Corporate governance and expected stock returns: evidence from Germany

Recent empirical work shows that a better legal environment leads to lower expected rates of return in an international cross-section of countries. This paper investigates whether differences in firm-specific corporate governance also help to explain expected returns in a cross-section of firms within a single jurisdiction. Constructing a corporate governance rating (CGR) for German firms, we document a positive relationship between the CGR and firm value. In addition, there is strong evidence that expected returns are negatively correlated with the CGR, if dividend yields and price-earnings ratios are used as proxies for the cost of capital. Most results are robust for endogeneity, with causation running from corporate governance practices to firm fundamentals. Finally, an investment strategy that bought high-CGR firms and shorted low-CGR firms would have earned abnormal returns of around 12 percent on an annual basis during the sample period. We rationalize the empirical evidence with lower agency costs and/or the removal of certain governance malfunctions for the high-CGR firms

A Challenge for the G20: Globally Stipulated Debt Brakes and Transnational Independent Fiscal Supervisory Councils

Debt-to-GDP ratios have grown to unprecedented levels in many industrialized economies. This requires disciplined consolidation efforts which are, however, supposed to come now at the wrong time with the economic recovery being fragile. Against this background, we call for a global debt brake following the German example and discuss the political progress achieved at the most recent Euro and G20 summits. The agreement on the debt brake should be binding and hence be fixed in national constitutions and monitored by independent transnational fiscal councils. The fiscal councils could be located at the ESM and the IMF and should conduct a regular evaluation of national budget plans. In an economic and political environment which is characterized by large uncertainties concerning economic prospects and the fear of a potential spreading of the sovereign debt crisis, a global debt brake in combination with an independent transnational supervisory council would send a credible signal that a reduction of sovereign debt to sustainable levels is not further delayed into the future. The new fiscal policy framework thus leaves enough room for discretionary fiscal policy and the workings of automatic stabilizers in an economic downturn.debt brake, fiscal council, G20

A Challenge for the G20: Globally Stipulated Debt Brakes and Transnational Independent Fiscal Supervisory Councils

Debt-to-GDP ratios have grown to unprecedented levels in many industrialized economies. This requires disciplined consolidation efforts which are, however, supposed to come now at the wrong time with the economic recovery being fragile. The countries forming the G20 need to make sure the long-term sustainability of public finances. Not least, this is indispensable in order to avoid a further spreading of the sovereign debt crisis. Against this background, we call for a global debt brake following the Swiss or German example which should be agreed upon in Cannes in early November 2011. The agreement on the debt brake should be binding – in contrast to previous expressions made at the G20-level to reduce government debt, as, for example, the Seoul Action Plan is lacking any binding character. Therefore, the debt brakes should be fixed in national constitutions and monitored by independent transnational fiscal councils. The fiscal councils could be located at the European Stability Mechanism (ESM) and the International Monetary Fund (IMF) and should conduct a regular evaluation of national budget plans in order to ensure that they meet the requirements stipulated by the debt brake. Through this global monitoring process, an early warning system could be developed with the aim to avoid sovereign debt crises and the resulting contagion risks among highly indebted countries in the future. In an economic and political environment which is characterized by large uncertainties concerning economic prospects and the fear of a potential spreading of the sovereign debt crisis, a global debt brake in combination with an independent transnational supervisory council would send a credible signal that a reduction of sovereign debt to sustainable levels is not further delayed into the future. Moreover, a well-designed debt brake ensures that the general government budget is balanced over the business cycle. Consequently, it is a more efficient instrument than the former Stability and Growth Pact for the Eurozone which in fact stipulated a ceiling for the budget deficit, but whose requirements regarding budget surpluses in good times were insufficient. This asymmetry is eliminated by those debt brakes which are in force in Switzerland and Germany. The new fiscal policy framework thus leaves enough room for discretionary fiscal policy and the workings of automatic stabilizers in an economic downturn.debt brake, fiscal council, G20

Constraining the dipole moments of the top quark

We investigate the direct and indirect bounds on dipole operators involving the top quark. A careful analysis shows that the experimental upper limit on the neutron electric dipole moment strongly constrains the chromo-electric dipole of the top. We improve previous bounds by two orders of magnitude. This has significant implications for new physics models and it also means that CP violation in top pair production mediated by dipole operators will not be accessible at the LHC. The CP conserving chromo-magnetic dipole moments are constrained by recent measurements of the t\bar t spectrum by the ATLAS collaboration. We also update the indirect constraints on electric and magnetic dipole moments from radiative b -> s transitions, finding that they can be considerably larger than their colored counterparts.Comment: 6 pages, 3 figures; extended and updated discussion of constraints on top EDM and MDM from rare B decays; typos correcte

Differently Shaped Hard Body Colloids in Confinement: From passive to active particles

We review recent progress in the theoretical description of anisotropic hard colloidal particles. The shapes considered range from rods and dumbbells to rounded cubes, polyhedra and to biaxial particles with arbitrary shape. Our focus is on both static and dynamical density functional theory and on computer simulations. We describe recent results for the structure, dynamics and phase behaviour in the bulk and in various confining geometries, e.g. established by two parallel walls which reduce the dimensionality of the system to two dimensions. We also include recent theoretical modelling for active particles, which are autonomously driven by some intrinsic motor, and highlight their fascinating nonequilibrium dynamics and collective behaviour.Comment: 15 pages, 6 figures, EPJ ST (accepted

Sentenza 238/2014 of the Italian Constitutional Court and the International Rule of Law

The German-Italian dispute over the scope of sovereign immunities and claims of reparations for war crimes committed by German armed forces during World War II in Italy is in many ways specific and historically contingent. At the same time, it touches upon a number of fundamental challenges which the international community has to address in the interest of furthering the international rule of law. In this working paper both authors adress the question whether the current law of sovereign immunities should be changed or interpreted in a manner as to allow for exceptions from State immunities in cases of grave violations of human rights. While the first part of the paper focusses on the perspective of general international law the second part adresses the question through the lense of European law. Both authors agree that unilateral efforts to push for what many consider a progressive development of international law actually may entail adverse effects for the international rule of law and thus may even contribute to a broader crisis of the international legal order

Domestic and International Criminal Justice: Challenges Ahead

This paper consists of two parts: In the first part, some of the challenges with which the Internationaal Criminal Court is currently confronted are being presented. First of all, the article will describe the current state of the International Criminal Court and the Rome Statue. Afterwards, the article analyses the Court’s efforts to deal with cases against third-country nationals and the challenges it is facing in that regard. In addition, the Court’s case law will be analyzed in order to determine an increasing ‘emancipation’ of the case law of the International Criminal Court from international humanitarian law. The second part of the paper will briefly discuss the role of domestic international criminal law and domestic courts in the further development and enforcement of international criminal law. As an example of the role that domestic courts may have in clarifying classic issues in international law, the judgment of the German Supreme Court of January 28, 2021 (3 StR 564/19), which deals with the status of costumary international law on functional immunity of State officials before domestic courts, shall be assessed

Local accuracy of actual intraoral scanning systems for single-tooth preparations in vitro

BACKGROUND The authors evaluated the local accuracy of intraoral scanning (IOS) systems for single-tooth preparation impressions with an in vitro setup. METHODS The authors digitized a mandibular complete-arch model with 2 full-contour crowns and 2 multisurface inlay preparations with a highly accurate reference scanner. Teeth were made from zirconia-reinforced glass ceramic material to simulate toothlike optical behavior. Impressions were obtained either conventionally (PRESIDENT, Coltène) or digitally using the IOS systems TRIOS 3 and TRIOS 3 using insane scan speed mode (3Shape), Medit i500, Version 1.2.1 (Medit), iTero Element 2, Version 1.7 (Align Technology), CS 3600, Version 3.1.0 (Carestream Dental), CEREC Omnicam, Version 4.6.1, CEREC Omnicam, Version 5.0.0, and Primescan (Dentsply Sirona). Impressions were repeated 10 times per test group. Conventional (CO) impressions were poured with type IV gypsum and digitized with a laboratory scanner. The authors evaluated trueness and precision for preparation margin (MA) and preparation surface (SU) using 3-dimensional superimposition and 3-dimensional difference analysis method using (95% - 5%) / 2 percentile values. Statistical analysis was performed using Kruskal-Wallis test. Results were presented as median (interquartile range) values in micrometers. RESULTS The authors found statistically significant differences for MA and SU among different test groups for both trueness and precision (P < .05). Median (interquartile range) trueness values ranged from 11.8 (2.0) μm (CO) up to 40.5 (10.9) μm (CEREC Omnicam, Version 5.0.0) for SU parameter and from 17.7 (2.6) μm (CO) up to 55.9 (15.5) μm (CEREC Omnicam, Version 5.0.0) for MA parameter. CONCLUSIONS IOS systems differ in terms of local accuracy. Preparation MA had higher deviations compared with preparation SU for all test groups. PRACTICAL IMPLICATIONS Trueness and precision values for both MA and SU of single-unit preparations are equal or close to CO impression for several IOS systems