) blood were performed using RADIOMETER equipment (ABL500) and trained personnel. However, only the actual pHUA values were used in this study. To detect the influence of hypoxia and acidosis, all 484 cases were separated into 7 groups according to the actual pH(UA) value: 55 fetuses lying in a small non-acidotic "pH-window" (pH(UA)=7.290-7.310, mean=7.300±0.008) were used as 'controls'. In humans fhf, micro and the oamp behave differently during the last 30 min of delivery and with different fetal pHUA values: micro is early (at 0 min) decreased with fetal acidemia and is steadily deceasing (68-40 N/min) during vaginal delivery; the oamp--mainly due to decelerations--is increased from 35 up to 70 bpm during the last 30 min. Hypoxia and acidosis increase the amplitude and duration of decelerations; finally fhf shows only an insignificant reaction to acidemia but is decreased (from 135 to 110 bpm) overall with the course of time. Therefore the 3 characteristics of the fhr might be ranged according to their decreasing sensitivity to acidemia as follows: 1) fetal microfluctuation, 2) oscillation amplitude and 3) mean frequency. The 3 components of the fhr were used to invent and apply a score named the WAS score. This score increases the association between the actual pHUA values and the activity of the fetal heart. The 3 variables of the fhr mentioned above were rated differently; the 3 factors necessary to achieve this were computed electronically using an optimization program. The result is the WAS score: WAS=mean [frq*f(f)(v(j)) * micro*f(m)(v(j))/oamp*f(a)(v(j))](j=1,30). Using the last 30 min of delivery the correlation coefficient r of this score with pH(UA) reaches 0.645, P<< 0.001. The regression is linear in our 484 cases. Microfluctuation is the most sensible variable of the fetal heart followed by the oscillation amplitude and mean frequency. The WAS score offers the best correlation with the actual pH values measured in arterial umbilical blood.

Thermochemolysis using TMAAc and TMAH reagents as means to differentiate between free acids and esters

The reactivity of aromatic and aliphatic esters in on-line thermochemolysis in the presence of methylation reagents was studied using model compounds. Guaiacyl and 2-nonyl palmitates were synthesised, representing aromatic and aliphatic ester bonds, respectively. These model compounds were analysed by on-line thermochemolysis using tetramethylammonium acetate (TMAAc) and tetramethylammonium hydroxide (TMAH) in order to differentiate free acids from esterified acids. The released palmitic acid with TMAH for both model compounds was close to the theoretical palmitic acid content in the model compounds, even if part of the aliphatic ester had not reacted with TMAH. The free palmitic acid content by TMAAc was one third of the theoretical value for aromatic ester and only a few percentages for aliphatic ester. The result indicated that the less basic reagent is able to hydrolyse the aromatic ester linkage to some extent, whereas the aliphatic ester remains intact. Thus, differentiation of free acids by TMAAc from the esterified acids cannot be reliably performed from matrices containing aromatic esters. It was found that transesterification due to the use of methanol as a solvent with TMAAc is an insignificant reaction in on-line thermochemolysis.

Stock market reaction to Olympic Games announcement1

This article analyses stock market reactions in countries competing to hold the Olympic Games around the time of the winning bid announcements, using both regular and abnormal returns. We analyse the announcement effects of winning and losing for both Summer and Winter games, beginning with 1996 games announced in 1990, up until the announcement of the 2012 games in 2006. We find significantly negative stock market reaction for winners of the bid to host Winter Games and insignificant positive reaction for winners of the Summer Games.

Mergers and acquisitions of non-financial firms in Europe: the case of the Athens Stock Exchange

This study examines whether mergers and acquisitions create value for shareholders in the Athens Stock Exchange, during an extremely volatile period. The results indicate, on average, statistically insignificant investor reaction around merger announcements. However, further analysis suggests that investors react negatively to announcements by bidder firms in the food and fish farm sectors, and positively to announcements in the commercial/advertising and technology sectors. There is also evidence that information arrives at the market a few days before the official announcement. Contrary to earlier empirical evidence, insignificant returns are reported for target firms.

Practical application of a chromogenic FXIIa assay

Autohydrolysis of blood factor XII (FXII+FXIIa-->2FXIIa) is found to be a facile reaction in neat-buffer buffer solutions of FXII but an insignificant reaction in the presence of plasma proteins. Autohydrolysis causes a chromogenic assay for FXIIa in buffer solution to strongly deviate from the traditional plasma-coagulation assay. Autohydrolysis can be accommodated by performing chromogenic detection of FXIIa as a rate assay in swamping concentrations of FXII. Rate-assay results performed in this way are shown to be in analytical agreement with the plasma-coagulation assay. Autohydrolysis can be used as a means of amplifying FXIIa produced by contacting neat-buffer solutions of FXII with biomaterials, suggesting a route to highly sensitive measurement of biomaterial hemocompatibility.

Behaviour of herring (Clupea harengus L.) towards an approaching autonomous underwater vehicle

AbstractThe reaction of schooling wintering herring (Clupea harengus L.) in Ofotfjord in northern Norway is studied when approached by an autonomous underwater vehicle (AUV) with electrical propulsion. The reaction of herring is recorded running the AUV in the beam of the mother vessel's 38-kHz echosounder and in more detail with an onboard 120-kHz echosounder. The results indicate an insignificant reaction of herring to the approaching AUV, although some variations were observed depending on the experimental set-up. Technical uncertainty in the recordings close to the AUV transducer creates some ambiguity in the results. No reaction could be identified from the ship's sounder when the AUV passed under the vessel. Processing of the onboard echosounder data suggests a mean avoidance distance of 8.0 m in these experiments. In a realistic autonomous survey situation it is assumed that the AUV can approach as closely as 5–10 m to herring schools without affecting the acoustic observation, which makes it a potentially useful platform for hydroacoustic research and survey. More systematic studies are needed to precisely define the threshold reaction distance to the AUV, and the work should be conducted with transducers on a more silent platform than RV “Johan Hjort”, which was used in this study.

Does an Industry Effect Exist for Initial Public Offerings?

AbstractWe examine the impact of initial public offerings (IPOs) on rival firms and find that the valuation effects are insignificant. This insignificant reaction can be explained by offsetting information and competitive effects. Significant positive information effects are associated with IPOs in regulated industries and the first IPO in an industry following a period of dormancy. Significant negative competitive effects are associated with larger IPOs in competitive industries, those in relatively risky industries, those in high‐performing industries, and those in the technology sector. IPO firms that use the proceeds for debt repayment appear to represent a more significant competitive threat to rival firms relative to IPO firms that use their proceeds for other purposes.

Editorial Comment

Editorial Comment

Blood flow and reactivity to noradrenaline in induced and autotransplanted DMBA rat mammary neoplasia

Blood flow during the ‘resting condition’ and during noradrenaline infusion was compared by means of a microsphere tracer technique in induced DMBA-tumours along the mammary ridge and in autotransplanted tumours, as well as in abdominal skin, skeletal muscle, liver and kidneys. During ‘resting conditions’ the blood flow of tumours transplanted into skeletal muscle of the hindlimb, liver and kidney was similar to that of the non-transplanted tumours present along the mammary ridges. A pronounced decrease of blood flow upon moderate noradrenaline infusion was characteristic of autotransplanted as well as non-transplanted tumours, which contrasted to the insignificant reaction of skeletal muscle. The striking similarities in blood flow and reactivity of non-transplanted DMBA tumours and autotransplanted ones, and the dissimilarities of the transplanted tumours and the hosting tissues, favour the idea that these tumours regulate their blood supply irrespective of host tissue.

Purification of Five Leucine Transfer Ribonucleic Acid Species from Escherichia coli and Their Acylation by Heterologous Leucyl-Transfer Ribonucleic Acid Synthetase

Abstract Escherichia coli tRNA has been fractionated on benzoylated DEAE-cellulose to yield five purified tRNAleu species. They differ in chromatographic behavior and in coding properties. These tRNAleu species are all charged by pure E. coli leucyl-tRNA synthetase. Partially purified leucyl-tRNA synthetase from KB cells or from yeast can esterify leucine completely only to some of the isoacceptors while insignificant reaction is observed with the others.