How do Rating Agencies Score in Predicting Firm Performance

We use dynamic panel analysis to examine whether credit rating agencies achieve what they claim to achieve, namely, look into the future when assigning their ratings. We find that Moody's ratings help predict individual financial ratios over a horizon of up to five years. Ratings also predict a multivariate credit score, again over five years. The contribution of ratings appears to be economically significant and robust for different specifications.Credit Ratings, Predictive ability, Dynamic Panel Model.

Position matters : fluorescent positional isomers for reversible multichannel encryption devices

Fluorescence signals have been widely used in information encryption for a few decades, but still suffer from limited reliability. Here, reversible multichannel fluorescent devices with encrypted information were constructed, based on two fluorescent positional isomers of a diphenylquinoxaline derivative. Possessing the same core fluorescent group and acid-/pH-responsive mechanism, the two isomers showed different fluorescence color in an acidic environment, which allowed us to realize stepwise encryption of information in orthogonal fluorescence channels. Since the protonation was reversible, the revealed information could be re-encrypted, simply by heating. This approach highlights the value of positional isomers to build multichannel encryption devices, improving their reliability on the molecular level

Predatory short sales and bailouts

This paper extends the literature on predatory short selling and bailouts through a joint analysis of the two. We consider a model with informed short sales, as well as uninformed predatory short sales, which can trigger the inefficient liquidation of a firm. We obtain several novel results: A government commitment to bail out insolvent firms with positive probability can increase welfare because it selectively deters predatory short selling without hampering desirable informed short sales. Contrasting a common view, bailouts can be optimal ex ante but undesirable ex post. Furthermore, bailouts in our model are a better policy tool than short selling restrictions. Welfare gains from the bailout policy are unevenly distributed: shareholders gain while taxpayers lose. Bailout taxes allow ex-ante Pareto improvements

Nanolayer laser absorber for femtoliter chemistry in polymer reactors

Laser-induced forward transfer (LIFT) has the potential to be an alternative approach to atomic force microscopy based scanning probe lithography techniques, which have limitations in high-speed and large-scale patterning. However, traditional donor slides limit the resolution and chemical flexibility of LIFT. Here, we propose a hematite nanolayer absorber for donor slides to achieve high-resolution transfers down to sub-femtoliters. Being wettable by both aqueous and organic solvents, this new donor significantly increases the chemical scope for the LIFT process. For parallel amino acid coupling reactions, the patterning resolution can now be increased more than five times (>111,000 spots/cm2 for hematite donor versus 20,000 spots/cm2 for standard polyimide donor) with even faster scanning (2 versus 6 ms per spot). Due to the increased chemical flexibility, we could explore other types of reactions inside ultrasmall polymer reactors: copper (I) catalyzed click chemistry and laser-driven oxidation of a tetrahydroisoquinoline derivative, suggesting the potential of LIFT for both deposition of chemicals and laser-driven photochemical synthesis in femtoliters within milliseconds. Since the hematite shows no damage after typical laser transfer, donors can be regenerated by heat treatment. These findings will transform the LIFT process into an automatable, precise, and highly efficient technology for high-throughput femtoliter chemistry

Binding of endothelin to plasma proteins and tissue receptors: effects on endothelin determination, vasoactivity, and tissue kinetics

AbstractIn vitro binding of (3-[125I]Tyr)-endothelin-1 ([125I]ET-1) and (3-[125I]Tyr)-big ET-1(1–38) ([125I]big ET-1) to plasma proteins of healthy humans, cardiac patients and normotensive and hypertensive rats was investigated by equilibrium dialysis. Binding of both tracers was similar in plasma from healthy humans, patients with congestive heart failure, and following myocardial infarction (∼60%), and marginally higher in rat plasmas (∼70%). Binding of [125I]ET-1 to human plasma could be explained by binding to human serum albumin. Endogenous plasma ET-1 levels were ∼9 pg/ml in healthy humans, and ∼12–16 pg/ml in cardiac patients; big ET-1 concentrations were approximately two- to threefold higher. ET-1 bound to plasma protein was partly lost in column extraction. In rat isolated perfused hearts, the coronary dilator and constrictor potency of exogenous free and albumin-bound ET-1 was similar, whereas the kinetics of endogenous ET-1 was impeded by tight binding to ET receptors. The data indicate that binding of ET-1 to plasma proteins is without effect on peptide vasoactivity, but binding to tissue receptors greatly impedes its tissue kinetics

Halving Balls in Deterministic Linear Time

Let \D be a set of $n$ pairwise disjoint unit balls in $\R^d$ and $P$ the set of their center points. A hyperplane \Hy is an \emph{$m$-separator} for \D if each closed halfspace bounded by \Hy contains at least $m$ points from $P$. This generalizes the notion of halving hyperplanes, which correspond to $n/2$-separators. The analogous notion for point sets has been well studied. Separators have various applications, for instance, in divide-and-conquer schemes. In such a scheme any ball that is intersected by the separating hyperplane may still interact with both sides of the partition. Therefore it is desirable that the separating hyperplane intersects a small number of balls only. We present three deterministic algorithms to bisect or approximately bisect a given set of disjoint unit balls by a hyperplane: Firstly, we present a simple linear-time algorithm to construct an $\alpha n$-separator for balls in $\R^d$, for any $0<\alpha<1/2$, that intersects at most $cn^{(d-1)/d}$ balls, for some constant $c$ that depends on $d$ and $\alpha$. The number of intersected balls is best possible up to the constant $c$. Secondly, we present a near-linear time algorithm to construct an $(n/2-o(n))$-separator in $\R^d$ that intersects $o(n)$ balls. Finally, we give a linear-time algorithm to construct a halving line in $\R^2$ that intersects $O(n^{(5/6)+\epsilon})$ disks. Our results improve the runtime of a disk sliding algorithm by Bereg, Dumitrescu and Pach. In addition, our results improve and derandomize an algorithm to construct a space decomposition used by L{\"o}ffler and Mulzer to construct an onion (convex layer) decomposition for imprecise points (any point resides at an unknown location within a given disk)