Why are the banks paying so little UK corporation tax?

This paper explores the dramatic fall in receipts of UK corporation tax (UKCT) from banks, and the widening gap between the global corporation tax recorded as payable in banks' financial statements and the UKCT receipts recorded by the tax authorities. It reviews possible explanations, including changes in tax rates, in operating profits, in deductions which reduce taxable profits, and in the share of profit originating in, or recorded in, overseas jurisdictions. It assigns significant roles to tax-deductible asset impairments and to the allocation of profits among different jurisdictions. It suggests reasons why the recovery in banks' global operating profits may not be accompanied by an early sharp recovery in UKCT receipts

Stationarity and the term structure of interest rates: a characterisation of stationary and unit root yield curves

The nature of yield curve dynamics and the determinants of the integration order of yields are investigated using a benchmark economy in which the logarithmic expectations theory holds and the regularity condition of a limiting yield and limiting term premium is satisfied. By considering a zero-coupon yield curve with a complete term structure of maturities, a linear vector autoregressive process is constructed that provides an arbitrarily accurate moving average representation of the complete yield curve as its cross-sectional dimension (n) goes to infinity. We use this to prove the following novel results. First, any I(2) component vanishes owing to the almost sure (a.s.) convergence of the innovations to yields, vt(n), as n. Second, the yield curve is stationary if and only if nvt(n) converges a.s., or equivalently the innovations to log discount bond prices converge a.s.; otherwise yields are I(1). A necessary condition for either stationarity or the absence of arbitrage is that the limiting yield is constant over time. Since the time-varying component of term premia is small in various fixed-income markets, these results provide insight into the critical determinants of the stationarity properties of the term structure.Econometric models ; Interest rates

Thermal Infrared Multispectral Scanner (TIMS): An investigator's guide to TIMS data

The Thermal Infrared Multispectral Scanner (TIMS) is a NASA aircraft scanner providing six channel spectral capability in the thermal infrared region of the electromagnetic spectrum. Operating in the atmospheric window region (8 to 12 micrometers) with a channel sensitivity of approximately 0.1 C, TIMS may be used whenever an accurate measure of the Earth's surface is needed. A description of this scanner is provided as well as a discussion of data acquisition and reduction

Acquirers' earnings management ahead of stock-for-stock bids in 'hot' and 'cold' markets

The accounting literature has found evidence that acquirers in stock-for-stock M&A have typically managed earnings upwards ahead of a bid. Other literatures have concluded that, when stock prices are high and rising, M&A is higher, more M&A is financed with stock, market sentiment and stockholders’ perceptions of information appear to change, and in these circumstances new (arbitrage) motivations for M&A emerge. This paper revisits earnings management ahead of M&A in the light of these findings, comparing experience in ‘hot’ and ‘cold’ markets. It finds that such earnings management is more pronounced in hot markets; that only in such markets are positive discretionary accruals commonly associated with positive abnormal returns on the announcement of earnings; and that in such markets – against the expectations from signalling theory – these positive returns are not reversed on announcement of a stockfor- stock bid. The results suggest that the economic benefits achieved by engaging in earnings management during hot markets are indeed significant: in hot markets, we estimate that on average share acquirers engage in working capital accrual management equivalent to over a third of the average acquirer’s return on total assets in that year; and that this earnings management is associated with increases in market value which are statistically and economically significant, enabling the bidder to secure control of the target with fewer shares

How to deliver an effective senior exercise class

In a time when people are living longer and more active lifestyles, we propose that we may be selling many of our seniors short by oversimplifying the design of group exercise classes. This article suggests ways of delivering effective senior exercise classes incorporating functional movement and sound conditioning principles applied to the older adult population.Funding for the interventions that this article was based on was provided in part by Carolina Meadows CCRC, Chapel Hill, NC, US

Tracking and data systems support for the Helios project. Volume 2: DSN support of Project Helios April 1975 - May 1976

Deep Space Network activities in the development of the Helios B mission from planning through entry of Helios 2 into first superior conjunction (end of Mission Phase II) are summarized. Network operational support activities for Helios 1 from first superior conjunction through entry into third superior conjunction are included

Effect of non-zero constant vorticity on the nonlinear resonances of capillary water waves

The influence of an underlying current on 3-wave interactions of capillary water waves is studied. The fact that in irrotational flow resonant 3-wave interactions are not possible can be invalidated by the presence of an underlying current of constant non-zero vorticity. We show that: 1) wave trains in flows with constant non-zero vorticity are possible only for two-dimensional flows; 2) only positive constant vorticities can trigger the appearance of three-wave resonances; 3) the number of positive constant vorticities which do trigger a resonance is countable; 4) the magnitude of a positive constant vorticity triggering a resonance can not be too small.Comment: 6 pages, submitte