Capital structure, risk and asymmetric information : theory and evidence

This paper proposes a principal-agent model between banks and firms with risk and asymmetric information. A mixed form of finance to firms is assumed. The capital structure of firms is a relevant cause for the final aggregate level of investment in the economy. In the model analyzed, there may be a separating equilibrium, which is not economically efficient, because aggregate investments fall short of the first-best level. Based on European firm-level data, an empirical model is presented which validates the result of the relevance of the capital structure of firms. The relative magnitude of equity in the capital structure makes a real difference to the profits obtained by firms in the economy.

Relatório de Estágio - Intervenção na Comunidade

O presente relatório consiste na descrição, análise e reflexão do estágio de interven-ção comunitária, realizado no âmbito do 1º Curso de Mestrado em Enfermagem com Especialização em Enfermagem Comunitária. O referido estágio decorreu no período compreendido entre 14 de Fevereiro e 30 de Junho de 2011. Utilizando a metodologia do Planeamento em Saúde, foi previamente realizado o Diagnóstico de Situação, na comunidade onde exercemos a profissão de enfermagem e, de acordo com as necessidades identificadas no mesmo, elaborámos e implementámos um projecto de intervenção, direccionado para a promoção de um envelhecimento sau-dável e qualidade de vida dos idosos. As necessidades em saúde emergentes, numa sociedade cada vez mais envelhecida, fundamentam a intervenção, no sentido de melhorar a qualidade de vida dos idosos, promovendo a autonomia, capacitação e independência no seu meio ambiente. Cabe aos Enfermeiros em Cuidados de Saúde Primários, investir na especialização das suas competências, a fim de adequar os cuidados de enfermagem às necessidades dos indivíduos, famílias e comunidades. A promoção da saúde integra a educação para a saúde, como instrumento do enfer-meiro, para promover comportamentos e estilos de vida saudáveis. O Enfermeiro Especialista em Saúde Comunitária e de Saúde Pública assume um papel preponderante no reconhecimento da Enfermagem, através da especialização de competências. A utilização dos Sistemas de Informação em Enfermagem possibilita, através dos indicadores, mostrar ganhos efectivos em saúde sensíveis aos cuidados de enfermagem

Anomalias da hipótese de eficiência de mercado: estudo do efeito dia da semana na Bolsa de Valores de Cabo Verde

A eficiência dos mercados tem sido uma questão que tem despertado muito interesse no campo dos investimentos e da investigação financeira durante as últimas décadas, mas nos últimos anos com a intensificação dos estudos e surgimento de evidências da existência de comportamentos anómalos nas rentabilidades dos ativos financeiro, esta teoria passou a ser questionada no meio académico. A discussão do tema é ainda muito polémico, pois existem de um lado os defensores da hipótese de eficiência que defendem que as anomalias identificadas não podem ser generalizadas e não são consistentes ao longo do tempo, e de outro lado os defensores da corrente das finanças comportamentais, segundo os quais as anomalias são provocadas por padrões documentados de comportamento irracional dos investidores, sendo que estes comportamentos são inconsistentes com a teoria de eficiência dos mercados. Entre as anomalias detetadas, destacam-se as anomalias de Calendário, tais como o efeito Janeiro, efeito dia da semana, efeito feriado, entre outros; anomalias na valorização de ativos, tais como o efeito tamanho e outras anomalias de sobre reação. O efeito dia da semana é dos mais persistentes detetados em vários mercados internacionais e tendo em conta este cenário, o objetivo desta dissertação é a verificação da existência das anomalias de calendário, mais precisamente o efeito dia da semana onde se irá analisar o efeito segunda-feira, efeito sexta-feira, o efeito fim-de­ semana. Para esta verificação foram utilizadas as cotações diárias médias do Índice da Bolsa de Valores de Cabo Verde, no período de finais de 2005 a finais de 2008. A análise estatística dos resultados diários indicou que não existem evidências da existência do efeito dia da semana. ABSTRACT: The markets efficiency has been an issue of particular interest in the field of financial investigation in recent decades. However, due to the intensification of the studies and the arise of evidences about the existence of abnormal behaviours on financial assets returns, over the last years, this theory begun to be discussed in academic circles. The debate of this theme is still very controversial, because on one hand there are the defenders of the efficiency hypothesis, who defend that identified anomalies cannot be generalized and are not consistent in the long-term; on the other hand, there are the defenders of behavioral finance tendency, to whom the anomalies are caused by documented patterns about the irrational behaviour of investors. These behaviours are inconsistent with the markets efficient theory. Among the detected anomalies, we highlight the calendar anomalies, such as: the January effect, the day of week effect and holiday effect among others; anomalies over the valuation of assets, such as: the size effect and other anomalies on the reaction. The day of week effect is one of the most persistent effect detected in several international markets, and due to this scenario, the objective of this essay is the finding of calendar abnormalities, namely the day of week effect, where the Monday, the Friday and the weekend effects will be analyzed. For this checking, we used the average daily exchange rates from the prices of the Cape Verde Stock Exchange, for the period from late 2005 to late 2008. The statistical analysis of daily results indicated that there is no evidence of the existence of the day of the week effect.

Validação Computacional tendo em vista a Interoperabilidade entre os Veículos Aéreos Não Tripulados

Nos dias de hoje, com o contínuo desenvolvimento e inovação no campo dos UAVs (Unmanned Aerial Vehciles), o mundo já tem como adquiridos os benefícios que estes sistemas podem fornecer. Os benefícios obtidos com a aplicação destes sistemas abrange tanto as forças armadas como industrias e organizações civis. Todas as nações e indústrias querem ter uma cota parte no futuro desta tecnologia. Diferentes UAVs foram desenvolvidos, mas estes, diferem em termos de arquitetura e protocolos de comunicação. Protocolos como o STANAG 4586, MAVLink, JAUS e ROS são só alguns exemplos. A proliferação de informação através destes sistemas e as suas consolas de comando e controlo é uma das principais preocupações, principalmente pelas forças armadas. Uma das principais prioridades é combinar forças de diferentes nações, principalmente pelos membros NATO. A necessidade de uma consola para cada tipo de sistema devido à falta de padronização apresenta assim um problema. É conhecida a necessidade de uma padronização em termos de arquitetura por camadas e de comunicação tendo em vista a interoperabilidade entre estes sistemas. Não existe nenhuma que esteja a ser implementada como documento padrão. Pretende-se que o STANAG 4586 seja o documento padrão para os membros NATO e, por conseguinte, todos os esforços estão direcionados em desenvolver sistemas que o consigam implementar. Os diferentes UAVs já existentes possuem o seu próprio protocolo de comunicação e a alteração de toda a sua estrutura não é fácil. A ideia de fazer uma conversão de linguagens como alternativa surge como uma solução teórica ótima. Utilizando um piloto automático que comunica com a sua consola através da linguagem MAVLink esta dissertação tem como objetivo desenvolver um programa computacional que converta as mensagens MAVLink em STANAG 4586 e estudar se o tempo de conversão é operacionalmente válido tendo em conta os requisitos operacionais dos sistemas.

Is financial instability male-driven? Gender and cognitive skills in experimental asset markets

The hypothesis that price stability would reliably increase with the fraction of women operating in financial markets has been frequently suggested in policy discussions. To test this hypothesis we conducted 10 male-only, 10 female-only and 10 mixed-gender experimental asset markets, and compared the effects of gender composition, confidence, risk attitude and cognitive skills. Male and female markets have comparable volatility and deviations from fundamentals, whereas mixed-gender markets are substantially more stable. On the other hand, higher average cognitive skills of the group are associated with reduced market volatility. Individual-level analysis shows that subjects with higher cognitive skills trade at prices closer to fundamental values and earn significantly higher profits; similarly, mixed markets exhibit lower mispricing, particularly for traders with lower cognitive skills. Our results are demonstrated to hold in other experimental asset market studies, suggesting that a mixed-gender composition reduces mispricing across different types of asset markets.

Entre o cartão-postal e a cidade real: um estudo sobre paisagem e produção imobiliária em Natal/RN

Recent studies concerning the landscape have investigated the most important activities that contribute for its modification and have tried to better understand the society through the marks left by its quotidian. It is understood that singular landscapes constitute the cultural patrimonies of the cities, once they are part of the daily life of the citizens and are present in their social representations. Some contemporary authors defend the preservation of the natural and urban landscape trying, specially, to keep its importance for the local population. Natal is a city where the ambient qualities are well defined and known by the beauty of the area where it is located. Situated just between a river and the sea, the city grew following its geographic characteristics. The Potengi River, the Atlantic Ocean and the vast dunes ecosystem represented natural limits to the urban expansion; at the same time they have favored the development of a landscape pattern marked by the dialectic between the natural elements and the human interventions. However, this relationship changed after the intensification of the high rising development process that took place since the 1960s. The urban legislation tried to preserve the features of the local landscape delimiting Areas for Controlling Building High , destined to protect the scenic value of some parts of the city. On the other hand, the civil construction sector has made constant pressure in sense to abolish or to modify this legal instrument, aiming profits that have increased, in the 1990s, because of the consumption and the qualification of the urban space for tourist activities. It is necessary the raising of new elements to stimulate the quarrel about the landscape preservation, the process of the urban space production and the best way for the legislation implementation. This work tries to raise elements about the subject at local level, in sense to use Natal City experience to contribute for the formulation of indicators to raise the question about the lack of measure for subjective values, for example the cultural and affective value of the landscape. The natural elements inserted in the urban profile, represent strong visual references and supply identity to the town; they are part of the collective imaginary and are detached in the social context of the city. Then, why the preservation of the landscape, that estimates the improvement in the quality of life, is not enough to justify the controlling building high already previewed as part of Natal City Legislation? These questions send us to the approach of the landscape, as a community patrimony, alerting that some of its significant esthetics attributes must be preserved as a legacy for the future generations

The long road from the kidney bazaar: a commentary on Pakistan’s progress towards self-sufficiency in organ transplantation

The dark history of transplant tourism in Pakistan demonstrates the hazards of unregulated cross-border markets in human organs. Trading on existing national and international social inequities, ‘transplant tourism’ offers dubious benefits for transplant recipients and attractive profits to those facilitating the industry at the expense of the world’s poor. The impact of Pakistan’s 2007 Transplantation of Human Organs and Tissue Ordinance and the sustained efforts of transplant professionals and societal groups led by the Sindh Institute of Urology and Transplantation, show that organ trading can be effectively discouraged and equitable programs of organ procurement and transplantation pursued despite multiple challenges. In this paper, the factors that have contributed to Pakistan’s progress towards self-sufficiency in organ transplantation are identified and discussed. The case of Pakistan highlights the need for countries to protect their own organ and tissue providers who may be vulnerable in the global healthcare market. Pakistan provides an excellent example for other countries in the region and throughout the world to consider when regulating their own transplantation programs and considering the pursuit of national self-sufficiency.

The moderating role of firm age in the relationship between R&D expenditure and financial performance: evidence from Chinese and US mining firms

We examine the impact of Research and Development (R&D) on the profitability and sales of mining firms in China and the United States (US) and the moderating effect of firm age using Coarsened Exact Matching (CEM). For the combined panel of 168 major US and Chinese mining firms, we find that, on average, a firm engaging in R&D activities earns 4% to 11% higher sales and generates 4% to 13% more profits than firms that do not engage in R&D activities. We also show that, in the mining industry, firm age moderates the relationship between R&D activities and financial performance. A comparatively mature R&D active firm earns 4.4% more profit and generates 7.2% more sales than a younger non-innovative firm. The turning point at which R&D activities switch from making a negative, to positive, contribution to profit and sales is 37 years and 22 years, respectively. Our results are consistentwith the liability of newness, meaning that firm investment in R&D takes time to have a real impact on bottom line measures of financial performance. We conclude with a discussion of the practical implications of our results for Chinese and US mining firms.

Mechanisms of influence: alcohol industry submissions to the inquiry into fetal alcohol spectrum disorders

INTRODUCTION AND AIMS: Industry groups with vested interests in policy regularly work to protect their profits via the endorsement of ineffective voluntary regulation and interventions, extensive lobbying activity and minimising the health impact of consumption behaviours. This study aims to examine all alcohol industry submissions to the Australian House of Representatives Standing Committee on Social Policy and Legal Affairs into Fetal Alcohol Spectrum Disorders (FASD), to assist in understanding how those with vested interests contribute to policy development. The analysis aims to document the strategies and arguments used by alcohol industry bodies in their submissions and to compare these with known strategies of vested-interest groups. DESIGN AND METHODS: All 92 submissions to the Inquiry were screened to include only those submitted by alcohol industry bodies (five submissions). Content domains were derived based on the major themes emerging from the industry submissions and on common vested-interest behaviours identified in previous literature. RESULTS: The following content categories were identified: Concerns about FASD; Current industry activities and FASD prevention; Value of mandatory warning labels; and Credibility of independent public health researchers and organisations. DISCUSSION AND CONCLUSIONS: Alcohol industry submissions sought to undermine community concern, debate the evidence, promote ineffective measure which are no threat to the profit margins and attack independent health professionals and researchers. In doing so, their behaviour is entirely consistent with their responses to other issues, such as violence and chronic health, and copies the tactics employed by the tobacco industry.

Gambling, society and the evolution of risk-taking

Gambling is emerging as a major industry around the world at a time when many of the more traditional economic pursuits are becoming less productive, but while the burgeoning gambling industry is certainly profitable and provides good investment opportunities and economic benefits for business and communities alike, it is timely that we look more closely at the overall benefits and costs of this phenomenon in modern society.

In this book about the modern gambling business, a motif of the Colorado River and the Boulder/Hoover Dam is explored in the opening section, likening the benefits and risks of gambling to those of the damming of the Colorado to irrigate California. There can be no doubt that the project wrested many Americans from poverty and unemployment in the depression, built a world-leading engineering structure that served to help the desert bloom, so to speak, including, of course, the re-making of Las Vegas. With the wisdom of hindsight and our increasing environmental awareness, the choking of the Colorado has had its downsides as does the gambling industry as we already know.

From the metaphorical re-examination of Fear and Loathing in Las Vegas, this current book focuses on some of the central aspects of the gambling industry in Australia and around the world, exploring how the industry is traveling in the 21st Century and asking why we are becoming so pre-occupied at this time with the processes of gambling. The prevalence of problem gambling is discussed; the numbers and how they are measured, along with various approaches to treatment and remediation for people affected adversely by their gambling behaviour.

Beyond the ‘bricks and mortar’ gambling and the electronic gaming machines of the latter part of the twentieth century, however, the development of new on-line gambling technologies is introducing different types of products, inducting new consumers to gambling products, changing the face of gambling in society, driving greater profits and potentially spawning more associated problems. While we are still struggling to understand the mechanisms through which more traditional gambling mechanisms affect consumers of these products and how best to remediate or treat such problems, a new form of the gambling phenomenon is being loosed upon modern consumers.

To return to the Hoover Dam metaphor; perhaps this new flood will be too strong for the dam or perhaps it will bring profits and benefits for all concerned. Before we can arrive at a decision about such potential costs and benefits, however, it will be important for us to see just whose money fuels this next phase of industry expansion and whether the profits of the industry are won at the cost of people with gambling problems; people who can’t afford to play the game, let along lose. Will the players in Macau, Singapore, Hong Kong, Vegas, Atlantic City, Sydney and other emerging markets in Asia, along with the new generation of consumers of on-line gambling products, at the end of the day see that their play has been worth the price paid or will the losses to individuals and communities out-weigh the benefits that flow, paradoxically, from this complex industry?

Does financial news predict stock returns? New evidence from Islamic and Non-Islamic stocks

The paper extends the time-series financial news data set constructed by Garcia (2013) and uses it to examine whether financial news predicts returns of Islamic stocks differently compared to non-Islamic (conventional) stocks. We find that they do. First, while both positive and negative worded news predict most Islamic and conventional stock returns, positive words have a larger impact on both types of stock returns. Second, shock to returns from financial news reverses only in part for some stocks. Third, for a mean-variance investor, investing in Islamic stocks is relatively more profitable than investing in the corresponding conventional stocks. Fourth, we show that profits are robust to a range of time-series risk factors, namely, market risk, size-based risk, and momentum-induced risk.

What is the value of corporate sponsorship in sports?

This paper investigates the stock market reaction to investor mood swings resulting from the Indian Premier League (IPL) cricket matches. We find that stocks listed on the Bombay Stock Exchange (BSE) that sponsor the IPL cricket are unaffected by the cricket matches. This finding is robust along two lines: (a) the effect is insignificant both statistically and economically which we demonstrate using a simple trading strategy; and (b) results hold across a wide range of portfolios. Our results, both statistical and trading strategy-based, suggest that the portfolios of companies that sponsor cricket in India are efficient. Our findings stand in sharp contrast to the evidence obtained by the broader sports literature suggesting that sports actually impact stock returns, driven principally by psychological factors.

Momentum strategies for Islamic stocks

We estimate momentum profits for a large portfolio of Islamic stocks, control for stock characteristics and the state-of-the-market, explore seasonal patterns, and examine the determinants of profits. We discover ample evidence that momentum strategies work for Islamic stocks, but are stock characteristic-dependent, that up and down phases of the market offer different profits, and that there is a January effect on profits. We also find that the market risk factors - namely, excess market returns, value, size, and betting-against-beta factors - and macroeconomic risk factors do explain profits. We conclude that the profitability of Islamic stocks is merely compensation for risks and is not due to mispricing.

INTERACTIVE EFFECT OF FIXED TIME ORDER STRATEGIES WITHIN A SUPPLY CHAIN ON ACTUAL IN-STOCK PROBABILITIES

This report mainly deals with the interactive effect of different in-stock probabilities used by every individual in a supply chain. Based on a simulation for 10,000 weeks, the effects of varying in-stock probabilities are observed. Based on these observations, an individual in a supply chain can take counter measures in order to avoid stock out chances hence maintaining profits.

Essays on competition in the pharmaceutical industry

Chapter 1: Patents and Entry Competition in the Pharmaceutical Industry: The Role of Marketing Exclusivity. Effective patent length for innovation drugs is severely curtailed because of extensive efficacy and safety tests required for FDA approval, raising concern over adequacy of incentives for new drug development. The Hatch-Waxman Act extends patent length for new drugs by five years, but also promotes generic entry by simplifying approval procedures and granting 180-day marketing exclusivity to a first generic entrant before the patent expires. In this paper we present a dynamic model to examine the effect of marketing exclusivity. We find that marketing exclusivity may be redundant and its removal may increase generic firms' profits and social welfare. ^ Chapter 2: Why Authorized Generics?: Theoretical and Empirical Investigations Facing generic competition, the brand-name companies some-times launch generic versions themselves called authorized generics. This practice is puzzling. If it is cannibalization, it cannot be profitable. If it is divisionalization, it should be practiced always instead of sometimes. I explain this phenomenon in terms of switching costs in a model in which the incumbent first develops a customer base to ready itself against generic competition later. I show that only sufficiently low switching costs or large market size justifies launch of AGs. I then use prescription drug data to test those results and find support. ^ Chapter 3: The Merger Paradox and R&D Oligopoly theory says that merger is unprofitable, unless a majority of firms in industry merge. Here, we introduce R&D opportunities to resolve this so-called merger paradox. We have three results. First, when there is one R&D firm, that firm can profitably merge with any number of non-R&D firms. Second, with multiple R&D firms and multiple non-R&D firms, all R&D firms can profitably merge. Third, with two R&D firms and two non-R&D firms, each R&D firms prefer to merge with a non-R&D firm. With three or more than non-R&D firms, however, the R&D firms prefer to merge with each other.^