Ana Marques

The joint effects of corporate governance and regulation on the disclosure of manager-adjusted non-GAAP earnings in the US

:  This paper examines the joint effects of corporate governance and regulation by the Securities and Exchange Commission on the disclosure of manager-adjusted non-GAAP (or pro forma) earnings numbers in the United States. We provide evidence that prior to Regulation G investors were misled by disclosures of non-GAAP earnings, but only for disclosures made by firms with weaker corporate governance. After the SEC intervention there is no evidence that investors were still being misled. Furthermore, the effect of the intervention applied to both adjustments that are ex ante recurring as well as to adjustments that just meet or beat analysts’ forecasts.

Corporate Social Responsibility: Country-Level Predispositions and the Consequences of Choosing a Level of Disclosure

We study the different levels of corporate social responsibility (CSR) disclosures of the largest European firms. We find that firms are more predisposed to disclose more CSR information in countries with better investor protection, higher levels of democracy, more effective government services, higher quality regulations, more press freedom, and a lower commitment to environmental policies. Our analysis of the association of different levels of CSR disclosure with share prices indicates that a high level of CSR disclosure is associated with higher share prices, whereas a low level of CSR disclosure in sensitive industries is associated with lower share prices (compared to no disclosure). These results are also present when we analyse changes in CSR disclosure and are robust to the inclusion of an accounting quality measure in our model. The overall effect of the association of higher levels of CSR disclosure with higher share prices is stronger in countries with more democracy, more government effectiveness, better regulatory quality, and more press freedom. Therefore, market participants find CSR disclosures more informative in countries where investors are in a better position to voice their concerns and where there is better regulation and more effective government implementation of regulations.

The Role of Institutional and Economic Factors in the Strategic Use of Non-GAAP Disclosures to Beat Earnings Benchmarks

Abstract We use hand-collected data for a sample of large European firms to investigate the influence of countries’ institutional and economic factors on managers’ non-generally accepted accounting principles (GAAP) disclosures. We find that managers are more likely to use non-GAAP measures to meet or beat earnings benchmarks that GAAP earnings would miss in countries with efficient law and enforcement, strong investor protection, developed financial markets, and good communication and dissemination of information. We also find that managers in countries with developed institutional and economic conditions are more likely to adjust non-GAAP earnings for recurring expenses such as R&D, depreciation, and stock-based compensation expenses. Our findings suggest that in environments in which there is more pressure to achieve earnings benchmarks and less opportunity to manipulate GAAP earnings, managers use more non-GAAP earnings disclosures to meet the benchmarks.

Ownership concentration of three large Belgian banks during the crisis

Purpose – In this paper, two different ownership structures in Belgian banks are studied to see whether this had an impact on how these banks went through the financial crisis of 2007-2008. On the one hand, there is the concentrated ownership structure with a number of major shareholders, while on the other hand, the ownership can be really dispersed with no shareholder having a significantly large stake and ability to influence management’s decisions. Design/methodology/approach – The authors study three large Belgians banks. Dexia and KBC followed the first model (concentrated ownership), while Fortis’ ownership was really dispersed since the year 2000. The authors perform several interviews with people involved with these banks during the crisis and analyze several external sources of information. Findings – The mitigating impact that major shareholders could have had on the – in hindsight – wrong decisions of Belgian banks’ top managers is found to be very limited. Therefore, it can be concluded that ...

Impression Management and Non-GAAP Reporting in Earnings Announcements

This paper analyzes whether managers combine two mechanisms capable of influencing investors’ judgments in earnings announcements. Specifically, we study whether managers use impression management techniques to emphasize non-GAAP earnings measures when announcing annual results. The study is carried out on an international sample of European countries, during 2003-2005. The method used is manual content analysis. We find evidence that managers use impression management techniques as a complement to the disclosure of non-GAAP earnings measures. Furthermore, our analysis of market reactions indicates that although investors recognize that non-GAAP earnings measures have information content they penalize firms that present these figures in combination with impression management techniques. Thus, investors seem to perceive the use of impression management to enhance non-GAAP figures as an opportunistic strategy and consequently inflict a penalty for this self-serving behavior.

Molecularly-imprinted chloramphenicol sensor with laser-induced graphene electrodes

Graphene has emerged as a novel material with enhanced electrical and structural properties that can be used for a multitude of applications from super-capacitors to biosensors. In this context, an ultra-sensitive biosensor was developed using a low-cost, simple and mask-free method based on laser-induced graphene technique for electrodes patterning. The graphene was produced on a polyimide substrate, showing a porous multi-layer structure with a resistivity of 102.4 ± 7.3 Ω/square. The biosensor was designed as a 3-electrode system. Auxiliary and working electrodes were made of graphene by laser patterning and the reference electrode was handmade by casting a silver ink. A molecularly-imprinted polymer (MIP) was produced at the working electrode by direct electropolymerization of eriochrome black T (EBT). As proof-of-concept, the MIP film was tailored for chloramphenicol (CAP), a common contaminant in aquaculture. The resulting device was evaluated by cyclic voltammetry and electrochemical impedance spectroscopy readings against a redox standard probe. The limit of detection (LOD) was 0.62 nM and the linear response ranged from 1 nM to 10 mM. These analytical features were better than those produced by assembling the same biorecognition element on commercial graphene- and carbon-based screen-printed electrodes. Overall, the simplicity and quickness of the laser-induced graphene technique, along with the better analytical features obtained with the graphene-based electrodes, shows the potential to become a commercial approach for on-site sensing.

Facile Microwave-assisted Synthesis Manganese Doped Zinc Sulfide Nanoparticles

Undoped and manganese doped zinc sulfide nanoparticles were produced by a fast, one-step and two-component microwave-assisted synthesis method. The solid phase retains around 78% of the initial Mn concentration, as revealed by Particle Induced X-ray Emission analysis. X-ray diffraction patterns confirmed zinc blende structure and in the transmission electron microscopy images, nanoparticles with triangular prism and cube shapes were observed, respectively with an average particle size around 7 nm and 13 nm. Dried powders of zinc sulfide nanoparticles, doped with 0.1 mol% and 0.7 mol% of Mn ions, show highest brilliance of luminescence under UV light. Increasing dopant levels resulted in a diminishing emission that vanishes above 4% of dopant concentration. The synthesis of ZnS was monitored and two main events were detected, one at 145 °C corresponding to the sol-gel phase formation and another after ~3 min at 300 °C where the precipitation of the zinc sulfide nanoparticles occurs.

Scale-up and large-scale production of Tetraselmis sp. CTP4 (Chlorophyta) for CO 2 mitigation: from an agar plate to 100-m 3 industrial photobioreactors

Industrial production of novel microalgal isolates is key to improving the current portfolio of available strains that are able to grow in large-scale production systems for different biotechnological applications, including carbon mitigation. In this context, Tetraselmis sp. CTP4 was successfully scaled up from an agar plate to 35- and 100-m3 industrial scale tubular photobioreactors (PBR). Growth was performed semi-continuously for 60 days in the autumn-winter season (17th October – 14th December). Optimisation of tubular PBR operations showed that improved productivities were obtained at a culture velocity of 0.65–1.35 m s−1 and a pH set-point for CO2 injection of 8.0. Highest volumetric (0.08 ± 0.01 g L−1 d−1) and areal (20.3 ± 3.2 g m−2 d−1) biomass productivities were attained in the 100-m3 PBR compared to those of the 35-m3 PBR (0.05 ± 0.02 g L−1 d−1 and 13.5 ± 4.3 g m−2 d−1, respectively). Lipid contents were similar in both PBRs (9–10% of ash free dry weight). CO2 sequestration was followed in the 100-m3 PBR, revealing a mean CO2 mitigation efficiency of 65% and a biomass to carbon ratio of 1.80. Tetraselmis sp. CTP4 is thus a robust candidate for industrial-scale production with promising biomass productivities and photosynthetic efficiencies up to 3.5% of total solar irradiance.

CuI p -type thin films for highly transparent thermoelectric p-n modules

Developments in thermoelectric (TE) transparent p-type materials are scarce and do not follow the trend of the corresponding n-type materials – a limitation of the current transparent thermoelectric devices. P-type thermoelectric thin films of CuI have been developed by three different methods in order to maximise optical transparency (>70% in the visible range), electrical (σ = 1.1 × 104 Sm−1) and thermoelectric properties (ZT = 0.22 at 300 K). These have been applied in the first planar fully transparent p-n type TE modules where gallium-doped zinc oxide (GZO) thin films were used as the n-type element and indium thin oxide (ITO) thin films as electrodes. A thorough study of power output in single elements and p-n modules electrically connected in series and thermally connected in parallel is inclosed. This configuration allows for a whole range of highly transparent thermoelectric applications.

Demonstration of the adhesive properties of the medium-chain-length polyhydroxyalkanoate produced by Pseudomonas chlororaphis subsp. aurantiaca from glycerol

Pseudomonas chlororaphis subsp. aurantiaca (DSM 19603) was grown on crude glycerol from biodiesel production to produce a medium-chain-length polyhydroxyalkanoate (mcl-PHA), composed of 3-hydroxydodecanoate (43 ± 1.8 mol%), 3-hydroxydecanoate (29 ± 3.1 mol%), 3-hydroxytetradecanoate (12 ± 0.4 mol%), 3-hydroxyoctanoate (10 ± 1.5 mol%) and 3-hydroxyhexanoate (6 ± 0.3 mol%). The biopolymer had an average molecular weight of 1.1 × 105 Da, with a polydispersity index of 1.5, and was semi-crystalline, as shown by its crystallinity index of 37 ± 0.2%. It had low melting (44 °C) and glass transition (-48 °C) temperatures, and was thermally stable up to 285 °C. The biopolymer films were elastic and translucid, were hydrophobic and presented relatively high permeability to oxygen and carbon dioxide. The films demonstrated to have good adhesion properties towards porcine skin and human skin. The tension (61.1 ± 20.6 kPa) and shear (12.7 ± 2.14 kPa) bond strength of the mcl-PHA for porcine skin suggest its potential as a biomaterial for the development of novel natural adhesives for wound closure or wound dressings.