Reexamining the relation between debt mix and growth in Japan.

We propose a U-shaped relation between the relative weight of bank loans in total corporate debt and the firm's market-to-book ratio-a proxy for expected growth-which reconciles most existing theories. Using data on Japanese firms for 1983-97, we do find that, in the lower range of growth spectrum, firms with better prospects take more bonds in their debt mix: when the firm's prospects improve, the benefits from private debt initially fall relative to its costs. In contrast, in the higher range of growth, firms with more growth potentials take more monitored debt, reflecting, amongst other factors, the higher information and contracting costs of public debt faced by extreme growers. We can explain the seemingly conflicting evidence that Anderson and Makhija (1999) and Hoshi, Kashyap and Scharfstein (1993) provide in this respect. We also find that keiretsu firms do not behave significantly different from non-keiretsu ones, suggesting that keiretsu firms are fairly independent in their financing decisions and that extra costs and benefits from bank loans are either small or in reasonable balance. Firms that faced restrictions in issuing bonds, pre-1990, continue to behave differently from other firms long after the restrictions were lifted.

Odors treatment : biological technologies

Physical-chemical waste gas cleaning techniques have proven their effi ciency and reliability and will continue to occupy their niche, but several disadvantages remain. Among them are high investment and operation costs and the possible generation of secondary waste streams. With biological waste treatment techniques, reactor engineering is often less complicated and consequently costs are less. In addition, usually no secondary wastes are produced. Biological methods are nonhazardous and benign for the environment. Possible drawbacks are restricted knowledge about the biodegradation processes, limited process control, and relatively slow reaction kinetics. Anyway, the biological methods for the removal of odors and volatile organic compounds (VOCs) from waste gases are cost-effective technologies, when low concentrations (below 1-10 g/m -3 ) are to be dealt with (Kosteltz et al., 1996). Therefore, decision making can be based merely on economical analysis. Like the treatment of liquid effl uents, gaseous streams will be more often considered for biological treatment. For organic compounds, the biological reaction can be described as: CHO + O 2 + nutrients C 5 H 7 O 2 N (cell dry weight) + CO 2 + H 2 O + heat When heteroatoms are present (e.g., chlorine, sulfur), end-products like HCl or H 2 SO 4 can be formed. For effi cient pollutant removal, target pollutants have to be suffi ciently biodegradable and bioavailable. A major advantage in the case of odor treatment is that biocatalysts have high affi nity for the substrates, which allows effi cient treatment of low infl uent concentrations. Biocatalysts also operate at room temperature and they have innocuous fi nal products (e.g., carbon dioxide and water). Provided that you have the right inocula, microorganisms can metabolize almost every compound there is. In general, odors consist of a very complex mixture of volatile organic as well as inorganic compounds. The most relevant compounds regarding odors in the food industry are nitrogencontaining compou(undefined

Stocks, Bonds, T-Bills and Inflation Hedging

We analyze the inflation-hedging properties of US stocks, bonds, and T-bills at the subindex level during the 1983 “ 2012 period, for investment horizons between 1 month and 10 years. Bonds other than T-bills turn out poor inflation hedges during the entire sample period, regardless of the investment horizon. Stocks in both cyclical and non-cyclical industries have virtually no hedging ability until the fall of Lehman Brothers in September 2008. From that moment on, equity subindices particularly in the cyclical industries started to develop statistically significant hedging ability, even in the short run. Hence, the extent to which investors can benefit from the hedging ability of stocks and bonds varies over time and across industries, maturities and investment horizons

The functional role of temperate forest understorey vegetation in a changing world

Temperate forests cover 16% of the global forest area. Within these forests, the understorey is an important biodiversity reservoir that can influence ecosystem processes and functions in multiple ways. However, we still lack a thorough understanding of the relative importance of the understorey for temperate forest functioning. As a result, understoreys are often ignored during assessments of forest functioning and changes thereof under global change. We here compiled studies that quantify the relative importance of the understorey for temperate forest functioning, focussing on litter production, nutrient cycling, evapotranspiration, tree regeneration, pollination and pathogen dynamics. We describe the mechanisms driving understorey functioning and develop a conceptual framework synthesizing possible effects of multiple global change drivers on understorey-mediated forest ecosystem functioning. Our review illustrates that the understorey's contribution to temperate forest functioning is significant but varies depending on the ecosystem function and the environmental context, and more importantly, the characteristics of the overstorey. To predict changes in understorey functioning and its relative importance for temperate forest functioning under global change, we argue that a simultaneous investigation of both overstorey and understorey functional responses to global change will be crucial. Our review shows that such studies are still very scarce, only available for a limited set of ecosystem functions and limited to quantification, providing little data to forecast functional responses to global change

The Spot-Forward Exchange Rate Relation in Indian Foreign Exchange Market An Analysis

Forward exchange rate bias explanation generally falls into two categories – assumption of rational expectation resulting in a risk premium and expectation errors which is systematic. The paper tests the bias in the Indian forward exchange markets using one-month and three month forward contracts. The study finds that the three month contracts have larger prediction errors than the one-month contracts. The also paper finds that the prediction errors have information content which leads to assume the presence of risk premium. The study also finds that risk one-month contracts have lesser variability vis-à-vis the three month contracts

Eurozone Membership and Foreign Direct Investment

Our aim in this chapter is to estimate the effects of European Monetary Union (EMU) membership on foreign direct investment (FDI). Previous literature on the cross-border impact of a common currency have concentrated on international trade effects. Our analysis is based on the gravity model, which has been successfully applied to explain most forms of bilateral cross-border flows. We estimate a structural gravity model using data for 34 OECD countries between 1985 and 2013 for bilateral FDI. We use a variety of econometric techniques to ensure the robustness of our findings including stock as well as flow measures of FDI and addressing selection issues. Our estimates of the impact of EMU underlines the role of FDI as a channel for benefits from deep economic integration between countries. The effect of EMU membership on FDI is estimated to be significant and positive, at around 130%