Spillover Effects from the Volkswagen Emissions Scandal: An Analysis of Stock and Corporate Bond Markets

This study examines spillover effects following Volkswagen’s admission of emissions cheating. We first estimate initial operational losses of 8.45% of Volkswagen’s equity market capitalization on the date before the announcement, reputational losses up to five times these losses, and significant negative shocks to its stocks and bonds. Analyzing spillover effects from this shock beyond the usually only measured losses in equity value, we find significant negative net spillover effects to European competitors and suppliers in both stock and bond markets. Studying the economic effects in more detail, we show that Volkswagen’s total losses of 27.4 billion euros in terms of changes in equity market values over the first five event days are almost entirely composed of abnormal losses. Furthermore, competitors (suppliers) overall suffered 18.3 (12.6) billion euros of abnormal losses during this time, with 60% (69%) of the firms exhibiting negative changes, especially European competitors and suppliers connected to Volkswagen. These figures are further increased by negative bond market value changes. Overall, our results strongly emphasize that neglecting debt holders losses can lead to an underestimation of such events.

The Impact of Discretionary Measurement Criteria on Investors’ Judgement and Decisions

This study investigates the effect on nonprofessional investors’ judgements and decisions of discretionary measurement choices. Using a paper-and-pencil experience, we collect and analyze information regarding investment amounts as well as past and future financial performance judgements of firms’ earnings by manipulating fair value (mark-to-market and mark-to-model) criteria and benchmarking it with historical cost-based financial statements. We proxy nonprofessional investors with graduate students from a business school. Our results show evidence that nonprofessional investors view fair value changes as permanent. We argue for a cashflow volatility factor. Contrary to previous research, we do not find evidence of any effect on investors’ willingness to invest (average budget amounts invested) or performance judgments (past and future). We corroborate previous evidence that investors rank measurement concepts’ relevance differently for different classes, although, on average, mark-to-market fair values and historical cost are rated more relevant and reliable than mark-to-model fair values.

Oral antiviral clevudine compared with placebo in Korean COVID-19 patients with moderate severity

Background: Clevudine, an antiviral drug for chronic hepatitis B virus infection, is expected to inhibit the replication of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) virus. Therefore, we conducted a prospective, single-blind, proof of concept clinical study to examine the antiviral efficacy and safety of clevudine compared to placebo in Korean corona virus disease 19 (COVID-19) patients with moderate severity. Methods: Adults with confirmed SARS-CoV-2 infection and symptom onset within 7 days were randomized 2:1 to 120 mg clevudine or placebo to receive one of treatments orally once-daily for 14 days. Antiviral efficacy outcomes were the proportion of patients with real-time reverse transcription polymerase chain reaction (RT-PCR) negative result for SARS-CoV-2 infection and cycle threshold (Ct) value changes from baseline. Clinical efficacy outcomes included proportion of patients who showed improvement in lung involvement by imaging tests, proportion of patients with normal body temperature, proportion of patients with normal oxygen saturation, and the changes in C-reactive protein (CRP) from baseline. Safety outcomes included changes in clinical laboratory tests, vital signs measurement, and physical examination from baseline, and incidence of adverse events. Results: The proportion of patients with real-time RT-PCR negative test and Ct value changes showed no significant difference between clevudine group and placebo group. The changes in Ct value from baseline were significantly greater in clevudine group compared to placebo group in patients with hypertension, and patients who underwent randomization during the first 5 and 7 days after the onset of symptoms. All clinical efficacy outcomes had no significant difference between clevudine group and placebo group. Clevudine was well tolerated and there was no significant difference in safety profile between two treatment groups. Conclusions: This is the first clinical study to compare the antiviral efficacy and safety of clevudine to placebo in Korean COVID-19 patients with moderate severity. The study has demonstrated a possible favorable outcome for the reduction of SARS-CoV-2 replication, with acceptable safety profile, when COVID-19 patients were treated with clevudine. Further large-scale clinical studies, preferably with various clinical endpoints and virus titer evaluation, are required to better understand the effectiveness of using clevudine in COVID-19 treatment. Considering recent trend in clinical development for antiviral drugs, we need to design a clinical study aiming for reducing clinical risk of COVID-19 in mild to moderate patients with at least one risk factor for serious illness.

Housing as an Object of Consumption: Analysis of Functional, Symbolic and Investment Value

Analysis of housing as an object of consumption rests upon the concept of the value of consumer object. A set of certain features of an object constitute its value and housing is explored by analysing its functional, investment and symbolic value. The results of the empirical study allows us to reasonably state that housing as an object of consumption is recognizable in the population surveyed. The assessment of functional, investment and symbolic value aspects varies with respect to the basic characteristics of housing – location in the city, living area and type of housing. The analysis of housing as an object of consumption revealed growth trends in the relevance of investment value, changes in attitudes towards housing loans and the relevance of owner status in the housing tenure.

Evaluation of Unfilled Sheath in Concrete Structures Using Response Waveform in Time Domain

The impact elastic wave method (IEW) has been applied to evaluate the thickness and internal defects of the target structure based on the dominant frequency of the response wave that is formed by the repeated reflections in the thickness direction. However, it is difficult to evaluate the size and position of the defect by IEW if the size and depth are relatively small and deep, respectively, and further, it is known that the technique is inapplicable if the target is not a plate-like structures. Therefore, the authors propose a new technique that uses Difference value as a new evaluation index to overcome the limitations of the conventional methods. Difference value shows the change of the response waveform in the time domain; it is computed by using a response waveform of the structures in sound condition as a reference. In this paper, the practicality of the Difference value is investigated by performing experiments using concrete specimens. The results of the experiments demonstrate that Difference value changes by the influence of internal defects, and Difference value evaluates the location of the relatively small defect that is difficult to evaluate by the conventional technique.

Values Evolution in Transitional China: An Institutional Perspective

The values are greatly affected by the social and economic environment of a country. Thus, social transformation can lead to the values evolution. China has been experiencing a huge social, political, and economic transition in the past four decades. The previous studies that explore the value changes in China mainly compare the values across the regions or generation cohorts. This research investigates the issue from an institutional perspective. Specifically, we propose that the diversification of ownership types—the essence of the economic and institutional reform since 1978 may result in value change. By surveying 327 participants from the state-owned enterprises (SOEs) and 220 respondents from the privately owned enterprises (POEs), the comparisons between SOEs and POEs on four value dimensions—individualism, power distance, risk aversion, and money orientation—were performed. The results basically support cross-vergence theory in the values evolution. The implications and limitations are presented as well.

Seeking Public Values of Digital Energy Platforms

Digital energy platforms play a central role in the transition toward a more sustainable energy system. This research explores the (potential) effect of digital energy platforms on public values. We developed and tested a novel public value framework, combining values already embedded in energy and digitalization regulations and emerging values that have become more relevant in recent debates. We analyzed value changes and potential value tensions. We found that sustainability is prioritized, security is broadened to include cybersecurity, and values relevant for digital technologies, such as control over technology, have also become relevant for the energy system. This has resulted in three value tensions: preserving a well-functioning energy system, self-determination, and ensuring a level playing field and public control. A sustainable energy system requires governments to address these value changes, value tensions, and connected societal and political challenges related to the implementation of digital energy platforms.

Nation-State Contexts and Authoritarian Value Changes of Ethnic Chinese

The recent global populist wave has reignited interest in how authoritarianism gains momentum in different nation-state contexts. A central question remains: under which conditions do individuals abandon or embrace authoritarian values? In the context of ethnic Chinese, this paper argues that Confucianism still plays a pivotal role in shaping attitudes and values. Specifically, it asserts that the Confucian value of meritocracy maintains importance in the ethnic Chinese value system. The study utilized the Chinese social media platform WeChat to deploy a four-question, snowball sample survey of 1,763 ethnic Chinese in seven regions from around the globe to evaluate their levels of authoritarianism. It tested six hypotheses derived from previous theories concerning assimilation, individual/ family resources, group competition, communist influence, and generational gap. The empirical results, however, provide the strongest support for the theory of meritocratic and conditional authoritarianism, which suggests that ethnic Chinese around the world will become more authoritarian when they perceive a threat to their status quo and will become less authoritarian when they perceive threats to their upward mobility. Keywords: ethnic Chinese, authoritarianism, political culture, immigration, meritocracy

Effect of Structural and Phase Changes under Relativistic Electron Pulsed Beam Irradiation on the Aluminum Alloys Micro-hardness

The paper studies the distinctive features of micro-hardness value changes in the zone of industrial aluminum alloy 1933 and alloy 1380 irradiated by the relativistic electron beam. The surface layer was modified under the relativistic electron beam injected along with the equal energy parameters. However, we have to claim that some physical and technological properties of the irradiated alloys layer came with some differences. The modified layer micro-hardness increased over 30% in 1933 aluminum alloy and decreased by 10% in 1380 aluminum alloy. The mechanisms affecting the metal material strengthening transformation after a pulsed electron beam application are analyzed. Thus it was established that one of the core impacts to increase the micro-hardness of 1933 aluminum alloy surface layer was fine MgO impurities being absent in the initial alloy and caused by the irradiation, whilst the micro-hardness of the irradiated layer of the 1380 aluminum alloy decreases due to the dissolution during irradiation of the strengthening phases, which were identified in the initial state.

Solar coronal rotation according to soft X-ray solar radiation during the 22nd, 23rd, and 24th solar cycles

Using the developed method of combining numerous scattered time series of the same type of measurements into a single weighted average series, according to the data of the GOES series satellites, a single series of daily data was synthesized during the 22nd, 23rd and 24th solar cycles (1986 – 2019 years). The flare and background components were distinguished from this data series, which were investigated by means the method of constructing a composite spectral periodogram for the presence of quasiperiodic oscillations at various solar cycles. Some of these found quasiperiods may be explained by both synodic and sidereal rotation of the Sun, while others coincide with the average lifetime of the solar atmosphere active formations such as the sunspot groups and the facular plages. Special attention was paid to the study of the change over time the revealed quasiperiodic values over the course of solar cycles by calculating the sample normalized spectral density of the analyzed data in a sliding time window with a value of up to two years. Based on the revealed quasiperiodic value changes presented on the dynamic diagrams, it can be concluded that the differential rotation of the solar corona is unstable and manifests itself only at certain stages of the development and existence of solar activity cycles.