Liquidation Triggers and the Valuation of Equity and Debt

Net-worth covenants, as introduced by Black and Cox (1976), provide the firm’s bondholders with the right to force reorganization or liquidation if the value of the firm falls below a certain threshold. In the event of default, however, many bankruptcy codes stipulate an automatic stay of assets that prevent bondholders from triggering liquidation and thus impact many positive net-worth covenants. To consider this impact on a corporation’s capital structure we develop a general model of liquidation driven by a liquidation trigger. This trigger accumulates with time and severity of distress. In addition, current distress periods may have greater weight than old ones. The tractability of the approach stems from its ability to allow parameters appropriate for different legal rules and types of bondholder safety covenants. The proposed model includes several well-known models, like Merton, Black- Cox and others. We show how to valuate various types of corporate securities by using this model. Numerical results and sensitivity analysis are presented for selected basic cases.default, bankruptcy, liquidation trigger, debt pricing, corporate finance

Auctioning Sovereign Bonds: A Global Cross-Section Investigation of the Price Mechanism

Many financial assets, especially government bonds, are issued by an auction. An important feature of the design is the auction pricing mechanism: Uniform vs. Discriminatory. Theoretical papers do not provide a definite answer regarding the dominance of one type of auction over the other. We investigate the revealed preferences of the issuers by surveying the sovereign issuers that conduct auctions. We find that the majority of the issuers/countries in our sample use a discriminatory auction mechanism for issuing government debt securities. We use a multinomial logit procedure and discriminatory analysis to investigate the mechanism choice. It was interesting to find that market oriented economies and those that practice Common law tend to use a uniform method while economies who are less market oriented and practice Civil law tend to use discriminatory price auctions

Endogenizing Bidders Choice in Divisible Goods Auctions

Many financial assets, especially government bonds, are issued by an auction mechanism. An important feature of the design is the auction pricing mechanism: Uniform vs. Discriminatory. Theoretical papers do not provide a definite answer regarding the preference of one mechanism over the other. Experimental papers investigated the issue under an exogenous equal number of bidders. We investigate the bidders’ choice and the impact of that choice on the outcome of the auction by letting them choose between the two alternative systems. The majority of the bidders in the survey have chosen the uniform method. Those that prefer the uniform auction bid, on average, more aggressively than those that choose the discriminatory one. On average the revenues to the issuer were higher under the uniform price mechanism

Strategija razvoja kontejnerskog terminala u luci Port Saidu

Since 1960 there has been a growing trend for utilizing containers in marine shipping due to the growth of global trade, safety of containers, faster handling in ports and door to door services. This trend led to a development of container ships from 1000 TEU to 12000 TEU capacities. Consequently there is a continuous development in all related parties to container shipping such as port authorities, container terminals, cargo handling equipment manufacturers, management of container terminals and information technology. The system of containerization made a revolution at the entire pattern of trade and ports around the world, gearing up to meet trade growth and its requirements. Although there is a development in most of container terminals globally, our Egyptian container terminals still suffer from low performance which leads to losing the competitive capability. The paper is discussing the problems of public sector container terminals in Egypt and pointing particularly to Port Said Container Terminal, focusing on existing problems and suggested solutions for solving and improving the performance and productivity to compete and face the challenges due to the continuous growth in container shipping market.Od 1960. stalno raste trend rabljenja kontejnera u pomorskom brodarstvu. Taj je rast generiran prije svega zbog rasta globalnog prometa, sigurnosti kontejnera, bržeg rukovanja u lukama i servisom „od vrata – do vrata“. Taj trend doveo je do kontejnerskih brodova kapaciteta od 1000 do 12000 TEU. Sukladno tome, došlo je do razvoja svih ostalih subjekata međusobno povezanih s kontejnerskim brodarstvom, kao što su: lučke vlasti, kontejnerski terminali, proizvođači za opremu pri rukovanju teretom, upravom kontejnerskih terminala i tehnologijom informacija. Sustav prijevoza robe u kontejnerima revolucionarno je djelovao na globalnu strukturu prometa i luka, čvrsto se povezujući da bi se zadovoljio zahtjev porast prometa. Na globalnom planu većina se kontejnerskih terminala razvila. Ali, primjerice, egipatski kontejnerski terminali još uvijek pate od niskog stupnja učinkovitosti, što dovodi do nedostatne konkurentske sposobnosti. U ovom se radu raspravlja o problemima javnog sektora kontejnerskih terminala u Egiptu s posebnim osvrtom na kontejnerski terminal Port Saida, fokusirajući se na postojeće probleme i na elaboriranje prijedloga za rješavanje i usavršavanje rada i produktivnosti kako bi se povećala konkurentnost i suočilo s izazovima neprekidnog rasta na tržištu kontejnerskog brodarstva

Kinetic study of a HGdP2O7.3H2O dehydration step

International audienceA kinetic study of the transformation of HGdP2O7.1.5H2O into HGdP2O7.0.5H2O has been achieved by means of isothermal thermogravimetry experiments under controlled water vapour pressure. This pressure was found to have an accelerating effect upon the rate of reaction. The kinetic curves giving the extent of reaction versus time can be described using a Mampel's model. Via this modeling, values of surfacic growth rate and frequency of nucleation have been determined

The use and regulation of private military companies

My research investigates the use and regulation of private military companies (PMCs) in international law. This legal research adopts a critical method of historical sociology to accommodate changing modes of governance. By exploring historical patterns of the use of private force I analyse the effectiveness and applicability of contemporary attempts to regulate PMCs. There are numerous overlapping forms of regulation that attempt to govern PMC conduct. The key gap, identified by analysing relevant bodies of international and domestic law, is the lack of a corporate liability mechanism strong enough to tackle grave international crimes committed by PMCs and the challenges posed by the corporate veil. By assessing the prevailing form of governance and the role that private security plays in state policy, it becomes clear that states are the main PMC clients who rely on companies for providing security services. Meanwhile the industry treats military activity just like any other commodity that can be self-regulated by the free market. In order to close the gap of PMC impunity, an international legal response is required that can target PMCs as companies and to invoke criminal corporate responsibility. This is why I develop a corporate criminal responsibility approach that has the potential of addressing the legal gap in PMC regulation. I argue that due to the military nature of their activity, PMCs are different to other companies as they took on a portion of state functions that requires a proportionate legal response in terms of responsibility. Transnational nature of PMC activity signals the need for these companies to be recognised as actors on the international level and acquire international legal personality. Finally, I explore the possibility of invoking criminal corporate responsibility through international criminal law as it offers the most tailored approach of regulating a changing governance

Az ÉFOÉSZ és tagszervezeteinek törekvései a könnyen érthető kommunikáció területén

A tanulmányban – szemle jelleggel – az ÉFOÉSZ és három tagszervezete innovációs törekvéseinek a bemutatására kerül sor. Célom annak bemutatása, hogy mi történt az elmúlt évtizedekben a könnyen érthető kommunikáció területén, illetve milyen tényezők segítik és akadályozzák a módszer hazai elterjesztését. Kitérünk a jövőre vonatkozó tervekre is

INFERENCE FOR SURVIVAL CURVES WITH INFORMATIVELY COARSENED DISCRETE EVENT-TIME DATA: APPLICATION TO ALIVE

In many prospective studies, including AIDS Link to the Intravenous Experience (ALIVE), researchers are interested in comparing event-time distributions (e.g.,for human immunodeficiency virus seroconversion) between a small number of groups (e.g., risk behavior categories). However, these comparisons are complicated by participants missing visits or attending visits off schedule and seroconverting during this absence. Such data are interval-censored, or more generally,coarsened. Most analysis procedures rely on the assumption of non-informative censoring, a special case of coarsening at random that may produce biased results if not valid. Our goal is to perform inference for estimated survival functions across a small number of goups in the presence of informative coarsening. To do so, we propose methods for frequentist and Bayesian inference of ALIVE data utilizing information elicited from ALIVE scientists and an AIDS epidemiology expert about the visit compliance process

Analyse des assemblages à brides boulonnées à face plate

Le développement analytique pour l’amélioration des codes de calcul des assemblages pressurisés est de plus en plus indispensable avec l’évolution rapide de la technologie, la sévérité des lois de sécurité et la rigueur des normes de protection de l’environnement. En outre, suite aux faibles performance des brides à face plate, ni l'annexe 2, ni l'annexe Y du code ASME, qui décrivent les règles de conception des brides, sont fiables pour évaluer la charge résiduelle sur le joint d’étanchéité en mode opératoire. Par ailleurs, la prédiction de l'étanchéité de ces assemblages est basée sur le niveau de la précision de la pression de contact. Par contre, la détermination de cette pression est complexe vu le nombre de paramètres qui influent sur le comportement de ce type d’assemblage. Des considérations économiques ont fait que les brides à face plate sont de plus en plus utilisées dans l’industrie. Ils sont faciles à usiner et à monter. Par contre, leur performance pour assurer une étanchéité adéquate dépend énormément de la conception de l’assemblage et des paramètres de fonctionnement. Ce travail présente une approche analytique pour évaluer la rotation de la bride et la pression de contact d’une manière précise dans un assemblage à brides boulonnées à face plate afin d’assurer l’étanchéité du système et de prévenir les fuites. Deux types d’assemblages seront traités : les brides à face plate avec contact métal-métal et les brides à face plate munies de joint pleine face. La méthode est basée sur l’interaction élastique du système joint-boulonsbrides. Les modèles proposés sont validés par comparaison avec ceux générés par éléments finis pour différentes tailles de brides