One second is not a special time

The Distinct Timing Hypothesis (DTH) proposes that two different neuronal computations underlie temporal information processing below and above one second. We tested DTH predictions by varying the interval between two visual events (S and C) from 400 to 2000 ms. To verify whether attentive encoding processes play a role, we deployed three durations for S (120, 160, and 200 ms), which map to attentive sampling frequencies of 8.33, 6.25, and 5 Hz. The one-second divide does not modulate sensory precision in duration discrimination, while it determines whether participants will dilate/compress perceived S duration. However, all distortion effects disappear when S is extended to 200 ms, suggesting that a sampling rate of 5 Hz optimizes subjective decisions. Since the effects of the one-second divide on perceived duration are not hardwired, a single computational mechanism may underlie both sub-second and supra-second temporal scales for behavior, in flexible interaction with attentive encoding processes.

Investor Sentiment and Cross-Sectional Return after Share Issuance: Evidence from Seasonal Equity Offering in China Market

Our research on private placement of equity on China capital market reveals that firms prefer to equity financing when their stock price is overvalued and investor sentiment is high, following the market timing hypothesis. However, after private issuance, we document a significant positive abnormal return within three years. We believe firms choose to polish their financial statement before the exit of institutional investors and controlling shareholders. Through manipulation of discretional accruals, firms improve the profitability and market valuation, and help institutional investors and controlling shareholders obtain the abnormal return after private placement of equity. Nevertheless, such manipulation cannot be sustained and will do harm to other investors in the long-term.

On the Relation between Insider Trading and Going Concern Opinions

SUMMARY Recent research suggests that insiders of distressed firms, fearing legal jeopardy, pressure auditors not to issue going concern opinions (GCOs) for periods in which they undertake abnormally large sales of their shares. We propose and evaluate an alternative explanation that managers anticipate GCOs and time their trades to avoid insider sales in the GCO year (hereafter, the timing hypothesis). Consistent with the timing hypothesis, we find that insider sales increase two to four years prior to the issuance of a GCO and then decline in the year of GCO. Additional analysis suggests that insiders' anticipatory trading is enabled, at least in part, by early communication between auditors and their most important clients regarding the likelihood of a GCO. These early communications appear to reduce the likelihood of dismissal when auditors do eventually issue a GCO.

Cardiovascular Risk/Benefit Profile of MHT

Background and Objectives: Data emerging from the Women’s Health Initiative (WHI) study point toward an association between menopausal hormone therapy (MHT) and cardiovascular (CV) risk. However, post hoc subgroup analyses stratifying participants according to their age and time since menopause, have opened the way to a better understanding of the relationship between estrogen and CV risk. The aim of this review was to revise the current literature and evaluate the CV risk or benefit following administration of MHT considering several factors such as MHT timing, dose, route of administration, and formulation. Materials and Methods: An electronic databases search of MEDLINE (PubMed), Cochrane Central Register of Controlled Trials, Web of Science, SCOPUS, congress abstracts, and Grey literature (Google Scholar; British Library) was performed, with the date range from each database’s inception until June 2019. All the studies evaluating MHT and cardiovascular risk, including thromboembolism or stroke, were selected. Results: Timing of MHT initiation was shown to be a critical factor in CV risk assessment. In concordance with the “timing hypothesis”, healthy symptomatic women who initiated MHT when aged younger than 60 years, or who were within 10 years of menopause onset, have demonstrated a reduction in both coronary heart disease (CHD) risk and all-cause mortality. In particular, MHT therapy was associated with improvement of subclinical signs of atherosclerosis. Venous thromboembolism (VTE) risk is reduced when low doses of oral estrogen are used. Moreover, transdermal hormonal application significantly reduces CV risk compared with oral administration. MHT impact on the CV system is influenced by either factors inherent to the specific regimen, or factors inherent to the specific patient. Hence, individualization of care is necessary. Conclusion: CV risk calculation should be considered by clinicians in order to exclude patients with high CV risk, in whom MHT is contraindicated. Assessing risks and benefits in a patient-centered approach according to individual’s features, health status, and personal preferences is important in order to realize a safe and effective treatment.

Dyslexia in the Music Classroom: A Review of Literature

Developmental dyslexia, or specific reading disorder, is a reading impairment characterized by persistent difficulty in word recognition, decoding, and spelling skills in children despite having average or above academic performance in other areas. To increase an understanding of the nature of dyslexia and its relationship to music, this article first discusses the process of typical reading development and how researchers believe this process is impaired for individuals with dyslexia. Dyslexia identification and interventions are then explained. Next, research that shows how music skills may differ for students with dyslexia is presented. Experimental studies have shown that music training has been an effective way to improve reading skills in children with dyslexia. To understand why music training might improve reading ability, the precise auditory timing hypothesis proposed by Tierney and Kraus is discussed, along with implications for music education.

Directors’ trades in UK rights issues: do firms sell overvalued new equity?

PurposeThis paper aims to examine the behavioral timing hypothesis in the context of UK rights issues by seeking to establish and investigate inter-relationships between directors’ trading around rights issues as a proxy for stock mis-valuation and post-issue stock price performance.Design/methodology/approachThe cumulative average abnormal returns, the buy and hold abnormal returns, the standardized residual cross-sectionalt-test and the generalized sign test techniques.FindingsThe directors do possess short-term timing ability as they can identify profitable trading situations by buying more often before stock outperformance and by selling more often before stock underperformance. In addition, directors trading prior to the rights offering is found to exert an influence on the long-run abnormal returns of the rights-issuing firm, which supports the story that mis-valuation and behavioral timing are empirical.Research limitations/implicationsOther types of seasoned equity offerings rather than rights issues should be included.Practical implicationsThe research provides a direct testing for the strong form of market efficiency hypothesis, which enables policymakers to take into account market reaction to directors’ trades and how it is affected by corporate events (e.g. rights issues) when addressing insider trading regulations.Originality/valueThis study extends available literature in the context of both developed and emerging equity markets to testing the behavioral timing hypothesis by testing the inter-relationships between directors’ trading around rights issues and post-issue short- and long-run performance. To the best of the author’s knowledge, this is the first study that examines these inter-relationships in the UK context.