Earnouts: A Study of Financial Contracting in Acquisition Agreements

We empirically examine earnout contracts, which provide for contingent payments in acquisition agreements. Our analysis reveals considerable heterogeneity in the terms of earnout contracts, i.e. the potential size of the earnout, the performance measure on which the contingent payment is based, the period over which performance is measured, the frequency with which performance is measured, and the form of payment for the earnout. Consistent with the costly contracting hypothesis, we find that the terms of earnout contracts are associated with measures of target valuation uncertainty, target growth opportunities, and the degree of post-acquisition integration between target and acquirer. We conclude that earnouts are structured to minimize the costs of adverse selection and moral hazard in acquisition negotiations.

Fatigue delamination behaviour of unidirectional carbon fibre/epoxy laminates reinforced by Z-Fiber® pinnin

-Pin reinforced carbon-fibre epoxy laminates were tested under Mode I and Mode II conditions, both quasi-statically and in fatigue. Test procedures were adapted from existing standard or pre-standard tests. Samples containing 2% and 4% areal densities of carbon-fibre Z-pins (0.28mm diameter) were compared with unpinned laminates. Quasi-static tests under displacement control yielded a dramatic increase of the apparent delamination resistance. Specimens with 2% pin density failed in Mode I at loads 170N, equivalent to an apparent GIC of 2kJ/m2. Fatigue testing under load control showed that the presence of the through- thickness reinforcement slowed down fatigue delamination propagation

Improved impact performance of marine sandwich panels using through-thickness reinforcement: Experimental results

This paper presents results from a test developed to simulate the water impact (slamming) loading of sandwich boat structures. A weighted elastomer ball is dropped from increasing heights onto rigidly supported panels until damage is detected. Results from this test indicate that honeycomb core sandwich panels, the most widely used material for racing yacht hulls, start to damage due to core crushing at impact energies around 550 J. Sandwich panels of the same areal weight and with the same carbon/epoxy facings but using a novel foam core reinforced in the thickness direction with pultruded carbon fibre pins, do not show signs of damage until above 1200 J impact energy. This suggests that these will offer significantly improved resistance to wave impact. Quasi-static test results cannot be used to predict impact resistance here as the crush strength of the pinned foam is more sensitive to loading rate than that of the honeycomb core

Fluctuation and dissipation dynamics in fusion reactions from stochastic mean-field approach

By projecting the stochastic mean-field dynamics on a suitable collective path during the entrance channel of heavy-ion collisions, expressions for transport coefficients associated with relative distance are extracted. These transport coefficients, which have similar forms to those familiar from nucleon exchange model, are evaluated by carrying out TDHF simulations. The calculations provide an accurate description of the magnitude and form factor of transport coefficients associated with one-body dissipation and fluctuation mechanism.Comment: 9 pages, 5 figure

Structurally dynamic spin market networks

The agent-based model of stock price dynamics on a directed evolving complex network is suggested and studied by direct simulation. The stationary regime is maintained as a result of the balance between the extremal dynamics, adaptivity of strategic variables and reconnection rules. The inherent structure of node agent "brain" is modeled by a recursive neural network with local and global inputs and feedback connections. For specific parametric combination the complex network displays small-world phenomenon combined with scale-free behavior. The identification of a local leader (network hub, agent whose strategies are frequently adapted by its neighbors) is carried out by repeated random walk process through network. The simulations show empirically relevant dynamics of price returns and volatility clustering. The additional emerging aspects of stylized market statistics are Zipfian distributions of fitness.Comment: 13 pages, 5 figures, accepted in IJMPC, references added, minor changes in model, new results and modified figure

Algebraic Structures of Quantum Projective Field Theory Related to Fusion and Braiding. Hidden Additive Weight

The interaction of various algebraic structures describing fusion, braiding and group symmetries in quantum projective field theory is an object of an investigation in the paper. Structures of projective Zamolodchikov al- gebras, their represntations, spherical correlation functions, correlation characters and envelopping QPFT-operator algebras, projective \"W-algebras, shift algebras, braiding admissible QPFT-operator algebras and projective G-hypermultiplets are explored. It is proved (in the formalism of shift algebras) that sl(2,C)-primary fields are characterized by their projective weights and by the hidden additive weight, a hidden quantum number discovered in the paper (some discussions on this fact and its possible relation to a hidden 4-dimensional QFT maybe found in the note by S.Bychkov, S.Plotnikov and D.Juriev, Uspekhi Matem. Nauk 47(3) (1992)[in Russian]). The special attention is paid to various constructions of projective G-hyper- multiplets (QPFT-operator algebras with G-symmetries).Comment: AMS-TEX, amsppt style, 16 pages, accepted for a publication in J.MATH.PHYS. (Typographical errors are excluded

A Monte Carlo Study of the 6.4 keV Emission at the Galactic Center

Strong fluorescent Fe line emission at 6.4 keV has been observed from the Sgr B2 giant molecular cloud located in the Galactic Center region. The large equivalent width of this line and the lack of an apparent illuminating nearby object indicate that a time-dependent source, currently in a low-activity state, is causing the fluorescent emission. It has been suggested that this illuminator is the massive black hole candidate, Sgr A*, whose X-ray luminosity has declined by an unprecedented six orders of magnitude over the past 300 years. We here report the results of our Monte Carlo simulations for producing this line under a variety of source configurations and characteristics. These indicate that the source may in fact be embedded within Sgr B2, although external sources give a slightly better fit to the data. The weakened distinction between the internal and external illuminators is due in part to the instrument response function, which accounts for an enhanced equivalent width of the line by folding some of the continuum radiation in with the intrinsic line intensity. We also point out that although the spectrum may be largely produced by K$\alpha$ emission in cold gas, there is some evidence in the data to suggest the presence of warm (~10^5 K) emitting material near the cold cloud.Comment: 11 pages, 4 figure

Electron density and transport in top-gated graphene nanoribbon devices: First-principles Green function algorithms for systems containing large number of atoms

The recent fabrication of graphene nanoribbon (GNR) field-effect transistors poses a challenge for first-principles modeling of carbon nanoelectronics due to many thousand atoms present in the device. The state of the art quantum transport algorithms, based on the nonequilibrium Green function formalism combined with the density functional theory (NEGF-DFT), were originally developed to calculate self-consistent electron density in equilibrium and at finite bias voltage (as a prerequisite to obtain conductance or current-voltage characteristics, respectively) for small molecules attached to metallic electrodes where only a few hundred atoms are typically simulated. Here we introduce combination of two numerically efficient algorithms which make it possible to extend the NEGF-DFT framework to device simulations involving large number of atoms. We illustrate fusion of these two algorithms into the NEGF-DFT-type code by computing charge transfer, charge redistribution and conductance in zigzag-GNR/variable-width-armchair-GNR/zigzag-GNR two-terminal device covered with a gate electrode made of graphene layer as well. The total number of carbon and edge-passivating hydrogen atoms within the simulated central region of this device is ~7000. Our self-consistent modeling of the gate voltage effect suggests that rather large gate voltage might be required to shift the band gap of the proposed AGNR interconnect and switch the transport from insulating into the regime of a single open conducting channel.Comment: 19 pages, 8 PDF figures, PDFLaTe