Regulatory Effectiveness & Offshore Financial Centers

Onshore jurisdictions, such as the United States, United Kingdom, France and Germany, are critical of offshore financial centers (OFCs), such as Bermuda, the Cayman Islands, and the Channel Islands. Arguments against OFCs include claims that their regulatory oversight is lax, allowing fraud and criminal activity. In this article, we present cross-jurisdictional data, showing that OFCs are not lax. We also provide qualitative analyses of regulatory effectiveness, demonstrating that input-based measures of regulation are inappropriate metrics for comparing jurisdictions. Based on both quantitative input measures and a qualitative assessment, we reject the onshore critique of OFCs as bastions of laxity

Investment in Human Capital and Labor Mobility: Evidence from a Shock to Property Rights

We show that the assignment of property rights to client relationships affects employee behavior in the industry for financial advice. Our identification comes from staggered firm-level entry into the Protocol for Broker Recruiting. The protocol effectively transfers the ownership of the client relationship from the firm to the employee. We document that entering into the protocol increases employee labor mobility among member firms. Further, we find that upon protocol inclusion, employees are less likely to generate customer complaints and more likely to invest in their own general human capital, but less likely to invest in firm-specific human capital. We use detailed employee-employer matched data for the universe of financial advisors to show that these effects hold within the same job spell and across advisors within the same county at the same time. Our results suggest that limiting labor mobility may limit employee incentives to invest in human capital

Regulatory Effectiveness & Offshore Financial Centers

Onshore jurisdictions, such as the United States, United Kingdom, France and Germany, are critical of offshore financial centers (OFCs), such as Bermuda, the Cayman Islands, and the Channel Islands. Arguments against OFCs include claims that their regulatory oversight is lax, allowing fraud and criminal activity. In this article, we present cross-jurisdictional data, showing that OFCs are not lax. We also provide qualitative analyses of regulatory effectiveness, demonstrating that input-based measures of regulation are inappropriate metrics for comparing jurisdictions. Based on both quantitative input measures and a qualitative assessment, we reject the onshore critique of OFCs as bastions of laxity

Post-Newtonian gravitational radiation and equations of motion via direct integration of the relaxed Einstein equations. V. Evidence for the strong equivalence principle to second post-Newtonian order

Using post-Newtonian equations of motion for fluid bodies valid to the second post-Newtonian order, we derive the equations of motion for binary systems with finite-sized, non-spinning but arbitrarily shaped bodies. In particular we study the contributions of the internal structure of the bodies (such as self-gravity) that would diverge if the size of the bodies were to shrink to zero. Using a set of virial relations accurate to the first post-Newtonian order that reflect the stationarity of each body, and redefining the masses to include 1PN and 2PN self-gravity terms, we demonstrate the complete cancellation of a class of potentially divergent, structure-dependent terms that scale as s^{-1} and s^{-5/2}, where s is the characteristic size of the bodies. This is further evidence of the Strong Equivalence Principle, and supports the use of post-Newtonian approximations to derive equations of motion for strong-field bodies such as neutron stars and black holes. This extends earlier work done by Kopeikin.Comment: 14 pages, submitted to Phys. Rev. D; small changes to coincide with published versio

Post-Newtonian gravitational radiation and equations of motion via direct integration of the relaxed Einstein equations. III. Radiation reaction for binary systems with spinning bodies

Using post-Newtonian equations of motion for fluid bodies that include radiation-reaction terms at 2.5 and 3.5 post-Newtonian (PN) order (O[(v/c)^5] and O[(v/c)^7] beyond Newtonian order), we derive the equations of motion for binary systems with spinning bodies. In particular we determine the effects of radiation-reaction coupled to spin-orbit effects on the two-body equations of motion, and on the evolution of the spins. For a suitable definition of spin, we reproduce the standard equations of motion and spin-precession at the first post-Newtonian order. At 3.5PN order, we determine the spin-orbit induced reaction effects on the orbital motion, but we find that radiation damping has no effect on either the magnitude or the direction of the spins. Using the equations of motion, we find that the loss of total energy and total angular momentum induced by spin-orbit effects precisely balances the radiative flux of those quantities calculated by Kidder et al. The equations of motion may be useful for evolving inspiraling orbits of compact spinning binaries.Comment: 19 pages, small corrections, equivalent to published versio

Hedge Fund Boards and the Market for Independent Directors

We provide the first examination of hedge fund boards and their directors. The majority of directorships are held by extremely busy independent directors. These directors are sought after by funds because they have more reputational capital at stake, making them independent and credible monitors whose presence can certify fund quality to investors. Busy independent directors are more likely to be hired by high quality funds, and their departure from the board is associated with investor withdrawals. Moreover, funds with busy independent directors are less likely to commit fraud, abuse discretionary liquidity restrictions, or engage in performance-based risk shifting

Non-equilibrium microtubule fluctuations in a model cytoskeleton

Biological activity gives rise to non-equilibrium fluctuations in the cytoplasm of cells; however, there are few methods to directly measure these fluctuations. Using a reconstituted actin cytoskeleton, we show that the bending dynamics of embedded microtubules can be used to probe local stress fluctuations. We add myosin motors that drive the network out of equilibrium, resulting in an increased amplitude and modified time-dependence of microtubule bending fluctuations. We show that this behavior results from step-like forces on the order of 10 pN driven by collective motor dynamics

Proteostasis by STUB1/HSP70 complex controls sensitivity to androgen receptor targeted therapy in advanced prostate cancer.

Protein homeostasis (proteostasis) is a potential mechanism that contributes to cancer cell survival and drug resistance. Constitutively active androgen receptor (AR) variants confer anti-androgen resistance in advanced prostate cancer. However, the role of proteostasis involved in next generation anti-androgen resistance and the mechanisms of AR variant regulation are poorly defined. Here we show that the ubiquitin-proteasome-system (UPS) is suppressed in enzalutamide/abiraterone resistant prostate cancer. AR/AR-V7 proteostasis requires the interaction of E3 ubiquitin ligase STUB1 and HSP70 complex. STUB1 disassociates AR/AR-V7 from HSP70, leading to AR/AR-V7 ubiquitination and degradation. Inhibition of HSP70 significantly inhibits prostate tumor growth and improves enzalutamide/abiraterone treatments through AR/AR-V7 suppression. Clinically, HSP70 expression is upregulated and correlated with AR/AR-V7 levels in high Gleason score prostate tumors. Our results reveal a novel mechanism of anti-androgen resistance via UPS alteration which could be targeted through inhibition of HSP70 to reduce AR-V7 expression and overcome resistance to AR-targeted therapies

Generation of Adenosine Triphosphate in Cytochrome-deficient Mutants of Neurospora

The fungus Neurospora crassa is known to possess a branched respiratory system consisting of the standard cytochrome chain and a cyanide-insensitive alternate oxidase. In the present experiments, the physiological function of the alternate oxidase has been analyzed by taking advantage of a number of cytochrome-deficient mutants, particularly poky f. Respiration, cellular ATP levels, and growth have been examined under the influence of three classes of inhibitors: inhibitors of the cytochrome chain (antimycin, cyanide), an inhibitor of the laternate oxidase (salicyl hydroxamic acid), and an uncoupling agent (carbonyl cyanide m-chlorophenylhydrazone). The results indicate that the over-all efficiency of the alternate oxidase in producing ATP and supporting growth is much less than that of the cytochrome chain. Depending upon the amount of oxidative phosphorylation at Sites II and III in the cytochrome chain, which varies from strain to strain, the efficiency of the alternate oxidase relative to that of the cytochrome chain ranges from 13% in wild type Neurospora to 18 to 21% in poky f, 35% in mi-3, and 57% in cyt-2. A comparison of the short term effects of cyanide and carbonyl cyanide m-chlorophenylhydrazone on cellular ATP in poky f suggests that, during respiration through the alternate oxidase, ATP can be produced both by substrate-level phosphorylation (accompanying glycolysis and the oxidation of alpha-ketoglutarate) and by oxidative phosphorylation at Site I. When cells are grown on sucrose, as much as 22% of ATP synthesis in the presence of cyanide occurs at Site I. When cells are grown on acetate to diminish the rate of glycolysis, the contribution of Site I becomes proportionately larger. Both the growth experiments and the short term inhibitor experiments reveal that ATP levels in Neurospora are kept high be a feedback process which depresses ATP breakdown (and growth) very quckly after ATP synthesis is inhibited. Thus, poky f grows more slowly that wild type Neurospora and is inhibited still further when either the cytochrome chain or the alternate oxidase is blocked. Under all of these conditions, however, cellular ATP in poky f is maintained at a high level (about 3 mmol per kg of cell water, slightly above the values measured in the wild type strain)