Essays in corporate finance

China has been growing rapidly over the last decades. The private sector is the driving force of this growth. This thesis focuses on firm-level investment and cash holdings in China, and the chapters are structured around the following issues. 1. Why do private firms grow so fast when they are more financially constrained? In Chapter 3, we use a panel of over 600,000 firms of different ownership types from 1998 to 2007 to find the link between investment opportunities and financial constraints. The main finding indicates that private firms, which are more likely to be financially constrained, have high investment-investment opportunity sensitivity. Furthermore, this sensitivity is relatively lower for state-owned firms in China. This shows that constrained firms value investment opportunities more than unconstrained firms. To better measure investment opportunities, we attempt to improve the Q model by considering supply and demand sides simultaneously. When we capture q from the supply side and the demand side, we find that various types of firms respond differently towards different opportunity shocks. 2. In China, there are many firms whose cash flow is far greater than their fixed capital investment. Why is their investment still sensitive to cash flow? To explain this, in Chapter 4, we attempt to introduce a new channel to find how cash flow affects firm-level investment. We use a dynamic structural model and take uncertainty and ambiguity aversion into consideration. We find that uncertainty and ambiguity aversion will make investment less sensitive to investment opportunities. However, investment-cash flow sensitivity will increase when uncertainty is high. This suggests that investment cash flow sensitivities could still be high even when the firms are not financially constrained. 3. Why do firms in China hold so much cash? How can managers’ confidence affect corporate cash holdings? In Chapter 5, we analyse corporate cash holdings in China. Firms hold cash for precautionary reasons, to hedge frictions such as financing constraints and uncertainty. In addition, firms may act differently if they are confident or not. In order to determine how confidence shocks affect precautionary savings, we develop a dynamic model taking financing constraints, uncertainty, adjustment costs and confidence shocks into consideration. We find that without confidence shocks, firms will save money in bad times and invest in good times to maximise their value. However, if managers lose their confidence, they tend to save money in good times to use in bad times, to hedge risks and financing constraint problems. This can help explain why people find different results on the cash flow sensitivity of cash. Empirically, we use a panel of Chinese listed firms. The results show that firms in China save more money in good times, and the confidence shock channel can significantly affect firms’ cash holdings policy.

Thermal and exergy analysis for evaluation and optimization of performance of cooling towers for fresh water and seawater

In this study, thermal, exergetic analysis and performance evaluation of seawater and fresh wet cooling tower and the effect of parameters on its performance is investigated. With using of energy and mass balance equations, experimental results, a mathematical model and EES code developed. Due to lack of fresh water, seawater cooling is interesting choice for future of cooling, so the effect of seawater in the range of 1gr/kg to 60gr/kg for salinity on the performance characteristics like air efficiency, water efficiency, output water temperature of cooling tower, flow of the exergy, and the exergy efficiency with comparison with fresh water examined. Decreasing of air efficiency about 3%, increasing of water efficiency about 1.5% are some of these effects. Moreover with formation of fouling the performance of cooling tower decreased about 15% which this phenomena and its effects like increase in output water temperature and tower excess volume has been showed and also accommodate with others work. Also optimization for minimizing cost, maximizing air efficiency, and minimizing exergy destruction has been done, results showed that optimization on minimizing the exergy destruction has been satisfy both minimization of the cost and the maximization of the air efficiency, although it will not necessarily permanent for all inputs and optimizations. Validation of this work is done by comparing computational results and experimental data which showed that the model have a good accuracy.

Modelling of an efficient dynamic smart solar photovoltaic power grid system

A smart solar photovoltaic grid system is an advent of innovation coherence of information and communications technology (ICT) with power systems control engineering via the internet [1]. This thesis designs and demonstrates a smart solar photovoltaic grid system that is selfhealing, environmental and consumer friendly, but also with the ability to accommodate other renewable sources of energy generation seamlessly, creating a healthy competitive energy industry and optimising energy assets efficiency. This thesis also presents the modelling of an efficient dynamic smart solar photovoltaic power grid system by exploring the maximum power point tracking efficiency, optimisation of the smart solar photovoltaic array through modelling and simulation to improve the quality of design for the solar photovoltaic module. In contrast, over the past decade quite promising results have been published in literature, most of which have not addressed the basis of the research questions in this thesis. The Levenberg-Marquardt and sparse based algorithms have proven to be very effective tools in helping to improve the quality of design for solar photovoltaic modules, minimising the possible relative errors in this thesis. Guided by theoretical and analytical reviews in literature, this research has carefully chosen the MatLab/Simulink software toolbox for modelling and simulation experiments performed on the static smart solar grid system. The auto-correlation coefficient results obtained from the modelling experiments give an accuracy of 99% with negligible mean square error (MSE), root mean square error (RMSE) and standard deviation. This thesis further explores the design and implementation of a robust real-time online solar photovoltaic monitoring system, establishing a comparative study of two solar photovoltaic tracking systems which provide remote access to the harvested energy data. This research made a landmark innovation in designing and implementing a unique approach for online remote access solar photovoltaic monitoring systems providing updated information of the energy produced by the solar photovoltaic module at the site location. In addressing the challenge of online solar photovoltaic monitoring systems, Darfon online data logger device has been systematically integrated into the design for a comparative study of the two solar photovoltaic tracking systems examined in this thesis. The site location for the comparative study of the solar photovoltaic tracking systems is at the National Kaohsiung University of Applied Sciences, Taiwan, R.O.C. The overall comparative energy output efficiency of the azimuthal-altitude dual-axis over the 450 stationary solar photovoltaic monitoring system as observed at the research location site is about 72% based on the total energy produced, estimated money saved and the amount of CO2 reduction achieved. Similarly, in comparing the total amount of energy produced by the two solar photovoltaic tracking systems, the overall daily generated energy for the month of July shows the effectiveness of the azimuthal-altitude tracking systems over the 450 stationary solar photovoltaic system. It was found that the azimuthal-altitude dual-axis tracking systems were about 68.43% efficient compared to the 450 stationary solar photovoltaic systems. Lastly, the overall comparative hourly energy efficiency of the azimuthal-altitude dual-axis over the 450 stationary solar photovoltaic energy system was found to be 74.2% efficient. Results from this research are quite promising and significant in satisfying the purpose of the research objectives and questions posed in the thesis. The new algorithms introduced in this research and the statistical measures applied to the modelling and simulation of a smart static solar photovoltaic grid system performance outperformed other previous works in reviewed literature. Based on this new implementation design of the online data logging systems for solar photovoltaic monitoring, it is possible for the first time to have online on-site information of the energy produced remotely, fault identification and rectification, maintenance and recovery time deployed as fast as possible. The results presented in this research as Internet of things (IoT) on smart solar grid systems are likely to offer real-life experiences especially both to the existing body of knowledge and the future solar photovoltaic energy industry irrespective of the study site location for the comparative solar photovoltaic tracking systems. While the thesis has contributed to the smart solar photovoltaic grid system, it has also highlighted areas of further research and the need to investigate more on improving the choice and quality design for solar photovoltaic modules. Finally, it has also made recommendations for further research in the minimization of the absolute or relative errors in the quality and design of the smart static solar photovoltaic module.

Planar Odometry from a Radial Laser Scanner. A Range Flow-based Approach

In this paper we present a fast and precise method to estimate the planar motion of a lidar from consecutive range scans. For every scanned point we formulate the range flow constraint equation in terms of the sensor velocity, and minimize a robust function of the resulting geometric constraints to obtain the motion estimate. Conversely to traditional approaches, this method does not search for correspondences but performs dense scan alignment based on the scan gradients, in the fashion of dense 3D visual odometry. The minimization problem is solved in a coarse-to-fine scheme to cope with large displacements, and a smooth filter based on the covariance of the estimate is employed to handle uncertainty in unconstraint scenarios (e.g. corridors). Simulated and real experiments have been performed to compare our approach with two prominent scan matchers and with wheel odometry. Quantitative and qualitative results demonstrate the superior performance of our approach which, along with its very low computational cost (0.9 milliseconds on a single CPU core), makes it suitable for those robotic applications that require planar odometry. For this purpose, we also provide the code so that the robotics community can benefit from it.

Robust Stereo Visual Odometry through a Probabilistic Combination of Points and Line Segments

Most approaches to stereo visual odometry reconstruct the motion based on the tracking of point features along a sequence of images. However, in low-textured scenes it is often difficult to encounter a large set of point features, or it may happen that they are not well distributed over the image, so that the behavior of these algorithms deteriorates. This paper proposes a probabilistic approach to stereo visual odometry based on the combination of both point and line segment that works robustly in a wide variety of scenarios. The camera motion is recovered through non-linear minimization of the projection errors of both point and line segment features. In order to effectively combine both types of features, their associated errors are weighted according to their covariance matrices, computed from the propagation of Gaussian distribution errors in the sensor measurements. The method, of course, is computationally more expensive that using only one type of feature, but still can run in real-time on a standard computer and provides interesting advantages, including a straightforward integration into any probabilistic framework commonly employed in mobile robotics.

Plataforma interactiva para edifícios inteligentes com controlo preditivo

Esta dissertação desenvolve uma plataforma de controlo interactiva para edifícios inteligentes através de um sistema SCADA (Supervisory Control And Data Acquisition). Este sistema SCADA integra diferentes tipos de informações provenientes das várias tecnologias presentes em edifícios modernos (controlo da ventilação, temperatura, iluminação, etc.). A estratégia de controlo desenvolvida implementa um controlador em cascada hierárquica onde os "loops" interiores são executados pelos PLC's locais (Programmable Logic Controller), e o "loop" exterior é gerido pelo sistema SCADA centralizado, que interage com a rede local de PLC's. Nesta dissertação é implementado um controlador preditivo na plataforma SCADA centralizada. São apresentados testes efectuados para o controlo da temperatura e luminosidade de salas com uma grande área. O controlador preditivo desenvolvido tenta optimizar a satisfação dos utilizadores, com base nas preferências introduzidas em várias interfaces distribuídas, sujeito às restrições de minimização do desperdício de energia. De forma a executar o controlador preditivo na plataforma SCADA foi desenvolvido um canal de comunicação para permitir a comunicação entre a aplicação SCADA e a aplicação MATLAB, onde o controlador preditivo é executado. ABSTRACT: This dissertation develops an operational control platform for intelligent buildings using a SCADA system (Supervisory Control And Data Acquisition). This SCADA system integrates different types of information coming from the several technologies present in modem buildings (control of ventilation, temperature, illumination, etc.). The developed control strategy implements a hierarchical cascade controller where inner loops are performed by local PLCs (Programmable Logic Controller), and the outer loop is managed by the centralized SCADA system, which interacts with the entire local PLC network. ln this dissertation a Predictive Controller is implemented at the centralized SCADA platform. Tests applied to the control of temperature and luminosity in huge­area rooms are presented. The developed Predictive Controller tries to optimize the satisfaction of user explicit preferences coming from several distributed user-interfaces, subjected to the constraints of energy waste minimization. ln order to run the Predictive Controller at the SCADA platform a communication channel was developed to allow communication between the SCADA application and the MATLAB application where the Predictive Controller runs.

Motion compensation with minimal residue dispersion matching criteria

Dissertação (mestrado)—Universidade de Brasília, Faculdade de Tecnoloigia, 2016.