PIPE Dreams? The Performance of Companies Issuing Equity Privately

Private Investments in Public Equity (PIPEs) have become an important source of financing for young, publicly traded firms whose poor operating performance may limit alternative financing options. We propose that firms are motivated to sell these securities to minimize costs associated with asymmetric information. We find that both the security structure and the investor composition of a PIPE security matter in the subsequent performance of the issuing firm. Poor post-issuance performance is associated with securities where investors obtain significant repricing rights, which protect them from future stock price declines. Furthermore, companies that obtain financing from hedge funds tend to under-perform companies that obtain financing from other institutional investors. We argue that hedge funds act as investors of last resort, playing an important role in the market for young, high-risk firms with substantial asymmetric information. Hedge funds are willing to fund such high-risk companies because they can protect against possible price declines in the issuing companies by either negotiating PIPE securities with repricing rights or by entering into short positions of the underlying stocks of the issuing companies.

Enhancing the Benefits for India and Other Developing Countries in the Doha Development Agenda Negotiations

When firms from developed markets acquire firms in emerging markets, marketcapitalization-weighted monthly joint returns show a statistically significant increase of 1.8%. Panel data estimations suggest that the value gains from cross-border M&A transactions stem from the transfer of majority control from emerging-market targets to developed market acquirers—joint returns range from 5.8% to 7.8% when majority control is acquired. Announcement returns for acquirer and target firms estimate the distribution of gains and show a statistically significant increase of 2.4% and 6.9%, respectively. The evidence suggests that the stock market anticipates significant value creation from cross-border transactions that involve emerging-market targets leading to substantial gains for shareholders of both acquirer and target firms.

Within-Firm Pay Inequality

Financial regulators and investors have expressed concerns about high pay inequality within firms. Using a proprietary data set of public and private firms, this paper shows that firms with higher pay inequality—relative wage differentials between top- and bottom-level jobs—are larger and have higher valuations and stronger operating performance. Moreover, firms with higher pay inequality exhibit larger equity returns and greater earnings surprises, suggesting that pay inequality is not fully priced by the market. Our results support the notion that differences in pay inequality across firms are a reflection of differences in managerial talent

Undersea navigation of a glider UUV using an acoustic communications network

The US Navy is developing Seaweb undersea acoustic networking technology to enable distributed autonomous ocean sensors. An Unmanned Undersea Vehicle (UUV) can operate as a mobile node among the grid in the conduct of its own mission, using the fixed nodes as navigation reference points. The fixed grid provides a cellular communications infrastructure for command & control and data telemetry. In turn, the UUV can support the fixed grid by physically redistributing large quantities of data throughout the network or for breaching the sea surface and acting as a mobile gateway node, communicating via satellite to a command center ashore. Assimilating UUVs as network nodes significantly enhances undersea network capability, expanding the available concepts of operations. This thesis concerns the use of the fixed undersea network as a means to track the UUV and anticipates routine operations of mobile nodes in the context of fixed grids. This work is also a fundamental step toward advanced operations of fully mobile networks in the form of collaborative swarms.http://archive.org/details/undersenavigatio109452080Approved for public release; distribution is unlimited

Asymmetric Hillslope Erosion Following Wildfire in Fourmile Canyon, Colorado

Infrequent, high-magnitude events cause a disproportionate amount of sediment transport on steep hillslopes, but few quantitative data are available that capture these processes. Here we study the influence of wildfire and hillslope aspect on soil erosion in Fourmile Canyon, Colorado. This region experienced the Fourmile Fire of 2010, strong summer convective storms in 2011 and 2012, and extreme flooding in September 2013. We sampled soils shortly after these events and use fallout radionuclides to trace erosion on polar- and equatorial-facing burned slopes and on a polar-facing unburned slope. Because these radionuclides are concentrated in the upper decimeter of soil, soil inventories are sensitive to erosion by surface runoff. The polar-facing burned slope had significantly lower cesium-137 (137Cs) and lead-210 (210Pb) inventories (p \u3c 0.05) than either the polar-facing unburned slope or equatorial-facing burned slope. Local slope magnitude does not appear to control the erosional response to wildfire, as relatively gently sloping (~20%) polar-facing positions were severely eroded in the most intensively burned area. Field evidence and soil profile analyses indicate up to 4 cm of local soil erosion on the polar-facing burned slope, but radionuclide mass balance indicates that much of this was trapped nearby. Using a 137Cs-based erosion model, we find that the burned polar-facing slope had a net mean sediment loss of 2 mm (~1 kg m−2) over a one to three year period, which is one to two orders of magnitude higher than longer-term erosion rates reported for this region. In this part of the Colorado Front Range, strong hillslope asymmetry controls soil moisture and vegetation; polar-facing slopes support significantly denser pine and fir stands, which fuels more intense wildfires. We conclude that polar-facing slopes experience the most severe surface erosion following wildfires in this region, indicating that landscape-scale aridity can control the geomorphic response of hillslopes to wildfires. Copyright © 2018 John Wiley & Sons, Ltd

Is the Riemann zeta function in a short interval a 1-RSB spin glass ?

Fyodorov, Hiary & Keating established an intriguing connection between the maxima of log-correlated processes and the ones of the Riemann zeta function on a short interval of the critical line. In particular, they suggest that the analogue of the free energy of the Riemann zeta function is identical to the one of the Random Energy Model in spin glasses. In this paper, the connection between spin glasses and the Riemann zeta function is explored further. We study a random model of the Riemann zeta function and show that its two-overlap distribution corresponds to the one of a one-step replica symmetry breaking (1-RSB) spin glass. This provides evidence that the local maxima of the zeta function are strongly clustered.Comment: 20 pages, 1 figure, Minor corrections, References update

Control of protein phosphatase I in the dendrite

Communication between nerve cells is mediated by both electrical and chemical signals. Chemical neurotransmission can be further categorized into fast and slow components. Fast acting neurotransmitters directly influence neuronal electrical excitability by binding to cell surface receptors which serve as ligand-gated ion channels, thereby directly modulating membrane potential and cell firing. Neurotransmitter receptors may otherwise modulate neuronal excitability indirectly, by coupling to intracellular signalling pathways that impact on the functional activity of ligand- and voltage-gated ion channels, ion pumps, and the machinery for chemical neurotransmission. These indirect actions are relatively slow, and often involve cascades of protein phosphorylation which serve to alter the biochemical activities of substrate proteins, and hence cellular physiology