The value relevance of disclosures of liabilities of equity-accounted investees: UK evidence

This study examines the value relevance of mandated disclosures by UK firms of the investor-firm share of liabilities of equity-accounted associate and joint venture investees. It does so for the six years following the introduction of FRS 9: Associates and Joint Ventures, which forced a substantial increase in such disclosures by UK firms. Since the increased disclosure requirements were partly motivated by concern that single-line equity accounting concealed the level of group gearing, and in light of previous US results, it is predicted that the mandated investee-liability disclosures have a negative coefficient in a value-relevance regression. The study also examines whether value-relevance regression coefficients on investee-liability disclosures are more negative for joint ventures than for associates and whether they are more negative in the presence of investor-firm guarantees of investee-firm obligations than in the absence of such guarantees. The study reports that the coefficient on all investee-liability disclosures taken together has the predicted negative sign, and is significantly different from zero. It finds little evidence that the negative valuation impact of liability disclosures is stronger for joint venture investees overall than for associate investees overall, or stronger for guarantee cases overall than for non-guarantee cases overall. There is, however, some evidence that the impact for joint venture guarantee cases is stronger than that for joint venture non-guarantee cases and stronger than that for associate guarantee cases

50 Years Later: Women, Work & the Work Ahead (Infographic)

How have things changed for women in the labor force over the last 50 years

Proportional-integral-plus (PIP) control of time delay systems

The paper shows that the digital proportional-integral-plus (PIP) controller formulated within the context of non-minimum state space (NMSS) control system design methodology is directly equivalent, under certain non-restrictive pole assignment conditions, to the equivalent digital Smith predictor (SP) control system for time delay systems. This allows SP controllers to be considered within the context of NMSS state variable feedback control, so that optimal design methods can be exploited to enhance the performance of the SP controller. Alternatively, since the PIP design strategy provides a more flexible approach, which subsumes the SP controller as one option, it provides a superior basis for general control system design. The paper also discusses the robustness and disturbance response characteristics of the two PIP control structures that emerge from the analysis and demonstrates the efficacy of the design methods through simulation examples and the design of a climate control system for a large horticultural glasshouse system

A scale-model room as a practical teaching experiment

A practical experiment is described which was used to help university students increase their understanding of the effect of construction methods and window design on passive solar heating and electrical heating. A number of one tenth scale model rooms were constructed by students and sited out-of-doors in the late autumn. The models were fabricated to mimic available commercial construction techniques with careful consideration being given to window size and placement for solar access. Each model had a thermostatically controlled electric heating element. The temperatures and electricity use of the models were recorded using data-loggers over a two week period. The performances of the models based on energy consumption and internal temperature were compared with each other and with predictions based upon thermal mass and R-values. Examples of questions used by students to facilitate this process are included. The effect of scaling on thermal properties was analysed using Buckingham&rsquo;s p-theorem.<br /

Atmospheric ozone measurements made from B-747 AIRLINERS: Spring 1975

Atmospheric ozone in the upper troposphere and lower stratosphere north of the equator has been registered aboard two commercial B-747 airliners. The composite ozone, flight and meteorological data are reported. Attention is drawn particularly to the vertical profiles of atmospheric ozone mixing ratio as a function of both distance from the tropopause and curvature of the streamlines. The GASP observations suggest that ozone levels typical of the lower stratosphere are often embedded in the upper troposphere, principally during occassions when cyclonic wind curvature was noted

Option Pricing in Multivariate Stochastic Volatility Models of OU Type

We present a multivariate stochastic volatility model with leverage, which is flexible enough to recapture the individual dynamics as well as the interdependencies between several assets while still being highly analytically tractable. First we derive the characteristic function and give conditions that ensure its analyticity and absolute integrability in some open complex strip around zero. Therefore we can use Fourier methods to compute the prices of multi-asset options efficiently. To show the applicability of our results, we propose a concrete specification, the OU-Wishart model, where the dynamics of each individual asset coincide with the popular Gamma-OU BNS model. This model can be well calibrated to market prices, which we illustrate with an example using options on the exchange rates of some major currencies. Finally, we show that covariance swaps can also be priced in closed form.Comment: 28 pages, 5 figures, to appear in SIAM Journal on Financial Mathematic