Takeovers, Governance and The Cross-Section of Returns

This paper considers the impact of the takeover channel on firm valuation. We use the idea that takeover activity responds to investor expectations of future rate of return and hence to state variable(s) related to the time variation in risk premia. Thus firms with higher exposure to takeovers, due to higher expectations of receiving a takeover premium, have a higher exposure to the state variable that dictates time variation in risk premia. Consequently, the difference in the returns between firms that differ in their takeover vulnerabilities can be used to used to proxy these state variables. To do so, we create a takeover-spread portfolio that buys firms with low cash-adjusted-leverage (cheaper targets) and shorts firms with high cash-adjusted-leverage and show that such a portfolio generates annualized abnormal returns of up to 11.20% between 1980 and 2003. Also, abnormal returns associated with governance-spread portfolios (Gompers, Ishii and Metrick, 2003 and Cremers and Nair, 2004) decrease significantly once the asset pricing model includes this ’cash-adjusted-leverage’ factor. Finally, we propose a new ‘takeover’ factor to proxy for the risk due to changes in these risk-premia related state variables, which is shown to be important in explaining cross-sectional differences in equity returns. The paper shows why investors require a higher rate of return on firms exposed to takeovers and yet value them higher than firms protected from takeovers

What Are the Driving Forces of International Business Cycles?

We examine the driving forces of G-7 business cycles. We decompose national business cycles into common and nation-specific components using a dynamic factor model. We also do this for driving variables found in business cycle models: productivity; measures of fiscal and monetary policy; the terms of trade and oil prices. We find a large common factor in oil prices, productivity, and the terms of trade. Productivity is the main driving force, with other drivers isolated to particular nations or sub-periods. Along these lines, we document shifts in the correlation of the G-7 component of each driver with the overall G-7 cycle.

Business cycles, international trade and capital flows: Evidence from Latin America

This paper adopts a flexible framework to assess both short- and long-run business cycle linkages between six Latin American (LA) countries and the four largest economies in the world (namely the US, the Euro area, Japan and China) over the period 1980:I-2011:IV. The result indicate that within the LA region there are considerable differences between countries, success stories coexisting with extremely vulnerable economies. They also show that the LA region as a whole is largely dependent on external developments, especially in the years after the great recession of 2008 and 2009. The trade channel appears to be the most important source of business cycle comovement, whilst capital flows are found to have a limited role, especially in the very short run

First Demonstration of a Pixelated Charge Readout for Single-Phase Liquid Argon Time Projection Chambers

Liquid Argon Time Projection Chambers (LArTPCs) have been selected for the future long-baseline Deep Underground Neutrino Experiment (DUNE). To allow LArTPCs to operate in the high-multiplicity near detector environment of DUNE, a new charge readout technology is required. Traditional charge readout technologies introduce intrinsic ambiguities, combined with a slow detector response, these ambiguities have limited the performance of LArTPCs, until now. Here, we present a novel pixelated charge readout that enables the full 3D tracking capabilities of LArTPCs. We characterise the signal to noise ratio of charge readout chain, to be about 14, and demonstrate track reconstruction on 3D space points produced by the pixel readout. This pixelated charge readout makes LArTPCs a viable option for the DUNE near detector complex.Comment: 13 pages, 9 figure

Geometric Reinforcement Learning For Robotic Manipulation

Reinforcement learning (RL) is a popular technique that allows an agent to learn by trial and error while interacting with a dynamic environment. The traditional Reinforcement Learning (RL) approach has been successful in learning and predicting Euclidean robotic manipulation skills such as positions, velocities, and forces. However, in robotics, it is common to encounter non-Euclidean data such as orientation or stiffness, and failing to account for their geometric nature can negatively impact learning accuracy and performance. In this paper, to address this challenge, we propose a novel framework for RL that leverages Riemannian geometry, which we call Geometric Reinforcement Learning (G-RL), to enable agents to learn robotic manipulation skills with non-Euclidean data. Specifically, G-RL utilizes the tangent space in two ways: a tangent space for parameterization and a local tangent space for mapping to a nonEuclidean manifold. The policy is learned in the parameterization tangent space, which remains constant throughout the training. The policy is then transferred to the local tangent space via parallel transport and projected onto the non-Euclidean manifold. The local tangent space changes over time to remain within the neighborhood of the current manifold point, reducing the approximation error. Therefore, by introducing a geometrically grounded pre- and post-processing step into the traditional RL pipeline, our G-RL framework enables several model-free algorithms designed for Euclidean space to learn from non-Euclidean data without modifications. Experimental results, obtained both in simulation and on a real robot, support our hypothesis that G-RL is more accurate and converges to a better solution than approximating non-Euclidean data.Comment: 14 pages, 14 figures, journa

Statistical Analysis of 100 Gbps per Wavelength SWDM VCSEL-MMF Data Center Links on a Large Set of OM3 and OM4 Fibers

We present a detailed statistical study on achievable reach of 100 Gbps data center optical links based on vertical cavity surface emitting lasers (VCSEL) and multimode fibers (MMF). Based on the characterization of the spectral and spatial properties of eight lasers and of the modal and dispersion behavior of a large set of 20233 OM3 and OM4 modeled fibers (obtained by properly extending an initial set of 500 measured fibers), we compute the resulting frequency responses of all of the VCSEL-MMF combinations. Then, we feed them to a numerical tool modeling PAM-4 transmission at 100 Gbps net bit rate per wavelength. Our model analyzes performance at distances up to 400 meters, using three different adaptive equalizers at the receiver and considering two forward error correction overheads. We show that 100 Gbps operation is feasible for 99% of the simulated links reaching up to 120 m over OM4 at 850 nm and using a decision feedback equalizer (DFE). Aggregated data rates of 200 Gbps and 400 Gbps per fiber using Shortwave Wavelength Division Multiplexing (SWDM) are achievable for 99% of the links reaching 80 m over OM4 using two wavelengths and feed-forward equalizer (FFE) and four wavelengths and maximum likelihood sequence estimation (MLSE)-based equalizer, respectively

Takeovers, Governance and The Cross-Section of Returns

This paper considers the impact of the takeover channel on firm valuation. We use the idea that takeover activity responds to investor expectations of future rate of return and hence to state variable(s) related to the time variation in risk premia. Thus firms with higher exposure to takeovers, due to higher expectations of receiving a takeover premium, have a higher exposure to the state variable that dictates time variation in risk premia. Consequently, the difference in the returns between firms that differ in their takeover vulnerabilities can be used to used to proxy these state variables. To do so, we create a takeover-spread portfolio that buys firms with low cash-adjusted-leverage (cheaper targets) and shorts firms with high cash-adjusted-leverage and show that such a portfolio generates annualized abnormal returns of up to 11.20% between 1980 and 2003. Also, abnormal returns associated with governance-spread portfolios (Gompers, Ishii and Metrick, 2003 and Cremers and Nair, 2004) decrease significantly once the asset pricing model includes this ’cash-adjusted-leverage’ factor. Finally, we propose a new ‘takeover’ factor to proxy for the risk due to changes in these risk-premia related state variables, which is shown to be important in explaining cross-sectional differences in equity returns. The paper shows why investors require a higher rate of return on firms exposed to takeovers and yet value them higher than firms protected from takeovers

Brucellosis remains a neglected disease inthe developing world: a call forinterdisciplinary action

Brucellosis places significant burdens on the human healthcare system and limits the economic growth of individuals, communities, and nations where such development is especially important to diminish the prevalence of poverty. The implementation of public policy focused on mitigating the socioeconomic effects of brucellosis in human and animal populations is desperately needed. When developing a plan to mitigate the associated consequences, it is vital to consider both the abstract and quantifiable effects. This requires an interdisciplinary and collaborative, or One Health, approach that consists of public education, the development of an infrastructure for disease surveillance and reporting in both veterinary and medical fields, and campaigns for control in livestock and wildlife species

The new resilience of emerging and developing countries: systemic interlocking, currency swaps and geoeconomics

The vulnerability/resilience nexus that defined the interaction between advanced and developing economies in the post-WWII era is undergoing a fundamental transformation. Yet, most of the debate in the current literature is focusing on the structural constraints faced by the Emerging and Developing Countries (EDCs) and the lack of changes in the formal structures of global economic governance. This paper challenges this literature and its conclusions by focusing on the new conditions of systemic interlocking between advanced and emerging economies, and by analysing how large EDCs have built and are strengthening their economic resilience. We find that a significant redistribution of ‘policy space’ between advanced and emerging economies have taken place in the global economy. We also find that a number of seemingly technical currency swap agreements among EDCs have set in motion changes in the very structure of global trade and finance. These developments do not signify the end of EDCs’ vulnerability towards advanced economies. They signify however that the economic and geoeconomic implications of this vulnerability have changed in ways that constrain the options available to advanced economies and pose new challenges for the post-WWII economic order