Investment-Cash Flow Sensitivities are not Valid Measures of Financing Constraints

Kaplan and Zingales [1997] provide both theoretical arguments and empirical evidence that investment-cash flow sensitivities are not good indicators of financing constraints. Fazzari, Hubbard and Petersen [1999] criticize those findings. In this note, we explain how the Fazzari et al. [1999] criticisms are either very supportive of the claims in Kaplan and Zingales [1997] or incorrect. We conclude with a discussion of unanswered questions.

Do Financing Constraints Explain Why Investment is Correlated with Cash Flow?

This paper investigates the sources of the correlation between corporate cash flow and investment by undertaking an in-depth analysis of the 49 low-dividend firms identified by Fazzari, Hubbard, and Petersen (1988) as having an unusually high investment-cash flow sensitivity. We find that in only 15% of firm-years is there some question as to a firm's ability to access internal or external funds to increase investment. Strikingly, those firms that appear less financially constrained exhibit a significantly greater investment- cash flow sensitivity than firms that appear more financially constrained. We find this pattern for the entire sample period, for sub-periods, and for individual years. The results indicate that a higher sensitivity cannot be interpreted as evidence that a firm is more financially constrained. We discuss reasons and provide evidence why the opposite may be true. These findings challenge much of the existing evidence on the effects of financial constraints.

Fractional order hereditariness of knee human ligament and tendon

Anterior Cruciate Ligament (ACL) is one of the four major ligaments in the knee, playing a critical role in stabilizing the joint. ACL is highly susceptible to injury, overall during sport activities, often precipitating catastrophic long-term joint outcomes. The ideal replacement graft for a torn ACL would restore native anatomy and function to the knee. Most commonly used autograft and allograft, including patellar tendon (P) and hamstring tendon (H) graft, or bioengineered synthetic grafts, may substantially alter the biomechanics of the knee, permitting a return to only moderate physical activities [1]. Main issues are the sub-optimal graft properties [2] and a still incomplete biomechanics characterization [1]. The goal of the present work is to fully characterize and compare the viscoelastic behavior of the ACL and natural/artificial grafts in order to highlight the differences that should be overcome to achieve a successful biomechanical performance and an ideal graft design

A population study of gaseous exoplanets

We present here the analysis of 30 gaseous extrasolar planets, with temperatures between 600 and 2400 K and radii between 0.35 and 1.9 $R_\mathrm{Jup}$. The quality of the HST/WFC3 spatially scanned data combined with our specialized analysis tools allow us to study the largest and most self-consistent sample of exoplanetary transmission spectra to date and examine the collective behavior of warm and hot gaseous planets rather than isolated case-studies. We define a new metric, the Atmospheric Detectability Index (ADI) to evaluate the statistical significance of an atmospheric detection and find statistically significant atmospheres around 16 planets out of the 30 analysed. For most of the Jupiters in our sample, we find the detectability of their atmospheres to be dependent on the planetary radius but not on the planetary mass. This indicates that planetary gravity plays a secondary role in the state of gaseous planetary atmospheres. We detect the presence of water vapour in all of the statistically detectable atmospheres, and we cannot rule out its presence in the atmospheres of the others. In addition, TiO and/or VO signatures are detected with 4$\sigma$ confidence in WASP-76 b, and they are most likely present in WASP-121 b. We find no correlation between expected signal-to-noise and atmospheric detectability for most targets. This has important implications for future large-scale surveys.Comment: 14 pages, 12 figures, 3 tables, published in A

Trypanosoma cruzi benznidazole susceptibility in vitro does not predict the therapeutic outcome of human Chagas disease

Therapeutic failure of benznidazole (BZ) is widely documented in Chagas disease and has been primarily associated with variations in the drug susceptibility of Trypanosoma cruzi strains. In humans, therapeutic success has been assessed by the negativation of anti-T. cruzi antibodies, a process that may take up to 10 years. A protocol for early screening of the drug resistance of infective strains would be valuable for orienting physicians towards alternative therapies, with a combination of existing drugs or new anti-T. cruzi agents. We developed a procedure that couples the isolation of parasites by haemoculture with quantification of BZ susceptibility in the resultant epimastigote forms. BZ activity was standardized with reference strains, which showed IC50 to BZ between 7.6-32 µM. The assay was then applied to isolates from seven chronic patients prior to administration of BZ therapy. The IC50 of the strains varied from 15.6 ± 3-51.4 ± 1 µM. Comparison of BZ susceptibility of the pre-treatment isolates of patients considered cured by several criteria and of non-cured patients indicates that the assay does not predict therapeutic outcome. A two-fold increase in BZ resistance in the post-treatment isolates of two patients was verified. Based on the profile of nine microsatellite loci, sub-population selection in non-cured patients was ruled out.FAPESPCNP