A Note on Synchronization Risk and Delayed Arbitrage

This note reexamines Abreu and Brunnermeier's (2003) analysis of a bubble that persists towards synchronization risk. We find that a certain condition that usually does not hold is required for the existence of synchronization risk.

An Interactive Fuzzy Satisficing Method for Multiobjective Nonlinear Programming Problems with Fuzzy Parameters

This paper presents an interactive fuzzy satisficing method for multiobjective nonlinear programming problems with fuzzy parameters. The fuzzy parameters in the objective functions and the constraints are characterized by the fuzzy numbers. On the basis of the alpha-level sets of the fuzzy numbers, the concept of alpha-multiobjective nonlinear programming and alpha-Pareto optimality is introduced. Through the interaction with the decision maker (DM), the fuzzy goals of the DM for each of the objective functions in alpha-multiobjective nonlinear programming are quantified by eliciting the corresponding membership functions. After determining the membership functions, in order to generate a candidate for the satisficing solution which is also alpha-Pareto optimal, if the DM specifies the degree alpha of the alpha-level sets and the reference membership values, the augmented minimax problem is solved and the DM is supplied with the corresponding alpha-Pareto optimal solution together with the trade-off rates among the values of the membership functions and the degree alpha. Then by considering the current values of the membership functions and as well as the trade-off rates, the DM responds by updating his reference membership values and/or the degree alpha. In this way the satisficing solution for the DM can be derived efficiently from among an alpha-Pareto optimal solution set. Based on the proposed method, a time-sharing computer program is written and an illustrative numerical example is demonstrated along with the corresponding computer outputs

The Relationship between Managerial Compensation and Business Performance in Japan: New Evidence using Micro Data

This paper examines the relationship between the level of Japanese business managers' compensation and the quality of corporate governance, and whether weaker governance structures lead to poorer future performance. The conclusions of this paper are as follows. First, the level of Japanese business managers' compensation increases as the percentage of 'old', 'bank' and 'gray' outside directors increases. Compensation also increases with board stockholding and block holding. This suggests weak monitoring by old, bank and gray outside directors and block holders. Second, our results show that firms with weaker governance structures have poorer performance. These results suggest the existence of an overcompensation problem with Japanese managers similarly to the US.Board of Directors, Corporate Governance, Managers' Compensation, Ownership Structure.

Does Pre-trade Transparency Affect Market Quality in the Tokyo Stock Exchange?

This paper presents an examination of the relation between pre-trade transparency and market quality in the Tokyo Stock Exchange (TSE). Mixed evidence related to this relation has been reported worldwide. We analyzed this relation using a discrete change of disclosure policy in the 2000s. A positive relation pertains between pre-trade transparency and market quality. This result implies that the change of disclosure policy on the TSE might be effective for market quality improvement to some extent.Pre-trade transparency; Market quality; Quote Disclosure

Managerial Compensation, Corporate Governance, and Business Performance in Japan: Evidence Using New Micro Data

This paper examines the relations between the disciplinary role of Japanese relationship-oriented corporate governance mechanisms, such as keiretsu memberships and bank-appointed directors, and pay-performance sensitivity in Japan. Previous studies show that pay-performance sensitivity is positive and almost the same as in a market-oriented system like that of the USA. However, under the Japanese relationship-oriented system, pay-performance sensitivity may be controlled by financial keiretsu ties and bank-appointed directors. We find that the disciplinary mechanism of keiretsu memberships and bank-appointed monitors did not function well in Japan in the 1990s.Corporate Governance, Firm Performance, Japan, Keiretsu Memberships, Managerial Compensation

Interactive Multiobjective Decision Making by the Sequential Proxy Optimization Technique: SPOT

In this paper, we propose a new interactive multiobjective decision making technique, which we call the Sequential Proxy Optimization Technique (SPOT), in order to overcome the drawbacks of the conventional multiobjective decision making methods. Our method combines the desirable features of both the Surrogate Worth Trade-off (SWT) method and the Multiattribute Utility Function (MUF) method. We can interactively derive the preferred solution of the decision maker efficiently by assessing his marginal rate of substitution and maximizing sequentially the local proxy preference function. A numerical example illustrates the feasibility and efficiency of the proposed method

An Interactive Fuzzy Satisficing Method for Fuzzy Random Multiobjective 0-1 Programming Problems through Probability Maximization Using Possibility

In this paper, we focus on multiobjective 0-1 programming problems under the situation where stochastic uncertainty and vagueness exist at the same time. We formulate them as fuzzy random multiobjective 0-1 programming problems where coefficients of objective functions are fuzzy random variables. For the formulated problem, we propose an interactive fuzzy satisficing method through probability maximization using of possibility

Approximate Solution of Optimal Control Problem by Using Linear Programming Technique

This paper treats an approximate solution of optimal control problem by means of the linear programming technique. Let the system be linear, then the solution of a set of differential equations which governs the system is given by the variation-of-constants formula. The state variables of the system at a fixed time are described by the definite integral, the integrand of which is a linear form in control variables. Upon use of a suitable integration formula, the integrals are approximately represented by a weighted sum of a finite number of values of the integrand. By introducing auxiliary variables, the performance index which is required to be minimum is expressed as a linear function of the variables subject to constraints. Thus, the minimization of a functional is approximately reduced to the minimization of a linear function of many variables subject to linear constraints. This problem is a linear programming problem, and can be solved by using the simplex method. A feasible basic solution to the linear program is shown also

Doctor of Philosophy

dissertationInherited retinal degenerative diseases (IRD) are a group of disorders that lead to progressive deterioration of mainly the photoreceptors. Retinitis pigmentosa (RP) and cone-rod dystrophy (CRD) are two forms of IRDs. RP is the most common form of IRD and is due to rod photoreceptor degeneration followed by cone photoreceptor loss. CRD, on the other hand, is characterized by the loss of cones or the concurrent degeneration of both cones and rods. Both RP and CRD are presently incurable. More than 200 genes have been identified to cause IRDs and the functions of many of these genes remain unclear. Mutations in a novel gene, C8ORF37, were identified to cause recessive, severe, and early-onset RP and CRD. I, therefore, pioneered in characterizing the role of C8ORF37 in the retina. This dissertation is comprised of four chapters that is organized as follows: (1) summary of an ocular disorder (2) a genetic model of a retinal disorder (3) biochemical/proteomic analysis of C8ORF37 (4) potential clinical applications. A summary of ocular disorders is discussed in Chapter 1, with an emphasis on CRD. Chapter 2 focuses on the generation and characterization of C8orf37 mutant mouse models that recapitulate the retinal pathologies observed in human patients. In C8orf37 knockout retinas, the outer segment (OS) was nonuniform, swollen, and wider in width when compared to the controls. Moreover, many OS membrane proteins were reduced in the retina of C8orf37 knockout, including CNGB1 and RDS, proteins essential for OS disc morphogenesis and alignment. Our findings shed new light on the pathogenesis underlying retinal dysfunction and degeneration in C8ORF37-deficient patients. To determine the function of a novel protein, a powerful approach is by identifying its binding partners. In Chapter 3, I discuss GST pull-down using bovine retinal lysates, yeast-two-hybrid, and immunoprecipitation with mouse retinal lysate in order to identify C8ORF37-interacting proteins. Our pull-downs identified KTN1, RAB28, UCHL1, and PSMD14 suggesting that C8ORF37 may have a role in protein homeostasis. Chapter 4 concludes and discusses the impact of generating and characterizing C8orf37 animal models for future studies in understanding photoreceptor function and in the development of therapeutics against retinal degeneration