Corporate Governance, Opaque Bank Activities, and Risk/Return Efficiency: Pre- and Post-Crisis Evidence from Turkey

Does better corporate governance unambiguously improve the risk/return efficiency of banks? Or does either a re-orientation of banks' revenue mix towards more opaque products, an economic downturn, or tighter supervision create off-setting or reinforcing effects? The authors relate bank efficiency to shortfalls from a stochastic risk/return frontier. They analyze how internal governance mechanisms (CEO duality, board experience, political connections, and education profile) and external governance mechanisms (discipline exerted by shareholders, depositors, or skilled employees) determine efficiency in a sample of Turkish banks. The 2000 financial crisis was a wakeup call for bank efficiency and corporate governance. As a result, better corporate governance mechanisms have been able to improve risk/return efficiency when the economic, regulatory, and supervisory environments are more stable and bank products are more complex.corporate governance;bank risk;noninterest income;crisis;frontier

Breaking the Disk/Halo Degeneracy with Gravitational Lensing

The degeneracy between the disk and the dark matter contribution to galaxy rotation curves remains an important uncertainty in our understanding of disk galaxies. Here we discuss a new method for breaking this degeneracy using gravitational lensing by spiral galaxies, and apply this method to the spiral lens B1600+434 as an example. The combined image and lens photometry constraints allow models for B1600+434 with either a nearly singular dark matter halo, or a halo with a sizable core. A maximum disk model is ruled out with high confidence. Further information, such as the circular velocity of this galaxy, will help break the degeneracies. Future studies of spiral galaxy lenses will be able to determine the relative contribution of disk, bulge, and halo to the mass in the inner parts of galaxies.Comment: Replaced with minor revisions, a typo fixed, and reference added; 21 pages, 8 figures, ApJ accepte

Effects of Ellipticity and Shear on Gravitational Lens Statistics

We study the effects of ellipticity in lens galaxies and external tidal shear from neighboring objects on the statistics of strong gravitational lenses. For isothermal lens galaxies normalized so that the Einstein radius is independent of ellipticity and shear, ellipticity {\it reduces} the lensing cross section slightly, and shear leaves it unchanged. Ellipticity and shear can significantly enhance the magnification bias, but only if the luminosity function of background sources is steep. Realistic distributions of ellipticity and shear {\it lower} the total optical depth by a few percent for most source luminosity functions, and increase the optical depth only for steep luminosity functions. The boost in the optical depth is noticeable (>5%) only for surveys limited to the brightest quasars (L/L_* > 10). Ellipticity and shear broaden the distribution of lens image separations but do not affect the mean. Ellipticity and shear naturally increase the abundance of quadruple lenses relative to double lenses, especially for steep source luminosity functions, but the effect is not enough (by itself) to explain the observed quadruple-to-double ratio. With such small changes to the optical depth and image separation distribution, ellipticity and shear have a small effect on cosmological constraints from lens statistics: neglecting the two leads to biases of just Delta Omega_M = 0.00 \pm 0.01 and Delta Omega_Lambda = -0.02 \pm 0.01 (where the errorbars represent statistical uncertainties in our calculations).Comment: Optical depth normalization discussed. Matches the published versio

The Gravitational Lens -- Galaxy Group Connection: I. Discovery of a Group Coincident with CLASS B0712+472

Previous observations of the environments of the lensing galaxies in gravitational lens systems suggest that many of the lensing galaxies are associated with small groups of galaxies. As a result, we have begun a coordinated program to study the local environments of all known gravitational lens systems. In this paper, we present results on the gravitational lens system CLASS B0712+472, which has previously measured source and lens redshifts of (z_l,z_s) = (0.4060,1.339). Although we have not found a galaxy group associated with the primary lensing galaxy, we have found a foreground group which is spatially coincident with the lens system. Based on multi-object spectroscopy taken at the Keck 10-m telescope, we have confirmed ten group members with a mean redshift of = 0.2909. The resulting velocity dispersion and estimated virial mass are 306(+110/-58) km/s and 3.0(+2.2/-1.2) x 10^13 h^-1 M_sun, respectively, for (Omega_m,Omega_Lambda) = (0.2,0.0). The dynamical properties of this moderate-redshift group are completely consistent with the range of values found in nearby groups of galaxies. Five of the group members are red, elliptical-like galaxies, while the remaining five are active, star-forming galaxies. Based on the spectroscopic results and the publically-available HST imaging of nine group members, we find that the early-type fraction is 40%. We estimate that the effect of this foreground group on the gravitational lensing potential of B0712+472 is small, producing an external shear which is only a few percent, although the shear could be larger if the group centroid is significantly closer to the lens system than it appears to be.Comment: Accepted for publication in the Astronomical Journal. 16 pages, 7 figure

Clustering environment of BL Lac object RGB 1745+398

The BL Lac object RGB 1745+398 lies in an environment that makes it possible to study the cluster around it more deeply than the environments of other BL Lac objects. The cluster centered on the BL Lac works as a strong gravitational lens, forming a large arc around itself. The aim of this paper is to study the environment and characteristics of this object more accurately than the environments of other BL Lac objects have been before.We measured the redshifts of galaxies in the cluster from the absorption lines in their spectra. The velocity dispersion was then obtained from the redshifts. The gravitational lensing was used for measuring the mass at the center of the cluster. The mass of the whole cluster could then be estimated using the softened isothermal sphere mass distribution. Finally, the richness of the cluster was determined by counting the number of galaxies near the BL Lac object and obtaining the galaxy-BL Lac spatial covariance function, $B_{gb}$. The redshifts of nine galaxies in the field were measured to be near the redshift of the BL Lac object, confirming the presence of a cluster. The average redshift of the cluster is 0.268, and the velocity dispersion $(470^{+190}_{-110})$ km s$^{-1}$. The mass of the cluster is M_{500}=(4^{+3}_{-2})\times10^{14} M_{\sun} which implies a rather massive cluster. The richness measurement also suggests that this is a rich cluster: the result for covariance function is $B_{gb}=(600\pm200)$ Mpc$^{1.77}$, which corresponds to Abell richness class 1 and which is consistent with the mass and velocity dispersion of the cluster.Comment: 5 pages, accepted to A&

Identifying Lenses with Small-Scale Structure. I. Cusp Lenses

The inability of standard models to explain the flux ratios in many 4-image gravitational lenses has been cited as evidence for significant small-scale structure in lens galaxies. That claim has generally relied on detailed lens modeling, so it is both model dependent and somewhat difficult to interpret. We present a more robust and generic method for identifying lenses with small-scale structure. For a close triplet of images associated with a source near a cusp caustic, the sum of the signed magnifications should approximately vanish. We derive realistic upper bounds on the sum, and argue that lenses with flux ratios that significiantly violate the bounds can be said to have structure in the lens potential on scales smaller than the image separation. Five observed lenses have such flux ratio ``anomalies'': B2045+265, 1RXS J1131-1231, and SDSS J0924+0219 have strong anomalies; B0712+472 has a strong anomaly at optical/near-IR wavelengths and a marginal anomaly at radio wavelengths; and RX J0911+0551 appears to have an anomaly, but this conclusion is subject to uncertainties about octopole modes in early-type galaxies. Analysis of the cusp relation does not identify the known anomaly in B1422+231, so methods that are more sophisticated (and less generic) than the cusp relation may be necessary to uncover flux ratio anomalies in some systems. Although these flux ratio anomalies might represent milli- or micro-lensing, we cannot identify the cause; we can only conclude that the lenses have significant structure in the potential on scales smaller than the separation between the images. Additional arguments must be invoked to specify the nature of this small-scale structure. [Abridged]Comment: significant revisions to extend analysis and strengthen conclusions; low-res version of Fig. 5 here, for high-res version see http://astro.uchicago.edu/~ckeeton/Papers/cuspreln.ps.g

Gravitational Lensing By Spiral Galaxies

We study gravitational lensing by spiral galaxies, using realistic models consisting of halo, disk, and bulge components combined to produce a flat rotation curve. Proper dynamical normalization of the models is critical because a disk requires less mass than a spherical halo to produce the same rotation curve---a face-on Mestel disk has a lensing cross section only 41% as large as a singular isothermal sphere with the same rotation curve. The cross section is sensitive to inclination and dominated by edge-on galaxies, which produce lenses with an unobserved 2-image geometry and a smaller number of standard 5-image lenses. Unless the disk is unreasonably massive, disk+halo models averaged over inclination predict \lesssim 10% more lenses than pure halo models. Finally, models with an exponential disk and a central bulge are sensitive to the properties of the bulge. In particular, an exponential disk model normalized to our Galaxy cannot produce multiple images without a bulge, and including a bulge reduces the net flattening of edge-on galaxies. The dependence of the lensing properties on the masses and shapes of the halo, disk, and bulge means that a sample of spiral galaxy lenses would provide useful constraints on galactic structure.Comment: 27 pages, 7 postscript figures, submitted to Ap

Modeling the Images of Relativistic Jets Lensed by Galaxies with Different Mass Surface Density Distributions

The images of relativistic jets from extragalactic sources produced by gravitational lensing by galaxies with different mass surface density distributions are modeled. In particular, the following models of the gravitational lens mass distribution are considered: a singular isothermal ellipsoid, an isothermal ellipsoid with a core, two- and three-component models with a galactic disk, halo, and bulge. The modeled images are compared both between themselves and with available observations. Different sets of parameters are shown to exist for the gravitationally lensed system B0218+357 in multicomponent models. These sets allow the observed geometry of the system and the intensity ratio of the compact core images to be obtained, but they lead to a significant variety in the Hubble constant determined from the modeling results.Comment: 26 pages, 9 figures, will be published in the Astronomy Letters, 2011, v.37, N4, pp. 233-24

The Sloan Lens ACS Survey. VII. Elliptical Galaxy Scaling Laws from Direct Observational Mass Measurements

We use a sample of 53 massive early-type strong gravitational lens galaxies with well-measured redshifts (ranging from z=0.06 to 0.36) and stellar velocity dispersions (between 175 and 400 km/s) from the Sloan Lens ACS (SLACS) Survey to derive numerous empirical scaling relations. The ratio between central stellar velocity dispersion and isothermal lens-model velocity dispersion is nearly unity within errors. The SLACS lenses define a fundamental plane (FP) that is consistent with the FP of the general population of early-type galaxies. We measure the relationship between strong-lensing mass M_lens within one-half effective radius (R_e/2) and the dimensional mass variable M_dim = G^-1 sigma_e2^2 R_e/2 to be log_10 [M_lens/10^11 M_Sun] = (1.03 +/- 0.04) log_10 [M_dim/10^11 M_Sun] + (0.54 +/- 0.02) (where sigma_e2 is the projected stellar velocity dispersion within R_e/2). The near-unity slope indicates that the mass-dynamical structure of massive elliptical galaxies is independent of mass, and that the "tilt" of the SLACS FP is due entirely to variation in total (luminous plus dark) mass-to-light ratio with mass. Our results imply that dynamical masses serve as a good proxies for true masses in massive elliptical galaxies. Regarding the SLACS lenses as a homologous population, we find that the average enclosed 2D mass profile goes as log_10 [M(<R)/M_dim] = (1.10 +/- 0.09) log_10 [R/R_e] + (0.85 +/- 0.03), consistent with an isothermal (flat rotation curve) model when de-projected into 3D. This measurement is inconsistent with the slope of the average projected aperture luminosity profile at a confidence level greater than 99.9%, implying a minimum dark-matter fraction of f_DM = 0.38 +/- 0.07 within one effective radius. (abridged)Comment: 13 pages emulateapj; accepted for publication in the Ap

The Optical Properties of Gravitational Lens Galaxies as a Probe of Galaxy Structure and Evolution

We combine photometry and lens modeling to study the properties of 17 gravitational lens galaxies between z=0.1 and 1. Most of the lens galaxies are passively evolving early-type galaxies, with a few spirals. The colors, scale lengths, and ellipticities of lens galaxies are similar to those of the general population of early-type galaxies, although there may be a deficit of apparently round lens galaxies produced by the inclination dependence of lensing cross sections. The projected mass distributions are aligned with the projected light distributions to <~ 10 deg, except in the presence of a strong external tidal perturbation, suggesting that dark matter halos have orbits that are significantly modified by interactions with the baryonic component and are not far out of alignment with the stars. Lens galaxies obey image separation/lens luminosity correlations analogous to the Faber-Jackson and Tully-Fisher relations, which are consistent with standard dark matter lens models. The lens galaxy mass-to-light ratios decrease with redshift as d(log M/L_B)/dz = -0.3\pm0.1 (-0.5\pm0.1) for Omega_0=1 (0.1), thus providing direct evidence of passive evolution for a sample of early-type galaxies in low-density environments. The evolution-corrected mass-to-light ratios are generally larger than predicted by constant M/L dynamical models, although there is significant scatter; with improved photometry, lens galaxy mass-to-light ratios would better distinguish between constant M/L and dark matter models. These conclusions are limited primarily by the quality of lens galaxy photometry.Comment: 40 pages, 6 tables, 8 figure