Special purpose vehicles and securitization

This paper analyzes securitization and more generally “special purpose vehicles” (SPVs), which are now pervasive in corporate finance. The first part of the paper provides an overview of the institutional features of SPVs and securitization. The second part provides a model to analyze the motivations for using SPVs and the conditions under which SPVs are sustainable. The authors argue that a key source of value to using SPVs is that they help reduce bankruptcy costs. Off-balance sheet financing involves transferring assets to SPVs, which reduces the amount of assets that are subject to bankruptcy costs, since SPVs are carefully designed to avoid bankruptcy. Off-balance sheet financing is most advantageous for sponsoring firms that are risky or face large bankruptcy costs. SPVs become sustainable in a repeated SPV game, because firms can implicitly “commit” to subsidize or “bail out” their SPVs when the SPV would otherwise not honor its debt commitments, despite legal and accounting restrictions to the contrary. The third part of the paper tests two key implications of the model using unique data on credit card securitizations. First, riskier firms should securitize more, ceteris paribus. Second, since investors know that SPV sponsors can bail out their SPVs if there is a need, in pricing the debt of the SPV investors will care about the risk of the sponsor defaulting, above and beyond the risk of the SPVs assets. The authors find evidence consistent with these implications. ; Also issued as Payment Cards Center Discussion Paper No. 05-13Asset-backed financing

The subsidiary gap as a means for improving ignition

This report was prepared at the Bureau of Standards for the National Advisory Committee for Aeronautics. Additional or subsidiary gaps have frequently been used in jump-spark ignition systems, in order to cause the resumption of sparking in fouled spark plugs. The series gap, to which the greater part of this report is devoted, is a subsidiary gap in the connection between the high tension terminal of the plug and that of the magneto or coil. A brief account is given of the use of this gap up to the present time and also of the statements concerning it which have gained some currency, most of which are shown to be erroneous. The simple theory of the action of the series gap is discussed and a detailed account given of the effect upon the sparking ability of the plug produced by changes in the values of the electrical resistance of the fouling and of the capacities in parallel with the plug and with the magneto or coil. This report presents the results of an investigation into the utility, action, and design of the auxiliary spark gap as a means for insuring freedom from spark plug failure due to fouling, and also to enable the restarting of fouled plugs

The evolution of a Ku-Band satellite network

The purpose of this study was to undertake the management and development of CTS terminals and time on appropriate Ku-Band satellites was procured. A community of public service users who have readily addressable needs and resources to pay for services on an ad hoc Ku-Band network was developed and a test network for selected users was managed

Active control of Boundary Layer Separation & Flow Distortion in Adverse Pressure Gradient Flows via Supersonic Microjets

Inlets to aircraft propulsion systems must supply flow to the compressor with minimal pressure loss, flow distortion or unsteadiness. Flow separation in internal flows such as inlets and ducts in aircraft propulsion systems and external flows such as over aircraft wings, is undesirable as it reduces the overall system performance. The aim of this research has been to understand the nature of separation and more importantly, to explore techniques to actively control this flow separation. In particular, the use of supersonic microjets as a means of controlling boundary layer separation was explored. The geometry used for the early part of this study was a simple diverging Stratford ramp, equipped with arrays of supersonic microjets. Initial results, based on the mean surface pressure distribution, surface flow visualization and Planar Laser Scattering (PLS) indicated a reverse flow region. We implemented supersonic microjets to control this separation and flow visualization results appeared to suggest that microjets have a favorable effect, at least to a certain extent. However, the details of the separated flow field were difficult to determine based on surface pressure distribution, surface flow patterns and PLS alone. It was also difficult to clearly determine the exact influence of the supersonic microjets on this flow. In the latter part of this study, the properties of this flow-field and the effect of supersonic microjets on its behavior were investigated in further detail using 2-component (planar) Particle Image Velocimetry (PIV). The results clearly show that the activation of microjets eliminated flow separation and resulted in a significant increase in the momentum of the fluid near the ramp surface. Also notable is the fact that the gain in momentum due to the elimination of flow separation is at least an order of magnitude larger (two orders of magnitude larger in most cases) than the momentum injected by the microjets and is accomplished with very little mass flow through the microjets

The impacts of EU accession on the agriculture of the Visegrad Countries

The Visegrad Countries (VC)2 joined the European Union in 2004, which has offered several possibilities and challenges for their agriculture. The aim of the paper is to evaluate the status of the sector in the light of latest available data as well as to identify the factors lying behind different country performances. Results suggest that EU accession has had a diverse impact on the Visegrad Countries’ agriculture and member states capitalised their possibilities in a different manner, due to initial conditions and pre- and post-accession policies

Founder\u27s birth order and triple bottom line in B2B SMEs

Leveraging upper-echelon and post-traumatic childhood experience theories, this study analyses the influence of CEOs\u27 birth order in the family on firms\u27 triple bottom line management. Conducting our study in the B2B market and SME context during the COVID-19 pandemic, we assert that the eldest sibling tends to adopt more prosocial behavior than younger siblings. When first-born individuals become entrepreneurs, their values get reflected in the firm\u27s organizational culture and the strategic choices they make as CEOs. We further suggest a mediating mechanism of a sustainable marketing orientation for sibling birth order and triple bottom line management and a moderating role of CEO childhood trauma experience. Childhood trauma experience moderates the mediating effect of sustainable marketing orientation, i.e., a moderated mediating mechanism. Heeding calls for research in marketing to become more interdisciplinary, we leverage the family science and upper echelon theories to expand the B2B marketing literature

Spatial disparities in SMEs productivity in England

Improving productivity is critical to increasing economic growth and prosperity in the long-run and a key objective for UK national, regional and local policy. However, a long tail of low productivity businesses and significant spatial variations in productivity characterise the UK economy. This report presents an analysis of the determinants of Small and Medium Sized Enterprise (SME) labour productivity, with a particular focus on how place and productivity interact. The analysis draws on data from the UK Government’s Longitudinal Small Business Survey (LSBS) for the years 2015 to 2017. It employs a multilevel regression analysis to understand determinants in enterprise labour productivity in different localities and regions and effectively account for the contextual environment. We applied multilevel analysis to capture the nested structure of our data, modelling a fixed-effects part (at firm level or level one) and a random-effects part at Local Enterprise Partnership (LEP) level (or level two). This allows for the separation of the role of firms’ determinants from LEP (sub-regional) effects. To the best of our knowledge, we are the first to apply multilevel analysis to the productivity of firms located in the UK. Regarding firm-level factors, the results show that microbusinesses and sole traders tend to have lower productivity. In contrast, business capabilities to develop and implement business plans, and obtain external finance, as well as receiving external advice in the previous year, positively contribute to productivity. The sector in which a business operates also matters with health and social work generally associated with lower productivity. Digital capabilities, internal to the SME, as well as some types of network membership contribute to higher productivity. Regarding ownership, after controlling for other factors, the results reveal that family businesses are not more or less productive than non-family ones, but, women-led businesses record significantly lower productivity. At the LEP level, the findings reveal that firms located in LEPs with a more skilled and educated population tend to have higher labour productivity. Improved broadband speeds, in some models, are also associated with higher productivity. Taken together the results give credence, in terms of explaining variations in SME productivity, to industrial organisation theory, the Resource-Based View relating to business capabilities and institutional and network effects. Not surprisingly, our analysis confirms previous findings from the ONS about the regional disparities in the UK, as we find that firms located in London and the South East demonstrate higher labour productivity. However, we find a lack of supporting evidence for agglomeration theories which stress the benefits of urban areas per se in stimulating higher SME productivity, since our analysis shows that firms located in rural areas perform as well as urban firms

Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative

The paper analyses the potential benefits of marketing cooperatives in Hungary, employing a transaction cost economics framework. We found that the purchased quantity, the existence of contracts, flexibility and trust are the most important factors farmers consider when selling their products via a cooperative. The most striking result is that diversification has positive influences on the share of cooperatives in farmers’ sale. Furthermore, farmers with larger bargaining power have less willingness to sell their product to the cooperative. Surprisingly, asset specificity has rather negative effects on the share of cooperatives in members’ sales