This study was conducted to investigate the toxicity of aldicarb, cypermethrin, profenofos, chlorfluazuron, atrazine, and metalaxyl toward mature Aporrectodea caliginosa earthworms. The effects of the LC(25) values of these pesticides on the growth rate in relation to glucose, soluble protein, and activities of glutamic-oxaloacetic transaminase (GOT), glutamic-pyruvic transaminase (GPT), acid phosphatase (AcP), and alkaline phosphatase (AIP) were also studied. The results showed that aldicarb was the most toxic of the tested pesticides, followed in order by cypermethrin, profenofos, chlorfluazuron, atrazine, and metalaxyl. A reduction in growth rate was observed in all pesticide-treated worms, which was accompanied by a decrease in soluble protein and an increase in transaminases and phosphatases. Relationships between growth rate, protein content, transaminases, and phosphatases provided strong evidence for the involvement of pesticidal contamination in the biochemical changes in earthworms, which can be used as a bioindicator of soil contamination by pesticides.

This paper examines whether firms' deviation from target leverage may predict types and outcomes of mergers and acquisitions (M&A) deals. We find that over‐levered firms are more inclined to be involved in public acquisitions than non‐public acquisitions. Consistent with the proposition of information economics theory, our findings suggest that information asymmetry is the main motive behind over‐levered firms' preference for public targets. Specifically, we observe that over‐levered acquirers not only prefer public targets, but also pick those with less information asymmetry. We find that, in the short term, the market reacts negatively to the announcement of public acquisitions by over‐levered firms. However, in the long term these acquirers experience better operating synergies and values, measured by changes in return on assets and Tobin's q, respectively. Our results are robust after controlling for M&A deals‐, firm‐, industry‐characteristics and endogeneity concerns using both propensity score matching and Heckman two stage methods. Overall, our findings support the premises of agency theory and Uysal, Journal of Financial Economics (2011), 102, 602–620 view that over‐levered firms have a high tendency to pursue most value‐enhancing acquisition deals due to the high pressure of holding high levels of debt.

Abstract:This paper examines whether and how bidders' conservative tone in 10-K filings influences the subsequent mergers and acquisitions (M&A) investment decisions of these US firms from 1996 to 2013. Based on 39,260 firm-year observations, we find, consistent with behavioural consistency theory, that conservative bidders are less likely to engage in M&A deals. Further, those that decide to engage in M&As are likely to acquire public targets and within-industry firms. These bidders are inclined to employ more stock acquisitions than cash acquisitions. Our results also indicate that conservative bidders experience abnormally poor stock returns around the announcements of M&A investments. This provides new insights on the mechanism through which bidders' sentiments influence shareholders' wealth. Overall, these findings highlight the implications of the textual sentiment of corporate disclosure for the forecasting of corporate investment and financing decisions. Our results have practical implications, since they shed light on the value relevance of the information content of major Securities Exchange Commission (SEC)-mandated 10-K filings.