Three Essays on Corporate Cash Policy and Productivity

In this thesis, I study corporate cash policy and firm-level productivity through three papers. Specifically, the first paper studies the implications of financial hedging for corporate cash policy and the value of cash holdings, using a web crawler program to collect data on the use of financial derivatives between 1993 and 2016. The key finding is that firms with financial hedging programs have smaller cash reserves but a higher value of cash than firms without hedging contracts in place. In addition, financial hedging not only increases the investment sensitivity to internal cash, but also has a positive effect on investment efficiency. The second paper examines the motive of holding cash by studying the empirical relationship between CEO ownership and corporate cash holdings, using a sample of US firms from 1992 to 2018. Using two proxies for CEO ownership, stock ownership and the ratio of a CEO's stock and option delta to a firm's stock and option delta, the finding shows a monotonic and positive relation between CEO ownership and cash holdings, which is theoretically supported by the precautionary motive for holding cash. The third paper tests whether firm-specific investor sentiment (FSIS) in the financial markets affects firm-level productivity, using a sample of US public firms from 2010 to 2019. The results show a positive relation between FSIS and total factor productivity, and the positive impact of FSIS on productivity is more pronounced for firms with less exposure to automated production, more managerial ownership, tighter financial constraints, and higher innovative efficiency

Genetically engineered mouse models for functional studies of SKP1-CUL1-F-box-protein (SCF) E3 ubiquitin ligases

The SCF (SKP1 (S-phase-kinase-associated protein 1), Cullin-1, F-box protein) E3 ubiquitin ligases, the founding member of Cullin-RING ligases (CRLs), are the largest family of E3 ubiquitin ligases in mammals. Each individual SCF E3 ligase consists of one adaptor protein SKP1, one scaffold protein cullin-1 (the first family member of the eight cullins), one F-box protein out of 69 family members, and one out of two RING (Really Interesting New Gene) family proteins RBX1/ROC1 or RBX2/ROC2/SAG/RNF7. Various combinations of these four components construct a large number of SCF E3s that promote the degradation of many key regulatory proteins in cell-context, temporally, and spatially dependent manners, thus controlling precisely numerous important cellular processes, including cell cycle progression, apoptosis, gene transcription, signal transduction, DNA replication, maintenance of genome integrity, and tumorigenesis. To understand how the SCF E3 ligases regulate these cellular processes and embryonic development under in vivo physiological conditions, a number of mouse models with transgenic (Tg) expression or targeted deletion of components of SCF have been established and characterized. In this review, we will provide a brief introduction to the ubiquitin-proteasome system (UPS) and the SCF E3 ubiquitin ligases, followed by a comprehensive overview on the existing Tg and knockout (KO) mouse models of the SCF E3s, and discuss the role of each component in mouse embryogenesis, cell proliferation, apoptosis, carcinogenesis, as well as other pathogenic processes associated with human diseases. We will end with a brief discussion on the future directions of this research area and the potential applications of the knowledge gained to more effective therapeutic interventions of human diseases

Precautionary motive or private benefit motive for holding cash: Evidence from CEO ownership

This study examines how CEO ownership affects the motivation of firms to hold cash. We document a monotonic and positive relationship between CEO ownership and cash holdings. The effect is more pronounced for firms with higher firm-specific risk and larger external financing costs, suggesting that CEO ownership encourages firms to hold more cash as precautionary savings. However, we find no evidence that CEO ownership leads to cash hoarding in firms with weak corporate governance. Moreover, we show that firms with high CEO ownership and excess cash holdings have more capital expenditures and R&D expenses but do not have higher dividend payments and share repurchases. Nonetheless, shareholders’ perceived value of cash increases with CEO ownership, indicating that shareholders place a positive value on high levels of cash holdings associated with CEO ownership in the context of growing investment prospects. Overall, our findings support the notion that firm ownership aligns the interests of CEOs and shareholders, rather than encouraging managers to extract private benefits through hoarding cash

Exchange rate forecasting : do linear combinations of exchange rate forecasts outperform?

In recent years, a limited amount of work has been done on the medium-term linear composite method of forecasting. One common finding in the existing literature is that the consensus forecast measure is a biased predictor of future exchange rates. A widely accepted point of view in exchange rate forecasting research is that no theoretical model should be able to outperform a simple random walk. In this paper, recent exchange rate data and the Granger-Ramanathan linear estimation method are used to test medium-term forecasts. The currencies considered in this study are the most actively traded in the world and include: euros, Japanese yen, Canadian dollars, British pounds and Swiss francs. All currencies are examined relative to the US dollar. The major finding is that the linear composite model does in fact outperform a random walk model and an average forecast for Japanese yen, British pounds and Swiss francs. This evidence suggests that additional research should be conducted on exchange rate forecasting in general and on the linear composite forecast model in particular

Diseño de un centro de distribución para una empresa de ropa deportiva con 12.000 referencias

[ES] El objetivo del presente Trabajo Fin de Máster es el diseño de un centro de distribución para una empresa del sector de moda deportiva, con el fin de permitir el abastecimiento a nivel nacional de sus tiendas de venta al público. Dado que no existe un procedimiento universal para el diseño de centros de distribución, se opta por una metodología iterativa de diseño que permita satisfacer una serie de requisitos analizados y establecidos por la empresa, como son los niveles de inventario, los perfiles de preparación de pedidos, las características de los productos y la inversión del proyecto. Para llevar a cabo el diseño, primero se deben analizar las condiciones que se exigen cumplir con la actividad de la empresa. A partir de los datos obtenidos, se procede a definir una primera configuración en la que se realiza el dimensionamiento de los medios de almacenamiento, la definición del modelo de funcionamiento para el centro de distribución, el dimensionamiento de los medios de manutención, la distribución en planta, la estimación de costes operativos, la inversión necesaria y la determinación de los procesos operativos. Tras ello, se hace un análisis de la configuración obtenida y se identifican otras alternativas para tratar de optimizar el diseño, modificando las decisiones de diseño y repitiendo el procedimiento explicado anteriormente. Por último, a través de las sucesivas iteraciones, en las que también se evalúa económicamente cada una de las opciones de diseño, se selecciona una solución final que cumpla con los requisitos establecidos por la empresa y que además proporcione los menores costes anuales y la menor inversión.[EN] The objective of this Master's Thesis is the design of a distribution center for a company in the sports fashion sector, in order to allow the nationwide supply of its retail stores. Since there is no universal method for the design of distribution centers, an iterative design methodology is chosen which enables to provide a series of analyzed requirements and established by the company, such as inventory levels, order preparation profiles, the characteristics of the products and the investment of the project. To accomplish the design, first, the conditions that are required to fulfill the activity of the company must be analyzed. From the obtained data, it is proceeded to define a first configuration in which is done the sizing of the storage media, the definition of the operating model for the distribution center, the sizing of the handling media, the layout, the estimation of operating costs, the necessary investment and the determination of the operating processes. After that, it is made an analysis of the configuration obtained and it is identified other alternatives to try to optimize the design, modifying the design decisions and repeating the procedure explained above. Finally, through successive iterations, in which each of the design options is also economically evaluated, a final solution is selected that meets the requirements established by the company and that also provides the lowest annual costs and the lowest investment.Sun, W. (2021). Diseño de un centro de distribución para una empresa de ropa deportiva con 12.000 referencias. Universitat Politècnica de València. http://hdl.handle.net/10251/174052TFG

Identification of acetylation-dependent regulatory mechanisms that govern the oncogenic functions of Skp2

The Skp2 (S-phase kinase associated protein 2) oncoprotein is often highly expressed in various types of human cancers. However, the mechanistic basis of its oncogenic function, as well as the upstream regulatory pathway(s) that control Skp2 activities remains not fully understood. Recently, we reported that p300 acetylates Skp2 at two conserved lysine residues K68 and K71 within its NLS (Nuclear localization signal). This modification leads to increased Skp2 stability and cytoplasmic translocation, thus contributing to elevated Skp2 oncogenic potential. Moreover, we found that the SIRT3 tumor suppressor serves as the physiological deacetylase that antagonizes p300-mediated Skp2 acetylation. Furthermore, we showed that Skp2 governs E-cadherin ubiquitination and degradation in the cytosol. Consistent with this, we observed an inverse correlation between Skp2 and E-cadherin expression in clinical breast tumor samples. Therefore, our work elucidates a novel acetylation-dependent regulatory mechanism for Skp2 oncogenic functions