Information, Investment, and the Stock Market: A Study of Investment Revision Data of Japanese Manufacturing Industries,

We examined investment behavior in the Japanese manufacturing industry using investment revision data to analyze investment behavior from a fresh angle. We tested the martingale investment hypothesis and then the q-theory of investment by looking at the response of stock return and investment to news arriving at firms. The martingale hypothesis was generally accepted, and we also found evidence for the validity of the q-theory hypothesis. Investment was responsive to profit rate revision and sales revision, but stock return responded only to profit rate revision. Further investigation revealed that investment was also motivated by expansion of market share for sales, especially for industries with rapid technological progress.

Is Cash Flow a Proxy for Financing Constraints in the Investment Equation? The Case of Unlisted Japanese Firms

The literature maintains the statistical significance of cash flow in the investment equation. One criticism against the financing constraint interpretation of cash flow is that cash flow may be picking up information on the future profitability of a firm which Tobinfs Q fails to capture. We confine ourselves to the investment behavior of unlisted automobile parts suppliers, and use the sales of large automobile makers as an exogenous instrument. Despite the various criticisms against the financing constraint interpretation of cash flow, our statistical evidence does not disagree with the hypothesis.Tobinfs Q, Investment Equation, Cash Flow, Financing Constraint, Japanese Unlisted Firms

THE SIGMOIDAL INVESTMENT FUNCTION

Based on the investment theory of Abel and Eberly (1994), we develop an analytical model of adjustment costs, which produces a sigmoidal investment function. We also estimate the piecewise linear investment function, which includes as special cases linear models, models with one threshold, the original model of Abel and Eberly, which has two thresholds, and sigmoidal models. Empirical evidence clearly supports the sigmoidal model. The threshold estimate of Tobinfs q is 0.91. The investment ratio does not respond at value of Tobinfs q below 0.91, but begins to react sensitively as Tobinfs q passes 0.91.Tobinfs q, financial constraints, irreversibility of investment, unlisted, Japanese firms, piecewise linear function

An Approximate Solution of the Jaynes-Cummings Model with Dissipation

In this paper we treat the Jaynes-Cummings model with dissipation and give an approximate solution to the master equation for the density operator {\bf under the general setting} by making use of the Zassenhaus expansion.Comment: Latex ; 18 pages ; no figure. This is a paper based on hard calculatio

Flow Representation of the Bose-Hubbard Hamiltonian : General Case

In this paper the explicit flow representation to the Bose-Hubbard Hamiltonian is given in the general case. This representation may be useful in creating cat states for the system of atoms trapped in the optical ring.Comment: Latex ; 8 pages ; 1 figure ; minor change