International Prudential Regulation, Regulatory Risk and the Cost of Bank Capital

We define regulatory risk as any regulatory action that leads to an increase in the cost of capital for the regulated firm. In a general equilibrium setting the paper considers the impact of globally harmonising capital adequacy requirements on the cost of bank equity capital. The results show that uniform increases in capital requirements lead to an increase in the cost of capital. However when regulatory standards differ across countries, financial integration leads to positive spillovers which reduces the cost of capital mark up for a given increase in bank capital. Accordingly, regulatory risk may be greater under a regulatory agreement such as the Basel Accord which imposes international uniformity in capital ratios.

Endogenous Capital and Profitability in Banking

This paper investigates the relation between bank capital and profitability. To my knowledge, no previous paper has analysed this problem in a two-equation structural model. Contrary to what is reported with surprising frequency in this field of research, the results show no statistically significant relationship between capital and profitability. Given non-binding capital requirements this finding is consistent with the view that, while raising capital is costly for banks, it is associated with compensating benefits that offset these additional costs. Consequently, when capital structure is endogenously determined in a profit maximising equilibrium, no systematic relation between capital and profit is expected.

A Theory of Precautionary Regulatory Capital in Banking

The orthodox assumption in the banking literature is that capital requirements are a binding constraint on banking behaviour. This is in conflict with the empirical observation that banks hold a bu¤er of capital well in excess of the minimum requirements. This paper develops a model where capital is endogenously determined within a profit maximising equilibrium. Optimality involves balancing the reduction in expected costs associated with regulatory breach with the excess cost of financing from increasing capital. We demonstrate that when the equilibrium probability of regulatory breach is less than one half, banks are expected to hold precautionary capital.

Political Uncertainty and Accounting Conservatism: Evidence from the U.S. Presidential Election Cycle

Election periods are associated with uncertainty about future governmental structure and public policy, i.e., political uncertainty, leading to an increase in agency costs. As a response to rising agency costs, we find that in the year prior to a U.S. presidential election, accounting conservatism increases by nearly 20 percent. This election year effect is stronger when the election is closer, when the incumbent president is not seeking re-election, and when the incumbent party is Democrat. In the post-election year, conservatism is lower relative to the non-election period when the incumbent party wins, but remains higher under an opposition party victory. Moreover, the election year effect varies across industries and companies, and remains unchanged under different empirical specifications. These findings add to the literature on how political forces can shape the nature of financial reporting by showing that accounting conservatism is driven by political concerns

Passive Tracking System and Method

System and methods are disclosed for passively determining the location of a moveable transmitter utilizing a pair of phase shifts at a receiver for extracting a direction vector from a receiver to the transmitter. In a preferred embodiment, a phase difference between the transmitter and receiver is extracted utilizing a noncoherent demodulator in the receiver. The receiver includes antenna array with three antenna elements, which preferably are patch antenna elements placed apart by one-half wavelength. Three receiver channels are preferably utilized for simultaneously processing the received signal from each of the three antenna elements. Multipath transmission paths for each of the three receiver channels are indexed so that comparisons of the same multipath component are made for each of the three receiver channels. The phase difference for each received signal is determined by comparing only the magnitudes of received and stored modulation signals to determine a winning modulation symbol

Ultra-Wideband Angle-of-Arrival Tracking Systems

Systems that measure the angles of arrival of ultra-wideband (UWB) radio signals and perform triangulation by use of those angles in order to locate the sources of those signals are undergoing development. These systems were originally intended for use in tracking UWB-transmitter-equipped astronauts and mobile robots on the surfaces of remote planets during early stages of exploration, before satellite-based navigation systems become operational. On Earth, these systems could be adapted to such uses as tracking UWB-transmitter-equipped firefighters inside buildings or in outdoor wildfire areas obscured by smoke. The same characteristics that have made UWB radio advantageous for fine resolution ranging, covert communication, and ground-penetrating radar applications in military and law-enforcement settings also contribute to its attractiveness for the present tracking applications. In particular, the waveform shape and the short duration of UWB pulses make it possible to attain the high temporal resolution (of the order of picoseconds) needed to measure angles of arrival with sufficient precision, and the low power spectral density of UWB pulses enables UWB radio communication systems to operate in proximity to other radio communication systems with little or no perceptible mutual interference

Responding to Financial Crisis: The Rise of State Ownership and Implications for Firm Performance

We examine changes to corporate ownership in nine East Asian countries following the 1997 Asian Financial Crisis. Countries with lower incomes and in which policy making involves greater transactions costs (i.e., veto points) have more firms with state ownership. Partial state ownership appears to be effective insurance against crisis. Firms with minority state ownership exhibit 5% (annualized) lower idiosyncratic volatility in the quarter of the Lehman Brothers collapse than firms with either no or dominant state ownership. Minority state-owned firms also enjoy a higher abnormal return of 3.7% and 6.1% in the two quarters following the collapse of Lehman Brothers

Microwave Tissue Soldering for Immediate Wound Closure

A novel approach for the immediate sealing of traumatic wounds is under development. A portable microwave generator and handheld antenna are used to seal wounds, binding the edges of the wound together using a biodegradable protein sealant or solder. This method could be used for repairing wounds in emergency settings, by restoring the wound surface to its original strength within minutes. This technique could also be utilized for surgical purposes involving solid visceral organs (i.e., liver, spleen, and kidney) that currently do not respond well to ordinary surgical procedures. A miniaturized microwave generator and a handheld antenna are used to deliver microwave energy to the protein solder, which is applied to the wound. The antenna can be of several alternative designs optimized for placement either in contact with or proximity to the protein solder covering the wound. In either case, optimization of the design includes the matching of impedances to maximize the energy delivered to the protein solder and wound at a chosen frequency. For certain applications, an antenna could be designed that would emit power only when it is in direct contact with the wound. The optimum frequency or frequencies for a specific application would depend on the required depth of penetration of the microwave energy. In fact, a computational simulation for each specific application could be performed, which would then match the characteristics of the antenna with the protein solder and tissue to best effect wound closure. An additional area of interest with potential benefit that remains to be validated is whether microwave energy can effectively kill bacteria in and around the wound. Thus, this may be an efficient method for simultaneously sterilizing and closing wounds. Using microwave energy to seal wounds has a number of advantages over lasers, which are currently in experimental use in some hospitals. Laser tissue welding is unsuitable for emergency use because its large, bulky equipment cannot be easily moved between operating rooms, let alone relocated to field sites where emergencies often occur. In addition, this approach is highly dependent on the uniformity and thickness of the protein solder as well as the surgeon s skills. In contrast, the use of microwave energy is highly tolerant of the thickness of the protein solder, level of fluids in and around the wound, and other parameters that can adversely affect the outcome of laser welding. However, controlling the depth of penetration of the microwave energy into the wound is critical for achieving effective wound sealing without damaging the adjacent tissue. In addition, microspheres that encapsulate metallic cores could also be incorporated into the protein solder to further control the depth of penetration of the microwave energy

Methods and apparatus for microwave tissue welding for wound closure

Methods and apparatus for joining biological tissue together are provided. In at least one specific embodiment, a method for joining biological tissue together can include applying a biological solder on a wound. A barrier layer can be disposed on the biological solder. An antenna can be located in proximate spatial relationship to the barrier layer. An impedance of the antenna can be matched to an impedance of the wound. Microwaves from a signal generator can be transmitted through the antenna to weld two or more biological tissue pieces of the wound together. A power of the microwaves can be adjusted by a control circuit disposed between the antenna and the signal generator. The heating profile within the tissue may be adjusted and controlled by the placement of metallic microspheres in or around the wound