Do Shareholders' Preferences Affect their Funds' Management? Evidence from the Cross Section of Shareholders and Funds

We consider how fund managers respond to the conflicting preferences of their investors. We focus on the conflict between the taxable and retirement accounts of international funds, which face different tradeoffs between dividends and capital gains. In principle, managers could resolve this conflict through dividend arbitrage, but a proprietary database of dividend-arbitrage transactions shows that in practice they cannot. Thus, managers must resolve it through their investment policies, and we find robust evidence that managers with more retirement money favor the preferences of retirement investors. We find additional evidence in the difference between U.S. and Canadian funds' portfolio weights. Nous étudions comment les gestionnaires de fonds réagissent aux préférences contradictoires de leurs investisseurs. Notre étude se concentre principalement sur les conflits entre les comptes taxés et les comptes de retraite des fonds internationaux qui font l'objet de compromis différents entre les gains en dividendes et les gains de capital. En théorie, les gestionnaires peuvent résoudre ces conflits par des opérations d'arbitrage sur les dividendes, mais une base de données privée d'opérations d'arbitrage fait apparaître qu'en pratique ils ne peuvent pas. Les gestionnaires doivent alors résoudre ces conflits à travers leurs politiques d'investissement, et nous trouvons des résultats significatifs montrant que ceux dont le capital est issu majoritairement des retraites favorisent les investisseurs de fonds de pension. Nous trouvons également des différences entre les poids des portefeuilles de fonds américains et canadiens.Dividend arbitrage, tax efficiency, agency issues, mutual funds, arbitrage sur les dividendes, taxes sur les rendements, placements pour compte, fonds commun de placement

How and Why do Investors Trade Votes, and What Does it Mean?

The standard analysis of corporate governance is that shareholders vote in the ratios that firms choose, such as one-share-one-vote. But if the cost of unbundling and trading votes is sufficiently low, then shareholders vote in the ratios that they themselves choose. We document an active market for votes within the equity-loan market, where we find that the average vote sells for zero. We hypothesize that asymmetric information motivates these vote reallocations, and we find support for this view in the cross section of votes: there is more trade for higher-spread firms and more for poor performers, especially when the vote is close. We also find that the vote reallocations correspond to support for shareholder proposals and opposition to management proposals. L'analyse classique de la gouvernance d'entreprise suppose que les actionnaires votent selon les modalités choisies par la firme, par exemple un vote par action. Mais si les coûts associés à la séparation et à l'échange des votes sont suffisamment faibles, alors les actionnaires votent selon les modalités qu'ils ont eux-mêmes choisies. Nous présentons le cas d'un marché actif de votes au sein du marché des mises de fonds sous forme d'emprunts (equity loans), où nous constatons qu'en moyenne les votes se vendent pour rien. Nous supposons que l'asymétrie d'information provoque cette réallocation des votes, et nous étayons cette hypothèse à travers l'étude transversale des votes : le nombre d'opérations est plus important pour les compagnies dont l'écart acheteur-vendeur est plus élevé ainsi que pour celles dont les résultats sont plus faibles, particulièrement lorsque le vote est clos. Cette étude montre aussi que la réallocation des votes permet de soutenir les propositions des actionnaires et de s'opposer à celles des gestionnaires.vote trading, corporate governance, equity lending, information asymmetry, transaction de votes, gouvernance d'entreprise, prêt d'actions, asymétrie d'information

Fractal Behaviour in the O(3) Model

We study domain formation in the two-dimensional O(3) model near criticality. The fractal dimension of these domains is determined with good statistical accuracy.Comment: 6 pages + 3 figures (concatenated PS files, uuencoded gz-compressed

On Interferometric Duality in Multibeam Experiments

We critically analyze the problem of formulating duality between fringe visibility and which-way information, in multibeam interference experiments. We show that the traditional notion of visibility is incompatible with any intuitive idea of complementarity, but for the two-beam case. We derive a number of new inequalities, not present in the two-beam case, one of them coinciding with a recently proposed multibeam generalization of the inequality found by Greenberger and YaSin. We show, by an explicit procedure of optimization in a three-beam case, that suggested generalizations of Englert's inequality, do not convey, differently from the two-beam case, the idea of complementarity, according to which an increase of visibility is at the cost of a loss in path information, and viceversa.Comment: 26 pages, 1 figure, substantial changes in the text, new material has been added in Section 3. Version to appear in J.Phys.

XAI.it 2021 - Preface to the Second Italian Workshop on Explainable Artificial Intelligence

Artificial Intelligence systems are increasingly playing an increasingly important role in our daily lives. As their importance in our everyday lives grows, it is fundamental that the internal mechanisms that guide these algorithms are as clear as possible. It is not by chance that the recent General Data Protection Regulation (GDPR) emphasized the users' right to explanation when people face artificial intelligencebased technologies. Unfortunately, the current research tends to go in the opposite direction, since most of the approaches try to maximize the effectiveness of the models (e.g., recommendation accuracy) at the expense of the explainability and the transparency. The main research questions which arise from this scenario is straightforward: how can we deal with such a dichotomy between the need for effective adaptive systems and the right to transparency and interpretability? Several research lines are triggered by this question: building transparent intelligent systems, analyzing the impact of opaque algorithms on final users, studying the role of explanation strategies, investigating how to provide users with more control in the behavior of intelligent systems. XAI.it, the Italian workshop on Explainable AI, tries to address these research lines and aims to provide a forum for the Italian community to discuss problems, challenges and innovative approaches in the various sub-fields of XAI

XAI.it 2020 - Preface to the first italian workshop on explainable artificial intelligence

Artificial Intelligence systems are increasingly playing an increasingly important role in our daily lives. As their importance in our everyday lives grows, it is fundamental that the internal mechanisms that guide these algorithms are as clear as possible. It is not by chance that the recent General Data Protection Regulation (GDPR) emphasized the users’ right to explanation when people face artificial intelligence-based technologies. Unfortunately, the current research tends to go in the opposite direction, since most of the approaches try to maximize the effectiveness of the models (e.g., recommendation accuracy) at the expense of the explainability and the transparency. The main research questions which arise from this scenario is straightforward: how can we deal with such a dichotomy between the need for effective adaptive systems and the right to transparency and interpretability? Several research lines are triggered by this question: building transparent intelligent systems, analyzing the impact of opaque algorithms on final users, studying the role of explanation strategies, investigating how to provide users with more control in the behavior of intelligent systems. XAI.it, the first Italian workshop on Explainable AI, tries to address these research lines and aims to provide a forum for the Italian community to discuss problems, challenges and innovative approaches in the various sub-fields of XAI

Standardised surface electromyography allows effective submental muscles assessment

The aims of this pilot study were to evaluate: (i) the reproducibility and variability of an electromyographical protocol developed for the assessment of submental muscles (SM) (ii) to apply the new protocol to maximal teeth clenching, a simple and largely studied static task in order to quantify the relative contribution of submental muscles. In 20 healthy subjects, aged 19-35years, surface electromyography of SM, masseter (MM) and anterior temporalis (TA) muscles was performed during maximal voluntary clenching (MVC) with and without cotton rolls and the pushing of the tongue against the palate. Clenching on cotton rolls and pushing the tongue against the palate were used to standardise respectively MM and TA, and SM muscular potentials. The exercises were repeated in two appointments (T1-T2); submental muscles standardisation was also repeated twice (A-B) in each session to assess repeatability. Symmetry and activity were calculated for each couple of muscles. A two-way analysis of variance was computed for SM: no Factor 1 (T1 vs T2) or Factor 2 (A vs B) or F1 7F2 significant effects were found. SM recruitment was 31% of the maximal activity, with symmetry values larger than 80%. In conclusion, standardised electromyography allows a reliable assessment of Submental muscles activity