Motivation: This paper presents the high contact resistance (HCR) and rotor bar faults by an extraction method for an induction motor using Discrete Wavelet Transform (DWT) and Artificial Neural Network (ANN). The root mean square (RMS) and mean features are obtained using DWT, and ANN is used for classification using activation functions. Activation provides output by assigning the specific input with respect to the transfer function according to the nature and type of the activation function. Method: The faulty conditions are induced using MATLAB by adopting the motor current signature analysis (MCSA) method to achieve current signature signals of the healthy and faulty motors. Results: The DWT technique has been applied to obtain fault-specific features of the average continuously varying signal (RMS) and an average of the data points (mean) at levels 5, 7, 8, and 9, followed by ANN to classify the faults for condition monitoring. Utility: The utility of the results is to reduce unscheduled downtime in the industry, thus saving revenue and reducing production losses. This work will help provide support to ensure early indication of faults in induction motors under operating conditions, enabling in-service engineers to take timely preventive measures as part of the availability of resources in IoT-enabled systems. Application: Resource availability and cybersecurity are becoming vital in an environment that supports the Internet of Things (IoT) as the essential components of Industry 4.0 scenarios. The novelty of this research lies in the implementation of high contact resistance and rotor bar faults using DWT and ANN with different activation functions to achieve accuracy up to 98%.

Purpose: This paper aims to investigate the spillover effects of jump and crash events among Chinese nonfinancial firms.Design/methodology/approach: This sample consists of more than 1.5 million weekly observations of over 3,000 Chinese listed firms over the period 1991–2015. The authors utilize univariate tests to compare the post-event performance of matched peer and non-peer control firms and cross-sectional regressions of their abnormal returns/cumulative abnormal returns (ARs/CARs) and returns on assets (ROAs).Findings: The authors find that extreme risk-adjusted abnormal stock returns (stock price crashes and jumps) generate statistically significant ARs/CARs in the same directions in industry, size, leverage, and geographical location matched peer firms in Chinese stock market. Further tests reveal that peer firms' response to the crash event is pronounced more in the group of firms about which the information asymmetry is high between investors and firms.Research limitations/implications: Portfolio investors can adjust their portfolios accordingly by selling stocks of the matching rival firms during a crash period. Policymakers may develop policies so as to protect the interests of small investors in the events of crashes in the markets. They can reduce the information asymmetry between the firms and the investors by making information about the firms more transparent, so as to reduce the contagion in case of crash event.Practical implications: This study has important implications for portfolio investment managers and policymakers.Originality/value: To the best of authors' knowledge, this is the first study that combines the jump and crash events and attempts to assess their spillover effects on other firms in Chinese stock market.