Understanding the nature of interconnections between banks is crucial to the knowledge of financial contagions and the appropriate policy response. We examine interconnections in the U.S. banking industry that stem from earnings information spillovers from local peers. Using a sample of nearly 8,800 commercial banks over three decades, we find that uninsured deposit flows respond strongly to the performance of peer banks – particularly when peers perform poorly but not when they perform well. Exploring the mechanisms, we find that the earnings information spillovers operate through both asset commonalities and panic-driven behaviors wherein depositors withdraw out of concerns about early withdrawals by other depositors. Our findings inform theories of contagion and their policy implications.

Using a large sample of U.S. commercial banks from 1994 to 2019, we find that loan fair values are highly relevant for depositor decision making. A one-standard-deviation decrease in loan fair value performance is associated with more than 10% lower uninsured deposit flows than the sample average. Information in fair values about loan credit quality is quite limited and cannot account for the bulk of the relevance. Instead, consistent with models of bank fragility, the relevance seems to stem more from information on the decline in loan liquidation values, triggering panic-based withdrawals motivated by (self-fulfilling) expectations of withdrawals by other depositors. The findings inform the cost-benefit tradeoff of reporting loan fair values.

We find that earnings forecasts by analysts with more local peers, defined as analysts working in the same brokerage office who cover different firms headquartered in the same area, are more accurate. These heightened accuracy effects are concentrated in settings where local peers are particularly valuable, such as when analysts have less access to corporate management, when earnings are harder to forecast, and when analysts have stronger incentives to work hard. In examining the nature of the information transmitted by local peers, we find that earnings forecasts by analysts with more local peers better reflect negative geographic shocks in firm earnings. In addition, geographic momentum in stock returns is attenuated for firms that are followed by more local peers, especially when area returns are negative. These findings suggest that social interactions among local peer analysts facilitate the transmission of complex, soft information about geographic factors to investors.

Liquidity transformation, a key role of banks, is thought to increase fragility, as uninsured depositors face an incentive to withdraw money before others (a so-called panic run). Despite much theoretical work, however, there is little empirical evidence establishing this mechanism. In this paper, we provide the first large-scale evidence of this mechanism. Banks that engage in more liquidity transformation exhibit higher fragility, as captured by stronger sensitivities of uninsured deposit flows to bank performance and greater levels of uninsured deposit outflows when performance is poor. We also explore the effects of deposit insurance and systemic risk.

. This study collected financial panel data of 42 food manufacturing firms from 2014–2022, and finally selected 15 to explore the changes in the impact of each risk on the cash holdings of firms before and after the COVID-19. The risks include market volatility (VaR), market share (MS), inventory turnover ratio (IT), and firm operations (Z-score). The results showed that the epidemic led to significant increase of the firms’ cash holdings; In addition to market volatility (VaR), other risks have significant impacts on cash holdings; After the epidemic, the effect of market share (MS) expansion on the decrease of cash holdings was weakened, and the improvement of firm operations (Z-score) changed from significant increase in cash holdings to insignificant.

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One of the most widely discussed issues in banking regulation and research is transparency. Yet, whether depositors – banks’ most important claimholders – are affected by transparency, is an empirical open question. Analyzing US commercial banks from 1994 to 2019, we show that uninsured deposit flows are more sensitive to information about bank performance when banks are more transparent. We also link transparency to deposit rates, banks’ investment funding patterns, and profitability. In addition, we find consistent evidence from a differences-in-difference analysis using the Sarbanes-Oxley Act of 2002 as a shock to transparency. Overall, our findings demonstrate that transparency is important in shaping depositors’ behavior and highlight its potential costs.

We develop and validate an empirical measure of the informativeness of accounting assets in measuring firm-specific economic capital, an important determinant of both cash flows and intrinsic values. Our validation tests show that the asset-informativeness measure is sensitive to differences in both accounting methods and implementation decisions at the firm level, and corresponds to the way equity investors use the information in accounting assets. We find that accounting assets contain substantial information about firms’ productive capacity (economic capital) and the information is not summarized in several earnings attributes often associated with earnings quality.

Purpose: To compare the efficacy and safety of plasma kinetic enucleation of the prostate (PKEP) with holmium laser enucleation of the prostate (HoLEP) for treatment of benign prostatic hyperplasia (BPH). Methods: A total of 160 patients with indications for the surgical treatment of BPH were randomly assigned to receive either PKEP or HoLEP prospectively. Baseline characteristics, perioperative data, and postoperative outcomes of the patients were recorded. One hundred twenty-six (78.75%) patients (PKEP 64 vs HoLEP 62) completed the 3-year follow-up assessment. Results: Patients in both groups had similar baseline characteristics. Compared with PKEP, HoLEP was associated with shorter operative time as well as take-out time, lower perioperative hemoglobin decrease, and shorter bladder irrigation time, catheterization time, and hospital stay time. PKEP was superior to HoLEP in terms of the noise of the machine and hospitalization expenses. There were no significant differences in enucleating time, resected weight, and serum sodium levels. Both groups achieved satisfactory results and maintained improvement from baseline in terms of maximum urinary flow rate (Qmax), International Prostatic Symptomatic Score, quality of life, and postvoid residual at 3-year follow-up, with no significant differences between the two procedures. Except for re-catheterization rate, postoperative data such as transrectal ultrasound volume, International Index of Erectile Function-5, and follow-up scores of the flexible cystourethroscopy results, as well as the acute and mid-to long-term complications after surgery, were statistically similar. Conclusion: The 3-year follow-up data of this randomized trial confirmed that both PKEP and HoLEP were effective and safe surgical procedures for the transurethral management of BPH. HoLEP presented certain advantages compared to PKEP, such as reduced operative duration, decreased risk of blood loss, and less bladder irrigation, hospital stay time, and re-catheterization rate, whereas PKEP had lower noise and no additional laser cost. Chinese Clinical Trial Registry (ChiCTR-TRC-13004468).

We examine the effects of asymmetric timeliness in reporting good versus bad news on price informativeness when prices provide useful information to assist firms’ investment decisions. We find that a reporting system featuring more timely disclosure of bad news than of good news encourages speculators to trade on their private information. Consequently, it generates a higher expected investment level and firm value. Our analysis generates predictions consistent with empirical findings and provides a justification for the more timely reporting of bad news in the absence of managerial incentive problems. This paper was accepted by Brian Bushee, accounting.

BACKGROUND:The etiopathogenesis of benign prostatic hyperplasia (BPH) is extremely complicated which involving epithelial-mesenchymal transition (EMT) of epithelial cells and growth of stromal cells. Long non-coding RNAs (lncRNAs) belong to a group of noncoding RNAs which has been widely studied in other diseases but rarely in BPH. Here, we intend to investigate the roles of a lncRNA DIO3 opposite strand (DIO3OS) in BPH progression.METHODS:BPH-1 cells were used to study EMT and WPMY-1 cells were applied to study proliferation induced by TGF-β1, resveratrol, DIO3OS and miRNAs.RESULTS:DIO3OS was over-expressed in BPH tissues and could be upregulated by Transforming growth factor beta 1 (TGF-β1) and downregulated by resveratrol. Smad2/Smad3/Smad4 complex could bind to the DIO3OS promotor region and thereby enhanced its transcription which was responsible for the regulation of TGF-β1 and resveratrol on DIO3OS expression. TGF-β1 promoted BPH-1 cells EMT and WPMY-1 cells proliferation via DIO3OS and this effect could be blocked by resveratrol. MiR-656-3p and miR-485-5p were targets of DIO3OS and DIO3OS promoted BPH-1 cells EMT and WPMY-1 cells proliferation via miR-656-3p and miR-485-5p. Connective tissue growth factor (CTGF) and zinc finger e-box binding homeobox 1 (ZEB1) were confirmed to be targets of both miR-656-3p and miR-485-5p and could be modulated by TGF-β1, resveratrol, DIO3OS, miR-656-3p and miR-485-5p.CONCLUSIONS:DIO3OS is highly expressed in BPH tissues and regulated by TGF-β1 as well as resveratrol in a Smads dependent manner. DIO3OS facilitates BPH-1 cells EMT and WPMY-1 cells proliferation by upregulating CTGF and ZEB1 via miR-656-3p and miR-485-5p.

Many theories link depositors’ behavior to the transparency of banks. Yet, very little is known about this relationship empirically. Analyzing US commercial banks from 1994-2013, we document that uninsured deposit flows are more sensitive to information about bank performance when the quality of the information provided by the bank is higher. We also provide evidence linking this information quality to deposit rates, banks’ investments, and profitability. Our findings provide support for the view that bank transparency is a double-edged sword: While more information facilitates monitoring by depositors, it also adversely affects banks’ unique role in creating stable liquid assets for depositors.

This study explores how China’s regulative, normative, and cognitive institutional constraints and support affect its firms’ outward foreign direct investment (OFDI) strategies at the subnational level. Our model assumes that the main motivation for firms’ OFDI is to escape the home country’s institutional constraints. Moreover, the institutional support of the home country’s government works as a moderator that accelerates the speed at which firms escape. We collected 26,411 firm-year observations, including 7,098 FDIs conducted by 2,401 firms between 2007 and 2017. The logit and panel regression analysis methods measure the effect of institutional constraints and support on Chinese firms’ OFDI. The results show that institutional constraints positively affect Chinese OFDI, confirming that the higher the institutional constraints in China are, the more likely it is that the firm will escape, and as the constraints increase, the faster they will do so. The institutional support for domestic development has positive effects on Chinese OFDI, which is contrary to expectation, while institutional support for internationalization has a positive effect on Chinese OFDI. Additionally, institutional support for domestic development and internationalization positively moderate the relationship between institutional constraints and the speed and number of OFDIs. This study analyzes the concept of “escape OFDI” empirically by examining the effects of subnational institutional constraints on OFDI activities at the firm level. This study advances the understanding of the motivations for OFDI activities by recognizing the existence of both institutional constraints and support in shaping the internationalization strategies of firms from developing countries, thus addressing an important gap in this field. Furthermore, it is a novel attempt to examine the impact of these two kinds of support on firms’ OFDI, which provides a new lens for understanding the internationalization of firms from developing countries.

We find a significantly positive relation between bank liquidity mismatch and the sensitivity of deposit flows to bank performance. The result is driven by uninsured deposits, when banks experience poor performance, and for small and medium sized banks. Banks with more liquidity mismatch are more prone to failure, experience more deposit withdraws, and lending reduction during the Financial Crisis of 2008. Our results support the idea that liquidity creation by banks comes at the cost of fragility in banks’ financial structures that seed the potential for banking instability.

We develop and validate an empirical measure of the informativeness of accounting assets in measuring firm-specific economic capital, an important determinant of both cash flows and intrinsic values. Our validation tests show that the asset-informativeness measure is sensitive to differences in both accounting methods and implementation decisions at the firm level, and corresponds to the way equity investors use the information in accounting assets. We find that accounting assets contain substantial information about firms’ productive capacity (economic capital) and the information is not summarized in several earnings attributes often associated with earnings quality.

Background: Epithelial-mesenchymal transition (EMT) based cancer cell invasion and metastasis has been thoroughly studied in prostate cancer. It was well known that EMT markers which have been found in benign prostatic hyperplasia (BPH) tissues, but system descriptions have not been described. Methods: First, in order to construct the epithelial cells to mesenchymal cell transformation model, BPH-1 cells were cultured with supernatant of prostate matrix normal prostate stromal WPMY-1 cells, after obtaining the culture medium through a filter. After that, we observed the morphology of cells cultured for a period of time by microscopy, detected cell invasion ability by transwell assay, detected cell proliferation ability by MTT, and detected EMT marker expression by western. Finally, we treated the cells with anti-HIF-1 alpha drugs to study their effects on EMT, and then tested several related proteins simultaneously. Results: The results showed that the morphology of BPH-1 cells gradually changed to fusiform after cultured with WSCM. At the same time, E-cadherin and cytokeratin levels were significantly lower than those in normal medium. Simultaneous detection of vimentin (SMA) and Snail was positive compared to normal cultured cells. At the same time, the cells were cultured with WSCM and the invasive ability was up-regulated. After treatment with anti-HIF-1 alpha drug, E-cadherin and CK5/8 protein expression was up-regulated, but vimentin, alpha-SMA, and Snail expression was down-regulated, and in addition, p-Smad3 protein expression was also down-regulated after anti-HIF-1 alpha drug was added. Conclusion: The above results indicated that WSCM-1 stromal cell supernatant WSCM can induced BPH-1 cell interstitialization, and at the same time, by inducing EMT, secreting HIF-1 alpha activates Smad3 signaling. Our study shows that inhibition of HIF-1 alpha expression provides a new reference for clinical treatment of BPH.

We develop a model to evaluate the costs and benefits of disclosing information about audit quality. Specifically, we examine whether audit quality disclosure affects auditors' effort and investors' investment efficiency. In our setting, an auditor exerts unobservable effort to influence audit quality and is motivated by liability in the event of audit failure. The usefulness of audited financial reports for investors depends on both the quality of the underlying financial reporting (e.g., as embodied by GAAP) and the quality of auditors' reports (i.e., the likelihood with which audit evidence uncovers managerial misreporting). We show that audit quality disclosure increases auditors' effort incentives if and only if the underlying financial reporting quality is relatively weak. We also show that such disclosure can actually reduce investment efficiency. Our analyses contribute to the debate about policies aimed at improving audit transparency.

Purpose: To evaluate the long-term and flexible cystourethroscopy results of holmium laser enucleation of the prostate (HoLEP) and to compare them with those of plasmakinetic resection of the prostate (PKRP). Methods: In the long-term follow-up, variables, including the international prostatic symptomatic score, quality of life scores, maximum flow rate (Qmax), and international index of erectile function (IIEF), and the adverse events, including the need for retreatment, were specifically assessed. One hundred twenty-two HoLEP and 119 PKRP of the initial 280 patients included in this study were available, with 10 deceased and 29 lost to follow-up. Results: We found that none of the assessable patients required reoperation for recurrent benign prostatic enlargement (BPE) in the HoLEP group, whereas two required reoperation in the PKRP group. There were no significant differences in most variables between the two groups in the long-term results. But in terms of Qmax, transrectal ultrasound prostate volume, prostate specific antigen (PSA) level, IIEF-5 score, and long-term posttrial follow-up of flexible cystourethroscopy, the HoLEP group showed better results. Conclusion: The long-term follow-up data of this randomized trial confirm that HoLEP and PKRP are both effective and durable surgical interventions for the treatment of lower urinary tract symptoms due to BPE. Given the clinically relevant advantages associated with HoLEP, the alternation of PSA level, sexual function, and urination can be improved.

We examine the effects of asymmetric disclosure of good and bad news on price We examine the effects of asymmetric disclosure of good vs. bad news on price informativeness when prices provide useful information to assist firms’ investment decisions. We find that more timely disclosure of negative news encourages speculators to trade on their private information which in turn improves the efficiency of firms’ investment decisions. We also identify conditions under which the preferences for timely loss disclosure differ between a firm whose objective is to maximize ex ante firm value and a social planner whose objective is to maximize investment efficiency. Our analysis provides an alternative economic explanation for asymmetric timeliness in accounting disclosure.