Creative accounting: Some ethical issues of macro- and micro-manipulation

This paper examines two principal categories of manipulative behaviour. The term'macro-manipulation' is used to describe the lobbying of regulators to persuadethem to produce regulation that is more favourable to the interests of preparers.'Micro-manipulation' describes the management of accounting figures to produce abiased view at the entity level. Both categories of manipulation can be viewed asattempts at creativity by financial statement preparers. The paper analyses twocases of manipulation which are considered in an ethical context. The paperconcludes that the manipulations described in it can be regarded as morallyreprehensible. They are not fair to users, they involve an unjust exercise ofpower, and they tend to weaken the authority of accounting regulators.

Applications of stochastic analysis in finance and statistical inference

First: A continuous-time version of Kyle's model (Kyle 1985), known as the Back's model (Back 1992), of asset pricing with asymmetric information, is studied. A larger class of price processes and of noise traders' processes are studied. The price process, as in Kyle's model, is allowed to depend on the path of the market order. The process of the noise traders' is an inhomogeneous Lévy process. Solutions are found by the Hamilton-Jacobi-Bellman equations. With the insider being risk-neutral, the price pressure is constant, and there is no equilibirium in the presence of jumps. If the insider is risk-averse, there is no equilibirium in the presence of either jumps or drifts. Also, it is analised when the release time is unknown. A general relation is established between the problem of finding an equilibrium and of enlargement of filtrations. Random announcement time is random is also considered. In such a case the market is not fully efficient and there exists equilibrium if the sensitivity of prices with respect to the global demand is time decreasing according with the distribution of the random time. Second: Power variations. it is considered, the asymptotic behavior of the power variation of processes of the form _integral_0^t u(s-)dS(s), where S_ is an alpha-stable process with index of stability 0&alpha&2 and the integral is an Itô integral. Stable convergence of corresponding fluctuations is established. These results provide statistical tools to infer the process u from discrete observations. Third: A bond market is studied where short rates r(t) evolve as an integral of g(t-s)sigma(s) with respect to W(ds), where g and sigma are deterministic and W is the stochastic Wiener measure. Processes of this type are particular cases of ambit processes. These processes are in general not of the semimartingale kind.

Diseño y fabricación de micro/nanochips para identificación y actuación en células vivas

Este estudio abarca el diseño, desarrollo tecnológico y fabricación, mediante la utilización de tecnologías de Micro y Nanosistemas, de herramientas en el orden de las micras y los nanómetros. Estos dispositivos serán utilizados en el estudio, identificación e interactuación con células vivas, ya que sus pequeñas dimensiones los hacen idóneos para su aplicación en el campo de la Biología Celular. Estas micro y nanoherramientas pueden usarse para el estudio, identificación o actuación de células vivas desde el exterior. Pero también pueden ser microinyectadas, lipofectadas o fagocitadas por parte de la misma célula, y de esta manera hacer estudios o actuar de forma intracelular.

Síntesi i caracterització de micro- i nanoestructures de compostos fotoactius de perilendiimida

En el present treball de recerca s’ha portat a terme la síntesi i caracterització de fibres a escala micro- i nanomètrica mitjançant l’auto-assemblatge dels compostos 1 i 2. Aquests compostos estan formats per una unitat de perilendiimida (PI) i una unitat d’estilbè i, en base a estudis previs desenvolupats al nostre grup de recerca, haurien de comportar-se com a sistemes acceptor-donador d’electrons fotoinduïts. Per tant, les corresponents estructures obtingudes podrien presentar activitat fotovoltaica. En primer lloc, s’ha abordat la síntesi dels compostos 1 i 2, seguint la metodologia posada a punt prèviament al nostre grup de recerca. A continuació, s’han estudiat les propietats òptiques de 1 i 2 en dissolució, la qual cosa ha permès establir que: (a) tal i com es pretenia, tots dos compostos presenten transferència electrònica fotoinduïda entre la unitat electró-acceptora de PI i la unitat electró-donadora de trans-estilbè; (b) la diferent morfologia de la cadena alquílica lateral del grup de PI a 1 i 2 afecta la seva capacitat d’auto-assemblatge mitjançant interaccions intermoleculars de tipus π-π. A continuació, s’han assajat diferents metodologies per a la fabricació de micro- i nanoestructures auto-assemblades de 1 i 2. Els millors resultats s’han obtingut mitjançant l’ús de motlles d’òxid d’alúmina i per al compost 2 degut al menor impediment estèric de la seva cadena alquílica lateral. La caracterització de les estructures resultants en aquest cas mitjançant tècniques microscòpiques i espectroscòpiques han permès demostrar la formació de nanotubs de 200 nm de diàmetre, d’uns 15 μm de longitud i en què les unitats de PI s’ordenen amb els seus sistemes aromàtics de forma co-facial o gairebé co-facial. La possible activitat fotovoltaica d’aquestes estructures s’estudiarà posteriorment.

Análisis del micro-voluntariado (crowdsourcing) en una gran empresa para abordar un problema de salud específico

Este trabajo presenta un análisis del efecto positivo que puede tener el microvoluntariado (crowdsourcing) en las variables psicológicas entre trabajadores de una gran empresa, así como la viabilidad de crear una comunidad práctica para abordar un problema de salud específico. Para el desarrollo de este documento hemos recogido y analizado diferentes tipos de bibliografía, científica y no científica, con el fin de dar una explicación más global de lo que es el crowdsourcing y contextualizar este tipo de voluntariado para lograr una mayor comprensión de esta práctica.

Studying the micro-angels approach to micro-investment decisions

Purpose: The paper analyzes the micro-angels investment behaviour, looking both to the criteria used in the selection of their investment projects and to the characteristics of their guidance role during the investment period. Design/Methodology/Approach: The paper focuses on a double bottom line movement of French micro-angels clubs that has been operating since 1983. Our primary source of data is an online survey carried out during March 2012, asking members of clubs all over France for different aspects of their procedures. Findings: Our findings suggest that micro-angels are interested in small, socially or environmentally friendly projects having the potential to contribute to the development of their neighbourhood. We find that women are even more interested than men in such projects. Educated micro-angels value entrepreneurial motivation and understanding of the project more than less-educated micro-angels. We also point out the factors that micro-angels consider important in accompanying enterprises. Here we find that gender makes little difference. However, retired micro-angels value financial diagnosis made conjointly with entrepreneurs, while both active micro-angels and educated micro-angels value more the use of their network to help micro-entrepreneurs. Practical/Social Implications: Given the potential benefits of micro-angels investing and guiding the development of micro-enterprises, a social micro-angel investment on a major scale in developing countries could help in tackling some of the problems faced by the development of microfinance, such as the over-indebtedness of micro-entrepreneurs. Practitioners and new initiatives would gain from understanding what adaptations need to be made. Originality/value: We expect to add to the venture capital theory to take into account non-economic motives.

Prime Property Institutions for a Subprime Era: Exploring Innovative Models of Residential Development and Finance

This paper breaks new ground toward contractual and institutional innovation in models of homeownership, equity building, and mortgage enforcement. Inspired by recent developments in the affordable housing sector and in other types of public financing schemes, this paper suggests extending institutional and financial strategies such as timeand place-based division of property rights, conditional subsidies, and credit mediation to alleviate the systemic risks of mortgage foreclosure. Alongside a for-profit shared equity scheme that would be led by local governments, we also outline a private market shared equity model, one of bootstrapping home buying with purchase options.

Institutions, Public Debt and Foreign Finance

We study the role of domestic financial institutions in sustaining capital flows to the private and public sector of a country whose government can default on its debt. As in recent public debt crises, in our model public defaults weaken banks' balance sheets, disrupting domestic financial markets. This effect leads to a novel complementarity between private capital inflows and public borrowing, where the former sustain the latter by boosting the government's cost of default. Our key message is that, by shaping the direction of private capital flows, financial institutions determine whether financial integration improves or reduces government discipline. We explore the implications of this complementarity for financial liberalization and debt-financed bailouts of banks. We present some evidence consistent with complementarity.

Adjustment to Target Capital, Finance, and Growth

Does financial development result in capital being reallocated more rapidly to industries where it is most productive? We argue that if this was the case, financially developed countries should see faster growth in industries with investment opportunities due to global demand and productivity shifts. Testing this cross-industry cross-country growth implication requires proxies for (latent) global industry investment opportunities. We show that tests relying only on data from specific (benchmark) countries may yield spurious evidence for or against the hypothesis. We therefore develop an alternative approach that combines benchmark-country proxies with a proxy that does not reflect opportunities specific to a country or level of financial development. Our empirical results yield clear support for the capital reallocation hypothesis.

Malliavin calculus in finance

This article is an introduction to Malliavin Calculus for practitioners.We treat one specific application to the calculation of greeks in Finance.We consider also the kernel density method to compute greeks and anextension of the Vega index called the local vega index.

Inequality over the business cycle: Estimating income risk using micro-data on consumption

We use CEX repeated cross-section data on consumption and income, to evaluate the nature of increased income inequality in the 1980s and 90s. We decompose unexpected changes in family income into transitory and permanent, and idiosyncratic and aggregate components, and estimate the contribution of each component to total inequality. The model we use is a linearized incomplete markets model, enriched to incorporate risk-sharing while maintaining tractability. Our estimates suggest that taking risk sharing into account is important for the model fit; that the increase in inequality in the 1980s was mainly permanent; and that inequality is driven almost entirely by idiosyncratic income risk. In addition we find no evidence for cyclical behavior of consumption risk, casting doubt on Constantinides and Duffie s (1995) explanation for the equity premium puzzle.

Corporate finance and the monetary transmission mechanism

This paper analyzes the transmission mechanisms of monetarypolicy in a general equilibrium model of securities marketsand banking with asymmetric information. Banks' optimal asset/liability policy is such that in equilibrium capital adequacy constraints are always binding. Asymmetric information about banks' net worth adds a cost to outside equity capital, which limits the extent to which banks can relax their capital constraint. In this context monetarypolicy does not affect bank lending through changes in bank liquidity. Rather, it has the effect of changing theaggregate composition of financing by firms. The model also produces multiple equilibria, one of which displays all the features of a "credit crunch". Thus, monetary policy can also have large effects when it induces a shift from one equilibrium to the other.