Payout Policy in the 21st Century

We survey 384 CFOs and Treasurers, and conduct in-depth interviews with an additional two dozen, to determine the key factors that drive dividend and share repurchase policies. We find that managers are very reluctant to cut dividends, that dividends are smoothed through time, and that dividend increases are tied to long-run sustainable earnings but much less so than in the past. Rather than increasing dividends, many firms now use repurchases as an alternative. Paying out with repurchases is viewed by managers as being more flexible than using dividends, permitting a better opportunity to optimize investment. Managers like to repurchase shares when they feel their stock is undervalued and in an effort to affect EPS. Dividend increases and the level of share repurchases are generally paid out of residual cash flow, after investment and liquidity needs are met. Financial executives believe that retail investors have a strong preference for dividends, in spite of the tax disadvantage relative to repurchases. In contrast, executives believe that institutional investors as a class have no strong preference between dividends and repurchases. In general, management views provide at most moderate support for agency, signaling, and clientele hypotheses of payout policy. Tax considerations play only a secondary role. By highlighting where the theory and practice of corporate payout policy are consistent and where they are not, we attempt to shed new light on important unresolved issues related to payout policy in the 21st century.

Effective Confinement as Origin of the Equivalence of Kinetic Temperature and Fluctuation-Dissipation Ratio in a Dense Shear Driven Suspension

We study response and velocity autocorrelation functions for a tagged particle in a shear driven suspension governed by underdamped stochastic dynamics. We follow the idea of an effective confinement in dense suspensions and exploit a time-scale separation between particle reorganization and vibrational motion. This allows us to approximately derive the fluctuation-dissipation theorem in a "hybrid" form involving the kinetic temperature as an effective temperature and an additive correction term. We show numerically that even in a moderately dense suspension the latter is negligible. We discuss similarities and differences with a simple toy model, a single trapped particle in shear flow

On the attractors of two-dimensional Rayleigh oscillators including noise

We study sustained oscillations in two-dimensional oscillator systems driven by Rayleigh-type negative friction. In particular we investigate the influence of mismatch of the two frequencies. Further we study the influence of external noise and nonlinearity of the conservative forces. Our consideration is restricted to the case that the driving is rather weak and that the forces show only weak deviations from radial symmetry. For this case we provide results for the attractors and the bifurcations of the system. We show that for rational relations of the frequencies the system develops several rotational excitations with right/left symmetry, corresponding to limit cycles in the four-dimensional phase space. The corresponding noisy distributions have the form of hoops or tires in the four-dimensional space. For irrational frequency relations, as well as for increasing strength of driving or noise the periodic excitations are replaced by chaotic oscillations.Comment: 9 pages, 5 figure

Effects of ethanolic and aqueous leaf extracts of Bryophyllum pinnatum on haematological parameters of normal and streptozotocin–induced diabetic rats

The effect of the oral administration of both ethanolic and aqueous leaf extracts from Bryophyllum pinnatum (BP) on haematological parameters of normal and streptozotocin - induced (STZ) diabetic rat was investigated. Twenty-five male Wister rats were used and divided into five groups of five rats each. They were designated as (Normal Control – NC, Diabetic Control – DC, Diabetic Ethanolic Extract – DEE, Diabetic Aqueous Extract – DAE, and Normal Aqueous Extract – NAE). Groups NC and DC served as ‘control’ animals receiving food and water only. Groups DC, DEE and DAE were injected intraperitoneally with 65mg/kg body weight streptozotocin. Induction of diabetes mellitus was confirmed after 48 hours using glucose test strips. The test rats were all treated with 100mg/kgbwt ethanolic and aqueous leaf extracts of Bryophyllum pinnatum for 28days. At the end of the 28days, the rats were sacrificed and whole blood collected for Haematological assay. Results obtained showed a significant difference(P<0.05) in White Blood Cell (WBC), Red Blood Cell (RBC), Platelet (PLT), Haemoglobin (HBG), Packed Cell Volume (PCV), Mean Cell Volume (MCV), Mean Cell Haemoglobin (MCH), Mean Cell Haemoglobin Concentration (MCHC) and Lymphocytes (LYM) in treated rats with BP leaf extracts when compared to the diabetic and normal control groups

Hybrid simulations of lateral diffusion in fluctuating membranes

In this paper we introduce a novel method to simulate lateral diffusion of inclusions in a fluctuating membrane. The regarded systems are governed by two dynamic processes: the height fluctuations of the membrane and the diffusion of the inclusion along the membrane. While membrane fluctuations can be expressed in terms of a dynamic equation which follows from the Helfrich Hamiltonian, the dynamics of the diffusing particle is described by a Langevin or Smoluchowski equation. In the latter equations, the curvature of the surface needs to be accounted for, which makes particle diffusion a function of membrane fluctuations. In our scheme these coupled dynamic equations, the membrane equation and the Langevin equation for the particle, are numerically integrated to simulate diffusion in a membrane. The simulations are used to study the ratio of the diffusion coefficient projected on a flat plane and the intramembrane diffusion coefficient for the case of free diffusion. We compare our results with recent analytical results that employ a preaveraging approximation and analyze the validity of this approximation. A detailed simulation study of the relevant correlation functions reveals a surprisingly large range where the approximation is applicable.Comment: 12 pages, 9 figures, accepted for publication in Phys. Rev.

Escape from a metastable well under a time-ramped force

Thermally activated escape of an over-damped particle from a metastable well under the action of a time-ramped force is studied. We express the mean first passage time (MFPT) as the solution to a partial differential equation, which we solve numerically for a model case. We discuss two approximations of the MFPT, one of which works remarkably well over a wide range of loading rates, while the second is easy to calculate and can provide a valuable first estimate.Comment: 9 pages, including 2 figure

Hydrodynamic lift on bound vesicles

Bound vesicles subject to lateral forces such as arising from shear flow are investigated theoretically by combining a lubrication analysis of the bound part with a scaling approach to the global motion. A minor inclination of the bound part leads to significant lift due to the additive effects of lateral and tank-treading motions. With increasing shear rate, the vesicle unbinds from the substrate at a critical value. Estimates are in agreement with recent experimental data.Comment: 9 pages, one figur