Share Repurchases, Dividends, and Executive Options

This paper reports empirical results on the determinants of the authorization decision for share repurchases and dividends in Finland. We use a data set with precise data on share repurchases as well as characteristics for the option programs. Contrary to the U.S., we use a data set where 41% of the options are dividend protected, which allows us to separate between the "option funding" and "substitution / managerial wealth" hypothesis for the choice of the distribution method. We find that foreign ownership is the main determinant for share repurchases in Finland and attribute this relationship to tax factors. We also find evidence in support of both the signaling and agency cost hypotheses for cash distributions, especially in the case of share repurchases. Finally, we find a significant difference between companies with and without dividend protected options. When options are dividend protected, the relationship between dividend distributions and the scope of the options program turns to a significantly positive one instead of the negative one documented on U.S. data. This gives some support for the substitution / managerial wealth hypothesis as a determinant for the choice of the distribution method.

The Pricing of American Put Options on Stock with Dividends

Pricing American put options on dividend-paying stocks has largely been ignored in the option pricing literature because the problem is mathematically complex and valuation usually resorts to computationally expensive and impractical pricing applications. This paper computed a simulation study, using two different approximation methods for the valuation of American put options on a stock with known discrete dividend payments. This to find out if there were pricing errors and to find out which could be the most usable method for practical users. The option pricing models used in the study was the dividend approximation by Blomeyer (1986) and the one by Barone-Adesi and Whaley (1988). The study showed that the approximation method by Blomeyer worked satisfactory for most situations, but some errors occur for longer times to the dividend payment, for smaller dividends and for in-the-money options. The approximation method by Barone-Adesi and Whaley worked well for in-the-money options and at-the-money options, but had serious pricing errors for out-of-the-money options. The conclusion of the study is that a combination of the both methods might be preferable to any single model.

Non-periodic tilings in 2-dimensions with 4, 6, 8, 10 and 12-fold symmetries

The two dimensional plane can be filled with rhombuses, so as to generate non-periodic tilings with 4, 6, 8, 10 and 12-fold symmetries. Some representative tilings constructed using the rule of inflation are shown. The numerically computed diffraction patterns for the corresponding tilings are also shown to facilitate a comparison with possible X-ray or electron diffraction pictures.

Experimental Verification of the Lateral Periodicity of Axially Periodic Incoherent Fields Using the Lau Effect

General' objects, which are specially prepared to possess restricted spatial frequency spectra, have been used in the conventional Lau experiment to obtain experimental proof for the existence of lateral periodicity arising from axial periodicity, for a subclass of axially periodic wavefields in an incoherent situation.

Non-periodic tilings in 2-dimensions: 4- and 7-fold symmetries

By inflating basic rhombuses, with a self-similarity principle, non-periodic tiling of 2-d planes is possible with 4, 5, 6, 7, 8, … -fold symmetries. As examples, non-periodic tilings with crystallographically allowed 4-fold symmetry and crystallographically forbidden 7-fold symmetry are presented in detail. The computed diffraction patterns of these tilings are also discussed.

Homonuclear NOE in spatially periodic spin systems

The nuclear Overhauser effect equations are solved analytically for a homonuclear group of spins whose sites are periodically arranged, including the special cases where the spins lie at the vertices of a regular polygon and on a one-dimensional lattice. t is shown that, for long correlation times, the equations governing magnetization transfer resemble a diffusion equation. Furthermore the deviation from exact diffusion is quantitatively related to the molecular tumbling correlation time. Equations are derived for the range of magnetization travel subsequent to the perturbation of a single spin in a lattice for both the case of strictly dipolar relaxation and the more general situation where additional T1 mechanisms may be active. The theory given places no restrictions on the delay (or mixing) times, and it includes all the spins in the system. Simulations are presented to confirm the theory.

Spectral approach for the soliton and periodic solutions of the nonlinear wave equation

A spectral method that obtains the soliton and periodic solutions to the nonlinear wave equation is presented. The results show that the nonlinear group velocity is a function of the frequency shift as well as of the soliton power. When the frequency shift is a function of time, a solution in terms of the Jacobian elliptic function is obtained. This solution is periodic in nature, and, to generate such an optical pulse train, one must simultaneously amplitude- and frequency-modulate the optical carrier. Finally, we extend the method to include the effect of self-steepening.

Measurement for Thermal Effusivity of AlxGa1-xN Alloys Using Thermoreflectance with Periodic Heating

AlxGa1-xN alloys with x=0.375, 0.398, 0.401, 0.592 and 0.696 were deposited on sapphire substrate by the hydride-vapor-phase epitaxy (HVPE) method. Thermal effusivity measurements were carried out on AlxGa1-xN alloys using a thermal microscope at room temperature. The lag between sinusoidal heating laser wave and thermoreflectance wave was used to measure the thermal diffusivity. Thermal conductivity values of the AlxGa1-xN alloys were also obtained as a function of AIN mole fraction in the alloy. The thermal conductivity was found to decrease with increasing AIN fraction and the experimental data agree with values estimated using the virtual crystal model.

Effect of fluctuations on the freezing of a colloidal suspension in an external periodic potential

We incorporate the effects of fluctuations in a density functional analysis of the freezing of a colloidal liquid in the presence of an external potential generated by interfering laser beams. A mean-field treatment, using a density functional theory, predicts that with the increase in the strength of the modulating potential, the freezing transition changes from a first order to a continuous one via a tricritical point for a suitable choice of the modulating wavevectors. We demonstrate here that the continuous nature of the freezing transition at large values of the external potential V-e survives the presence of fluctuations. We also show that fluctuations tend to stabilize the liquid phase in the large V-e regime.

Homogenization of periodic structures via Bloch decomposition

In this paper, the classical problem of homogenization of elliptic operators in arbitrary domains with periodically oscillating coefficients is considered. Using Bloch wave decomposition, a new proof of convergence is furnished. It sheds new light and offers an alternate way to view the classical results. In a natural way, this method leads us to work in the Fourier space and thus in a framework dual to the one used by L. Tartar [Problemes d'Homogeneisation dans les Equations aux: Derivees Partielles, Cours Peccot au College de Prance, 1977] in his method of homogenization. Further, this technique offers a nontraditional way of calculating the homogenized coefficients which is easy to implement in the computer.

Triply-periodic balance surfaces

The list of possible G-H symmetries for triply-periodic balance surfaces, given by Koch and Fischer, is studied with a view to finding new types. It is found that balance surfaces exist for all the cases that were labelled as undecided in the work of Koch and Fischer. For some of these, new minimal surfaces have been found, with the aid of Brakke's 'Surface Evolver'. (C) 1997 Elsevier Science B.V.

Detection of a periodic structure embedded in surface roughness, for various correlation functions

This paper deals with surface profilometry, where we try to detect a periodic structure, hidden in randomness using the matched filter method of analysing the intensity of light, scattered from the surface. From the direct problem of light scattering from a composite rough surface of the above type, we find that the detectability of the periodic structure can be hindered by the randomness, being dependent on the correlation function of the random part. In our earlier works, we had concentrated mainly on the Cauchy-type correlation function for the rough part. In the present work, we show that this technique can determine the periodic structure of different kinds of correlation functions of the roughness, including Cauchy, Gaussian etc. We study the detection by the matched filter method as the nature of the correlation function is varied.