Puzzling disagreement between photoemission and optical findings inmagnetically doped GaN and ZnO is explained within a generalized alloy theory.The obtained results show that the strong coupling between valence-band holesand localized spins gives rise to a mid-gap Zhang-Rice-like state, to a signreversal of the apparent p-d exchange integral, and to an increase of theband-gap with the magnetic ion concentration.
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