Private Contracting and Corporate Governance: Evidence from the Provision of Tag-Along Rights in an Emerging Market

We analyse controlling owners incentive to provide non-controlling owners with better protection against self-dealing through offering new shares with tag-along rights, - the private contracting alternative to equal price provision in takeover legislation. Our model identifies two counteracting effects: The benefit of offering tag-along rights is the anti-expropriation effect which makes it harder for new owners to finance a takeover through expropriation of minority owners. The cost is the rent transfer effect which implies that there is a wealth transfer from controlling owners to existing minority owners. Empirically we test the implications of the model using data on equity offerings in Brazil. Consistent with the theoretical predictions we find that offering tag-along rights increases market value of a firm and that companies offering shares with tag-along rights offer larger claims, have less disproportional ownership structure, have a smaller group of existing minority shareholders and are more likely to issue new shares. The paper, thus, find strong support for private contracting being an important alternative governance mechanism to legal protection of investors.Private contracting, Corporate governance, Emerging markets, Tag-along rights

Learning Markov Decision Processes for Model Checking

Constructing an accurate system model for formal model verification can be both resource demanding and time-consuming. To alleviate this shortcoming, algorithms have been proposed for automatically learning system models based on observed system behaviors. In this paper we extend the algorithm on learning probabilistic automata to reactive systems, where the observed system behavior is in the form of alternating sequences of inputs and outputs. We propose an algorithm for automatically learning a deterministic labeled Markov decision process model from the observed behavior of a reactive system. The proposed learning algorithm is adapted from algorithms for learning deterministic probabilistic finite automata, and extended to include both probabilistic and nondeterministic transitions. The algorithm is empirically analyzed and evaluated by learning system models of slot machines. The evaluation is performed by analyzing the probabilistic linear temporal logic properties of the system as well as by analyzing the schedulers, in particular the optimal schedulers, induced by the learned models.Comment: In Proceedings QFM 2012, arXiv:1212.345

Obscuring Supersoft X-ray Sources in Stellar Winds

We investigate the possibility of obscuring supersoft X-ray sources in the winds of companion stars. We derive limits on the amount of circumstellar material needed to fully obscure a 'canonical' supersoft X-ray source in the Large Magellanic Cloud, as observed with the Chandra X-ray Observatory.Comment: Conference proceedings for IAU Symposium no. 281 "Binary Paths to Type Ia Supernova Explosions", 5-10 July 2011, Padova, Ital

Do motorways shape urban growth? Analysis of growth patterns with micro-level data – before and after road openings in two Danish motorway corridors

The paper is an offspring from the Research project Town, Road and Landscape that aims to assess the effect of the Danish motorway network (specifically the last 20 years) on urban growth and interaction patterns. As one of the main interests of the project is the changing urban form and the changing character of the roadscape, the impact of the motorway is in part analysed with micro level data, spatial statistics and GIS – to allowing mapping of changing development trends in motorway corridors. The paper presents analysis of the impact of motorway openings on urban form in two Danish motorway corridors. The analysis is based on a before and after perspective – where the building activity and its location (building register with address coordinates) after the opening of the motorway is compared to building activity in the years before the construction of the motorway. Preliminary results suggest that the motorway most markedly influences the location of non-residential building activities within the city – in favour of locations near the entrance points to/from the motorway network. The development can be explained in part by municipal planning, which in some instances has opened up the new locations for development far ahead of market demand – and in part by an increasing demand for exposed and accessible sites for business development which still seems to be in its beginning.

Cosmological constant in SUGRA models with Planck scale SUSY breaking and degenerate vacua

The empirical mass of the Higgs boson suggests small to vanishing values of the quartic Higgs self-coupling and the corresponding beta function at the Planck scale, leading to degenerate vacua. This leads us to suggest that the measured value of the cosmological constant can originate from supergravity (SUGRA) models with degenerate vacua. This scenario is realised if there are at least three exactly degenerate vacua. In the first vacuum, associated with the physical one, local supersymmetry (SUSY) is broken near the Planck scale while the breakdown of the SU(2)W×U(1)Y symmetry takes place at the electroweak (EW) scale. In the second vacuum local SUSY breaking is induced by gaugino condensation at a scale which is just slightly lower than ΛQCD in the physical vacuum. Finally, in the third vacuum local SUSY and EW symmetry are broken near the Planck scale

A novel approach to probe host-pathogen interactions of bovine digital dermatitis, a model of a complex polymicrobial infection

Background: Polymicrobial infections represent a great challenge for the clarification of disease etiology and the development of comprehensive diagnostic or therapeutic tools, particularly for fastidious and difficult-to-cultivate bacteria. Using bovine digital dermatitis (DD) as a disease model, we introduce a novel strategy to study the pathogenesis of complex infections. Results: The strategy combines meta-transcriptomics with high-density peptide-microarray technology to screen for in vivo-expressed microbial genes and the host antibody response at the site of infection. Bacterial expression patterns supported the assumption that treponemes were the major DD pathogens but also indicated the active involvement of other phyla (primarily Bacteroidetes). Bacterial genes involved in chemotaxis, flagellar synthesis and protection against oxidative and acidic stress were among the major factors defining the disease. Conclusions: The extraordinary diversity observed in bacterial expression, antigens and host antibody responses between individual cows pointed toward microbial variability as a hallmark of DD. Persistence of infection and DD reinfection in the same individual is common; thus, high microbial diversity may undermine the host's capacity to mount an efficient immune response and maintain immunological memory towards DD. The common antigenic markers identified here using a high-density peptide microarray address this issue and may be useful for future preventive measures against DD.Fil: Marcatili, Paolo. Technical University of Denmark; DinamarcaFil: Nielsen, Martin W.. Technical University of Denmark; DinamarcaFil: Sicheritz Ponten, Thomas. Technical University of Denmark; DinamarcaFil: Jensen, Tim K.. Technical University of Denmark; DinamarcaFil: Schafer Nielsen, Claus. Schafer-N ApS; DinamarcaFil: Boye, Mette. Hospital of Southern Jutland; DinamarcaFil: Nielsen, Morten. Technical University of Denmark; Dinamarca. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata. Instituto de Investigaciones Biotecnológicas. Instituto de Investigaciones Biotecnológicas ; ArgentinaFil: Klitgaard, Kirstine. Technical University of Denmark; Dinamarc