Accruals correlate closely with the determinants of the conditional equity premium at both the firm and the aggregate levels. The common component of firm‐level accruals, which cannot be diversified away by aggregation, explains the positive relation between aggregate accruals and future stock market returns. The residual component, which accounts for most variation in firm‐level accruals, is responsible for the negative cross‐sectional relation between firm‐level accruals and future stock returns. Consistent with the risk‐based explanation, aggregate accruals, as a proxy for the conditional equity premium, forecast changes in aggregate economic activity. Moreover, we document a similar comovement of earnings with the conditional equity premium at both the firm and the aggregate levels, which helps explain the negative relation between changes in aggregate earnings and contemporaneous market returns.
Eutrophic coastal regions are highly productive and greatly influenced by human activities. Primary production supporting the coastal ecosystems is supposed to be affected by progressive ocean acidification driven by increasing CO2 emissions. In order to investigate the effects of high pCO2 (HC) on eutrophic plankton community structure and ecological functions, we employed 9 mesocosms and carried out an experiment under ambient (∼410 ppmv) and future high (1000 ppmv) atmospheric pCO2 conditions, using in situ plankton community in Wuyuan Bay, East China Sea. Our results showed that HC along with natural seawater temperature rise significantly boosted biomass of diatoms with decreased abundance of dinoflagellates in the late stage of the experiment, demonstrating that HC repressed the succession from diatoms to dinoflagellates, a phenomenon observed during algal blooms in the East China Sea. HC did not significantly influence the primary production or biogenic silica contents of the phytoplankton assemblages. However, the HC treatments increased the abundance of viruses and heterotrophic bacteria, reflecting a refueling of nutrients for phytoplankton growth from virus-mediated cell lysis and bacterial degradation of organic matters. Conclusively, our results suggest that increasing CO2 concentrations can modulate plankton structure including the succession of phytoplankton community and the abundance of viruses and bacteria in eutrophic coastal waters, which may lead to altered biogeochemical cycles of carbon and nutrients.
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