Is Cash Negative Debt? A Hedging Perspective on Corporate Financial Policies

We model the interplay between cash and debt policies in the presence of financial constraints. While saving cash allows financially constrained firms to hedge against future income shortfalls, reducing debt - "saving borrowing capacity" - is a more effective way of securing future investment in high cash flow states. This trade-off implies that constrained firms will allocate excess cash flows into cash holdings if their hedging needs are high (i.e., if the correlation between operating cash flows and investment opportunities is low). However, constrained firms will use excess cash flows to reduce current debt if their hedging needs are low. The empirical examination of cash and debt policies of a large sample of constrained and unconstrained firms reveals evidence that is consistent with our theory. In particular, our evidence shows that financially constrained firms with high hedging needs have a strong propensity to save cash out of cash flows, while showing no propensity to reduce outstanding debt. In contrast, constrained firms with low hedging needs systematically channel free cash flows towards debt reduction, as opposed to cash savings. Our analysis points to an important hedging motive behind standard financial policies such as cash and debt management. It suggests that cash should not be viewed as negative debt.

Political Competition and Policy Adoption: Market Reforms in Latin American Public Utilities

This paper shows that political competition generates incentives that affect the pace of adoption of market reforms in the context of policy convergence. Previous work shows the effect of financial and technological pressures in promoting policy convergence and the impact of institutional constraints on shaping the pace of policymaking. Controlling for these effects, this paper demonstrates the policy effects of political competition and ideological polarization between the incumbent and its contenders even at a time when ideological policy differences seem to be fading due to policy convergence. In studying policy adoption, the authors use duration analysis for the 18 countries of Latin America during the 1985-2000 period when most of the market reforms in public utilities were adopted

Is Cash Negative Debt?A Hedging Perspective on Corporate Financial Policies

We model the interplay between cash and debt policies in the presence of financial constraints. While saving cash allows constrained firms to hedge against future cash flow shortfalls, reducing current debt – “saving borrowing capacity” – is a more effective way of securing investment in high cash flow states. This trade-off implies that constrained firms will allocate cash flows into cash holdings if their hedging needs are high (i.e., if the correlation between operating cash flows and investment opportunities is low). Those same firms, however, will use free cash flows to reduce current debt if their hedging needs are low. The empirical examination of debt and cash policies of a large sample of firms reveals evidence that is consistent with our theory. In particular, our evidence shows that financially constrained firms with high hedging needs have a strong propensity to save cash out of cash flows while leaving their debt positions unchanged. In contrast, constrained firms with low hedging needs direct most of their free cash flows towards debt reduction, as opposed to cash savings. Our analysis points to an important hedging motive behind standard financial policies such as cash and debt management. It suggests that cash should not be viewed as negative debt

Frizzled-8 integrates Wnt-11 and transforming growth factor-β signaling in prostate cancer

Wnt-11 promotes cancer cell migration and invasion independently of β-catenin but the receptors involved remain unknown. Here, we provide evidence that FZD8 is a major Wnt-11 receptor in prostate cancer that integrates Wnt-11 and TGF-β signals to promote EMT. FZD8 mRNA is upregulated in multiple prostate cancer datasets and in metastatic cancer cell lines in vitro and in vivo. Analysis of patient samples reveals increased levels of FZD8 in cancer, correlating with Wnt-11. FZD8 co-localizes and co-immunoprecipitates with Wnt-11 and potentiates Wnt-11 activation of ATF2-dependent transcription. FZD8 silencing reduces prostate cancer cell migration, invasion, three-dimensional (3D) organotypic cell growth, expression of EMT-related genes, and TGF-β/Smad-dependent signaling. Mechanistically, FZD8 forms a TGF-β-regulated complex with TGF-β receptors that is mediated by the extracellular domains of FZD8 and TGFBR1. Targeting FZD8 may therefore inhibit aberrant activation of both Wnt and TGF-β signals in prostate cancer

Exploring DCO+^+ as a tracer of thermal inversion in the disk around the Herbig Ae star HD163296

We aim to reproduce the DCO$^+$ emission in the disk around HD163296 using a simple 2D chemical model for the formation of DCO$^+$ through the cold deuteration channel and a parametric treatment of the warm deuteration channel. We use data from ALMA in band 6 to obtain a resolved spectral imaging data cube of the DCO$^+$ $J$=3--2 line in HD163296 with a synthesized beam of 0."53$\times$ 0."42. We adopt a physical structure of the disk from the literature that reproduces the spectral energy distribution. We then apply a simplified chemical network for the formation of DCO$^+$ that uses the physical structure of the disk as parameters along with a CO abundance profile, a constant HD abundance and a constant ionization rate. Finally, from the resulting DCO$^+$ abundances, we calculate the non-LTE emission using the 3D radiative transfer code LIME. The observed DCO$^+$ emission is reproduced by a model with cold deuteration producing abundances up to $1.6\times 10^{-11}$. Warm deuteration, at a constant abundance of $3.2\times 10^{-12}$, becomes fully effective below 32 K and tapers off at higher temperatures, reproducing the lack of DCO$^+$ inside 90 AU. Throughout the DCO$^+$ emitting zone a CO abundance of $2\times 10^{-7}$ is found, with $\sim$99\% of it frozen out below 19 K. At radii where both cold and warm deuteration are active, warm deuteration contributes up to 20\% of DCO$^+$, consistent with detailed chemical models. The decrease of DCO$^+$ at large radii is attributed to a temperature inversion at 250 AU, which raises temperatures above values where cold deuteration operates. Increased photodesorption may also limit the radial extent of DCO$^+$. The corresponding return of the DCO$^+$ layer to the midplane, together with a radially increasing ionization fraction, reproduces the local DCO$^+$ emission maximum at $\sim$260 AU.Comment: 9 pages, 5 figures, accepted 7th July 201

Influence of change of regulation on the goals achieved in futsal

Este artículo analiza la hipótesis de que los cambios introducidos en la normativa del fútbol sala modifican su lógica interna disminuyendo los goles totales y modificando su forma de ejecución. El objetivo de estudio es analizar los goles y manera de realizarlos en una temporada anterior y posterior al cambio de reglamentación para establecer cuantitativamente cómo el cambio de reglas del 2.006 afecta al juego. Se analizaron 3.126 goles en 442 partidos, 1.771 goles en 232 partidos en la temporada 2.002-2.003 y 1.355 goles en 210 partidos en la temporada 2.013-2.014. El método utilizado fue la metodología observacional, se utilizó el programa Lince vl.2.1. Los resultados muestran una reducción estadísticamente significativa en el número de goles de una temporada a otra. En la temporada 2.002-2.003 se lograron 1.927 goles con un promedio por equipo de 120,38 ± 28,58, y en la temporada 2.013-2.014 1.355 goles con un promedio de 90,40 ± 27,72This article analyses the hypothesis that the changes introduced in the regulation of futsal modify the inner logic of the game, what turns into a reduction of total goals and a significant variation in the form of execution. Therefore, it is set out as aim of study to analyze the goals and the way to achieve them in a previous season and in one subsequent to the change of regulation in order to establish quantitatively how the 2006 rules change has affected the game. Totally, 3126 goals were analyzed, scored in 442 matches, distributed in 1771 goals in 232 matches in season 2002-2003 and 1355 goals in 210 matches in season 2103-2014. The method used in this study was observational methodology. For the observational process, it has been used the observational software Lince vl.2.1. It has been carried out using the IBM SPSS 19.0.0 program. The results show a statistically significant reduction in the number of goals from one season to another. In season 2002-2003, 1927 goals were achieved with an average by team of 120.38±28.58, by 1355 goals in season 2013-2014 of 90.40±27.7