Do internal capital markets in business groups mitigate firms' financial constraints?

We develop a new rationale for capital allocation in business groups’ internal capital markets. We show that productivity and pledgeable income jointly drive capital allocation within an internal capital market. In financially constrained business groups, an efficient internal capital market can allocate marginal funds to firms that have high pledgeability of income because of a multiplier effect: a dollar of internal funds generates a bigger increase in investment. This result has important implications for the business group affiliation strategy. Whether or not a financially constrained but highly productive firm will benefit from group affiliation depends on its borrowing capacity vis-à-vis other affiliates

Cross-border and domestic minority acquisitions and financial constraints: Reaping big benefits from small shareholders

Research Question/Issue Do the motivations of cross-border minority acquisitions differ from those of domestic minority acquisitions? We examine and compare the underlying motivations for and consequences of domestic and cross-border minority acquisitions by analyzing data from transactions that took place across 31 countries over a 13-year period. Research Findings/Insights Using a sample of 11,926 domestic and cross-border minority acquisitions, we show that the interplay of financing and country-level governance motives is the main driver of such deals in both settings. We find that financially constrained firms are more likely to engage in both domestic and cross-border minority acquisitions, even in the face of higher information asymmetry and transaction costs that international transactions entail. In the wake of either domestic or cross-border deals, financially constrained firms' long-term debt increases; their short-term debt, cash holdings, and equity decrease. The greater likelihood of minority acquisitions of financially constrained firms is explained by the degree of corporate governance institutions in the country in which the targeted firm is based and by differences in levels of creditor and shareholder protections between the home countries of the targeted and acquiring firms involved. Our results remain robust after controlling for alternative explanations such as the contracting motive, the gravity model of foreign transactions, economic development levels, and differences in tax and exchange rates. Theoretical/Academic Implications Our results extend prior literature on mergers and acquisitions that have focused solely on control transfers or domestic deals. We provide empirical evidence for the importance of jointly considering financing and governance motivations in seeking to explain domestic and cross-border minority acquisitions and their consequences in alleviating financial constraints. We provide new evidence on how firm- and country-level characteristics interact to affect minority acquisitions. Practitioner/Policy Implications Our results offer valuable insights for business policy by highlighting how firms can circumvent financial constraints through partial integration, especially in cross-border settings. The results also offer evidence of beneficial ex post outcomes for targeted firms' leverage and liquidity. In terms of public policy, the results show that minority shareholder protections improve the equity market and provide a positive externality to the debt market through a certification effect

Echinoderms from Todos os Santos Bay and Aratu Bay (Bahia, Brazil)

Neste trabalho são registrados os equinodermos (exceto Holothuroidea) obtidos durante a execução do projeto "Marine Environmental Evaluation of the Todos os Santos Bay-MAREMBA" em julho/agosto de 1996 e durante o projeto "Geoecologia das comunidades bentônicas infralitorais da Baía de Todos os Santos (BTS), BA, Brasil: diversidade biótica e sedimentológica", (1997). Um total de 33 espécies pertencentes a 15 famílias foram registradas e re-descritas. A distribuição de Ophiactis brasiliensis Manso, 1988 e Amphiodia trychna H.L. Clark, 1918 é estendida para a região nordeste do Brasil. A classe Ophiuroidea foi dominante nas amostragens em termos de abundância e freqüência de ocorrência, em particular as espécies Amphiodia atra Stimpson, 1852, Amphipholis subtilis (Ljungman, 1867), Ophiactislymani Ljungman, 1871 e Ophiostigma isocanthum (Say, 1825). O asteróide Oreaster reticulatus (Linnaeus, 1758) é considerado vulnerável à exploração humana e foi escasso durante as coletas. Outras espécies encontradas na BTS, tais como os asteroides Luidia clathrata (Say, 1825) e L. senegalensis (Lamarck, 1816) e o equinóide Eucidaristribuloides (Lamarck, 1816) figuram na lista nacional de espécies de invertebrados aquáticos ameaçados de extinção._______________________________________________________________________________ ABSTRACT: We present the results of the studies on biodiversity of Echinodermata (except Holothuroidea) from the Projects "Marine Environmental Evaluation of the Todos os Santos Bay - MAREMBA" (July/August 1996) and "Geoecology of the Benthic Infralitoral Communities of Todos os Santos Bay (BTS), Bahia, Brazil" (1997). A total of 33 species from 15 families were registered and re-described. The distribution of Ophiactis brasiliensis Manso, 1988 and Amphiodia trychna H.L. Clark, 1918 is extended to northwestern Brazil. The class Ophiuroidea was dominant in samples in terms of abundance and frequency of occurrence, in particular Amphiodia atra Stimpson, 1852, Amphipholis subtilis (Ljungman, 1867), Ophiactislymani Ljungman, 1871and Ophiostigma isocanthum (Say, 1825). The asteroid Oreaster reticulatus (Linnaeus, 1758) is considered vulnerable to human exploration and was scarce during the surveys. Other species found at BTS, such the asteroids Luidia clathrata (Say, 1825) and L. senegalensis (Lamarck, 1816) and the echinoid Eucidaristribuloides (Lamarck, 1816)are included in the national list of threatened invertebrate species

Low-mass pre--main-sequence stars in the Magellanic Clouds

[Abridged] The stellar Initial Mass Function (IMF) suggests that sub-solar stars form in very large numbers. Most attractive places for catching low-mass star formation in the act are young stellar clusters and associations, still (half-)embedded in star-forming regions. The low-mass stars in such regions are still in their pre--main-sequence (PMS) evolutionary phase. The peculiar nature of these objects and the contamination of their samples by the evolved populations of the Galactic disk impose demanding observational techniques for the detection of complete numbers of PMS stars in the Milky Way. The Magellanic Clouds, the companion galaxies to our own, demonstrate an exceptional star formation activity. The low extinction and stellar field contamination in star-forming regions of these galaxies imply a more efficient detection of low-mass PMS stars than in the Milky Way, but their distance from us make the application of special detection techniques unfeasible. Nonetheless, imaging with the Hubble Space Telescope yield the discovery of solar and sub-solar PMS stars in the Magellanic Clouds from photometry alone. Unprecedented numbers of such objects are identified as the low-mass stellar content of their star-forming regions, changing completely our picture of young stellar systems outside the Milky Way, and extending the extragalactic stellar IMF below the persisting threshold of a few solar masses. This review presents the recent developments in the investigation of PMS stars in the Magellanic Clouds, with special focus on the limitations by single-epoch photometry that can only be circumvented by the detailed study of the observable behavior of these stars in the color-magnitude diagram. The achieved characterization of the low-mass PMS stars in the Magellanic Clouds allowed thus a more comprehensive understanding of the star formation process in our neighboring galaxies.Comment: Review paper, 26 pages (in LaTeX style for Springer journals), 4 figures. Accepted for publication in Space Science Review

Search for direct production of charginos and neutralinos in events with three leptons and missing transverse momentum in √s = 7 TeV pp collisions with the ATLAS detector

A search for the direct production of charginos and neutralinos in final states with three electrons or muons and missing transverse momentum is presented. The analysis is based on 4.7 fb−1 of proton–proton collision data delivered by the Large Hadron Collider and recorded with the ATLAS detector. Observations are consistent with Standard Model expectations in three signal regions that are either depleted or enriched in Z-boson decays. Upper limits at 95% confidence level are set in R-parity conserving phenomenological minimal supersymmetric models and in simplified models, significantly extending previous results