Task and contingency planning under uncertainty

Thesis (Sc. D.)--Massachusetts Institute of Technology, Dept. of Nuclear Engineering, 1995.Includes bibliographical references (leaves 204-213).by Volkan C. Kubali.Sc.D

Impact Of Stock Options On Quarterly EPS: A Proposal For Change

The purpose of this paper is to: 1) explore the annual and quarterly economic impact of FAS 123 on a group of S&P 100 firms; 2) propose changes in the measurement and disclosure rules of FAS 123; and 3) determine the annual and quarterly economic impact of these proposed changes on the same group of S&P 100 firms. While both FAS 123 and dynamic option expense measurement approaches have material economic impact and reduce the EPS amounts reported under APBO 25 rules approximately 16 percent or more, no statistically significant differences are found between the results of these two approaches in any year 2000 quarters. However, when the sample is split into two groups based on negative and positive quarterly returns, the differences between the results of the two methods are statistically significant for seven of eight quarterly observations. Compared to the static (FAS 123) measurement approach, the dynamic (quarterly recalculated) approach results in lower option expenses and higher EPS values for firms with declining stock prices and higher option expenses and lower EPS values for firms with increasing stock prices. Thus, the dynamic measurement approach proposed in this paper more faithfully represents the economic reality of individual firms

Operating Cash Flows, Cash Recovery Rates And Internal Rates Of Return

Investors depend on financial reporting to assess the amounts and timing of future cash flows. Unfortunately, the historical cost basis may not provide sufficient information to judge future cash flows. The Financial Accounting Standards Board argues that the market price of common stock incorporates the market estimate of discounted future cash flows. This paper illustrates the calculation of operating cash flow on a per share (CFPS) basis and measures a firm’s internal rate of return by dividing the CFPS by the beginning of the year stock price reported by the Dow Jones Industrials. Although this measure may be affected by other market events, we believe it has potential information content and may provide investors with a tool to value stocks

GAAP/Tax Differences In Accounting For Nonqualified Employee Stock Options: The Gathering Storm

The escalating size of compensation packages to senior managers and investor disillusionment resulted in the issuance of FAS 123(R). Under the current rules, the grant date fair value of employee stock options (ESO) are expensed over the vesting period. The two primary methods used to value ESO are the Black-Scholes closed form equation and the lattice model. Several studies suggested an alternative Simple model for valuing ESO that marks the option expense to market in succeeding financial statement dates and allows for the staggered exercise dates of option holders. This approach is easy to understand, would have a low cost of implementation, and offers a superior estimate of the true cash flow effects and economic injury associated with the opportunity cost to shareholders of ESO exercise. Moreover, the Simple model would head off another threat to the legitimacy of the FASB that is unfolding in the U.S. Congress as Senator Carl Levin holds hearings on ESO in the Senate Permanent Subcommittee on Investigations to decide what to do about the multi-billion dollar gap between what companies report to stockholders as ESO expense and what they deduct on their tax returns. In addition, this gap results in highly controversial rules of accounting and reporting for the favorable impact of the deductions in the financial statements

No More Scandals: A Simple Model For Valuing Employee Stock Options

The escalating size of compensation packages to senior managers and investor disillusionment have resulted in growing calls for the expensing of employee stock options (ESO).  While initially slow to respond, the FASB has now mandated the expensing of ESO.  The two primary methods used to value ESO, the Black-Scholes closed form equation and the lattice model, suffer from several deficiencies  .A Simple model for valuing ESO that marks the option expense to market in succeeding financial statement dates and allows for the staggered exercise dates of option holders is available. The model is easy to understand, would have a low cost of implementation, and offers a superior estimate of the true cash flow effects associated with the opportunity cost to shareholders of ESO exercise

Maximum Independent Set: Self-Training through Dynamic Programming

This work presents a graph neural network (GNN) framework for solving the maximum independent set (MIS) problem, inspired by dynamic programming (DP). Specifically, given a graph, we propose a DP-like recursive algorithm based on GNNs that firstly constructs two smaller sub-graphs, predicts the one with the larger MIS, and then uses it in the next recursive call. To train our algorithm, we require annotated comparisons of different graphs concerning their MIS size. Annotating the comparisons with the output of our algorithm leads to a self-training process that results in more accurate self-annotation of the comparisons and vice versa. We provide numerical evidence showing the superiority of our method vs prior methods in multiple synthetic and real-world datasets.Comment: Accepted in NeurIPS 202

Transcriptional profiling of olfactory system development identifies distal antenna as a regulator of subset of neuronal fates

Drosophila uses 50 different olfactory receptor neuron (ORN) classes that are clustered within distinct sensilla subtypes to decipher their chemical environment. Each sensilla subtype houses 1–4 ORN identities that arise through asymmetric divisions of a single sensory organ precursor (SOP). Despite a number of mutational studies investigating the regulation of ORN development, a majority of the transcriptional programs that lead to the different ORN classes in the developing olfactory system are unknown. Here we use transcriptional profiling across the time series of antennal development to identify novel transcriptional programs governing the differentiation of ORNs. We surveyed four critical developmental stages of the olfactory system: 3rd instar larval (prepatterning), 8 hours after puparium formation (APF, SOP selection), 40 hrs APF (neurogenesis), and adult antennae. We focused on the expression profiles of olfactory receptor genes and transcription factors—the two main classes of genes that regulate the sensory identity of ORNs. We identify distinct clusters of genes that have overlapping temporal expression profiles suggesting they have a key role during olfactory system development. We show that the expression of the transcription factor distal antenna (dan) is highly similar to other prepatterning factors and is required for the expression of a subset of ORs