The Value of Real and Financial Risk Management

We characterize a firm as a nexus of activities and projects with their associated cashflows. Production and operations activities and real risk management activities distribute cashflows over states of nature and time periods, leading to a transformation possibility frontier similar to a production function. The concavity of the frontier induces a firm to react more or less to changes in market prices of risks to attain the new value maximizing portfolio of real activities. Financial risk management helps implement these real project changes and alleviate the related reorganization and coordination problems. Empirically, we show that a firm's reactiveness to variations in risk prices is linked to its hedging activities. We also argue that financial risk management allows a firm to meet cashflow-at-risk or value-at-risk constraints at little or no cost. Nous caractérisons une entreprise comme un ensemble de projets avec les flux monétaires qui y sont associés. Les activités de production et d'exploitation de même que les activités de gestion réelle des risques distribuent ces flux entre divers états de la nature et périodes. Il en résulte une frontière des possibilités de transformation des flux similaire à une frontière de production. La concavité de la frontière amène la firme à réagir plus ou moins aux changements dans les prix des risques pour atteindre le nouveau portefeuille optimal d’activités réelles. La gestion financière des risques aide à implémenter ces modifications dans les projets et allège ainsi les problèmes associés de réorganisation et de coordination. Empiriquement, nous montrons que le degré de réactivité de la firme aux variations des prix des risques influence ses activités de couverture. De plus, nous montrons que la gestion financière des risques permet à l’entreprise de rencontrer des contraintes de cashflow-à-risque ou de valeur-à-risque à peu ou pas de frais.risk management, firm value, hedging, value at risk, gestion des risques, valeur de la firme, coordination, valeur à risque

Enhancement of entanglement in one-dimensional disordered systems

The pairwise quantum entanglement of sites in disordered electronic one-dimensional systems (rings) is studied. We focus on the effect of diagonal and off diagonal disorder on the concurrence $C_{ij}$ between electrons on neighbor and non neighbor sites $i,j$ as a function of band filling. In the case of diagonal disorder, increasing the degree of disorder leads to a decrease of the concurrence with respect to the ordered case. However, off-diagonal disorder produces a surprisingly strong enhancement of entanglement. This remarkable effect occurs near half filling, where the concurrence becomes up to 15% larger than in the ordered system.Comment: 21 pages, 9 figure

On the spectrum of a matrix model for the D=11 supermembrane compactified on a torus with non-trivial winding

The spectrum of the Hamiltonian of the double compactified D=11 supermembrane with non-trivial central charge or equivalently the non-commutative symplectic super Maxwell theory is analyzed. In distinction to what occurs for the D=11 supermembrane in Minkowski target space where the bosonic potential presents string-like spikes which render the spectrum of the supersymmetric model continuous, we prove that the potential of the bosonic compactified membrane with non-trivial central charge is strictly positive definite and becomes infinity in all directions when the norm of the configuration space goes to infinity. This ensures that the resolvent of the bosonic Hamiltonian is compact. We find an upper bound for the asymptotic distribution of the eigenvalues.Comment: 11 pages, LaTe

Break-down of the density-of-states description of scanning tunneling spectroscopy in supported metal clusters

Low-temperature scanning tunneling spectroscopy allows to probe the electronic properties of clusters at surfaces with unprecedented accuracy. By means of quantum transport theory, using realistic tunneling tips, we obtain conductance curves which considerably deviate from the cluster's density of states. Our study explains the remarkably small number of peaks in the conductance spectra observed in recent experiments. We demonstrate that the unambiguous characterization of the states on the supported clusters can be achieved with energy-resolved images, obtained from a theoretical analysis which mimics the experimental imaging procedure.Comment: 5 pages, 3 figure

Change in the North Atlantic circulation associated with the mid-Pleistocene transition

The southwestern Iberian margin is highly sensitive to changes in the distribution of North Atlantic currents and to the position of oceanic fronts. In this work, the evolution of oceanographic parameters from 812 to 530 ka (MIS20-MIS14) is studied based on the analysis of planktonic foraminifer assemblages from site IODP-U1385 (37 degrees 34.285' N, 10 degrees 7.562' W; 2585m b.s.l.). By comparing the obtained results with published records from other North Atlantic sites between 41 and 55 degrees N, basin-wide paleoceano-graphic conditions are reconstructed. Variations of assemblages dwelling in different water masses indicate a major change in the general North Atlantic circulation during MIS16, coinciding with the definite establishment of the 100 ky cyclicity associated with the mid-Pleistocene transition. At the surface, this change consisted in the redistribution of water masses, with the subsequent thermal variation, and occurred linked to the northwestward migration of the Arctic Front (AF), and the increase in the North Atlantic Deep Water (NADW) formation with respect to previous glacials. During glacials prior to MIS16, the NADW formation was very weak, which drastically slowed down the surface circulation; the AF was at a southerly position and the North Atlantic Current (NAC) diverted southeastwards, developing steep south-north, and east-west, thermal gradients and blocking the arrival of warm water, with associated moisture, to high latitudes. During MIS16, the increase in the meridional overturning circulation, in combination with the northwestward AF shift, allowed the arrival of the NAC to subpolar latitudes, multiplying the moisture availability for ice-sheet growth, which could have worked as a positive feedback to prolong the glacials towards 100 ky cycles.info:eu-repo/semantics/publishedVersio

Preparing projected entangled pair states on a quantum computer

We present a quantum algorithm to prepare injective PEPS on a quantum computer, a class of open tensor networks representing quantum states. The run-time of our algorithm scales polynomially with the inverse of the minimum condition number of the PEPS projectors and, essentially, with the inverse of the spectral gap of the PEPS' parent Hamiltonian.Comment: 5 pages, 1 figure. To be published in Physical Review Letters. Removed heuristics, refined run-time boun

Optical signatures of the superconducting Goldstone mode in granular aluminum: experiments and theory

Recent advances in the experimental growth and control of disordered thin films, heterostructures, and interfaces provide a fertile ground for the observation and characterisation of the collective superconducting excitations emerging below $T_c$ after breaking the $U(1)$ gauge symmetry. Here we combine THz experiments in a nano-structured granular Al thin film and theoretical calculations to demonstrate the existence of optically-active phase modes, which represent the Goldstone excitations of the broken gauge symmetry. By measuring the complex transmission trough the sample we identify a sizeable and temperature-dependent optical sub-gap absorption, which cannot be ascribed to quasiparticle excitations. A quantitative modelling of this material as a disordered Josephson array of nano-grains allows us to determine, with no free parameters, the structure of the spatial inhomogeneities induced by shell effects. Besides being responsible for the enhancement of the critical temperature with respect to bulk Al, already observed in the past, this spatial inhomogeneity provides a mechanism for the optical visibility of the Goldstone mode. By computing explicitly the optical spectrum of the superconducting phase fluctuations we obtain a good quantitative description of the experimental data. Our results demonstrate that nanograins arrays are a promising setting to study and control the collective superconducting excitations via optical means