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Previous research on auditors’ processing of nondiagnostic evidence demonstrates the existence of a dilution effect – the tendency to underreact to diagnostic information when accompanied by nondiagnostic information. Prior audit studies find that accountability, a prominent feature in audit settings, does not affect the magnitude of the dilution effect exhibited by auditors. Based on more recent theories about accountability, this line of research is extended by exploring whether (1) the dilution effect previously identified is a robust phenomenon that can be replicated, (2) accountability has an impact on both the frequency and magnitude of dilution effect, and (3) the impact of accountability on both the frequency and magnitude of dilution effect is conditional on the degree of accountability experienced by the participants through various reporting levels. The experimental results from a sample of internal auditors provide evidence supporting the first two propositions; however, the results related to reporting levels are not significant. A discussion of the implications of these findings for audit research and practice follows.

Many apparel brands use growth strategies that involve extending a brand’s line horizontally (same price/quality) and/or vertically (different price/quality). While such opportunities for growth and profitability are enticing, pursuing them could dilute a highly profitable parent brand. Categorization theory’s bookkeeping model and the cue scope framework provide the theoretical framework for this study. The purpose of this study is to test whether specific attributes of a line extension (i.e. direction of extension, brand concept, price discount and perceived fit) make a parent brand more susceptible to dilution.

This experimental study manipulates brand concept (premium or value brand) and price level (horizontal or vertical: −20per cent, −80per cent) and measures perceived fit to test effects on parent brand dilution. ANOVA and t-tests are used for the analysis.

Vertical extensions dilute the parent brand, but horizontal extensions do not. Dilution is strongest for premium (vs value) brands and when line extensions are discounted (i.e. −20per cent or −80per cent lower than the parent brand), regardless of the perceived fit between brand concept and brand extension price. Overall, brand concept is the strongest predictor of parent brand dilution in the context of vertical-downward extensions.

This study establishes which factors emerge as important contributors to parent brand dilution. Although previous studies on brand dilution are abundant, few studies have compared the effects of horizontal and vertical extensions on brand dilution. This study offers strong theoretical as well as practical implications.

Examines the negative impacts of brand extension failure upon the original brand by calibrating the difference of brand equity. Using data collected from college students in Taiwan, establishes four hypotheses to identify various effects of a failed brand extension in diluting the original brand’s equity. Analyzes the different effects among four types of equity‐source brands for both close and distant extensions. Equity‐source and equity level of the original brand is identified first. All components of brand equity‐source are then used to evaluate the performance of a brand extension. Finds that an unsuccessful brand extension dilutes the original brand for all three high equity‐source brands. Effects of brand dilution differ according to the type of equity source possessed by the original brand, but there is no difference in brand dilution effects from close and distant extension failures.

IN the testing of rocket engines and engine components, such as thrust chambers and gas generators, the rocket engineer is regularly faced with the job of transferring cryogenic liquid propellants, using pressure feed from a storage tank, through a flow system and into the combustion device to be tested. At Rocketdyne, liquid oxygen, LOX, is quite commonly used as a propellant, and in the testing of engine components inert pressurants are usually used, for example, helium or nitrogen, although because of the cost and logistics, nitrogen is preferred. When gaseous nitrogen is used as the pressurant, we have repeatedly run into testing conditions which have resulted in condensation of nitrogen and subsequent mixing in the tanked liquid oxygen. This dilution of the liquid oxygen effects a loss of performance and imposes mechanical difficulty in maintaining a regulated propellant tank pressure.

Firms are concerned about earnings per share (EPS) dilution after equity issues. The purpose of this paper is to investigate whether firms manage upward their discretionary accruals around seasoned equity offerings (SEOs) to mitigate the impact of dilution on reported earnings.

The authors employ adjusted discretionary accruals from cash flow statements, normalized by the average common equity, in the multivariate tests.

There is evidence that SEO‐year discretionary accruals are the highest when contemporaneous operating cash flows are the lowest. Moreover, managers react to temporary rather than permanent declines in operating performance. Firms with the highest SEO‐year discretionary accruals experience the strongest improvements in post‐SEO operating cash flows. In addition, investors are not misled by the SEO‐year earnings management. There is no relation between the SEO‐year discretionary accruals and post‐SEO stock performance. Overall, these findings are consistent with the hypothesis that firms manage discretionary accruals around SEOs to mitigate the effect of temporary EPS dilution.

The paper's findings suggest that firms manage discretionary accruals during the SEO year to reduce the temporary negative impact of SEOs on operating performance measures, consistent with the EPS dilution hypothesis. Such earnings management makes earnings smoother and more predictable, improving earnings informativeness. The findings also suggest that misleading earnings management is not a common practice during the SEO year.

This paper adds to the literature questioning the evidence that managers frequently engage in misleading earnings management around corporate events. The authors provide an alternative explanation for earnings management around SEOs.

The present work aims at developing the laser cladding technology by means of an active fiber laser source applicable for hardfacing of martensitic steel turbine blades. It also aims to investigate two process parameter conditions to reproduce two different heat inputs, in order to highlight the effect of the thermal input on the thermal alteration and dilution of the substrate material and clad layer.

The experimentation was performed initially at a sample level, reproducing the material and thickness of the blade leading edge, then on an industrial real component. Cladding process parameters were experimentally selected and two different process parameter conditions, at different specific energy, were determined. The microstructural and geometrical features of the clad samples were analyzed both by optical microscopy and scanning electron microscopy, in this latter case combining the information supplied by different probes, among which the EDX microanalysis to obtain chemical profiles. Hardness distribution was also evaluated by means of Vickers hardness tester.

All the two investigated conditions were suitable for laser cladding of the blade leading edge, since a crack and pore free clad layer with a strong metallurgical bond to the substrate was obtained. The experimented two different heat inputs affected the extension of the HAZ as well the chemical and geometrical dilution. The clad integrity was preserved in both cases. The condition at higher specific energy was chosen to clad the turbine blade. The high specific energy condition was preferred because the iron dilution in the clad layer was inferior.

Further research is needed to correlate the chemical dilution and the thermal alteration introduced by the laser cladding process on such a kind of substrate at different process parameter conditions to the wear and corrosion resistance of the turbine blade.

Laser cladding process with an innovative active fiber laser source of the leading edge of a steam turbine blade was developed. Progress achieved in laser cladding technology development is of practical value for manufacture of turbine blades, made of martensitic steels.

The paper investigates the effect of different energy input on the laser cladding of steam turbine blades, mainly used in coal, gas and nuclear plants to produce electricity by heating water to create steam. The laser cladding process is an effective technology to increase the steam blades toughness and resistance to creep, stress and corrosion. This increase in the turbine blade properties contributes to extend the life of such a critical components, decreasing cost and time of substitution and ensuring better service conditions.

The most original aspect of the paper is related to the focus on the difference between the chemical and the geometrical dilution, being the first one mainly related to the corrosion and wear resistance of the clad layer, while the later mainly regards the clad layer adhesion to the substrate. More in general the paper presents one of the first experiments accomplished while making use of the active fiber laser source.

The practice of an interscholastic athletic department reproducing the logo of a collegiate team for its own use is becoming increasingly visible. In response to this growth, many collegiate licensing departments have begun actively enforcing zero-tolerance policies that prohibit third parties from using their respective colleges’ trademarks. Conversely, other institutions have exercised discretion by allowing high school programs to use their athletic departments’ logos only after receiving assurances from the high school that it will adhere to strict usage guidelines. The paper aims to discuss these issues.

The paper provides a thorough discussion on the concept of brand dilution and its application to sport. More specifically the study gives an account of the strategies employed by trademark specialists to protect (and in some cases, enhance) the equity of their brands. To identify these strategies, a qualitative questionnaire was employed, which was completed by 13 brand managers representing institutions from the Atlantic Coast Conference, Big 12 Conference, Big Ten Conference, Mid-American Conference, Missouri Valley Conference, Pac-12 Conference, and the Southeastern Conference.

Qualitative questionnaire responses from collegiate brand managers suggest that licensing departments differ in their perceptions of the outcomes associated with allowing logo replication in high school athletic departments.

Perceived consequences of two enforcement strategies – prohibitive and cooperative – are highlighted, as are implications and directions for future research.

OF recent weeks public attention has bean drawn to oil dilution as a means of improving aircraft engine starting at low temperatures, and the following notes on the early history of oil dilution, details of a typical system and the effect of dilution on engine operation may be of some interest. The writer would, however, emphasise that he has no first hand experience of the difficulties which recently faced B.O.A.C., and these notes must therefore not be regarded in any way as related to that particular Airline's experience.

Prior research on earnings management largely assumes that newly public firms manage earnings opportunistically around IPOs. However, only a few studies have empirically examined the real motives behind newly public firms’ earnings management. The purpose of this paper is to examine the impact of ownership dilution on earnings management among IPO firms. The authors chose the setting of security offerings in an emerging market, which is characterised by unique ownership structure, to examine the possible incentive of owners or pre-IPO shareholders to engage in earnings management.

The study employs accrual and real transactions measures to check the presence of earnings management among 409 IPO firms from India during the period 2000‒2018. Subsequently, using ordinary least squares regression models with heteroscedasticity-robust standard errors, this paper examines the relationship between earnings management and selling or dilution incentives of pre-IPO shareholders.

The study finds that the degree of earnings manipulation by issuer firms is positively associated with the ownership dilution at the time of IPO as well as around lockup expiration.

The findings of this study will help the investors and regulators to understand the practice of earnings management among IPO firms and how it is linked to the ownership dilution of pre-IPO shareholders.

The paper contributes to the limited stream of research that investigates the motives of earnings management among IPO firms. It empirically establishes an association between the selling incentive of pre-IPO shareholders and earnings management.

This paper aims to evaluate the bioremediation [chemical oxygen demand (COD) and color removal] of the effluent from the cardboard recycling industry in Yazd, central province of Iran, using mixed fungal culture.

First, the effluent samples from the cardboard recycling industry were cultured on potato dextrose agar medium to isolate native fungal colonies. The grown colonies were then identified using morphological macroscopic and microscopic characteristics to choose the dominant fungi for bioremediations. The mixed cultures of Aspergillus niger, Aspergillus flavus and Penicillium digitatum were finally used for bioremediation experiments of the cardboard recycling industry. A suspension containing 1 × 10⁶ CFU/ml of fungal spores was prepared from each fungus, separately and their homogenous mixture. Sewage samples were prepared and sterilized and used at 25%, 50% and 90% dilutions and pH levels of 5, 7 and 8 for bioremediation tests using mixed fungal spores. Following that, 10 ml of the mixed fungal spores were inoculated into the samples for decolorization and COD removal and incubated for 10 days at 30°C. The amount of COD removal and decolorization were measured before incubation and after 3, 6 and 10 days of inoculation. In this research, the color was measured by American Dye Manufacturer Institute and COD by the closed reflux method. The results of the present study were analyzed using SPSS 21 statistical software and one-way ANOVA tests at p-value < 0.05.

The results of this research showed that the mean decolorization by mixed fungal culture over 10 days at pH levels of 5, 7 and 8 were 44.40%, 45.00% and 36.84%, respectively, and the mean COD removal efficiency was 71.59%, 73.54% and 16.55%, respectively. Moreover, the mean decolorization at dilutions of 25%, 50% and 90% were 45.00%, 31.93% and 30.53%, respectively, and the mean COD removal efficiency was 73.54%, 62.38% and 34.93%, respectively. Therefore, the maximal COD removal and decolorization efficiency was obtained at dilution of 25% and pH 7.

Given that limited studies have been conducted on bioremediation of the effluent from the cardboard recycling industry using fungal species, this research could provide useful information on the physicochemical properties of the effluent in this industry.