Measuring Investment Distortions when Risk-Averse Managers Decide Whether to Undertake Risky Projects

This paper examines distortions in corporate investment decisions when a new project changes firm risk. It presents a dynamic model in which a self-interested, risk-averse manager makes investment decisions at a levered firm. The model, calibrated using data from public firms, is used to estimate the magnitude of distortions in investment decisions. Despite potential wealth transfers from debtholders, managers compensated with equity prefer safe projects to risky ones. Important factors in this decision are the expected changes in the values of future tax shields and bankruptcy costs when firm risk changes. We also evaluate the extent to which this effect varies with firm leverage, managerial risk aversion, managerial non-firm wealth, project size, debt duration, and the structure of management compensation packages.

Desynchronization and Wave Pattern Formation in MPI-Parallel and Hybrid Memory-Bound Programs

Analytic, first-principles performance modeling of distributed-memory parallel codes is notoriously imprecise. Even for applications with extremely regular and homogeneous compute-communicate phases, simply adding communication time to computation time does often not yield a satisfactory prediction of parallel runtime due to deviations from the expected simple lockstep pattern caused by system noise, variations in communication time, and inherent load imbalance. In this paper, we highlight the specific cases of provoked and spontaneous desynchronization of memory-bound, bulk-synchronous pure MPI and hybrid MPI+OpenMP programs. Using simple microbenchmarks we observe that although desynchronization can introduce increased waiting time per process, it does not necessarily cause lower resource utilization but can lead to an increase in available bandwidth per core. In case of significant communication overhead, even natural noise can shove the system into a state of automatic overlap of communication and computation, improving the overall time to solution. The saturation point, i.e., the number of processes per memory domain required to achieve full memory bandwidth, is pivotal in the dynamics of this process and the emerging stable wave pattern. We also demonstrate how hybrid MPI-OpenMP programming can prevent desirable desynchronization by eliminating the bandwidth bottleneck among processes. A Chebyshev filter diagonalization application is used to demonstrate some of the observed effects in a realistic setting.Comment: 18 pages, 8 figure

Multiple agency perspective, family control, and private information abuse in an emerging economy

Using a comprehensive sample of listed companies in Hong Kong this paper investigates how family control affects private information abuses and firm performance in emerging economies. We combine research on stock market microstructure with more recent studies of multiple agency perspectives and argue that family ownership and control over the board increases the risk of private information abuse. This, in turn, has a negative impact on stock market performance. Family control is associated with an incentive to distort information disclosure to minority shareholders and obtain private benefits of control. However, the multiple agency roles of controlling families may have different governance properties in terms of investors’ perceptions of private information abuse. These findings contribute to our understanding of the conflicting evidence on the governance role of family control within a multiple agency perspectiv