Truth-telling and the Role of Limited Liability in Costly State Verification Loan Contracts

Recent literature has considered the form of loan contract between two or more risk neutral parties where the revelation principle is inappropriate due to the lack of commitment to an auditing policy by the lender. The privately informed debtor has a stochastic return; once he knows the state realisation, auditing and cheating are determined as Nash equilibria. The literature assumes that this leads to randomised cheating and auditing. In this paper we verify that the contract may involve this randomisation; but that it may also involve truthtelling with random auditing and one or more investors in line with Persons (1996); or a single state independent repayment with no auditing. We define conditions on the state observation cost and the distribution of returns which determine which of these three forms of contract is optimal. We find that under unlimited liability when the loan size is fixed the two investor truthtelling contract dominates all the other forms; and that this is also true when the loan size is optimally chosen. On the other hand under limited liability if the cost of observation is large relative to the lowest state revenue, the random auditing contract or a constrained two investor truthtelling contract may be optimal. The limited liability condition in the constrained truthtelling contracts forces the level of finance to be higher than under unlimited liability.loan contracts, costly state verification, commitment, limited liability

Labour Turnover and Firm Performance

We explore the impact of labour turnover on firm performance by analysing the predictions of an extension of the efficiency wage model of Salop (1979) developed by Garino and Martin (2007), which separates incumbent and newly hired workers in the production function. Within this theoretical framework, an exogenous increase in the turnover rate can increase profits if firms do not choose wages unilaterally. We test the theoretical predictions of the model using UK cross-section establishment-level data, the 2004 Workplace and Employee Relations Survey. In accordance with our theoretical priors, the empirical results support the standard inverse relationship between the quit rate and firm performance where firms unilaterally choose the wage and generally support a positive relationship between firm performance and the quit rate where trade unions influence wage setting

Dipyridylmethane ethers as ligands for luminescent Ir complexes

This work reports two new cationic heteroleptic cyclometalated iridium complexes, containing ether derivatives of di(pyridin-2-yl)methanol. The new ligands are based on dipyridin-2-ylmethane and are designed to obtain ether-based intermediates with extended electronic conjugation by insertion of π system such as phenyl, allyl and ethynyl. Different synthetic strategies were employed to introduce these units, as molecular wires, between the dipyridin-2-ylmethane chelating portion and the terminal N-containing functional group, such as amine and carbamide. The corresponding complexes show luminescence in the blue region of the spectrum, lifetimes between 0.6 and 2.1 μs, high quantum yield and good electrochemical behavior. The computational description (DFT) of the electronic structure highlights the key role of the conjugated π systems on optical and electrochemical properties of the final products

The shielding effect of phospholipidic bilayers on zinc oxide nanocrystals for biomedical applications

Zinc oxide nanocrystals (ZnO NCs), thanks to their unique properties, are receiving much attention for their use in nanomedicine, in particular for therapy against cancer [1]. To be efficiently employed as diagnostic and therapeutic (yet theranostic) tools [2], highly dispersed, stable and non-toxic nanoparticles are required. In the case of ZnO NCs, there is still a lack of knowledge about cytotoxicity mechanisms and stability in the biological context, as well as immunological response and haemocompatible features. Most of these above-mentioned behaviours strongly depends on physico-chemical and surface properties of the nanoparticles. We thus propose a novel approach to stabilize the ZnO NCs in various biological media, focusing on NC aggregation and biodegradation as a function of the surface functionalization. We synthesized bare ZnO NCs, amino-propyl functionalized ones, and lipid bilayer-shielded NCs, and we characterized their morphological, chemical and physical properties. The stability behavior of the three different samples was evaluated, comparing their biodegradation profiles in different media, i.e. organic solvents, water, and different simulated and biological fluids. The studies aim to investigate how the particle surface functionalizations, and thus chemistry and charge, could influence their hydrodynamic size, zeta potential and consequent aggregation and degradation in the different solvents. We demonstrated that bare and amino-functionalized ZnO NCs strongly and rapidly aggregate when suspended in both simulated and biological media. Long-term biodegradation analysis showed small dissolution into potentially cytotoxic Zn-cations, also slightly affecting their crystalline structure. In contrast, high colloidal stability and integrity was retained for lipid-shielded ZnO NCs in all media, rendering them the ideal candidates for further theranostic applications [3]. [1] P. Zhu, Z. Weng, X. Li, X. Liu, S. Wu Adv. Mater. Interfaces 3 (2016) 1500494. [2] E. Lim, T. Kim, S. Paik, S. Haam, Y. Huh, and K. Lee, Chem. Rev. 115 (2015) 327−394. [3] B. Dumontel, M. Canta, H. Engelke, A. Chiodoni, L. Racca, A. Ancona, T. Limongi, G. Canavese and V. Cauda, J. Mater. Chem. B, under review The support from ERC Starting Grant – Project N. 678151 “Trojananohorse” and Compagnia di Sanpaolo are gratefully acknowledged