Essays in Corporate Finance.

This dissertation is comprised of three articles. The first article examines the importance of capital market imperfections by investigating the dependence of a firm's investment on its internal resources. I exploit the tax loss carryforward feature of the tax code to establish that corporate investments are causally affected by the internal resources available to the firm. The degree of dependence, in turn, is affected by the costliness of debt market financing. Distributions to shareholders are not affected by incremental internal resources, and borrowing actually increases with incremental internal resources. Firms retain a significant portion of incremental cash flow. Taken together, these findings confirm the existence of capital constraints imposed by costs of access to external finance. The second article focuses on the cost of inflating reports of financial performance and its consequences for the efficiency of investment in the economy. It is well-established that adverse selection in the capital market can cause firms with positive NPV projects to underinvest. The financial accounting system can alleviate this problem by making it more costly for firms to exaggerate their performance. However, I argue that making performance inflation more costly can also lead to overinvestment by leading to equilibrium overpricing of firms with negative NPV projects. Increasing the cost of performance inflation beyond a certain point results in less efficient investment even though it reduces equilibrium misreporting. The third article presents an explanation for the commonly-observed link between managerial pay and stock price over the short term that focuses on managerial risk-taking incentives. It is well accepted that aligning managerial incentives with those of stock holders enhances shareholder value. In theory models, such alignment is usually modeled as giving managers a stake in the realized cash flows of the firm's projects. However, such a stake, which entails a manager holding on to her equity position until all cash flow uncertainty is resolved, can lead a risk averse manager to turn down risky positive NPV projects. This chapter argues that equity-linked incentives can mitigate the manager's bias against assuming risk, provided the manager is allowed the flexibility of trading out her equity position early.Ph.D.Business AdministrationUniversity of Michigan, Horace H. Rackham School of Graduate Studieshttp://deepblue.lib.umich.edu/bitstream/2027.42/61764/1/cohnj_1.pd

HST-NICMOS Observations of Terzan 5: Stellar Content and Structure of the Core

We report results from HST-NICMOS imaging of the extremely dense core of the globular cluster Terzan 5. This highly obscured bulge cluster has been estimated to have one of the highest collision rates of any galactic globular cluster, making its core a particularly conducive environment for the production of interacting binary systems. We have reconstructed high-resolution images of the central 19"x19" region of Terzan 5 by application of the drizzle algorithm to dithered NIC2 images in the F110W, F187W, and F187N near-infrared filters. We have used a DAOPHOT/ALLSTAR analysis of these images to produce the deepest color-magnitude diagram (CMD) yet obtained for the core of Terzan 5. We have also analyzed the parallel 11"X11" NIC1 field, centered 30" from the cluster center and imaged in F110W and F160W, and an additional NIC2 field that is immediately adjacent to the central field. This imaging results in a clean detection of the red-giant branch and horizontal branch in the central NIC2 field, and the detection of these plus the main-sequence turnoff and the upper main sequence in the NIC1 field. We have constructed an H versus J-H CMD for the NIC1 field. We obtain a new distance estimate of 8.7 kpc, which places Terzan 5 within less than 1 kpc of the galactic center. We have also determined a central surface-density profile which results in a maximum likelihood estimate of 7.9" +/- 0.6" for the cluster core radius. We discuss the implications of these results for the dynamical state of Terzan 5.Comment: 17 pages, 9 figures, accepted for publication in ApJ, for May 20, 200

A giant galaxy in the young Universe with a massive ring

In the local (redshift z~0) Universe, collisional ring galaxies make up only ~0.01% of galaxies and are formed by head-on galactic collisions that trigger radially propagating density waves. These striking systems provide key snapshots for dissecting galactic disks and are studied extensively in the local Universe. However, not much is known about distant (z>0.1) collisional rings. Here we present a detailed study of a ring galaxy at a look-back time of 10.8 Gyr (z=2.19). Compared with our Milky Way, this galaxy has a similar stellar mass, but has a stellar half-light radius that is 1.5-2.2 times larger and is forming stars 50 times faster. The large, diffuse stellar light outside the star-forming ring, combined with a radial velocity on the ring and an intruder galaxy nearby, provides evidence for this galaxy hosting a collisional ring. If the ring is secularly evolved, the implied large bar in a giant disk would be inconsistent with the current understanding of the earliest formation of barred spirals. Contrary to previous predictions, this work suggests that massive collisional rings were as rare 11 Gyr ago as they are today. Our discovery offers a unique pathway for studying density waves in young galaxies, as well as constraining the cosmic evolution of spiral disks and galaxy groups.Comment: Author's version for the main article (10 pages). The Supplementary Information (22 pages) and a combined pdf are provided here http://astronomy.swin.edu.au/~tyuan/paper Published version available online http://dx.doi.org/10.1038/s41550-020-1102-

Labeling poststorm coastal imagery for machine learning: measurement of interrater agreement

© The Author(s), 2021. This article is distributed under the terms of the Creative Commons Attribution License. The definitive version was published in Goldstein, E. B., Buscombe, D., Lazarus, E. D., Mohanty, S. D., Rafique, S. N., Anarde, K. A., Ashton, A. D., Beuzen, T., Castagno, K. A., Cohn, N., Conlin, M. P., Ellenson, A., Gillen, M., Hovenga, P. A., Over, J.-S. R., Palermo, R., Ratliff, K. M., Reeves, I. R. B., Sanborn, L. H., Straub, J. A., Taylor, L. A., Wallace E. J., Warrick, J., Wernette, P., Williams, H. E. Labeling poststorm coastal imagery for machine learning: measurement of interrater agreement. Earth and Space Science, 8(9), (2021): e2021EA001896, https://doi.org/10.1029/2021EA001896.Classifying images using supervised machine learning (ML) relies on labeled training data—classes or text descriptions, for example, associated with each image. Data-driven models are only as good as the data used for training, and this points to the importance of high-quality labeled data for developing a ML model that has predictive skill. Labeling data is typically a time-consuming, manual process. Here, we investigate the process of labeling data, with a specific focus on coastal aerial imagery captured in the wake of hurricanes that affected the Atlantic and Gulf Coasts of the United States. The imagery data set is a rich observational record of storm impacts and coastal change, but the imagery requires labeling to render that information accessible. We created an online interface that served labelers a stream of images and a fixed set of questions. A total of 1,600 images were labeled by at least two or as many as seven coastal scientists. We used the resulting data set to investigate interrater agreement: the extent to which labelers labeled each image similarly. Interrater agreement scores, assessed with percent agreement and Krippendorff's alpha, are higher when the questions posed to labelers are relatively simple, when the labelers are provided with a user manual, and when images are smaller. Experiments in interrater agreement point toward the benefit of multiple labelers for understanding the uncertainty in labeling data for machine learning research.The authors gratefully acknowledge support from the U.S. Geological Survey (G20AC00403 to EBG and SDM), NSF (1953412 to EBG and SDM; 1939954 to EBG), Microsoft AI for Earth (to EBG and SDM), The Leverhulme Trust (RPG-2018-282 to EDL and EBG), and an Early Career Research Fellowship from the Gulf Research Program of the National Academies of Sciences, Engineering, and Medicine (to EBG). U.S. Geological Survey researchers (DB, J-SRO, JW, and PW) were supported by the U.S. Geological Survey Coastal and Marine Hazards and Resources Program as part of the response and recovery efforts under congressional appropriations through the Additional Supplemental Appropriations for Disaster Relief Act, 2019 (Public Law 116-20; 133 Stat. 871)

Intermediate and extreme mass-ratio inspirals — astrophysics, science applications and detection using LISA

Black hole binaries with extreme (gtrsim104:1) or intermediate (~102–104:1) mass ratios are among the most interesting gravitational wave sources that are expected to be detected by the proposed laser interferometer space antenna (LISA). These sources have the potential to tell us much about astrophysics, but are also of unique importance for testing aspects of the general theory of relativity in the strong field regime. Here we discuss these sources from the perspectives of astrophysics, data analysis and applications to testing general relativity, providing both a description of the current state of knowledge and an outline of some of the outstanding questions that still need to be addressed. This review grew out of discussions at a workshop in September 2006 hosted by the Albert Einstein Institute in Golm, Germany

The specific role of relationship life events in the onset of depression during pregnancy and the postpartum

Background The precipitating role of life events in the onset of depression is well-established. The present study sought to examine whether life events hypothesised to be personally salient would be more strongly associated with depression than other life events. In a sample of women making the first transition to parenthood, we hypothesised that negative events related to the partner relationship would be particularly salient and thus more strongly predictive of depression than other events. Methods A community-based sample of 316 first-time mothers stratified by psychosocial risk completed interviews at 32 weeks gestation and 29 weeks postpartum to assess dated occurrence of life events and depression onsets from conception to 29 weeks postpartum. Complete data was available from 273 (86.4%). Cox proportional hazards regression was used to examine risk for onset of depression in the 6 months following a relationship event versus other events, after accounting for past history of depression and other potential confounders. Results 52 women (19.0%) experienced an onset of depression between conception and 6 months postpartum. Both relationship events (Hazard Ratio = 2.1, p = .001) and other life events (Hazard Ratio = 1.3, p = .020) were associated with increased risk for depression onset; however, relationship events showed a significantly greater risk for depression than did other life events (p = .044). Conclusions The results are consistent with the hypothesis that personally salient events are more predictive of depression onset than other events. Further, they indicate the clinical significance of events related to the partner relationship during pregnancy and the postpartum

The international WAO/EAACI guideline for the management of hereditary angioedema—The 2021 revision and update

Hereditary angioedema (HAE) is a rare and disabling disease for which early diagnosis and effective therapy are critical. This revision and update of the global WAO/EAACI guideline on the diagnosis and management of HAE provides up-to-date guidance for the management of HAE. For this update and revision of the guideline, an international panel of experts reviewed the existing evidence, developed 28 recommendations, and established consensus by an online DELPHI process. The goal of these recommendations and guideline is to help physicians and their patients in making rational decisions in the management of HAE with deficient C1 inhibitor (type 1) and HAE with dysfunctional C1 inhibitor (type 2), by providing guidance on common and important clinical issues, such as: (1) How should HAE be diagnosed? (2) When should HAE patients receive prophylactic on top of on-demand treatment and what treatments should be used? (3) What are the goals of treatment? (4) Should HAE management be different for special HAE patient groups such as children or pregnant/breast-feeding women? and (5) How should HAE patients monitor their disease activity, impact, and control? It is also the intention of this guideline to help establish global standards for the management of HAE and to encourage and facilitate the use of recommended diagnostics and therapies for all patients

The international WAO/EAACI guideline for the management of hereditary angioedema - The 2021 revision and update.

Hereditary Angioedema (HAE) is a rare and disabling disease for which early diagnosis and effective therapy are critical. This revision and update of the global WAO/EAACI guideline on the diagnosis and management of HAE provides up-to-date guidance for the management of HAE. For this update and revision of the guideline, an international panel of experts reviewed the existing evidence, developed 28 recommendations, and established consensus by an online DELPHI process. The goal of these recommendations and guideline is to help physicians and their patients in making rational decisions in the management of HAE with deficient C1-inhibitor (type 1) and HAE with dysfunctional C1-inhibitor (type 2), by providing guidance on common and important clinical issues, such as: 1) How should HAE be diagnosed? 2) When should HAE patients receive prophylactic on top of on-demand treatment and what treatments should be used? 3) What are the goals of treatment? 4) Should HAE management be different for special HAE patient groups such as children or pregnant/breast feeding women? 5) How should HAE patients monitor their disease activity, impact, and control? It is also the intention of this guideline to help establish global standards for the management of HAE and to encourage and facilitate the use of recommended diagnostics and therapies for all patients