Web Services Support for Dynamic Business Process Outsourcing

Outsourcing of business processes is crucial for organizations to be effective, efficient and flexible. To meet fast-changing market conditions, dynamic outsourcing is required, in which business relationships are established and enacted on-the-fly in an adaptive, fine-grained way unrestricted by geographic distance. This requires automated means for both the establishment of outsourcing relationships and for the enactment of services performed in these relationships over electronic channels. Due to wide industry support and the underlying model of loose coupling of services, Web services increasingly become the mechanism of choice to connect organizations across organizational boundaries. This paper analyzes to which extent Web services support the dynamic process outsourcing paradigm. We discuss contract -based dynamic business process outsourcing to define requirements and then introduce the Web services framework. Based on this, we investigate the match between the two. We observe that the Web services framework requires further support for cross - organizational business processes and mechanisms for contracting, QoS management and process-based transaction support and suggest ways to fill those gaps

The Price of Law: The Case of the Eurozone\u27s Collective Action Clauses

Do markets value contract protections? And does the quality of a legal system affect such valuations? To answer these questions we exploit a unique experiment whereby, after January 1, 2013, newly issued sovereign bonds of Eurozone countries under domestic law had to include Collective Action Clauses (CACs) specifying the minimum vote needed to modify payment terms. We find that CAC bonds trade at lower yields than otherwise similar no-CAC bonds; and that the quality of the legal system matters for this differential. Hence, markets appear to see CACs as providing protection against the legal risk embedded in domestic-law sovereign bonds

Temporal Aspects of Smart Contracts for Financial Derivatives

Implementing smart contracts to automate the performance of high-value over-the-counter (OTC) financial derivatives is a formidable challenge. Due to the regulatory framework and the scale of financial risk if a contract were to go wrong, the performance of these contracts must be enforceable in law and there is an absolute requirement that the smart contract will be faithful to the intentions of the parties as expressed in the original legal documentation. Formal methods provide an attractive route for validation and assurance, and here we present early results from an investigation of the semantics of industry-standard legal documentation for OTC derivatives. We explain the need for a formal representation that combines temporal, deontic and operational aspects, and focus on the requirements for the temporal aspects as derived from the legal text. The relevance of this work extends beyond OTC derivatives and is applicable to understanding the temporal semantics of a wide range of legal documentation

Venture Capital on the Downside: Preferred Stock and Corporate Control

This Article takes the occasion of the simultaneous collapse of the high technology stock market and the failure of the dot-coin startups, along with the subsequent retrenchment of the venture capital business, to examine the law and economics of downside arrangements in venture capital contracts. The subject matter implicates core concerns of legal and economic theory of the firm. Debates about the separation of ownership and control, relational investing, takeover policy, the law and economics of debt capitalization, and bankruptcy reform, all grapple with the downside problem of controlling and terminating unsuccessful managers for the benefit of outside debt and equity investors (and the related upside problem of incentivizing effective but fallible managers). The factors motivating these debates also bear on venture capital contracting. But venture capital presents a special puzzle for solution. Convertible preferred stock is the dominant financial contract in the venture capital market, at least in the United States. This contrasts with other contexts in corporate finance, where preferred stock is thought to be a financing vehicle long in decline. The only mature firms that finance with preferred, which once was ubiquitous in American capital structures, tend to be firms in regulated industries having little choice in the matter. Tax rules favoring debt finance provide the primary explanation for preferred\u27s decline. But many corporate law observers would suggest dysfunctional downside contracting as a concomitant cause. Simply, preferred performs badly on the downside, where senior security contracts supposedly are at their most effective. Preferred stockholders routinely have been victimized in distress situations by opportunistic issuers who strip them of their contract rights, transferring value to the junior equity holders who control the firm\u27s management. The cumulation of bad experiences adds impetus to a wider trend in favor of debt as the mode of senior participation

Union and Union Threat Premiums Among Graduate Student Stipends

To inform the ongoing debate over graduate student unionization, the author tests for the presence of union-related premiums among teaching and research assistant stipends using data from The Chronicle of Higher Education’s survey of departments in six fields in 2000, 2001, and 2003. Ordinary least squares and instrumental variables methods reveal union and union threat premiums among teaching assistant stipends. There is little evidence of union-related premiums among research assistant stipends. Specifications controlling for union composition or using employment weights reveal that the teaching assistant only union premium is positive for teaching assistant stipends and negative for research assistant stipends. This suggests that collectively bargained contracts may yield benefits for teaching assistants at the expense of research assistants when the latter are excluded from the bargaining unit. There is a positive premium to joint teaching and research assistant unions for teaching assistant stipends and no effect for research assistant stipends

Specification and Verification of Context-dependent Services

Current approaches for the discovery, specification, and provision of services ignore the relationship between the service contract and the conditions in which the service can guarantee its contract. Moreover, they do not use formal methods for specifying services, contracts, and compositions. Without a formal basis it is not possible to justify through formal verification the correctness conditions for service compositions and the satisfaction of contractual obligations in service provisions. We remedy this situation in this paper. We present a formal definition of services with context-dependent contracts. We define a composition theory of services with context-dependent contracts taking into consideration functional, nonfunctional, legal and contextual information. Finally, we present a formal verification approach that transforms the formal specification of service composition into extended timed automata that can be verified using the model checking tool UPPAAL.Comment: In Proceedings WWV 2011, arXiv:1108.208