An Altered Derivatives Marketplace: Clearing Swaps Under Dodd-Frank

Though over a year has passed, the impact of the Dodd Frank Act remains unclear. This Note examines the provisions of the Act that relate to swap transactions within the context of pre-reform and postreform markets. In order to reduce the uncertainties inherent in unregulated swap transactions, the Act employs a comprehensive framework, which includes mandatory clearing through derivative clearing organizations, extensive reporting requirements, margin requirements, and position limits. This Note argues that, in doing so, the Dodd Frank Act addresses the fundamental failures of pre-reform derivative markets. However, the importance of the role for derivative clearing organizations under this framework creates a risk that these organizations will become systemically significant, mirroring problems with under-capitalized and over-exposed financial institutions in the downturn

Do shareholders of acquiring firms gain from acquisitions?

We examine a sample of 12,023 acquisitions by public firms from 1980 to 2001. Shareholders of these firms lost a total of $218 billion when acquisitions were announced. Though shareholders lose throughout our sample period, losses associated with acquisition announcements after 1997 are dramatic. Small firms gain from acquisitions, so that shareholders of small firms gained$8 billion when acquisitions were announced and shareholders of large firms lost $226 billion. We examine the cross-sectional variation in the announcement returns of acquisitions. Small firm shareholders earn systematically more when acquisitions are announced. This size effect is typically more important than how an acquisition is financed and than the organizational form of the assets acquired. The only acquisitions that have positive aggregate gains are acquisitions of subsidiaries.

Corporate Focusing and Internal Capital Markets

A sample of firms that focus by divesting at least one segment allows us to investigate the characteristics of segments divested as well as the nature of focusing firms. We find that firms are more likely to divest segments unrelated to the core activities of the firm and that the probability that a segment is divested is inversely related to its relative size within the firm. In fact, a segment's relative size is the variable that has the most explanatory power in predicting which segment a firm divests. We argue that this is consistent with the importance of asset market liquidity as a determinant of the divestiture decision. Financial constraints play an important role in determining which firms focus, which segments these firms divest, and in the market's reaction to divestiture announcements. Focusing firms perform less well and invest significantly less than heir non-focusing counterparts.

Pyrolysis kinetics of hydrochars produced from brewer’s spent grains

The current market situation shows that large quantities of the brewer's spent grains (BSG)-the leftovers from the beer productions-are not fully utilized as cattle feed. The untapped BSG is a promising feedstock for cheap and environmentally friendly production of carbonaceous materials in thermochemical processes like hydrothermal carbonization (HTC) or pyrolysis. The use of a singular process results in the production of inappropriate material (HTC) or insufficient economic feasibility (pyrolysis), which hinders their application on a larger scale. The coupling of both processes can create synergies and allow the mentioned obstacles to be overcome. To investigate the possibility of coupling both processes, we analyzed the thermal degradation of raw BSG and BSG-derived hydrochars and assessed the solid material yield from the singular as well as the coupled processes. This publication reports the non-isothermal kinetic parameters of pyrolytic degradation of BSG and derived hydrochars produced in three different conditions (temperature-retention time). It also contains a summary of their pyrolytic char yield at four different temperatures. The obtained KAS (Kissinger-Akahira-Sunose) average activation energy was 285, 147, 170, and 188 kJ mol(-1) for BSG, HTC-180-4, HTC-220-2, and HTC-220-4, respectively. The pyrochar yield for all hydrochar cases was significantly higher than for BSG, and it increased with the severity of the HTC's conditions. The results reveal synergies resulting from coupling both processes, both in the yield and the reduction of the thermal load of the conversion process. According to these promising results, the coupling of both conversion processes can be beneficial. Nevertheless, drying and overall energy efficiency, as well as larger scale assessment, still need to be conducted to fully confirm the concept

Asset Liquidity and Segment Divestitures

We investigate a sample of firms whose number of reported segments falls by one or more for the first time in their reporting history. The firms in our sample have a significantly larger diversification discount, underperform, and underinvest relative to comparable firms. Firms are more likely to divest segments from industries with a more liquid market for corporate assets, segments unrelated to the core activities of the firm, poorly performing segments, and small segments. The liquidity of the market for corporate assets plays an important role in explaining why some firms divest assets while others stop reporting them without divesting them, and why some firms divest core segments while others divest unrelated segments.

Promoting Service Learning Via Online Instruction

Service learning and online instruction are both important and much debated topics in higher education. Many professors and colleges are attempting to use service learning and online instruction as effective learning tools for their student clientele. Both topics are being written about exclusively in professional journals, as educators grapple with how lo implement these two effective means of learning into class content. The purpose of this manuscript is to discuss service learning and online instruction in a symbiotic educational relationship. The authors discuss the efficacy and benefits of service learning and online instruction, and request ways to incorporate these techniques into the classroom. A case example is presented to illustrate the application of these two techniques as they are combined to produce an effective online course that provides students with a hands-on learning experience

Conformations of confined biopolymers

Nanoscale and microscale confinement of biopolymers naturally occurs in cells and has been recently achieved in artificial structures designed for nanotechnological applications. Here, we present an extensive theoretical investigation of the conformations and shape of a biopolymer with varying stiffness confined to a narrow channel. Combining scaling arguments, analytical calculations, and Monte Carlo simulations, we identify various scaling regimes where master curves quantify the functional dependence of the polymer conformations on the chain stiffness and strength of confinement.Comment: 5 pages, 4 figures, minor correction

Fluctuation-Dissipation Theorem for the Microcanonical Ensemble

A derivation of the Fluctuation-Dissipation Theorem for the microcanonical ensemble is presented using linear response theory. The theorem is stated as a relation between the frequency spectra of the symmetric correlation and response functions. When the system is not in the thermodinamic limit, this result can be viewed as an extension of the fluctuation-dissipation relations to a situation where dynamical fluctuations determine the response. Therefore, the relation presented here between equilibrium fluctuations and response can have a very different physical nature from the usual one in the canonical ensemble. These considerations imply that the Fluctuation-Dissipation Theorem is not restricted to the context of thermal equilibrium, where it is usually derived. Dispersion relations and sum rules are also obtained and discussed in the present case. Although analogous to the Kramers-Kronig relations, they are not related to the frequency spectrum but to the energy dependence of the response function.Comment: 15 pages, v3: final version, new text added, new reference