Corporate Inefficiency and the Risk of Takeover

The present study, using the Cox proportional hazard model, suggests a firm faces a significantly higher risk of takeover if its cost performance lags behind its industry benchmark. The effects of variables capturing cost inefficiency on the risk of takeover appear to be remarkably stable over the nearly two decades spanned by the sample, while the effect of the variables measuring the risk-size relationship indicate temporal changes. Once cost inefficiency is accounted for, the paper fails to find consistent evidence for the effects of other conventionally used performance measures, such as profitability and q, on the risk of takeover.

Imperfect Knowledge and Asset Price Dynamics: Modeling the Forecasting of Rational Agents, Dynamic Prospect Theory and Uncertainty Premia on Foreign Exchange.

Models using the Rational Expectations Hypothesis (REH) are widely recognized to be inconsistent with the observed behavior of premia in financial markets, as well as other features of asset price dynamics. Moreover, many reasons have been advanced as to why the REH cannot generally represent, even approximately, the expectations behavior of individually rational agents. In this paper, we develop a new model of the equilibrium premium in the foreign exchange market that replaces the REH with the Imperfect Knowledge Forecasting (IKF) framework. Because we maintain that agents must cope with imperfect knowledge and that they are not grossly irrational, our IKF approach imposes only qualitative conditions on the formation of individual forecasting models and their updating. We also develop a dynamic extension of the original formulation of Kahneman and Tversky's prospect theory. We find that under IKF and dynamic prospect theory, the equilibrium premium on foreign exchange is positively related to the gap between the aggregate forecast of the exchange rate and its historical benchmark level. We test this implication, using survey data on the German mark-U.S. dollar exchange rate, and find that the behavior of the ex ante premium on foreign exchange is consistent with our model of the premium.EXCHANGE RATES; RISK PREMIUM; IMPERFECT KNOWLEDGE; INDIVIDUAL Rationality; Expectations; Prospect Theory

Why Ownership Matters?: Politicization and Entrepreneurship in the Restructuring of Enterprises in Central Europe

This paper, base on a study of mid-sized firms in the Czech Republic, Hungary, and Poland, examines the sources of performance differences between state and privatized firms, particularly those that may be due to politicization and differences in the degree of entreprenurship. The paper presents empirical evidence that politicization of decision making is responsible for the observed inefficiencies in the cost behavior of state enterprises, but does not explain their inferior revenue performance, which is independent of the degree of state involvement.OWNERSHIP ; PRIVATIZATION ; HUMAN CAPITAL

Why Ownership Matters? Entrepreneurship and the Restructuring of Enterprises in Central Europe

This paper, based on a study of mid-sized firms in the Czech Republic, Hungary, and Poland, seeks to explain the reasons behind the marked impact of ownership on firm performance which has been observed in a number of studies in Eastern Europe and other parts of the world. Focusing in particular on the differential impact of ownership on revenue and cost performance, the paper argues that privatized firms controlled by outside investors are more entrepreneurial than those controlled by corporate insiders or the state. The paper provides evidence that all state and privatized firms in transition economies engage in similar types of restructuring, but that product restructuring by firms owned by outsider investors is significantly more effective (in terms of revenue generation) than that by firms with other types of ownership. The paper also examines the impact of managerial turnover on revenue performance, as well as differences among managers of firms with different types of ownership, and concludes that the more entrepreneurial behavior of outsider-owned firms is due primarily to incentive effects, rather than human capital effects, of privatization. More specifically, the authors argue that the success of outsider-owned firms is due to their greater readiness to accept risks (as evidenced by the higher variance of the revenues generated by restructuring) and a lesser need to defend, and account for, their managerial decisions.OWNERSHIP; PRIVATIZATION; POLITICIZATION; ENTREPRENEURSHIP; INCENTIVES; HUMAN CAPITAL

Universal transport in 2D granular superconductors

The transport properties of quench condensed granular superconductors are presented and analyzed. These systems exhibit transitions from insulating to superconducting behavior as a function of inter-grain spacing. Superconductivity is characterized by broad transitions in which the resistance drops exponentially with reducing temperature. The slope of the log R versus T curves turns out to be universaly dependent on the normal state film resistance for all measured granular systems. It does not depend on the material, critical temperature, geometry, or experimental set-up. We discuss possible physical scenarios to explain these findings.Comment: 4 pages, 3 figure

The Limits of Discipline: Ownership and Hard Budget Constraints in the Transition Economies

This paper argues that the imposition of financial discipline is not sufficient to remedy ownership and governance-related deficiencies of corporate performance. Using evidence from the postcommunist transition economies, the paper shows that a policy of hard budget constraints falters when state firms, because of inferior revenue performance and lesser willingness to meet payment obligations, continue to pose higher credit risk than privatized firms. The brunt of state firms' lower creditworthiness falls on state creditors. But the "softness" of these creditors is unavoidable if it prevents a demise of firms that are in principle capable of successful restructuring through ownership changes.OWNERSHIP; FINANCIAL DISCIPLINE; PERFORMANCE; TRANSITION.

Zeno and anti-Zeno polarization control of spin-ensembles by induced dephasing

We experimentally and theoretically demonstrate the purity (polarization) control of qubits entangled with multiple spins, using induced dephasing in nuclear magnetic resonance (NMR) setups to simulate repeated quantum measurements. We show that one may steer the qubit ensemble towards a quasi-equilibrium state of certain purity, by choosing suitable time intervals between dephasing operations. These results demonstrate that repeated dephasing at intervals associated with the anti-Zeno regime lead to ensemble purification, whereas those associated with the Zeno regime lead to ensemble mixing.Comment: Main Text: 5 pages, 2 figures. Sup. Inf.: 5pages, 1 figur

The signature of a double quantum-dot structure in the I-V characteristics of a complex system

We demonstrate that by carefully analyzing the temperature dependent characteristics of the I-V measurements for a given complex system it is possible to determine whether it is composed of a single, double or multiple quantum-dot structure. Our approach is based on the orthodox theory for a double-dot case and is capable of simulating I-V characteristics of systems with any resistance and capacitance values and for temperatures corresponding to thermal energies larger than the dot level spacing. We compare I-V characteristics of single-dot and double-dot systems and show that for a given measured I-V curve considering the possibility of a second dot is equivalent to decreasing the fit temperature. Thus, our method allows one to gain information about the structure of an experimental system based on an I-V measurement.Comment: 12 pages 7 figure