Quantifying Private Benefits of Control from a Structural Model of Block Trades

We study the determinants of private benefits of control in negotiated block transactions. We estimate the block pricing model in Burkart, Gromb, and Panunzi (2000) explicitly accounting for both block premia and block discounts in the data. The evidence suggests that the occurrence of a block premium or discount depends on the controlling blockholder’s ability to fight a potential tender offer for the target’s stock. We find evidence of large private benefits of control and of associated deadweight losses, but also of value creation by controlling shareholders. Finally, we provide evidence consistent with Jensen’s free cash flow hypothesis

The Value of Control and the Costs of Illiquidity

We develop a search model of block trades that values the illiquidity of controlling stakes. The model considers several dimensions of illiquidity. First, following a liquidity shock, the controlling blockholder is forced to sell, possibly to a less efficient acquirer. Second, this sale may occur at a fire sale price. Third, absent a liquidity shock, a trade occurs only if a potential buyer arrives. Using a structural estimation approach and U.S. data on trades of controlling blocks of public corporations, we estimate the value of control, blockholders' marketability discount, and dispersed shareholders' illiquidity-spillover discount

Advantageous Innovation in the Underwriting Market for Corporate Securities

Investment banks that develop new corporate securities systematically lead the new underwriting market despite being imitated early by equally competitive rivals. We study how innovators and imitators set underwriting fees in order to identify empirically the source of this advantage. Using data of innovative securities since 1985, we do find that innovators set systematically higher fees than imitators. This premium decreases as more issues occur, and faster for later generation products. Imitation is also quicker for later generations. This evidence supports the hypothesis that the innovator has superior skills in structuring any given issue of the new security

Innovation, Differentiation and the Choice of an Underwriter

Investment banks imitate other bank’s innovative corporate securities with their own varieties, and compete with the innovator to underwrite new issues. This paper uses data of all the corporate offerings of Equity-Linked and Derivative Securities from the SDC records to estimate the issuer’s demand of underwriting services provided by investment banks across different varieties of securities. The results show that, ceteris paribus, the demand for the innovator’s variety is larger than for the imitators’. The estimated demand advantage is decreasing in time, and it decreases faster if the security appeared later in a sequence of innovations

Thesis Statement

As an artist my interests have always centered around drawing and image-making. When entering art school I gravitated toward the print media because it satisfied my love for drawing and provided me with a means of achieving extremely rich results far beyond what I was capable of achieving in the traditional drawing processes. Even before I really knew what printmaking was all about, I had been intrigued by the idea of the transferred or printed image.&nbsp; As far as the actual character of the work is concerned (forms, value, cn.mposition, space) I try to use the elements of drawing so that they enhance the general feeling of mystery. I use value to create mood as well as shallow and ambiguous space which comes and goes and is often difficult or confusing to read. Color when used is generally somber though this changes in my pastel drawings due, I believe, to the mere nature of the medium which lends itself to the use of brighter color. &nbsp;</p

Future development scenarios for adaptation to climate change in the Ci Kapundung upper water catchment area, Bandung Basin, Indonesia

Landscape change in the Ci Kapundung upper water catchment area over recent decades has increased the volume of rainfall runoff, increasing the incidence of flooding in the Bandung Basin. At the same time, climate change affects rainfall variability in Indonesia, causing higher frequencies of extreme rainfall and drought in almost all regions of the country. This study develops and assesses four scenarios for the future spatial plan in the catchment area, which is part of a research project on flood risk in the Bandung Basin. The scenarios were created based on recent land use changes within the area, current spatial policies, ecological design principles, and the geodesign framework. All scenarios were simulated using Land Change Modeler (LCM), which applies a combined cellular automata and Markov model (CA-Markov), and a multilayer perceptron (MLP) neural network, to project future landscape forms for 2030. In this simulation, the results were assessed to see the variations of land cover composition. CA-Markov models have been widely used to predict urban growth. Modeling applications for forest cover change simulation have rarely been explored. Results from LCM show that there is no significant difference in the percentages of developed areas, mixed plant communities, and conifers in 2030 in all scenarios. However, the spatial arrangement of land cover varies with each scenario. In the first scenario, for example, the disperse settlement pattern is projected to occur in the watershed in 2030, including in the areas with steep slopes and near the rivers, whereas in other scenarios, specific areas are restricted to be built. The study suggests that further analysis of hydrological impacts of each scenario is needed to ascertain which scenario can effectively reduce flood risk

An iterative landscape planning process for sustaining flood regulation in the Ci Kapundung upper water catchment area, Bandung Basin, Indonesia

Simulations and modelling are often used in many studies to assess and visualise the effects of landscape changes on environment. However, only a few studies have been conducted to assess landscape interventions to sustain ecosystem services, including hydrological processes. This paper presents an iterative and interactive process to generate landscape planning for the Ci Kapundung upper water catchment area, Bandung Basin, Indonesia, based on two development scenarios. The land change model was coupled with a hydrological model to assess the influence of land cover changes on flood risk in Bandung Basin. The result shows that the overland flow at three observation points is affected by the land cover, topography, and soil properties. Outputs from the iterative hydrologic simulations suggested that conifers could be planted in the proposed river buffers in the case study area to reduce the volume of runoff flowing to the Ci Kapundung River