Market implied costs of bankruptcy

This paper takes a novel approach to estimating bankruptcy costs by inference from market prices of equity and put options using a dynamic structural model of capital structure. This approach avoids the selection bias of looking at firms in or near default and therefore permits theories of ex ante capital structure determination to be tested. We identify significant cross sectional variation in bankruptcy costs across industries and relate these to specific firm characteristics. We find that asset volatility and growth options have significant positive impacts, while tangibility and size have negative impacts. Our bankruptcy cost variable estimate significantly negatively impacts leverage ratios. This negative impact is in addition to that of other firm characteristics such as asset intangibility and asset volatility. The results provide strong support for the tradeoff theory of capital structure

Endothelial Progenitor Cells, Cardiovascular Risk Factors, Cytokine Levels and Atherosclerosis – Results from a Large Population-Based Study

EPC number and functionality are assumed to reflect the endogenous vascular repair capacity with the EPC pool declining in higher ages and being exhausted by unfavorable life-style and risk factors. This intriguing and clinically highly relevant concept, however, has so far been derived from small case-control studies and patient series.In the population-based Bruneck Study EPC number and EPC-colony forming units (EPC-CFU) were assessed as part of the fourth follow-up evaluation (2005) in 571 and 542 subjects, respectively. EPC number declined with age (p = 0.013), was significantly lower in women (p = 0.006) and higher in subjects on statin, hormone replacement or ACE inhibitor/angiotensin-receptor blockers, and correlated positively with moderate alcohol consumption. Unexpectedly, a positive relation between EPC number and several vascular risk factors emerged. In a step forward multivariate linear regression analysis EPC number was independently related with SDF1alpha, MMP-9, triglycerides, alcohol consumption, and Hba1c. EPC-CFU in turn was related to SDF1alpha and diastolic blood pressure. Moreover, EPC number showed a significant positive association with the Framingham risk score (P = 0.001). Finally, there was an inverse association between EPC number and common carotid artery intima-media thickness (p = 0.02) and the carotid artery atherosclerosis score (p = 0.059).Our population-based data confirm the decline of EPC number with advancing age and lend first epidemiological support to a role of SDF-1alpha and MMP9 in EPC differentiation, mobilization and homing, but are conflict with the view that EPC number is unfavorably affected by cardiovascular risk factors. EPC number increases with the cardiovascular risk estimated by the Framingham risk score (FRS), which in the absence of similar changes for EPC-CFU. Finally, we demonstrate a significant inverse association between EPC number and extent of carotid atherosclerosis even though this association was only of moderate strength and not entirely consistent in other vascular territories

Optimal Excitation and Readout of Resonators Used as Wireless Passive Sensors

Resonators are passive time-invariant components that do not produce a frequency shift. However, they respond to an excitation signal close to resonance with an oscillation at their natural frequencies with exponentially decreasing amplitudes. If resonators are connected to antennas, they form purely passive sensors that can be read remotely. In this work, we model the external excitation of a resonator with different excitation signals and its subsequent decay characteristics analytically as well as numerically. The analytical modeling explains the properties of the resonator during transient response and decay behavior. The analytical modeling clarifies how natural oscillations are generated in a linear time-invariant system, even if their spectrum was not included in the stimulation spectrum. In addition, it enables the readout signals to be optimized in terms of duration and bandwidth

Estimation of the Measurement Accuracy of Wireless Passive Resonance Sensors

Resonators are passive devices that respond to an excitation signal by oscillating at their natural frequency with exponentially decreasing amplitudes. Physical, chemical and electrical variables can modify the natural frequencies of resonators. If resonators are connected to antennas or other transducers that couple into a communication channel, they enable purely passive sensors that can be read wirelessly. In this manuscript, we use maximum likelihood estimation to analyze the measurement accuracy that can be achieved by the wireless readout of passive resonant sensors as a function of the read signal, the stimulation power and noise figure of the reader, the distance and transducer gain of the transmission channel, and the natural frequency and quality factor of the resonant passive sensor. The Crámer–Rao lower bound characterizes the minimum variance of the natural frequency and decay constant of the resonator. We show the derivation of the Crámer–Rao lower bounds from the Fisher information matrix based on a maximum likelihood estimation of discrete-time samples of an exponentially decaying phasor. This theoretical lower limit of accuracy is almost achieved by an iterative algorithm that approximates the maximum of the measured resonator spectrum with a Lorentz curve

Corticosteroid Treatment Prevents Lipopolysaccharide-Induced Increase of ACE2 and Reduces Fibrin Degradation Products in Bronchoalveolar Lavage Fluid

The assessment of systemic corticosteroid effects on intrapulmonary disease biomarkers is challenging. This retrospective evaluation of a human endotoxemia model quantified ACE2 and fibrin degradation product (FDP) concentrations in bronchoalveolar lavage fluid (BALF) samples from a randomized, double-blind, placebo-controlled study (NCT01714427). Twenty-four healthy volunteers received either 2 × 40 mg intravenous dexamethasone or placebo. These doses were administered 12 h apart prior to bronchoscopy-guided intrabronchial lipopolysaccharide (LPS) stimulation (control: saline into the contralateral lung segment). We quantified ACE2 concentration, the Angiotensin-II-to-Angiotensin-1-7 conversion rate as well as FDP in BALF 6 h after LPS instillation. In placebo-treated subjects, LPS instillation increased ACE2 concentrations compared to unstimulated lung segments [1,481 (IQR: 736–1,965) vs. 546 (413–988) pg/mL; p = 0.016]. Dexamethasone abolished the increase in ACE2 concentrations (p=0.13). Accordingly, LPS instillation increased the Angiotensin-II-to-Angiotensin-1-7 conversion capacity significantly in the placebo cohort, indicating increased enzymatic activity (p = 0.012). FDP increased following LPS-instillation [8.9 (2.7–12.2) vs. 6.6 (0.9–9.6) ng/mL, p = 0.025] in the placebo group, while dexamethasone caused a shut-down of fibrinolysis in both lung segments. LPS instillation increased ACE2 concentration, its enzymatic activity and FDP, which was mitigated by systemic dexamethasone treatment. Our results strengthen previously published findings regarding the efficiency of corticosteroids for the treatment of COVID-19-induced acute lung injury.</jats:p

CFS WP 2013/27

Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in CFS Working Paper Series The Center for Financial Studies, located in Goethe University&apos;s House of Finance in Frankfurt, is an independent non-profit research center, funded by the non-profit-making organisation Gesellschaft für Kapitalmarktforschung e.V. (GfK). The CFS is financed by donations and by contributions of the GfK members, as well as by national and international research grants. The GfK members comprise major players in Ger-many&apos;s financial industry. Established in 1967 and closely affiliated with the University of Frankfurt, it provides a strong link between the financial community and academia. CFS is also a contributor to policy debates and policy analyses, building upon relevant findings in its research areas. The CFS Working Paper Series presents the result of scientific research on selected topics in the field of money, banking and finance. Abstract This paper takes a novel approach to es ma ng bankruptcy costs by inference from market prices of equity and put op ons using a dynamic structural model of capital structure. This approach avoids the selec on bias of looking at firms in or near default and therefore permits theories of ex ante capital structure determina on to be tested. We iden fy significant cross sec onal varia on in bankruptcy costs across industries and relate these to specific firm characteris cs. We find that asset vola lity and growth op ons have significant posi ve impacts, while tangibility and size have nega ve impacts. Our bankruptcy cost variable es mate significantly nega vely impacts leverage ra os. This nega ve impact is in addi on to that of other firm characteris cs such as asset intangibility and asset vola lity. The results provide strong support for the tradeoff theory of capital structure. Introduc on Bankruptcy costs, that is the loss in value that occurs when ownership of a firm is transferred from equityholders to debtholders, are one of the two key determinants in the tradeoff theory of capital structure, which has been at the forefront of finance research over the last 50 years. According to the theory, these costs are to be weighed against the advantage of interest deduc bility of corporate debt. Of course, obtaining precise es mates of these key parameters is crucial in determining the validity of the theory. While a lot of progress has been made with respect to es ma ng the corporate tax advantage of debt, the magnitude and cross-sec onal distribu on of bankruptcy costs have remained challenges to researchers