Leverage and the maturity structure of debt in emerging markets

The aim of this paper is to analyse for a multi-country large emerging market sample the choice between debt and equity simultaneously with the decision between short- and long-term debts. In order to investigate the joint decision among leverage and maturity, we examine an unique sample of 986 firms and 13,490 firm-year observations from Latin America and 686 firms and 7919 firm-year observations from Eastern Europe for the period 1990-2003. We employ dynamic panel data analysis using Generalized Method of moments. The empirical results support three main findings. First, the cross-effects between leverage and maturity behave exactly the opposite between Latin America and Eastern Europe sub-samples. Capital structure and debt maturity are policy complements in Latin America and substitutes in Eastern Europe. Second, there is a significant dynamic effects component in the determination of leverage and maturity. Finally, adjustment to the target maturity is by no means costless and instantaneous with firm facing moderate adjustment costs

State succinctness of two-way finite automata with quantum and classical states

{\it Two-way quantum automata with quantum and classical states} (2QCFA) were introduced by Ambainis and Watrous in 2002. In this paper we study state succinctness of 2QCFA. For any $m\in {\mathbb{Z}}^+$ and any $\epsilon<1/2$, we show that: {enumerate} there is a promise problem $A^{eq}(m)$ which can be solved by a 2QCFA with one-sided error $\epsilon$ in a polynomial expected running time with a constant number (that depends neither on $m$ nor on $\varepsilon$) of quantum states and $\mathbf{O}(\log{\frac{1}{\epsilon})}$ classical states, whereas the sizes of the corresponding {\it deterministic finite automata} (DFA), {\it two-way nondeterministic finite automata} (2NFA) and polynomial expected running time {\it two-way probabilistic finite automata} (2PFA) are at least $2m+2$, $\sqrt{\log{m}}$, and $\sqrt[3]{(\log m)/b}$, respectively; there exists a language $L^{twin}(m)=\{wcw| w\in\{a,b\}^*\}$ over the alphabet $\Sigma=\{a,b,c\}$ which can be recognized by a 2QCFA with one-sided error $\epsilon$ in an exponential expected running time with a constant number of quantum states and $\mathbf{O}(\log{\frac{1}{\epsilon})}$ classical states, whereas the sizes of the corresponding DFA, 2NFA and polynomial expected running time 2PFA are at least $2^m$, $\sqrt{m}$, and $\sqrt[3]{m/b}$, respectively; {enumerate} where $b$ is a constant.Comment: 26pages, comments and suggestions are welcom