The real economic effects of cross-delistingfrom the united states: evidence on post-operating performance, financial constraints and stock crash risk

Tese de Doutoramento em Ciências Empresariais.

Un modelo contable para la evaluación económico-financiera en escenarios futuros de la empresa agropecuaria. An accounting model for the economic and financial evaluation of future scenarios in farm enterprises.

El problema: En todo momento y sobre todo cuando estamos en presencia de escenarios económicos turbulentos resulta imprescindible utilizar herramientas que permitan realizar análisis de sensitividad sobre las distintas situaciones que podrían plantearse. La elaboración de modelos matemáticos deterministas desde las aplicaciones realizadas por Richard Mattessich han constituido un instrumento idóneo para el caso de empresas comerciales o industriales. Los modelos informáticos utilizados para las empresas agropecuarias han abordado fundamentalmente la temática relacionada con la producción, no así las otras variables económicas y financieras. Por lo tanto, entendemos que se hace necesario trabajar con modelos agropecuarios que comprendan todas las variables económicas y financieras, de manera de observar otro tipo de cuestiones, tales como: el modo de financiarse, los costos financieros, necesidades de capital de trabajo. Hipótesis: Es posible, a través de la utilización de la información contable en sentido prospectivo, interpretar adecuadamente los escenarios futuros de las organizaciones agropecuarias, cuantificando los impactos que generan tanto las estrategias y políticas aplicables, como las distorsiones del contexto. Objetivo general: determinar la incidencia de las decisiones internas y las que provengan del funcionamiento del sistema económico, a través de la información contable prospectiva. Objetivos específicos: a. Describir los impactos que se producen en la estructura patrimonial, financiera y en los resultados, como consecuencia de los cambios en las estrategias y políticas de la empresa agropecuaria, así como los efectos macroeconómicos en la estructura de la empresa que pudieran estar conmoviendo la gestión económico-financiera. b. Identificar mecanismos y proponer criterios para la elaboración de modelos que permitan visualizar los impactos en los escenarios futuros y las adecuaciones necesarias en la estructura que permitan soportar las modificaciones. Metodología: será un estudio a nivel teórico, donde una vez identificadas las variables y planteados los modelos, se propondrán distintas situaciones y se testearán las respuestas. Resultados esperados: lograr un avance en la evaluación económico-financiera prospectiva de empresas agropecuarias y constituir un avance para futuras investigaciones. Importancia del proyecto: La producción agropecuaria es vital tanto para el desarrollo económico de Argentina, como en particular para la provincia de Córdoba. Elaborar herramientas que eficientizen la administración de este tipo de empresas, redundará en beneficio colectivo. Pertinencia: El producto verificable será la construcción de un modelo distinto a los actuales, tanto en su desarrollo, objetivo al que está destinado y sencillez de su aplicación, posibilitando la inserción del productor en el proceso de planificación, reduciendo el riesgo en la toma de decisiones. Esperando generar un avance sobre los modelos preexistente.

The vulnerability to pollution and hydrochemical variation of eleven springs (catchments) in the karst lowlands of the west of Ireland

The vulnerability to pollution and hydrochemical variation of groundwater in the mid-west karstic lowlands of Ireland were investigated from October 1992 to September 1993, as part of an EU STRIDE project at Sligo Regional Technical College. Eleven springs were studied in the three local authority areas of Co. Galway, Co. Mayo, and Co. Roscommon. Nine of the springs drain locally or regionally important karstic aquifers and two drain locally important sand and gravel aquifers. The maximum average daily discharge of any of the springs was 16,000 m3/day. Determination of the vulnerability of groundwater to pollution relies heavily on an examination of subsoil deposits in an area since they can act as a protecting or filtering layer over groundwater. Within aquifers/spring catchments, chemical reactions such as adsorption, solution-precipitation or acid-base reactions occur and modify the hydrochemistry of groundwater (Lloyd and Heathcote, 1985). The hydrochemical processes) that predominate depend cm the mineralogy of the aquifer, the hydrogeological environment, the overlying subsoils, and the history of groundwater movement. The aim of this MSc research thesis was to investigate the hydrochemical variation of spring outflow and to assess the relationship between these variations and the intrinsic vulnerability of the springs and their catchments. If such a relationship can be quantified, then it is hoped that the hydrochemical variation of a spring may indicate the vulnerability of a spring catchment without the need for determining it by field mapping. Such a method would be invaluable to any of the three local authorities since they would be able to prioritise sources that are most at risk from pollution, using simple techniques of chemical sampling, and statistical analysis. For each spring a detailed geological, hydrogeological and hydrochemical study was carried out. Individual catchment areas were determined with a water balance/budget and groundwater tracing. The subsoils geology for each spring catchment were mapped at the 1:10,560 scale and digitised to the 1:25,000 scale with AutoCad™ and Arclnfo™. The vulnerability of each spring was determined using the Geological Survey's vulnerability guidelines. Field measurements and laboratory based chemistry analyses of the springs were undertaken by personnel from both the EPA Regional Laboratory in Castlebar, Co. Mayo, and the Environment Section of Roscommon Co. Council. Electrical conductivity and temperature (°C) were sampled fortnightly, in the field, using a WTW microprocessor conductivity meter. A percentage (%) vulnerability was applied to each spring in order to indicate the areal extent of the four main classes of vulnerability (Extreme, High, Moderate, and Low) which occurred within the confines of each spring catchment. Hydrochemical variation for the springs were presented as the coefficient of variation of electrical conductivity. The results of this study show that a clear relationship exists between the degree of vulnerability of each catchment area as defined by the subsoil cover and the coefficient of variation of EC, with the coefficient of variation increasing as the vulnerability increases. The coefficient of variation of electrical conductivity is considered to be a parameter that gives a good general reflection of the degree of vulnerability occurring in a spring catchment in Ireland's karstic lowlands.

Groundwater vulnerability and protection in County Tipperary (South Riding), Ireland

The aim of the project was to determine the extent and quality of the groundwater in Tipperary South Riding with a view to developing a groundwater protection plan which would allow the Local Authority to manage, protect and develop the groundwater as efficiently as possible. The geology of the area varies with topography. The low-lying areas of the county comprise mainly Carboniferous limestones while the elevated regions consist of sandstones and shales of Upper Carboniferous, Devonian and Silurian ages. Deformation of these rocks decreases in magnitude moving northwards over the area; the Southern Synclines having suffered the effects of the Hercynian orogeny and the northern region exhibiting Caledonian orogenic trends. Quaternary (subsoil) deposits are found throughout the area and are of variable thickness and permeability. Till is the most widespread deposit with discontinuous pockets of sand and gravel in various proportions, and some marl, alluvium and peat in places. The principal aquifers of the area are the Kiltorcan sandstone formation and various limestone units within the Carboniferous succession. 50 % of south Tipperary constitutes either regionally or locally important aquifers. Secondary permeabilities created by structural deformation, dolomitisation, karstification and weathering processes create high transmissivities and often have large well yields. Specific baseflow analysis highlighted the complexity of the aquifers and proved that the lower part of the Suir river system is a major groundwater resource region. The hydrochemistry and water quality of the local authority groundwater sources was examined briefly. The majority of south Tipperary is underlain by limestone or Quaternary deposits derived from limestone and, consequently, calcium/magnesium bicarbonate waters predominate. The quality of the groundwater in south Tipperary demonstrates that the main concern originates from the presence of E.coli, and Total coliforms. The primary sources of contamination are from farmyard wastes and septic tanks. The vulnerability of groundwater to diffuse and point sources of pollution has been found to be dependent on the overlying soil, subsoil and the thickness of the unsaturated zone. A conceptual rather than quantitative approach is used and it is found that approximately 60% of south Tipperary is designated as being extremely or highly vulnerable. The groundwater protection plan was devised subsequent to an understanding of the aquifer systems, an assessment of the vulnerability, and a review of the Irish planning system and environmental law. It is recommended that the plan be integrated into the county development plan for legislative purposes. A series of acceptability matrices were devised to restrict potentially polluting activities in vulnerable areas while maintaining a balance between protection of the groundwater resource and the need to site essential developments.

The financial sustainability of passive house construction in Ireland.

In Ireland the average energy cost for a household in 2006 was estimated to be €1,767, an increase of 4% on 2005 figures. With the state o f the current economic climate, home owners are beginning to realise the potential of energy efficient construction methods. The Passive House Standard offers a cost efficient and sustainable construction solution compared to the Traditional Irish construction methods. This report focuses on the Cost comparison between Passive House construction and traditional construction methods. The report also focuses on barriers that are slowing market penetration of the Passive House standard in the Irish Market. It also identifies potential energy savings that passive house occupants would benefit from. The report also highlights professional opinions on the future development o f the Passive House Standard in Ireland. The conclusions of this report are that the Passive House Standard is a more financially suitable construction solution compared to that o f a traditional dwelling complying with the Irish Building Regulations. The report also concludes that the Passive House Standard won’t be introduced as an Irish Building Regulation in the future but that it will have a big impact on future building regulations. The hypothesis o f this report is supported by data obtained from a literature review, qualitative data analysis and a case study. The report recommends that in order for the Passive House Standard to penetrate further into the Irish construction market, various barriers must be rectified. Local manufactures must start producing suitable components that suit the Passive House specification. The Building Energy Rating system must be altered in order for the Passive House to achieve its potential BER rating.

Financial structure choice in owner-managed firms : entrepreneurial characteristics, utility of control, and the competitive context

Magdeburg, Univ., Fak. für Wirtschaftswiss., Diss., 2011

Financial development, labor and market regulations and growth

This paper investigates the importance that market regulation and financial imperfections have on firm growth. We analyse institutions af- fecting labor market as Employment Protection Laws (EP) and Product Market Regulation (PM). We show that together with the beneficial effects of financial development, a firm will get less financing, and thus investless, in a weak financial market (finance effect), the strictness of product and labor market regulations also affect firm growth (labor effect). In particular, we show that the stricter the rules the more detrimental the influence on growth in sectoral value added for a large number of countries. We also show that the labor effect overcomes the positive finance effect.

Governance mechanisms in Spanish financial intermediaries

This paper examines the governance of Spanish Banks around two main issues. First, does a poor economic performance activate those governance interventions that favor the removal of executive directors and the merger of non-performing banks? And second, does the relationship between governance intervention and economic performance vary with the ownership form of the bank? Our results show that a bad performance does activate governance mechanisms in banks, although for the case of Savings Banks intervention is confined to a merger or acquisition. Nevertheless, the distinct ownership structure of Savings Banks does not fully protect non-performing banks from disappearing. Product-market competition compensates for those weak internal governance mechanisms that result from an ownership form which gives voice to several stakeholder groups.

Are one factor logarithmic volatility models useful to fit the features of financial data? An application to microsoft data.

This paper provides empirical evidence that continuous time models with one factor of volatility, in some conditions, are able to fit the main characteristics of financial data. It also reports the importance of the feedback factor in capturing the strong volatility clustering of data, caused by a possible change in the pattern of volatility in the last part of the sample. We use the Efficient Method of Moments (EMM) by Gallant and Tauchen (1996) to estimate logarithmic models with one and two stochastic volatility factors (with and without feedback) and to select among them.

Financial intermediation in a model of growth through creative destruction

This paper presents an endogenous growth model in which the research activity is financed by intermediaries that are able to reduce the incidence of researcher's moral hazard. It is shown that financial activity is growth promoting because it increases research productivity. It is also found that a subsidy to the financial sector may have larger growth effects than a direct subsidy to research. Moreover, due to the presence of moral hazard, increasing the subsidy rate to R\&D may reduce the growth rate. I show that there exists a negative relation between the financing of innovation and the process of capital accumulation. Concerning welfare, the presence of two externalities of opposite sign steaming from financial activity may cause that the no-tax equilibrium provides an inefficient level of financial services. Thus, policies oriented to balance the effects of the two externalities will be welfare improving.

Financial integration, productivity and capital accumulation

Understanding the mechanism through which financial globalization affects economic performance is crucial for evaluating the costs and benefits of opening financial markets. This paper is a first attempt at disentangling the effects of financial integration on the two main determinants of economic performance: productivity (TFP) and investments. I provide empirical evidence from a sample of 93 countries observed between 1975 and 1999. The results suggest that financial integration has a positive direct effect on productivity, while it spurs capital accumulation only with some delay and indirectly, since capital follows the rise in productivity. I control for indirect effects of financial globalization through banking crises. Such episodes depress both investments and TFP, though they are triggered by financial integration only to a minor extent.

Financial incentives in academia: research versus development

This paper investigates the effects of monetary rewards on the pattern of research. We build a simple repeated model of a researcher capable to obtain innovative ideas. We analyse how the legal environment affects the allocation of researcher's time between research and development. Although technology transfer objectives reduce the time spent in research, they might also induce researchers to conduct research that is more basic in nature, contrary to what the skewing problem would presage. We also show that our results hold even if development delays publication.

Using life strategies to explore the vulnerability of ecosystem services to invasion by alien plants

Invasive plants can have different effects of ecosystem functioning and on the provision of ecosystem services, from strongly deleterious impacts to positive effects. The nature and intensity of such effects will depend on the service and ecosystem being considered, but also on features of life strategies of invaders that influence their invasiveness as well as their influence of key processes of receiving ecosystems. To address the combined effect of these various factors we developed a robust and efficient methodological framework that allows to identify areas of possible conflict between ecosystem services and alien invasive plants, considering interactions between landscape invasibility and species invasiveness. Our framework combines the statistical robustness of multi-model inference, efficient techniques to map ecosystem services, and life strategies as a functional link between invasion, functional changes and potential provision of services by invaded ecosystems. The framework was applied to a test region in Portugal, for which we could successfully predict the current patterns of plant invasion, of ecosystem service provision, and finally of probable conflict (expressing concern for negative impacts, and value for positive impacts on services) between alien species richness (total and per plant life strategy) and the potential provision of selected services. Potential conflicts were identified for all combinations of plant strategy and ecosystem service, with an emphasis for those concerning conflicts with carbon sequestration, water regulation and wood production. Lower levels of conflict were obtained between invasive plant strategies and the habitat for biodiversity supporting service. The added value of the proposed framework in the context of landscape management and planning is discussed in perspective of anticipation of conflicts, mitigation of negative impacts, and potentiation of positive effects of plant invasions on ecosystems and their services.

Three essays on the psychology of investment and financial markets

Préface My thesis consists of three essays where I consider equilibrium asset prices and investment strategies when the market is likely to experience crashes and possibly sharp windfalls. Although each part is written as an independent and self contained article, the papers share a common behavioral approach in representing investors preferences regarding to extremal returns. Investors utility is defined over their relative performance rather than over their final wealth position, a method first proposed by Markowitz (1952b) and by Kahneman and Tversky (1979), that I extend to incorporate preferences over extremal outcomes. With the failure of the traditional expected utility models in reproducing the observed stylized features of financial markets, the Prospect theory of Kahneman and Tversky (1979) offered the first significant alternative to the expected utility paradigm by considering that people focus on gains and losses rather than on final positions. Under this setting, Barberis, Huang, and Santos (2000) and McQueen and Vorkink (2004) were able to build a representative agent optimization model which solution reproduced some of the observed risk premium and excess volatility. The research in behavioral finance is relatively new and its potential still to explore. The three essays composing my thesis propose to use and extend this setting to study investors behavior and investment strategies in a market where crashes and sharp windfalls are likely to occur. In the first paper, the preferences of a representative agent, relative to time varying positive and negative extremal thresholds are modelled and estimated. A new utility function that conciliates between expected utility maximization and tail-related performance measures is proposed. The model estimation shows that the representative agent preferences reveals a significant level of crash aversion and lottery-pursuit. Assuming a single risky asset economy the proposed specification is able to reproduce some of the distributional features exhibited by financial return series. The second part proposes and illustrates a preference-based asset allocation model taking into account investors crash aversion. Using the skewed t distribution, optimal allocations are characterized as a resulting tradeoff between the distribution four moments. The specification highlights the preference for odd moments and the aversion for even moments. Qualitatively, optimal portfolios are analyzed in terms of firm characteristics and in a setting that reflects real-time asset allocation, a systematic over-performance is obtained compared to the aggregate stock market. Finally, in my third article, dynamic option-based investment strategies are derived and illustrated for investors presenting downside loss aversion. The problem is solved in closed form when the stock market exhibits stochastic volatility and jumps. The specification of downside loss averse utility functions allows corresponding terminal wealth profiles to be expressed as options on the stochastic discount factor contingent on the loss aversion level. Therefore dynamic strategies reduce to the replicating portfolio using exchange traded and well selected options, and the risky stock.