Do banks price their informational monopoly?

Modern corporate finance theory argues that although bank monitoring is beneficial to borrowers, it also allows banks to use the private information they gain through monitoring to "hold-up" borrowers for higher interest rates. In this paper, we seek empirical evidence for this information hold-up cost. Since new information about a firm's credit-worthiness is revealed at the time of its first issue in the public bond market, it follows that after firms undertake their bond IPO, banks with an exploitable information advantage will be forced to adjust their loan interest rates downwards, particularly for firms that are revealed to be safe. Our findings show that firms are able to borrow from banks at lower interest rates after they issue for the first time in the public bond market and that the magnitude of these savings is larger for safer firms. We further find that among safe firms, those that get their first credit rating at the time of their bond IPO benefit from larger interest rate savings than those that already had a credit rating when they entered the bond market. Since more information is revealed at the time of the bond IPO on the former firms and since this information will increase competition from uninformed banks, these findings provide support for the hypothesis that banks price their informational monopoly. Finally, we find that while entering the public bond market may reduce these informational rents, it is costly to firms because they have to pay higher underwriting costs on their IPO bonds. Moreover, IPO bonds are subject to more underpricing than subsequent bonds when they first trade in the secondary bond market.Corporate bonds ; Credit ratings

Quantiles for Fractions and Other Mixed Data

This paper studies the estimation of quantile regression for fractional data, focusing on the case where there are mass-points at zero or/and one. More generally, we propose a simple strategy for the estimation of the conditional quantiles of data from mixed distributions, which combines standard results on the estimation of censored and Box-Cox quantile regressions. The implementation of the proposed method is illustrated using a well-known dataset

Life cycle assessment of hot mix asphalt with recycled concrete aggregates for road pavements construction

In this study a comparative life cycle assessment (LCA) was conducted according to a ‘cradle-to-laid’ approach to evaluate the potential environmental impacts related to the use of recycled concrete aggregates (RCAs) as a partial replacement of coarse natural aggregates in the production of Hot Mix Asphalt (HMA). Specifically, three percentages of RCA replacements were analyzed: 15, 30 and 45%. Primary data collected mainly through surveys performed in Colombian contractors from the region of Barranquila were used to model the foreground system. The SimaPro 8.4.0 software was used for modelling the processes analyzed in the case study and all the life cycle inputs and outputs related to the functional unit were characterised during life cycle impact assessment (LCIA) phase into potential impacts according to the TRACI v.2.1 impact assessment methodology. The results of the case study showed that the mixtures incorporating 15 and 30% of RCA can be considered as eco-friendly alternatives to the conventional mixture (i.e. no RCA content), as both allow reductions in all impact categories scores. On the contrary, the mixture that contains 45% of RCA denoted a lower environmental performance than that of the conventional mixture

Nuts and Bolts : Microfluidics for the Production of Biomaterials

Nanotechnology holds the promise of bringing revolutionary therapeutic strategies into the clinic. However, an enormous fraction of the currently proposed nanotechnology-based therapies suffers from lack of reproducibility, complexity, high costs, and scale-up-related issues. For these reasons, the research community is moving toward the miniaturization of biomaterials and fabrication methods. Customizable microfluidic-based products have gained tremendous relevance in the development of biomedical technologies. This review provides an overview of different materials that can be used for the fabrication of microfluidic devices, as well as the other parameters influencing the production of biomaterials and biosensors. Moreover, several advanced microfluidic-based technologies that are designed to overcome the current challenges of cancer, immunotherapy, and diabetes therapy, among others are described. Then, the pros and cons of microfluidics as alternative to conventional preparation methods, and the challenges of translating this technique to an industrial context are highlighted. Overall, microfluidic technologies and their accessibility to the research community offer a set of exciting opportunities to bridge the development of innovative therapies and their commercialization in the foreseeable future.Peer reviewe

The negative influences of the new brazilian forest code on the conservation of riparian forests

More than one million hectares of riparian forests were degraded or altered in Mato Grosso State (Brazil) up to 2009. The aim of the research is to set a comparative scenario to show differences in the quantification of environmental liabilities in riparian forest areas resulting from the change in native vegetation protection rules due to the transition between Laws 4771/65 and 12651/2012. Data collection took place in a marginal stretch of Vermelho River in Rondonópolis County, Mato Grosso State. The following data set was taken into consideration: aerial images derived from unmanned aerial vehicle, Rapid Eye satellite images and orbital images hosted at Google Earth. The spatial resolution of those images was compared. The aerial photos composed a mosaic that was photo-interpreted to generate land use and occupation classes. The riparian forest areas of a rural property were used as parameter, and their environmental situation was compared in 05 meter and 100 meter strips. Thus, by taking into consideration the current rules, 23,501 m2 of area ceased to be an environmental liability within the riparian forest and became a consolidated rural area. According to the previous Forest Code, in a different scenario, that is, in a set of rural properties, the public authority would receive USD 68,600.00 in fines. The new Brazilian Forestry Code of 2012, which replaces the previous one made in 1965, exempts those responsible for rural property from regenerating previously deforested native vegetation — an obligation established by older Forest Code. We have shown that the new Forest Code has diminished the legal responsibility of the rural owners in relation to the maintenance of forest fragments in their properties

LINGUISTIC ERRORS OF BRAZILIAN STUDENTS WHEN LEARNING RUSSIAN AS A FOREIGN LANGUAGE (BASIC LEVEL)

The article examines the errors in the basic level regarding the interference of the Portuguese language when Brazilian students learn Russian as a foreign language and offers the methodic to predict and avoid them. For this, authors compare the phonetic systems of Russian and Brazilian Portuguese as well as the main grammar units and structures that form the linguistic minimum on the basic level. Then, using the comparative analysis the errors in the students’ speech are predicted and interpreted. The results of theoretical comparison are compared to the actual and real errors. In the phonetic plan authors figure out significant difference in the signs of hardness, softness, place of articulation, mode of articulation and nasalization, and not big difference in acoustic signs and duration of sounds. In the grammatical field the results point out to a new and optimal order in teaching the cases. Also the necessity to adapt different grammar understanding of Russian verbal structure to the Brazilian one is described regarding the preposition and type of complement and the verb aspects. Authors developed exercises to help students overcome such errors more efficiently and in less time.