Angel Investing in Finland: An Analysis Based on Agency Theory and the Incomplete Contracting Theory

Wealthy individuals - business angels who invest a share of their net worth in entrepreneurial ventures - form an essential part of an informal venture capital market that can secure funding for entrepreneurial ventures. In Finland, business angels represent an untapped pool of capital that can contribute to fostering entrepreneurial development. In addition, business angels can bridge knowledge gaps in new business ventures by means of making their human capital available. This study has two objectives. The first is to gain an understanding of the characteristics and investment behaviour of Finnish business angels. The strongest focus here is on the due diligence procedures and their involvement post investment. The second objective is to assess whether agency theory and the incomplete contacting theory are useful theoretical lenses in the arena of business angels. To achieve the second objective, this study investigates i) how risk is mitigated in the investment process, ii) how uncertainty influences the comprehensiveness of due diligence as well as iii) how control is allocated post investment. Research hypotheses are derived from assumptions underlying agency theory and the incomplete contacting theory. The data for this study comprise interviews with 53 business angels. In terms of sample size this is the largest on Finnish business angels. The research hypotheses in this study are tested using regression analysis. This study suggests that the Finnish informal venture capital market appears to be comprised of a limited number of business angels whose style of investing much resembles their formal counterparts’. Much focus is placed on managing risks prior to making the investment by strong selectiveness and by a relatively comprehensive due diligence. The involvement is rarely on a day-to-day basis and many business angels seem to see board membership as a more suitable alternative than involvement in the operations of an entrepreneurial venture. The uncertainty involved does not seem to drive an increase in due diligence. On the contrary, it would appear that due diligence is more rigorous in safer later stage investments and when the business angels have considerable previous experience as investors. Finnish business angels’ involvement post investment is best explained by their degree of ownership in the entrepreneurial venture. It seems that when investors feel they are sufficiently rewarded, in terms of an adequate equity stake, they are willing to involve themselves actively in their investments. The lack of support for a relationship between increased uncertainty and the comprehensiveness of due diligence may partly be explained by an increasing trend towards portfolio diversification. This is triggered by a taxation system that favours investments through investment companies rather than direct investments. Many business angels appear to have substituted a specialization strategy that builds on reducing uncertainty for a diversification strategy that builds on reducing firm specific (idiosyncratic) risk by holding shares in ventures whose returns are not expected to exhibit a strong positive correlation.

Yemaya, No. 27, March 2008

Reflections/ Women in Fisheries - Women's struggles in fisheries: What have we gained? Africa/ South Africa - Women’s net worth. Europe/ The Netherlands - VinVis: The women in fisheries network. Asia/ The Philippines - Women as fishers: Issues and struggles. Yemaya/ Past to Present - Yemaya over the years. Yemaya Recommends - Mukkuvar Women. Profile - Meet Zoila Bustamente. Q&A - Interview with Maria Cristina Maneschy. Milestones – France. What's New, Webby? - ICSF’s Women in Fisheries Bibliography.

Acceleration of initially moving electrons by a copropagation intense laser pulse

Acceleration of an initially moving electron by a copropagation ultra-short ultra-intense laser pulse in vacuum is studied. It is shown that when appropriate laser pulse parameters and focusing conditions are imposed, the acceleration of electron by ascending front of laser pulse can be much stronger compared to the deceleration by descending part. Consequently, the electron can obtain significantly high net energy gain. We also report the results of the new scheme that enables a second-step acceleration of electron using laser pulses of peak intensity in the range of 10(19)-10(20) W mu m(2)/cm(2). In the first step the electron acceleration from rest is limited to energies of a few MeV, while in the second step the electron acceleration can be considerably enhanced to about 100 MeV energy.

Simulated Economic Impact of TED Regulations on Selected Vessels in the Texas Shrimp Fishery

Shrimp fishermen trawling in the Gulf of Mexico and south Atlantic inadvertently capture and kill sea turtles which are classified as endangered species. Recent legislation requires the use of a Turtle Excluder Device(TED) which, when in place in the shrimp trawl, reduces sea turtle mortality. The impact of the TED on shrimp production is not known. This intermediate analysis of the TED regulations using an annual firm level simulation model indicated that the average Texas shrimp vessel had a low probability of being an economic success before regulations were enacted. An assumption that the TED regulations resulted in decreased production aggravated this condition and the change in Ending Net Worth and Net Present Value of Ending Net Worth before and after a TED was placed in the net was significant at the 5 percent level. However, the difference in the Internal Rate of Return for the TED and non-TED simulations was not significant unless the TED caused a substantial change in catch. This analysis did not allow for interactions between the fishermen in the shrimp industry, an assumption which could significantly alter the impact of TED use on the catch and earnings of the individual shrimp vessel.

The equation of state study in UU collisions at CSR, Lanzhou

The cooling storage ring, to be built at Lanzhou, will be able to deliver heavy ion beams up to uranium up to 0.52 GeV/u. It is expected to make considerable contribution to nuclear EOS study in the high net baryon-density region. With a relativistic transport model, we performed simulations for U+U collisions with different orientations. It is shown that by combining the forward neutron multiplicity and an event-wise elliptic flow selection, it is possible to identify the tip - tip and body - body head-on collisions. The effective identification of these two extreme configurations will allow us to study the EOS at the highest baryon density in the U+U collisions.

Improvement of amplified spontaneous emission performance by doping tris(8-hydroxyquinoline) aluminum (Alq3) in dye-doped polymer thin films

A well-known red fluorescent dye 4-(dicy-anomethylene)-2-t-butyl-6(1,1,7,7-tetramethyljulolidyl-9-enyl)4H-pyran (DCJTB) was codoped with an electron transport organic molecule tris(8-hydroxyquinohne) aluminum (Alq3) in a host matrix of polystyrene (PS), and the amplified spontaneous emission (ASE) was studied by optically pumping. It was found that the ASE performance was significantly improved by the introduction of Alq3. The Alq3:DCJTB:PS blending thin films showed a low threshold (2.4 mu J/pulse) and a high net gain coefficient (109.95 cm(-1)) compared with the pure DCJTB:PS system (threshold of 15.2 mu J/pulse and gain of 35.94 cm(-1)). The improvement of the ASE performance was considered to be attributable to the effective Foster energy transfer from Alq(3) to DCJTB. Our results demonstrate that the Alq(3):DCJTB could be a promising candidate as gain medium for red organic diode lasers.

Characteristics and flux of settling particulate matter in neritic waters: The southern Yellow Sea and the East China Sea

The typology and flux of settling particulate matter (SPM) were investigated based on sediment trap sampling at six typical stations in the Yellow Sea and the East China Sea. The settling particulate matter in the neritic seas was sorted into three categories, lithogenic particles, living organisms, and particle aggregates. The mass of individual organisms is an important portion of particulate matter in the neritic waters. The aggregates contain six types, mucus aggregates, fecal pellets, diatom aggregates, silicoflagellate aggregates, tintinnids, and miscellaneous aggregates, of which the silicoflagellate aggregates and tintinnids are the most abundant in the Yellow Sea and the East China Sea. High particle fluxes, such as 215 to 874 g m(-2). day(-1) SPM in the bottom layer, were found at three stations where the water was well mixed, and the maximum flux was detected in the boundary area between the Yellow Sea and the East China Sea, where a wide nepheloid layer was present. Hence, particle flux in neritic waters can be easily shifted by water turbulence. The net vertical flux (123 to 961 mg C day(-1)), the contribution of lateral advection to resuspension flux (5 to 76%), and the particulate organic carbon export ratio (18 to 60%) were estimated for the other three stations where the water was stratified. The highest values were all found in the upwelling area off the Zhejiang coast, suggesting that the area of high productivity provides a high net vertical flux of SPM. (C) 2010 Elsevier Ltd. All rights reserved.

Carbon dioxide exchange between the atmosphere and an alpine meadow ecosystem on the Qinghai-Tibetan Plateau, China

We used the eddy covariance method to measure the M exchange between the atmosphere and an alpine meadow ecosystem (37degrees29-45'N, 101degrees12-23'E, 3250m a.s.l.) on the Qinghai-Tibetan Plateau, China in the 2001 and 2002 growing seasons. The maximum rates Of CO2 uptake and release derived from the diurnal course Of CO2 flux (FCO2) were -10.8 and 4.4 mumol m(-2) s(-1), respectively, indicating a relatively high net carbon sequestration potential as compared to subalpine coniferous forest at similar elevation and latitude. The largest daily CO2 uptake was 3.9 g cm(-2) per day on 7 July 2002, which is less than half of those reported for lowland grassland and forest at similar latitudes. The daily CO2 uptake during the measurement period indicated that the alpine ecosystem might behave as a sink of atmospheric M during the growing season if the carbon lost due to grazing is not significant. The daytime CO2 uptake was linearly correlated with the daily photosynthetic photon flux density each month. The nighttime averaged F-CO2 showed a positive exponential correlation with the soil temperature, but apparently negative correlation with the soil water content. (C) 2004 Elsevier B.V. All rights reserved.

Ecological communities are vulnerable to realistic extinction sequences

Loss of species will directly change the structure and potentially the dynamics of ecological communities, which in turn may lead to additional species loss (secondary extinctions) due to direct and/or indirect effects (e.g. loss of resources or altered population dynamics). Furthermore, the vulnerability of food webs to repeated species loss is expected to be affected by food web topology, species interactions, as well as the order in which species go extinct. Species traits such as body size, abundance and connectivity might determine a species' vulnerability to extinction and, thus, the order in which species go primarily extinct. Yet, the sequence of primary extinctions, and their effects on the vulnerability of food webs to secondary extinctions, when species abundances are allowed to respond dynamically, has only recently become the focus of attention. Here, we analyse and compare topological and dynamical robustness to secondary extinctions of model food webs, in the face of 34 extinction sequences based on species traits. Although secondary extinctions are frequent in the dynamical approach and rare in the topological approach, topological and dynamical robustness tends to be correlated for many bottom-up directed, but not for top-down directed deletion sequences. Furthermore, removing species based on traits that are strongly positively correlated to the trophic position of species (such as large body size, low abundance, high net effect) is, under the dynamical approach, found to be as destructive as removing primary producers. Such top-down oriented removal of species are often considered to correspond to realistic extinction scenarios, but earlier studies, based on topological approaches, have found such extinction sequences to have only moderate effects on the remaining community. Thus, our result suggests that the structure of ecological communities, and therefore the integrity of important ecosystem processes could be more vulnerable to realistic extinction sequences than previously believed.

A Review on the Characterization of Signals and Systems by Power Law Distributions

Power laws, also known as Pareto-like laws or Zipf-like laws, are commonly used to explain a variety of real world distinct phenomena, often described merely by the produced signals. In this paper, we study twelve cases, namely worldwide technological accidents, the annual revenue of America׳s largest private companies, the number of inhabitants in America׳s largest cities, the magnitude of earthquakes with minimum moment magnitude equal to 4, the total burned area in forest fires occurred in Portugal, the net worth of the richer people in America, the frequency of occurrence of words in the novel Ulysses, by James Joyce, the total number of deaths in worldwide terrorist attacks, the number of linking root domains of the top internet domains, the number of linking root domains of the top internet pages, the total number of human victims of tornadoes occurred in the U.S., and the number of inhabitants in the 60 most populated countries. The results demonstrate the emergence of statistical characteristics, very close to a power law behavior. Furthermore, the parametric characterization reveals complex relationships present at higher level of description.

Essais sur les frictions financières dans les modèles d'équilibre général dynamique

Cette thèse examine les effets des imperfections des marchés financiers sur la macroéconomie. Plus particulièrement, elle se penche sur les conséquences de la faillite dans les contrats financiers dans une perspective d'équilibre général dynamique. Le premier papier construit un modèle qui utilise l'avantage comparatif des banques dans la gestion des situations de détresse financière pour expliquer le choix des firmes entre les prêts bancaires et les prêts du marché financier. Le modèle réussit à expliquer pourquoi les firmes plus petites préfèrent le financement bancaire et pourquoi les prêts bancaires sont plus répandus en Europe. Le premier fait est expliqué par le lien négatif entre la valeur nette de l'entreprise et la probabilité de faire faillite. Le deuxième fait s'explique par le coût fixe d'émission de bons plus élevé en Europe. Le deuxième papier examine l'interaction entre les contraintes de financement affectant les ménages et les firmes. Une interaction positive pourrait amplifier et augmenter la persistance de l'effet d'un choc agrégé sur l'économie. Je construis un nouveau modèle qui contient des primes de financement externes pour les firmes et les ménages. Dans le modèle de base avec prix et salaires flexibles, j'obtiens une faible interaction négative entre les coûts de financement des firmes et des ménages. Le facteur clé qui explique ce résultat est l'effet du changement contre cyclique du coût de financement des ménages sur leur offre de travail et leur demande de prêts. Dans une période d'expansion, cet effet augmente les taux d'intérêt, réduit l'investissement et augmente le coût de financement des entreprises. Le troisième papier ajoute les contraintes de financement des banques dans un modèle macroéconomiques avec des prêts hypothécaires et des fluctuations dans les prix de l'immobilier. Les banques dans le modèle ne peuvent pas complètement diversifier leurs prêts, ce qui génère un lien entre les risques de faillite des ménages et des banques. Il y a deux effets contraires des cycles économiques qui affectent la prime de financement externe de la banque. Premièrement, il y a un lien positif entre le risque de faillite des banques et des emprunteurs qui contribue à rendre le coût de financement externe des banques contre cyclique. Deuxiément, le lissage de la consommation par les ménages rend la proportion de financement externe des banques pro cyclique, ce qui tend à rendre le coût de financement bancaire pro cyclique. En combinant ces deux effets, le modèle peut reproduire des profits bancaires et des ratios d'endettement bancaires pro cycliques comme dans les données, mais pour des chocs non-financiers les frictions de financement bancaire dans le modèle n'ont pas un effet quantitativement significatif sur les principales variables agrégées comme la consommation ou l'investissement.

Soft budget constraints in a dynamic general equilibrium model

This paper considers an overlapping generations model in which capital investment is financed in a credit market with adverse selection. Lenders’ inability to commit ex-ante not to bailout ex-post, together with a wealthy position of entrepreneurs gives rise to the soft budget constraint syndrome, i.e. the absence of liquidation of poor performing firms on a regular basis. This problem arises endogenously as a result of the interaction between the economic behavior of agents, without relying on political economy explanations. We found the problem more binding along the business cycle, providing an explanation to creditors leniency during booms in some LatinAmerican countries in the late seventies and early nineties.

Long-term change, interannual and intra-seasonal variability in climate and glacier mass balance in the Central Greater Caucasus, Russia

Long-term trends, interannual and intra-seasonal variability in the mass-balance record from Djankuat glacier, central Greater Caucasus, Russia, are related to local climate change, synoptic and large-scale anomalies in atmospheric circulation. A clear warming signal emerged in the central Greater Caucasus in the early 1990s, leading to a strong increase in ablation. In the absence of a compensating change in winter accumulation, the net mass balance of Djankuat has declined. The highest value of seasonal ablation on record was registered in the summer of 2000. At the beginning of the 21st century these trends reversed. Ablation was below average even in the summer of 2003, which was unusually warm in western Europe. Precipitation and winter accumulation were high, allowing for a partial recovery of net mass balance. The interannual variability in the components of mass balance is weakly related to the North Atlantic Oscillation (NAO) and the Scandinavian teleconnection patterns, but there is a clear link with the large-scale circulation anomalies represented by the Rossby pattern. Five synoptic categories have been identified for the ablation season of 2005, revealing a strong separation between components of radiation budget, air temperature and daily melt. Air temperature is the main control over melt. The highest values of daily ablation are related to the strongly positive NAO which forces high net radiation, and to the warm and moist advection from the Black Sea.

Modelling Recreation Demand Using Choice Experiments : Using Swedish Snowmobilers Demand for Groomed trails

This paper is concerned with the use of the choice experiment method for modeling the demand for snowmobiling . The Choice Experiment includes five attributes, standard, composition, length, price day card and experience along trail. The paper estimates the snowmobile owners’ preferences and the most preferred attributes, including their will-ingness to pay for a daytrip on groomed snowmobile trail. The data consists of the an-swers from 479 registered snowmobile owners, who answered two hypothetical choice questions each. Estimating using the multinominal logit model, it is found that snow-mobilers on average are willing to pay 22.5 SEK for one day of snowmobiling on a trail with quality described as skidded every 14th day. Furthermore, it is found that the WTP increases with the quality of trail grooming. The result of this paper can be used as a yardstick for snowmobile clubs wanting to develop their trail net worth, organizations and companies developing snowmobiling as a recreational activities and marketers in-terested in marketing snowmobiling as recreational activities.

On the economic and fiscal effects of infrastructure investment in Brazil

This article studies the productive impact of infrastructure investment in Brazil. Public-capital expenditures in the country have decreased continuously over the last two decades, and this paper shows the significant impact this has had on infrastructure stocks. Cointegration analysis is used to investigate the long-run association between output and infrastructure, the results being then used to study the short-run dynamic of these variables. Whether in the short or long run, the productive impact of infrastructure was found to be relevant. Other group of simulations studies the impact of expanding capital expenditures through debt finance on debt to GDP ratio as well as on public cash áow and net worth.