Market Imperfections, Macroeconomic Conditions, and Capital Structure Dynamics: A Cross-Country Study

This paper investigates how “systematic” adjustment costs proxied by market imperfections and macroeconomic conditions affect capital structure dynamics in a cross-country setting. We document substantial variations in firms’ capital structure adjustments across countries and, particularly, over time. Consistent with adjustment costs impeding firms from rebalancing their capital structures, worse market imperfections are associated with slower speeds of adjustment (SOA) and larger leverage deviations. Intertemporally, capital structure adjustment is procyclical, with SOA increasing by 0.9 percentage point for a one-percentage-point increase in GDP growth rate. The procyclicality is attributable to good macroeconomic conditions mitigating market imperfections through channels of 1) facilitating free-ride restructuring, and 2) uncertainty alleviation. Our investigation features a bootstrapping-based estimation method that addresses the mechanical mean reversion of leverage ratio

Corporate investment and stock liquidity: Evidence on the price impact of trade

We document that corporate investment contributes to stock liquidity. This study demonstrates a positive relationship between abnormal corporate investment and stock liquidity in the cross-section.Moreover, stock liquidityimproves more apparently for firms with financial constraints. Our robustness check confirms that theexisting regularities cannot explain the current finding. This analysis suggests that corporate investment decreasesthe risk of a firm and that a change in the risk affects the behavior of a market maker, leading to an increasein stock liquidity

Isomorphic Strategy for Processor Allocation in k-Ary n-Cube Systems

Due to its topological generality and flexibility, the k-ary n-cube architecture has been actively researched for various applications. However, the processor allocation problem has not been adequately addressed for the k-ary n-cube architecture, even though it has been studied extensively for hypercubes and meshes. The earlier k-ary n-cube allocation schemes based on conventional slice partitioning suffer from internal fragmentation of processors. In contrast, algorithms based on job-based partitioning alleviate the fragmentation problem but require higher time complexity. This paper proposes a new allocation scheme based on isomorphic partitioning, where the processor space is partitioned into higher dimensional isomorphic subcubes. The proposed scheme minimizes the fragmentation problem and is general in the sense that any size request can be supported and the host architecture need not be isomorphic. Extensive simulation study reveals that the proposed scheme significantly outperforms earlier schemes in terms of mean response time for practical size k-ary and n-cube architectures. The simulation results also show that reduction of external fragmentation is more substantial than internal fragmentation with the proposed scheme

Isomorphic Strategy for Processor Allocation in k-Ary n-Cube Systems

Due to its topological generality and flexibility, the k-ary n-cube architecture has been actively researched for various applications. However, the processor allocation problem has not been adequately addressed for the k-ary n-cube architecture, even though it has been studied extensively for hypercubes and meshes. The earlier k-ary n-cube allocation schemes based on conventional slice partitioning suffer from internal fragmentation of processors. In contrast, algorithms based on job-based partitioning alleviate the fragmentation problem but require higher time complexity. This paper proposes a new allocation scheme based on isomorphic partitioning, where the processor space is partitioned into higher dimensional isomorphic subcubes. The proposed scheme minimizes the fragmentation problem and is general in the sense that any size request can be supported and the host architecture need not be isomorphic. Extensive simulation study reveals that the proposed scheme significantly outperforms earlier schemes in terms of mean response time for practical size k-ary and n-cube architectures. The simulation results also show that reduction of external fragmentation is more substantial than internal fragmentation with the proposed scheme