Stock options as incentive contracts and dividend policy

Executive Stock Option Programs (SOPs) have become the dominant compensation instrument for top-management in recent years. The incentive effects of an SOP both with respect to corporate investment and financing decisions critically depend on the design of the SOP. A specific problem in designing SOPs concerns dividend protection. Usually, SOPs are not dividend protected, i.e. any dividend payout decreases the value of a manager’s options. Empirical evidence shows that this results in a significant decrease in the level of corporate dividends and, at the same time, into an increase in share repurchases. Yet, few suggestions have been made on how to account for dividends in SOPs. This paper applies arguments from principal-agent-theory and from the theory of finance to analyze different forms of dividend protection, and to address the relevance of dividend protection in SOPs. Finally, the paper relates the theoretical analysis to empirical work on the link between share repurchases and SOPs

Adaptive reflection and focusing of Bose-Einstein condensates

We report adjustable magnetic `bouncing' and focusing of a dilute $^{87}$Rb Bose gas. Both the condensate production and manipulation are realised using a particularly straight-forward apparatus. The bouncing region is comprised of approximately concentric ellipsoidal magnetic equipotentials with a centre that can be adjusted vertically. We extend, and discuss the limitations of, simple Thomas-Fermi and Monte-Carlo theoretical models for the bouncing, which at present find close agreement with the condensate's evolution. Very strong focusing has been inferred and the observation of atomic matter-wave diffraction should be possible. Prospects look bright for applications in matter-wave atom-optics, due to the very smooth nature of the mirror

Predicting the outcome of renal transplantation

ObjectiveRenal transplantation has dramatically improved the survival rate of hemodialysis patients. However, with a growing proportion of marginal organs and improved immunosuppression, it is necessary to verify that the established allocation system, mostly based on human leukocyte antigen matching, still meets today's needs. The authors turn to machine-learning techniques to predict, from donor-recipient data, the estimated glomerular filtration rate (eGFR) of the recipient 1 year after transplantation.DesignThe patient's eGFR was predicted using donor-recipient characteristics available at the time of transplantation. Donors' data were obtained from Eurotransplant's database, while recipients' details were retrieved from Charite Campus Virchow-Klinikum's database. A total of 707 renal transplantations from cadaveric donors were included.MeasurementsTwo separate datasets were created, taking features with <10% missing values for one and <50% missing values for the other. Four established regressors were run on both datasets, with and without feature selection.ResultsThe authors obtained a Pearson correlation coefficient between predicted and real eGFR (COR) of 0.48. The best model for the dataset was a Gaussian support vector machine with recursive feature elimination on the more inclusive dataset. All results are available at http://transplant.molgen.mpg.de/.LimitationsFor now, missing values in the data must be predicted and filled in. The performance is not as high as hoped, but the dataset seems to be the main cause.ConclusionsPredicting the outcome is possible with the dataset at hand (COR=0.48). Valuable features include age and creatinine levels of the donor, as well as sex and weight of the recipient

Investigation of double beta decay with the NEMO-3 detector

The double beta decay experiment NEMO~3 has been taking data since February 2003. The aim of this experiment is to search for neutrinoless ($0\nu\beta\beta$) decay and investigate two neutrino double beta decay in seven different isotopically enriched samples ($^{100}$Mo, $^{82}$Se, $^{48}$Ca, $^{96}$Zr, $^{116}$Cd, $^{130}$Te and $^{150}$Nd). After analysis of the data corresponding to 3.75 y, no evidence for $0\nu\beta\beta$ decay in the $^{100}$Mo and $^{82}$Se samples was found. The half-life limits at the 90% C.L. are $1.1\cdot 10^{24}$ y and $3.6\cdot 10^{23}$ y, respectively. Additionally for $0\nu\beta\beta$ decay the following limits at the 90% C.L. were obtained, $> 1.3 \cdot 10^{22}$ y for $^{48}$Ca, $> 9.2 \cdot 10^{21}$ y for $^{96}$Zr and $> 1.8 \cdot 10^{22}$ y for $^{150}$Nd. The $2\nu\beta\beta$ decay half-life values were precisely measured for all investigated isotopes.Comment: 12 pages, 4 figures, 5 tables; talk at conference on "Fundamental Interactions Physics" (ITEP, Moscow, November 23-27, 2009

Review on the epidemiology and dynamics of BSE epidemics

The paper describes how the comprehensive surveillance of bovine spongiform encephalopathy (BSE) and studies carried out on these data has enhanced our knowledge of the epidemiology of BSE. Around 7 000 BSE cases were detected through the screening of about 50 million cattle with rapid tests in Europe. It confirmed that the clinical surveillance had a poor capacity to detect cases, and also showed the discrepancy of this passive surveillance efficiency between regions and production types (dairy/beef). Other risk factors for BSE were being in a dairy herd (three times more than beef), having a young age at first calving (for dairy cattle), being autumn-born (dairy and beef), and being in a herd with a very high milk yield. These findings focus the risk on the feeding regimen of calves/heifers. Several epidemiological studies across countries suggest that the feedborne source related to meat and bone meal (MBM) is the only substantiated route of infection ¿ even after the feed ban ¿, while it is not possible to exclude maternal transmission or milk replacers as a source of some infections. In most European countries, the average age of the cases is increasing over time and the prevalence decreasing, which reflects the effectiveness of control measures. Consistent results on the trend of the epidemic were obtained using back-calculation modelling, the R0 approach and Age-Period-Cohort models. Furthermore, active surveillance also resulted in the finding of atypical cases. These are distinct from previously found BSE and classified in two different forms based on biochemical characteristics; their prevalence is very low (36 cases up to 1st September 2007), affected animals were old and some of them displayed clinical signs. The origin and possibility of natural transmission is unknown

A large magnetic storage ring for Bose-Einstein condensates

Cold atomic clouds and Bose-Einstein condensates have been stored in a 10cm diameter vertically-oriented magnetic ring. An azimuthal magnetic field enables low-loss propagation of atomic clouds over a total distance of 2m, with a heating rate of less than 50nK/s. The vertical geometry was used to split an atomic cloud into two counter-rotating clouds which were recombined after one revolution. The system will be ideal for studying condensate collisions and ultimately Sagnac interferometry.Comment: 4 pages, 5 figure

Selective decay by Casimir dissipation in fluids

The problem of parameterizing the interactions of larger scales and smaller scales in fluid flows is addressed by considering a property of two-dimensional incompressible turbulence. The property we consider is selective decay, in which a Casimir of the ideal formulation (enstrophy in 2D flows, helicity in 3D flows) decays in time, while the energy stays essentially constant. This paper introduces a mechanism that produces selective decay by enforcing Casimir dissipation in fluid dynamics. This mechanism turns out to be related in certain cases to the numerical method of anticipated vorticity discussed in \cite{SaBa1981,SaBa1985}. Several examples are given and a general theory of selective decay is developed that uses the Lie-Poisson structure of the ideal theory. A scale-selection operator allows the resulting modifications of the fluid motion equations to be interpreted in several examples as parameterizing the nonlinear, dynamical interactions between disparate scales. The type of modified fluid equation systems derived here may be useful in modelling turbulent geophysical flows where it is computationally prohibitive to rely on the slower, indirect effects of a realistic viscosity, such as in large-scale, coherent, oceanic flows interacting with much smaller eddies