Extant literature in earnings management proposes different theories for why firms manage earnings. Watts and Zimmerman (1978) argue that managers alter reported accounting numbers to maximize their bonus, avoid tripping debt-covenants written on accounting numbers or to reduce their firm’s political visibility. Graham, Harvey and Rajgopal (2005) survey Chief Financial Officers who indicate they manage earnings to maintain or increase the stock price of their firms. A vast literature (see Fields, Lys and Vincent 2001 for references) has validated the Watts and Zimmerman (1978) propositions. However, managerial incentives to manage earnings to address stock price concerns are relatively under-explored. In this paper, we build on the stock price motivation by proposing a hitherto unexamined incentive for why managers manage earnings.
We argue that, for psychological or institutional reasons, investor demand for stocks that report positive earnings surprises is time-varying, which, in turn, causes the relative aggregate market value of stocks with and without positive earnings surprises to fluctuate. Limits to arbitrage, presumably, fail to prevent this demand from affecting relative prices of stocks with and without positive earnings surprises. To increase, or at least maintain, their current stock price levels, managers cater to the investor demand for positive earnings surprises by increasing abnormal accruals in periods when investors place a premium on positive earnings surprises, and vice-versa.
In a neonatal intensive care unit, care is given to very ill neonates, most of whom are prematures. In the prognosis and treatment of such neonates, both lung and brain conditions play an important role. The treatment of immature lungs has been significantly improved by a routine use of surfactant. The assessment of the brain function remains an important issue.
The patients are continuously monitored. Treatment is evaluated using data recordings from the monitors (vital signs) and intermittently obtained values (blood gases, weight, and defecation). The vital signs, however, are often disturbed by movement artefacts and cannot be measured as easily as in adult intensive care conditions. The evaluation of the condition of the patient and his or her treatment needs a reliable vital signs data set and effective use of the small number of signals measured. A physiological-data acquisition system, capable of real-time artefact reduction and analysis, combining data, and archiving of the measurements, is necessary to optimise the information on the condition of the patient.
Please read this manual carefully before operating your set and retain it for future reference. This equipment has been tested and found to comply with the limits for a Class B digital device, pursuant to Part 15 of the FCC Rules. These limits are designed to provide reasonable protection against harmful interference in a residential installation.
This equipment generates, uses and can radiate radio frequency energy and, if not installed and used in accordance with the instructions, may cause harmful interference to radio communications. However, there is no guarantee that interference will not occur in a particular installation.
