Stock Issues and Investment Policy When Firms Have Information That Investors Do Not Have

This paper describes corporate investment and financing decisions when managers have inside information about the value of the firm's existing investment and growth opportunities, but cannot convey that information to investors. Capital markets are otherwise perfect and efficient. In these circumstances, the firm may forego a valuable investment opportunity rather than issue stock to finance it. The decision to issue cannot fully convey the managers' special information. If stock is issued, stock price falls. Liquid assets or financial slack are valuable if they reduce the probability or extent of stock issues. The paper also suggests explanations for some aspects of dividend policy and choice of capital structure.

Discounting Rules for Risky Assets

This paper develops a rule for calculating a discount rate to value risky projects. The rule assumes that asset risk can be measured by a single index (e.g., beta), but makes no other assumptions about specific forms of the asset pricing model. It treats all projects as combinations of two assets: Treasury bills and the market portfolio. We know how to value each of these assets under any theory of debt and taxes and under any assumption about the slope and intercept of the market line for equity securities. Our discount rate is a weighted average of the after-tax return on riskless debt and the expected return on the portfolio, where the weight on the market portfolio is beta.

Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have

This paper considers a firm that must issue common stock to raise cash to undertake a valuable investment opportunity. Management is assumed to know more about the firm's value than potential investors. Investors interpret the firm's actions rationally. An equilibrium model of the issue-invest decision is developed under these assumptions.The model shows that firms may refuse to issue stock, and therefore may pass up valuable investment opportunities.The model suggests explanations for several aspects of corporate financing behavior, including the tendency to rely on internal sources of funds, and to prefer debt to equity if external financing is required. Extensions and applications of the model are discussed.

An Improved Measurement of the Hubble Constant from the Sunyaev-Zeldovich Effect

We present a determination of the Hubble constant from measurements of the Sunyaev-Zeldovich Effect (SZE) in an orientation-unbiased sample of 7 z < 0.1 galaxy clusters. With improved X-ray models and a more accurate 32-GHz calibration, we obtain H_O = 64+14-11 +/- 14_sys km/s/Mpc. for a standard CDM cosmology, or 66+14-11 +/- 15_sys km/s/Mpc for a flat LambdaCDM cosmology. In combination with X-ray cluster measurements and the BBN value for Omega_B, we find Omega_M = 0.32 +/- 0.05.Comment: 5 pp., Accepted for publication in ApJ

Large N lattice QCD and its extended strong-weak connection to the hypersphere

We calculate an effective Polyakov line action of QCD at large Nc and large Nf from a combined lattice strong coupling and hopping expansion working to second order in both, where the order is defined by the number of windings in the Polyakov line. We compare with the action, truncated at the same order, of continuum QCD on S^1 x S^d at weak coupling from one loop perturbation theory, and find that a large Nc correspondence of equations of motion found in \cite{Hollowood:2012nr} at leading order, can be extended to the next order. Throughout the paper, we review the background necessary for computing higher order corrections to the lattice effective action, in order to make higher order comparisons more straightforward.Comment: 33 pages, 7 figure

Black Holes with a Generalized Gravitational Action

Microscopic black holes are sensitive to higher dimension operators in the gravitational action. We compute the influence of these operators on the Schwarzschild solution using perturbation theory. All (time reversal invariant) operators of dimension six are included (dimension four operators don't alter the Schwarzschild solution). Corrections to the relation between the Hawking temperature and the black hole mass are found. The entropy is calculated using the Gibbons-Hawking prescription for the Euclidean path integral and using naive thermodynamic reasoning. These two methods agree, however, the entropy is not equal to 1/4 the area of the horizon.Comment: plain tex(uses phyzzx.tex), 8 pages, CALT-68-185

Calculating the chiral condensate diagrammatically at strong coupling

We calculate the chiral condensate of QCD at infinite coupling as a function of the number of fundamental fermion flavours using a lattice diagrammatic approach inspired by recent work of Tomboulis, and other work from the 80's. We outline the approach where the diagrams are formed by combining a truncated number of sub-diagram types in all possible ways. Our results show evidence of convergence and agreement with simulation results at small Nf. However, contrary to recent simulation results, we do not observe a transition at a critical value of Nf. We further present preliminary results for the chiral condensate of QCD with symmetric or adjoint representation fermions at infinite coupling as a function of Nf for Nc = 3. In general, there are sources of error in this approach associated with miscounting of overlapping diagrams, and over-counting of diagrams due to symmetries. These are further elaborated upon in a longer paper.Comment: presented at the 32nd International Symposium on Lattice Field Theory (Lattice 2014), 23-28 June 2014, New York, NY, US