285,185 research outputs found

    The Market Reaction to Legal Shocks and Their Antidotes: Lessons from the Sovereign Debt Market

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    In October 2000 a hedge fund holding an unpaid debt claim won an enormous victory against the debtor, the Republic of Peru, through an opportunistic interpretation of the common pari passu clause by a Brussels court. This development was met by charges from policy makers and practitioners that the court\u27s decision (its novel interpretation of the pari passu clause) would lead to a dramatic increase in the risks of holdout litigation faced by sovereign debtors. Over the ensuing years, multiple reform solutions were proposed including the revision of certain contractual terms, the filing of amicus briefs in a key case, and the imposition of an international bankruptcy regime for sovereigns. The question, looking back, that this Article empirically investigates is whether the capital markets actually perceived a significant increase in risk at the time of the October 2000 Brussels court decision. Equally important is whether markets discriminate among competing versions of the pari passu clause based on their relative risks for holdouts. And, to the extent the markets did react to the increase in legal risk, did any of the antidotes that were implemented to reduce the supposed increased holdout risk work? We offer evidence that bond prices did respond to this legal shock, that markets do discriminate based on the relative holdout risk posed by differing forms of the pari passu clause, and provide surprising evidence regarding the efficacy of the government-sponsored antidote, the advent of collective action clauses

    The Anharmonic Correction in the Soliton Model for the Hyperons

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    We derive the anharmonic correction to the hyperon energy in the bound state version of the topological soliton model for the hyperons, and show that it represents a negative correction of at most 10% to the energy of the bound heavy flavour two-meson system in the case of cascade hyperons. The main anharmonic correction arises from the mass term in the Lagrangian density. For large meson masses the consistency of the model requires that the anharmonic correction decreases as the inverse square root of the mass of the heavy flavour meson.Comment: 19 page

    What informs a firm’s Attractiveness as an Alliance Partner? The development of a survey instrument.

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    Strategic alliances are defined as inter-organisational collaborative arrangements whose purpose is to achieve the strategic targets of partners (Das and Teng, 1998). Within the pharmaceutical industry, they represent a key form of disintegration that enables organisations to create a network based on partnerships, whereby the overarching goal is to pursue a set of agreed-upon goals, in which they share the benefits (Chen and Chen, 2002). Despite the high prevalence of strategic alliances within this industry, only 50% are considered stable or achieve performance perceived by the partners as satisfactory (McCutchen et al., 2008) and up to 70% terminate early (Kogut, 1989; Park and Russo, 1996; Park and Ungson, 1997). Nevertheless, 85% of the senior executives still believe alliances are and will continue to be essential or important to their business (Powerlinx, 2014), and as such have invested significantly in becoming attractive alliance partners, or partner of choice. Further, both conceptual and empirical evidence has signaled that a partner’s attractiveness can have significant contribution to the success of the alliance itself (Coombs and Deeds, 2000; Lee, 2007). Despite this evidence, there is no validated approach for a firm to test how attractive they are perceived to be by prospective partners. Without this, a firm is not able to tangibly understand what their perceived strengths and weaknesses are, and how these evolve over time. The purpose of this research is to address this gap. Further, the research aims to understand the impact of firm’s Alliance Strategy on their attractiveness scores. As such, this research makes three overarching and significant contributions; (1) the identification of two key antecedents of a firm’s Attractiveness as an Alliance Partner (2) the development of a self-assessment questionnaire for a firm to use in order to quantify their attractiveness, and (3) the development of research propositions for how an Alliance Strategy moderates the relationship between Attractiveness and its antecedents. This research applies Network Theory, which, in its most simple terms, refers to a firm’s relationships with others that have important and desired resources (Ireland et al., 2002). Networks promote alliance formation and firm success through ‘social capital’, described as the benefits a firm derives from their relationships (Coleman, 1988). Social capital increases in alliances with greater diversity within their networks (Baker, 2000) and with the quality of the alliances themselves (Glaister and Buckley, 1999). As such, this theory plays a key part in explaining the identified antecedents of Attractiveness - Previous Alliance Performance and Alliance Portfolio Diversity. In turn, this research extends Network Theory in two ways. Firstly, by introducing the novel concept of Attractiveness as an Alliance Partner as an indicator of a firm’s success or performance. Secondly, by introducing the novel concept of an Alliance Strategy as an important condition that will moderate a firm’s attractiveness. A mixed method approach has been used, comprising of four Empirical Studies in order to develop and finalise the research propositions and questionnaire. This research has been conducted within and for the pharmaceutical industry specifically but can be applied to other industries

    Restructuring Venezuela\u27s Debt Using Pari Passu

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    Given the depth of Venezuela\u27s economic crisis, many fear that the government and the state-owned oil company Petroleos de Venezuela, S.A. ( PDVSA ) are on the brink of insolvency. In this paper, we introduce a restructuring plan that would allow Venezuela to restructure its external debt in an orderly manner. We propose that Venezuela restructure both PDVSA debt and its own external debt via Exchange Offers. To maximize the number of participating bondholders and receive sufficient debt relief, we suggest that Venezuela primarily utilize the pari passu clauses included in the vast majority of PDVSA and Venezuelan bonds, which are modified versions of a typical pari passu clause and can be read to allow the subordination of the bonds in accordance with Venezuelan law. To minimize the number of holdout creditors, Venezuela can introduce a law that subordinates non-exchanged debt to exchanged debt, making timely or full payment of holdout debt unlikely. This tactic would minimize the need to rely solely on alternative restructuring techniques, such as exit consents and Collective Action Clauses (CACs). We argue that while these techniques might alone prove insufficient to successfully restructure Venezuela\u27s debt, they could supplement the restructuring options we propose here. Because the parties contracted for debt subordination in the bond contracts, we predict that using a debt subordination technique would be more viable in Venezuela\u27s case than it has been in past sovereign debt restructurings. Ironically, the pari passu clause that doomed Argentina might be what saves Venezuela

    Artin monoids inject in their groups

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    We prove that the natural homomorphism from an Artin monoid to its associated Artin group is always injectiveComment: 20 pages, 3 figures, see http://math.u-bourgogne.fr/topolog/pari

    Superconnection and family Bergman kernels

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    We establish an asymptotic expansion for families of Bergman kernels. The key idea is to use the superconnection as in the local family index theorem.Comment: C. R. Math. Acad. Sci. Pari

    Translations in the exponential Orlicz space with Gaussian weight

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    We study the continuity of space translations on non-parametric exponential families based on the exponential Orlicz space with Gaussian reference density.Comment: Submitted to GSI 2017, Pari
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