Financial inclusion for stability: access to bank deposits and the deposit growth during the Global Financial Crisis

Title on paper: Financial Inclusion for Stability: Access to Bank Deposits and the Deposit Growth during the Global Financial CrisisSession: 66 -Asset PricingIn crisis times, depositors get anxious, can run on banks, and withdraw their deposits. Correlated deposit withdrawals of bank deposits could be mitigated if bank deposits are more diversified, i.e. held by more individuals. This paper examines the link between a broader access to bank deposits prior to the 2008 crisis and the dynamics of bank deposit growth in the crisis, while controlling for relevant covariates. Employing the proxies of Honohan (2008) for access to deposits and of Demirguc-Kunt and Klapper (2012) for the use of bank deposits, the authors find that greater access to bank deposits can make the deposit funding base of banks more resilient in times of financial stress. Policy efforts to enhance financial stability should thus focus not only on macroprudential regulation, but also recognize the positive effect of broader access to bank deposits on financial stability.postprin

Does short selling discipline managerial empire building?

The Conference program's website is located at http://www.fma.org/Tokyo/TokyoProgramPrelim.htmSession 20 - Monitors and Governance QualityThis paper explores the discipline effect of short selling on managerial empire building. Employing short-selling data from 2002-2011, we document a negative association between the stock lending supply and the subsequent abnormal capital investment. We also find a positive association between the lending supply and the mergers and acquisitions announcement returns of acquiring firms. Firms with higher lending supplies also have higher Tobin’s Q in the subsequent year. In addition, the discipline effect is stronger for firms with higher managers’ wealth-performance sensitivity and with lower financial constraints, and for stock-financing acquisition deals. Alleviating the endogeneity concern, our multivariate difference-in-difference analysis shows that the lending supply is a more effective discipline force for firms that are in the Regulation SHO-Pilot Program during 2005 to 2007.postprin

Governance through trading: does institutional trading discipline empire building and earnings management?

Accounting Session 1: Earnings ManagementThe Conference program's website is located at http://areas.kenan-flagler.unc.edu/conferences/2013cfea/Pages/Final%20Schedule.aspxThis paper empirically identifies an important external corporate governance mechanism through which the institutional trading improves firm values and disciplines managers from conducting value-destroying activities. We propose a reward-punishment intensity (RPI) measure, and show that it is positively related to firm’s subsequent Tobin’s Q. Importantly, we find that firms with higher RPI exhibit less subsequent empire building and earnings management. Furthermore, we show that the exogenous liquidity shock of Decimalization augments the governance effect of institutional trading. We also find that the discipline effect is more pronounced for firms with moderate institutional ownership concentration, higher managers’ wealth-performance sensitivity, and higher trading liquidity, which further supports the governance role of the RPI. The results are robust to using a subsample containing firms with reduced institutional ownership and to using two instrumental variables.postprin

Does short selling discipline overinvestment?

We explore the disciplining effect of short selling on overinvestment. Firms with more stock lending supply have higher abnormal announcement stock returns of acquiring firms, lower subsequent abnormal capital investments, and longer spells between large investments, and higher subsequent Tobin’s Q and ROA. Alleviating the endogeneity concern, our multivariate difference-in-difference analysis shows that this disciplinary force of lending supply is more effective for firms in the Regulation SHO-PILOT Program. We identify two mechanisms through which short selling disciplines managers: managers’ wealth-performance sensitivity and likelihood of hostile takeovers. Additionally, the disciplinary force only exists for non-financial-constrained firms and nonall-cash M&A deals.postprin

Statistical Parametric Mapping (SPM) for alpha-based statistical analyses of multi-muscle EMG time-series.

Multi-muscle EMG time-series are highly correlated and time dependent yet traditional statistical analysis of scalars from an EMG time-series fails to account for such dependencies. This paper promotes the use of SPM vector-field analysis for the generalised analysis of EMG time-series. We reanalysed a publicly available dataset of Young versus Adult EMG gait data to contrast scalar and SPM vector-field analysis. Independent scalar analyses of EMG data between 35% and 45% stance phase showed no statistical differences between the Young and Adult groups. SPM vector-field analysis did however identify statistical differences within this time period. As scalar analysis failed to consider the multi-muscle and time dependence of the EMG time-series it exhibited Type II error. SPM vector-field analysis on the other hand accounts for both dependencies whilst tightly controlling for Type I and Type II error making it highly applicable to EMG data analysis. Additionally SPM vector-field analysis is generalizable to linear and non-linear parametric and non-parametric statistical models, allowing its use under constraints that are common to electromyography and kinesiology

Region-of-interest analyses of one-dimensional biomechanical trajectories: bridging 0D and 1D theory, augmenting statistical power.

One-dimensional (1D) kinematic, force, and EMG trajectories are often analyzed using zero-dimensional (0D) metrics like local extrema. Recently whole-trajectory 1D methods have emerged in the literature as alternatives. Since 0D and 1D methods can yield qualitatively different results, the two approaches may appear to be theoretically distinct. The purposes of this paper were (a) to clarify that 0D and 1D approaches are actually just special cases of a more general region-of-interest (ROI) analysis framework, and (b) to demonstrate how ROIs can augment statistical power. We first simulated millions of smooth, random 1D datasets to validate theoretical predictions of the 0D, 1D and ROI approaches and to emphasize how ROIs provide a continuous bridge between 0D and 1D results. We then analyzed a variety of public datasets to demonstrate potential effects of ROIs on biomechanical conclusions. Results showed, first, that a priori ROI particulars can qualitatively affect the biomechanical conclusions that emerge from analyses and, second, that ROIs derived from exploratory/pilot analyses can detect smaller biomechanical effects than are detectable using full 1D methods. We recommend regarding ROIs, like data filtering particulars and Type I error rate, as parameters which can affect hypothesis testing results, and thus as sensitivity analysis tools to ensure arbitrary decisions do not influence scientific interpretations. Last, we describe open-source Python and MATLAB implementations of 1D ROI analysis for arbitrary experimental designs ranging from one-sample t tests to MANOVA

Computing Storyline Visualizations with Few Block Crossings

Storyline visualizations show the structure of a story, by depicting the interactions of the characters over time. Each character is represented by an x-monotone curve from left to right, and a meeting is represented by having the curves of the participating characters run close together for some time. There have been various approaches to drawing storyline visualizations in an automated way. In order to keep the visual complexity low, rather than minimizing pairwise crossings of curves, we count block crossings, that is, pairs of intersecting bundles of lines. Partly inspired by the ILP-based approach of Gronemann et al. [GD 2016] for minimizing the number of pairwise crossings, we model the problem as a satisfiability problem (since the straightforward ILP formulation becomes more complicated and harder to solve). Having restricted ourselves to a decision problem, we can apply powerful SAT solvers to find optimal drawings in reasonable time. We compare this SAT-based approach with two exact algorithms for block crossing minimization, using both the benchmark instances of Gronemann et al. and random instances. We show that the SAT approach is suitable for real-world instances and identify cases where the other algorithms are preferable.Comment: Appears in the Proceedings of the 25th International Symposium on Graph Drawing and Network Visualization (GD 2017

Prevalence of Domestic Violence in Hong Kong Chinese Women Presenting with Urinary Symptoms

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Measurement of bubble sizes in fluidised beds using electrical capacitance tomography

Electrical capacitance tomography (ECT) provides a means for non-invasively imaging multiphase flows, such as those in fluidised beds. Traditionally ECT images are reconstructed using the assumption that the distribution of permittivity varies smoothly throughout the sensor region. However, for many applications there are step changes in the permittivity, for example, between the bubble and particulate phases in a fluidised bed, and the assumption of smoothness is flawed. In this article a Total Variation Iterative Soft Thresholding (TV-IST) algorithm is used to reconstruct ECT images that allows for sharp transitions in the permittivity distribution. This new algorithm has been compared with established algorithms for ECT image reconstruction. It was found that the TV-IST algorithm reduced the sensitivity to the threshold level chosen when extracting measurements of bubble size from ECT data sets. Measurements of the bubble size distribution in the fluidised bed using the TV-IST algorithm agreed closely with established empirical correlations for the size of bubbles. The results demonstrate that ECT can provide accurate and high spatial resolution measurements of features such as bubbles in gas-solid fluidised beds.The authors would like to thank the EPSRC (Grants no. EP/K008218/1 and EP/F041772/1) and the Isaac Newton Trust for financial support.This paper was originally published in Chemical Engineering Science (Chandrasekera TC, Li Y, Moody D, Schnellmann MA, Dennis JS, Holland DJ, Chemical Engineering Science 2015, 126, 679–687, doi:10.1016/j.ces.2015.01.011)

Existence of Least-perimeter Partitions

We prove the existence of a perimeter-minimizing partition of R^n into regions of unit volume. We conclude with a short tribute to the late Manuel A. Fortes.Comment: 5 pages; for submission to Fortes memorial isue of Philosphical Magazine Letter