Three Essays in Empirical Finance

Since the Great Financial Crisis in 2008 and the subsequent European sovereign debt crisis, the question of economic stability has arisen in many Western countries. One threat to this stability are zombie firms. These firms cannot pay their debts and have only a small chance of survival but are kept alive by banks and other financiers. These lenders provide the companies with additional capital at favourable conditions to avoid realizing any losses from bankruptcy. From a economic policy perspective, zombie firms increase the entry barriers for more productive firms, therefore changing the competitive environment, and slow down economic growth. In the wake of the Corona pandemic and the associated handsome support for firms, zombies are also known to the general public. Therefore, I dedicate the first two chapters of my thesis to said firms. In the first chapter, I investigate the zombie phenomena in the US across multiple dimensions, before focusing on how those firms raise capital in the US. In the first half, I start by looking at simple firm characteristics and replicate findings from the literature. My results show that, on average, 10% of all firm-year observations across the sample period from 1975 to 2018 are classified as zombies. Interestingly, the number of zombie firms is higher at the beginning of the sample resulting in a negative time trend. I then report detailed industry and region trend of the zombie share. While some industries generally suffer from a higher zombie share, a similar observation does not emerge regarding the regional distribution. In the second half, I focus on the capital structure of zombies and use three additional data sets to describe how zombie firms raise capital. As expected, zombie firms are more levered, however, they raise more equity than debt capital, suggesting that they are in the process of deleveraging. Using DealScan Loan data, I find that zombie firms raise smaller loans that are more often secured but they do not need to pay higher interest rates. This is also true for the second investigated source of debt capital: bonds. Last, I also cover zombie firms' Seasoned Equity Offerings (SEO) characteristics using SDC Platinum SEO data. Again, my results do not suggest that zombie firms need to pay a premium, but their SEOs are significantly smaller. The second chapter is joint work with Angela De Martiis and Philip Valta. We investigate the effect of competition on zombie firms' existence and financial policy choices in the US. In order to mitigate the endogeneity issue arising from the simultaneous effect between zombies and competition, we use an Instrumental Variable framework suggested in the literature. The main idea of this approach is to use the import penetration from China into eight developed countries as an instrument for the import penetration from China into the US. By establishing causality, we show that the asset-weighted zombie share is negatively affected after an increase in competition. We call this the cleansing effect, and we find, that it is stronger for industries with an already high level of competition, i.e. with low concentration and low margins. In order to identify the channel which drives down the asset-weighted zombie share, we extend our analysis to the default and recovery likelihood of zombie firms. Both variables are not affected by changes in competition. Therefore, we run firm-level regressions and find that zombies scaled down their assets more than healthy firms as a reaction to an increase in competition. This then drives the negative effect on the zombie share. Additionally, zombies also hold less cash, issue less equity, and obtain smaller loans as a reaction to more competition compared to healthy firms. Finally, the last chapter of my thesis is situated on the overlap between macroeconomics and household finance and is written by Jonas Meier, Armando Näf, and myself. While many different models exist to explain the heterogeneity in returns to wealth, empirical evidence is scarce. We build on results which identify type and scale effects as important drivers of returns to wealth and extend them by modelling the whole distribution of returns using distributional regressions techniques. This allows us to unveil the heterogenous effect of wealth on the return to wealth unconditional on all other observables, i.e. the pure effect of wealth on the heterogeneity of returns to wealth. Our results are based on an extensive data set with administrative tax records of individual households, which covers all taxpayers in the canton of Bern, Switzerland, from 2002 to 2017. They show that the two drivers of returns are not additively separable and that scale dependence becomes more influential for high-type investors. We also find that the effect of scale dependence increases with the asset class's volatility. Altogether, my thesis provides new empirical insights in financial economics. The first paper shows that zombie firms are also present in the US and that they access the financial market similarly to healthy firms, but raise less capital and more equity in order to reduce their leverage, therefore adding descriptive empirical evidence to the literature about zombie firms. The contribution of the second paper is to provide an identification method based on which one can conclude that an increase in competition has a negative effect on the zombie share. Finally, the third paper adds to the empirical literature about the heterogeneity in returns to wealth by estimating the unconditional effect of wealth on the whole distribution of returns to wealth using distributional regressions

Dynamical model of DNA-protein interaction: effect of protein charge distribution and mechanical properties

The mechanical model based on beads and springs, which we recently proposed to study non-specific DNA-protein interactions [J. Chem. Phys. 130, 015103 (2009)], was improved by describing proteins as sets of interconnected beads instead of single beads. In this paper, we first compare the results obtained with the updated model with those of the original one and then use it to investigate several aspects of the dynamics of DNA sampling, which could not be accounted for by the original model. These aspects include the effect on the speed of DNA sampling of the regularity and/or randomness of the protein charge distribution, the charge and location of the search site, and the shape and deformability of the protein. We also discuss the efficiency of facilitated diffusion, that is, the extent to which the combination of 1D sliding along the DNA and 3D diffusion in the cell can lead to faster sampling than pure 3D diffusion of the protein.Comment: accepted in JC

Einfluss dezentraler Wärmepumpen auf die Netzausbaukosten des Niederspannungsnetzes

In diesem Paper werden anhand von Monte-Carlo-Simulationen die Auswirkungen von Wärmepumpen auf die Netzausbaukosten eines Niederspannungsnetzes untersucht. Es kann gezeigt wer-den, dass mit einer zentralen Regelung der Wärmepumpen die auftretenden Spannungsbandverletzungen aufgrund von Photovoltaikanlagen (PVA) reduziert, jedoch nicht vollständig behoben werden können. In Verbindung mit einer Wirkleis-tungsregelung der PVA lässt sich jedoch effektiv eine Reduktion der Spannungsbandverletzungen erreichen. Wärmepumpen führen hierbei zu einer weiteren Senkung der Kosten des Einspeisemanagements, indem sie die ansonsten abgeregelte Energiemenge aufnehmen und in Wärme umwandeln. Metho-disch wird auf eine probabilistische Netzplanung zurückgegrif-fen, welche wirtschaftliche Vorteile gegenüber einer worst-case gestützten Betrachtung aufweist. Es zeigt sich, dass ein Einspeise- bzw. Verbrauchsmanagement unter bestimmten Umständen wirtschaftlicher sein kann als ein klassischer Netzausbau. Die Ergebnisse lassen jedoch zudem vermuten, dass derartige Fest-stellungen stark von der jeweiligen Netztopologie abhängen und nicht pauschal beantwortet werden können

Retreat from Intermediate Scrutiny in Gender-Based Discrimination Cases

Self-testing refers to the possibility of characterizing an unknown quantum device based only on the observed statistics. Here we develop methods for self-testing entangled quantum measurements, a key element for quantum networks. Our approach is based on the natural assumption that separated physical sources in a network should be considered independent. This provides a natural formulation of the problem of certifying entangled measurements. Considering the setup of entanglement swapping, we derive a robust self-test for the Bell-state measurement, tolerating noise levels up to 5%. We also discuss generalizations to other entangled measurements

Effects of feedback on residential electricity demand: Findings from a field trial in Austria

This paper analyzes the effects of providing feedback on electricity consumption in a field trial involving more than 1,500 households in Linz, Austria. About half of these households received feedback together with information about electricity-saving measures (pilot group), while the remaining households served as a control group. Participation in the pilot group was random, but households were able to choose between two types of feedback: access to a web portal or written feedback by post. Results from cross section OLS regression suggest that feedback provided to the pilot group corresponds with electricity savings of around 4.5 % for the average household. Our results from quantile regressions imply that for house-holds in the 30th to the 70th percentile, feedback on electricity consumption is statistically significant and effects are highest in absolute terms and as a share of electricity consumption. For percentiles below or above this range, feedback ap-pears to have no effect. Finally, controlling for a potential endogeneity bias induced by non random participation in the feedback type groups, we find no difference in the effects of feedback provided via the web portal and by post

Critical psychoanalytic social psychology in the German speaking countries

Winter S, Brunner M, Lohl J, Schwietrig M. Critical psychoanalytic social psychology in the German speaking countries. Annual Review for critical psychology. 2013;10:419-468.The article traces the main stages of the history of psychoanalytic social psychology in German speaking countries. Beginning with Freud, it illuminates the Freudomarxists, Critical theory, the developments during the 1960ies and 70ies and of ethnopsychoanalysis, followed by an illustration of central topics of psychoanalytic social psychology (in- and exclusion, authoritarism and right-wing extremism, as well as the aftermath of the National Socialism and the fields of subject and gender). Reflections on a psychoanalytic-oriented empirical social research complete the text

Smart metering in Germany and Austria: Results of providing feedback information in a field trial

In this paper, we present the results from a field study on smart metering in Germany and Austria, focusing on the effects of providing feedback information on average electricity consumption. Econometric analyses are applied using a cross section of observations for more than 2000 households served by nine utilities. More than half of these households received feedback on their electric-ity consumption together with information about electricity saving measures (pi-lot group). The remaining households served as a control group. To evaluate the impact of feedback information, we econometrically estimated household electricity consumption. Explanatory variables include a wide range of socio-economic factors (income, education, age, household size, age composition, etc.) as well as the household appliance stock (large appliances, boiler, com-puters, TV, etc. ...). The results suggest that the feedback provided under the smart metering programme results in electricity savings of around 3.7%

Description of non-specific DNA-protein interaction and facilitated diffusion with a dynamical model

We propose a dynamical model for non-specific DNA-protein interaction, which is based on the 'bead-spring' model previously developed by other groups, and investigate its properties using Brownian Dynamics simulations. We show that the model successfully reproduces some of the observed properties of real systems and predictions of kinetic models. For example, sampling of the DNA sequence by the protein proceeds via a succession of 3d motion in the solvent, 1d sliding along the sequence, short hops between neighboring sites, and intersegmental transfers. Moreover, facilitated diffusion takes place in a certain range of values of the protein effective charge, that is, the combination of 1d sliding and 3d motion leads to faster DNA sampling than pure 3d motion. At last, the number of base pairs visited during a sliding event is comparable to the values deduced from single-molecule experiments. We also point out and discuss some discrepancies between the predictions of this model and some recent experimental results as well as some hypotheses and predictions of kinetic models

Dispositifs optoélectroniques à base de semi-conducteurs organiques en couches minces

Les petites molécules de type p à bandes interdites étroites sont de plus en plus perçues comme des remplaçantes possibles aux polymères semi-conducteurs actuellement utilisés conjointement avec des dérivés de fullerènes de type n, dans les cellules photovoltaïques organiques (OPV). Par contre, ces petites molécules tendent à cristalliser facilement lors de leur application en couches minces et forment difficilement des films homogènes appropriés. Des dispositifs OPV de type hétérojonction de masse ont été réalisés en ajoutant différentes espèces de polymères semi-conducteurs ou isolants, agissant comme matrices permettant de rectifier les inhomogénéités des films actifs et d’augmenter les performances des cellules photovoltaïques. Des polymères aux masses molaires spécifiques ont été synthétisés par réaction de Wittig en contrôlant précisément les ratios molaires des monomères et de la base utilisée. L’effet de la variation des masses molaires en fonction des morphologies de films minces obtenus et des performances des diodes organiques électroluminescentes reliées, a également été étudié. La microscopie électronique en transmission (MET) ou à balayage (MEB) a été employée en complément de la microscopie à force atomique (AFM) pour suivre l’évolution de la morphologie des films organiques minces. Une nouvelle méthode rapide de préparation des films pour l’imagerie MET sur substrats de silicium est également présentée et comparée à d’autres méthodes d’extraction. Motivé par le prix élevé et la rareté des métaux utilisés dans les substrats d’oxyde d’indium dopé à l’étain (ITO), le développement d’une nouvelle méthode de recyclage eco-responsable des substrats utilisés dans ces études est également présenté.Small p-type low band-gap semi-conducting molecules are rapidly gaining notoriety as potential replacements for conjugated polymers used in organic photovoltaic devices (OPV) along with n-type fullerene derivatives. As these active compounds often tend to crystallize upon coating, homogeneous, smooth thin-film formation is usually not trivial to obtain. We have devised bulk heterojunction OPVs in which various species of semi-conducting polymers or readily available insulating polymers are used as third-component matrices in order to rectify film inhomogeneity and enhance device performances. Polymers of specific molecular weights (MW) were also synthesised via a controlled Wittig type polymerization process by efficiently controlling the monomer and base ratios, and the effects of the MW variation were correlated with the thin-film morphologies and the resulting electroluminescence performances. In order to follow the evolution of the morphologies and the molecular arrangements, scanning and transmission electronic microscopy (SEM and TEM, respectively) was used, together with atomic force microscopy (AFM), and a new technique was introduced for preparing thin-film samples for imaging based on Si-wafer coating. Motivated by the increasing price of indium and the high cost of ITO-coated substrates, we have also examined ways to recover and recycle the tin-doped indium oxide (ITO) substrates used in these studies via environmentally benign methods

O-28: Molecular basis for the insurmountable AT-1 receptor antagonism of telmisartan

In vitro studies have shown that telmisartan is an insurmountable angiotensin II AT-1 receptor antagonist. In this study we have investigated the molecular basis of this insurmountable antagonism. The association and dissociation kinetics of telmisartan to angiotensin AT-1 receptors were measured using an in vitro radio-receptor binding assay. These radioligand binding studies were conducted either directly on rat vascular (aorta) smooth muscle cells (RVSMC) expressing solely the AT-1 receptor or on membrane preparation obtained from the same cells. The specific binding of3H-telmisartan to the surface of living RVSMC or membranes was saturable. From these data, a Kd value of 1.7 nM was estimated. Scatchard analysis of the3H-telmisartan binding on RVSMC indicated the existence of a single class of binding sites. The affinity of telmisartan for AT-1 receptor is only poorly affected by the presence of proteins (0.4% of rat plasma proteins) in the binding buffer, indicating that no great competition between telmisartan binding to its specific AT-1 receptor and to non-specific proteins binding sites occurs. In association experiments, the specific binding of3H-telmisartan increases quickly and reaches equilibrium within less than 1 hour, with an association rate constant calculated to be 0.006 min-1nM-1. Telmisartan dissociates very slowly from the AT-1 receptor, either in RVSMC membrane preparation or in living cells with a dissociation rate constant of ca. 0.01 min-1 resulting in a dissociation half-life (t1/2) of about 60 min, which is comparable to the previously published data for candesartan in bovine adrenal cortical membranes and almost 5 times slower than that of 125I-angiotensin II binding (t1/2=12 min). In contrast to candesartan that has been shown to re-associate with the AT-1 receptor, telmisartan does not appear to re-associate. Indeed, when the dissociation of labeled-telmisartan from AT-1 receptors was induced by washing the cells with cold-binding buffer, followed by addition of fresh binding buffer containing either cold telmisartan, Ang II or losartan, or nothing, no difference were observed in the dissociation rate constants measured with telmisartan whatever the composition of the binding buffer after removal of labeled-telmisartan. In conclusion, these results suggest that the insurmountable antagonism of telmisartan is due mainly to its very slow dissociation from angiotensin AT-1 receptor