Ownership structure and financial constraints: Evidence from a structural estimation

This article examines the impact of the divergence between corporate insiders' control rights and cash-flow rights on firms' external finance constraints via generalized method of moments estimation of an investment Euler equation. Using a large sample of U.S. firms during the 1994–2002 period, we find that the shadow value of external funds is significantly higher for companies with a wider insider control-ownership divergence, suggesting that companies whose corporate insiders have larger excess control rights are more financially constrained. The effect of insider excess control rights on external finance constraints is more pronounced for firms with higher degrees of informational opacity and for firms with financial misreporting, and is moderated by institutional ownership. The results show that the agency problems associated with the control-ownership divergence can have a real impact on corporate financial and investment outcomes.postprin

Uncertainty analysis of hydrological ensemble forecasts in a distributed model utilising short-range rainfall prediction

International audienceAdvances in meso-scale numerical weather predication make it possible to provide rainfall forecasts along with many other data fields at increasingly higher spatial resolutions. It is currently possible to incorporate high-resolution NWPs directly into flood forecasting systems in order to obtain an extended lead time. It is recognised, however, that direct application of rainfall outputs from the NWP model can contribute considerable uncertainty to the final river flow forecasts as the uncertainties inherent in the NWP are propagated into hydrological domains and can also be magnified by the scaling process. As the ensemble weather forecast has become operationally available, it is of particular interest to the hydrologist to investigate both the potential and implication of ensemble rainfall inputs to the hydrological modelling systems in terms of uncertainty propagation. In this paper, we employ a distributed hydrological model to analyse the performance of the ensemble flow forecasts based on the ensemble rainfall inputs from a short-range high-resolution mesoscale weather model. The results show that: (1) The hydrological model driven by QPF can produce forecasts comparable with those from a raingauge-driven one; (2) The ensemble hydrological forecast is able to disseminate abundant information with regard to the nature of the weather system and the confidence of the forecast itself; and (3) the uncertainties as well as systematic biases are sometimes significant and, as such, extra effort needs to be made to improve the quality of such a system

Ownership structure and the cost of corporate borrowing

This article identifies an important channel through which excess control rights affect firm value. Using a new, hand-collected data set on corporate ownership and control of 3,468 firms in 22 countries during the 1996–2008 period, we find that the cost of debt financing is significantly higher for companies with a wider divergence between the largest ultimate owner’s control rights and cash-flow rights and investigate factors that affect this relation. Our results suggest that potential tunneling and other moral hazard activities by large shareholders are facilitated by their excess control rights. These activities increase the monitoring costs and the credit risk faced by banks and, in turn, raise the cost of debt for the borrower.postprin

Corporate ownership structure and bank loan syndicate structure

Using a novel data set on corporate ownership and control, we show that the divergence between the control rights and cash-flow rights of a borrowing firm's largest ultimate owner has a significant impact on the concentration and composition of the firm's loan syndicate. When the control-ownership divergence is large, lead arrangers form syndicates with structures that facilitate enhanced due diligence and monitoring efforts. These syndicates tend to be relatively concentrated and composed of domestic banks that are geographically close to the borrowing firms and that have lending expertise related to the industries of the borrowers. We also examine factors that influence the relation between ownership structure and syndicate structure, including lead arranger reputation, prior lending relationship, borrowing firm informational opacity, presence of multiple large owners, laws and institutions, and financial crises.postprin

Corporate ownership structure and the choice between bank debt and public debt

This article examines the relation between a borrowing firm's ownership structure and its choice of debt source using a novel data set on corporate ownership, control, and debt structures for 9,831 firms in 20 countries from 2001 to 2010. We find that the divergence between the control rights and cash-flow rights of a borrowing firm's largest ultimate owner has a significant negative impact on the firm's reliance on bank debt financing. In addition, we show that the control-ownership divergence affects other aspects of debt structure including debt maturity and security. Our results indicate that firms controlled by large shareholders with excess control rights may choose public debt financing over bank debt as a way of avoiding scrutiny and insulating themselves from bank monitoring.postprin

Hydrological appraisal of operational weather radar rainfall estimates in the context of different modelling structures

Radar rainfall estimates have become increasingly available for hydrological modellers over recent years, especially for flood forecasting and warning over poorly gauged catchments. However, the impact of using radar rainfall as compared with conventional raingauge inputs, with respect to various hydrological model structures, remains unclear and yet to be addressed. In the study presented by this paper, we analysed the flow simulations of the upper Medway catchment of southeast England using the UK NIMROD radar rainfall estimates, using three hydrological models based upon three very different structures (e.g. a physically based distributed MIKE SHE model, a lumped conceptual model PDM and an event-based unit hydrograph model PRTF). We focused on the sensitivity of simulations in relation to the storm types and various rainfall intensities. The uncertainty in radar rainfall estimates, scale effects and extreme rainfall were examined in order to quantify the performance of the radar. We found that radar rainfall estimates were lower than raingauge measurements in high rainfall rates; the resolutions of radar rainfall data had insignificant impact at this catchment scale in the case of evenly distributed rainfall events but was obvious otherwise for high-intensity, localised rainfall events with great spatial heterogeneity. As to hydrological model performance, the distributed model had consistent reliable and good performance on peak simulation with all the rainfall types tested in this study

The association of XRCC3 Thr241Met genetic variant with risk of prostate cancer: a meta-analysis

Background: Previous studies suggest that the X-ray repair cross-complementing group 3 gene (XRCC3) Thr241Met genetic variant could be potentially associated with the risk of prostate cancer. However, results from these published studies were conflicting rather than conclusive.Objectives:This meta-analysis aimed to conduct a better understanding of the effects of XRCC3 Thr241Met genetic variant on prostate cancer risk.Methods: We identified three eligible studies, 499 prostate cancer cases and 571 controls.Results: Overall, significant associations were detected in the heterozygote comparison genetic model (CT versus (vs.) CC: OR = 0.71, 95% CI 0.53-0.94, Z =2.38, p= 0.017), and the dominant genetic model (TT/CT vs. CC: OR = 0.74, 95% CI 0.57-0.98, Z = 2.11, p =0.035). In the subgroup analysis by ethnicities, we found that this genetic variant was significantly associated with the decrease risk of prostate cancer in Caucasians for heterozygote comparison genetic model (CT vs. CC: OR = 0.66, 95% CI 0.44-0.98, Z = 2.04, p = 0.042). No publication bias was found in this study.Conclusions: Results from this meta-analysis indicate that the XRCC3 Thr241Met genetic variant is associated with prostate cancer risk.Keywords: Prostate cancer; XRCC3 gene; Genetic variant; Meta-analysi