Death Spiral Issues in Emerging Market: A Control Related Perspective

This paper studies the motive of issuing floating-priced convertibles or warrants, known as death spirals, in a country where the private benefit of control is high. Using a total of 199 death spiral issuances by public firms listed in the Korea Stock Exchange during 1998-2006, we find a number of pieces of empirical evidence that are less consistent with the conventional last resort financing hypothesis, but rather consistent with the control enhancing or control transferring hypothesis. First, abnormal returns subsequent to death spiral issuance is negative, but more so in poorly governed firms. Second, operating performance of chaebol issuers are not necessarily low at the time of the issue nor does it deteriorate over time, but they still prefer to issue death spirals over traditional fixed-priced hybrid securities. Third, we do not observe subsequent changes in the controlling shareholder in more than 60% of the issuers and these firms exhibit superior operating performance at the time of the issue compared to other death spiral or non-death spiral issuers. Fourth, this same set of firms do not experience a decrease in proportional ownership by the controlling party, while family members other than the controlling shareholder experience the most pronounced increases in the number of shares held. Finally, in approximately half of these firms, at least one member of the controlling party holds hybrid securities that can later be converted into voting shares

Death Spiral Issues in Emerging Market: A Control Related Perspective

This paper studies the motive of issuing floating-priced convertibles or warrants, known as death spirals, in a country where the private benefit of control is high. Using a total of 199 death spiral issuances by public firms listed in the Korea Stock Exchange during 1998-2006, we find a number of pieces of empirical evidence that are less consistent with the conventional last resort financing hypothesis, but rather consistent with the control enhancing or control transferring hypothesis. First, abnormal returns subsequent to death spiral issuance is negative, but more so in poorly governed firms. Second, operating performance of chaebol issuers are not necessarily low at the time of the issue nor does it deteriorate over time, but they still prefer to issue death spirals over traditional fixed-priced hybrid securities. Third, we do not observe subsequent changes in the controlling shareholder in more than 60% of the issuers and these firms exhibit superior operating performance at the time of the issue compared to other death spiral or non-death spiral issuers. Fourth, this same set of firms do not experience a decrease in proportional ownership by the controlling party, while family members other than the controlling shareholder experience the most pronounced increases in the number of shares held. Finally, in approximately half of these firms, at least one member of the controlling party holds hybrid securities that can later be converted into voting shares

Computational Analysis of the Performance of a Vertical Axis Turbine in a Water Pipe

In this study, a computational analysis was performed for a vertical-axis turbine which was installed in a water pipe to collect unused energy from the flow inside the pipe. The optimized operating conditions of the turbine were identified by comparing the energy-collecting performance obtained at different tip-speed ratios (TSRs). The turbine achieved the maximum efficiency of 22% at a TSR of 2.4 and collected 33 kW. Additional analyses were conducted to verify the effects of tip clearance, which is the distance between the turbine blades and the pipe wall, which showed that a higher efficiency was obtained with a smaller tip clearance. We also verified the effects of the turbine’s operating conditions and tip clearance on the flow field around the blades and wake of the turbine

Compressibility effects on cavity dynamics behind a two-dimensional wedge

To understand cavity dynamics, many experimental and computational studies have been conducted for many decades. As computational methods, incompressible, isothermal compressible, and fully compressible flow solvers were used for the purpose. In the present study, to understand the compressibility effect on cavity dynamics, both incompressible and fully compressible flow solvers were developed, respectively. Experiments were also carried out in a cavitation tunnel to compare with the computational results. The cavity shedding dynamics, re-entrant jet, transition from bounded shear layer vortices to Karman vortices, and pressure and velocity contours behind the two-dimensional wedge by the two developed solvers were compared at various cavitation numbers.Y

Reactivity and Curing Efficiency of Isocyanate Cross-Linkers with Imidazole-Based Blocking Agents for Low-Temperature Curing of Automotive Clearcoats

For the application of low-temperature curing on automotive clearcoats, isocyanate cross-linkers blocked with imidazole derivatives were newly synthesized. The effect of the alkyl groups in the imidazole derivatives on the deblocking behavior and curing kinetics was investigated. The free isocyanate groups exposed by the deblocking of imidazole-based blocking agents were monitored by real-time Fourier-transform infrared spectroscopy. The bond dissociation energy, activation energy of deblocking, and H-N distance were interpreted through density functional theory simulation of various imidazole-based blocked isocyanates. To evaluate their applicability to automotive clearcoats, the synthesized imidazole-based blocked isocyanates were mixed with a polyol binder containing hydroxyl groups, and the clearcoat samples were cured at relatively low curing temperatures (100, 110, and 120 degrees C). The real-time storage modulus was measured using a rotational rheometer to elucidate the thermal curing dynamics by the blocking agents. In addition, the surface hardness of the cured clearcoat layers, which is affected by the chemical structure of the imidazole derivatives, was evaluated by nanoindentation test. In-depth analyses of the deblocking behaviors and thermal curing properties of clearcoats using imidazole-based blocked isocyanates demonstrated that the newly developed coating system could be suitably applied for the development of low-temperature curing technology