Collateral Value and Corporate Investment: Evidence from the French Real Estate Market

This paper is an empirical study of the effect of shocks to firms' collateral, with a focus on land holdings. We find evidence that stand-alone French firms are credit constrained. They invest up to .39¬ more per extra euro of collateral, and they finance this additional investment by issuing more debt. This result is obtained by looking at the specific case of the Ile de France real estate bubble of the 90s, which we use as a natural experiment providing exogenous variations in land value. Consistent with the view of efficient internal capital markets, we find that the effect collateral on corporate investment is limited to stand-alone firms.Internal financial markets, real estate bubble

Family Business Restructuring:A Review and Research Agenda

Although business restructuring occurs frequently and it is important for the prosperity of family firms across generations, research on family firms has largely evolved separately from research on business restructuring. This is a missed opportunity, since the two domains are complementary, and understanding the context, process, content, and outcome dimensions is relevant to both research streams. We address this by examining the intersection between research on business restructuring and family firms to improve our knowledge of each area and inform future research. To achieve this goal, we review and organize research across different dimensions to create an integrative framework. Building on current research, we focus on 88 studies at the intersection of family firm and business restructuring research to develop a model that identifies research needs and suggests directions for future research

Evidence for renal glomerular receptors for angiotensin II

Evidence for renal glomerular receptors for angiotensin II. Monoiodinated angiotensin II (2000 mCi/μmole) was found to bind specifically to isolated rat glomeruli. Equilibrium was reached after 12 min and specific binding represented more than 95% of total binding. Dissociation after addition of an excess of unlabelled molecules was rapid. The k1 and k-1 association and dissociation constants determined from time-course studies were 0.254±0.078 × 1010M-1 min-1 and 0.102±0.018 min-1, respectively and the ratio k-1/k1 (KD) was 4.51±0.55 × 10-11M. Angiotensin II, liberated from glomerular binding sites at low pH, retained the ability to bind to fresh membranes. Angiotensin II, angiotensin I, ileu8-angiotensin II and sarc1-ileu8-angiotensin II were all equally effective as competitive inhibitors of 125I-angiotensin binding. In a preparation of isolated rat glomeruli, mean glomerular diameter decreased as a function of 125I-angiotensin II concentration according to a sigmoidal effect vs. log dose curve and the calculated KD (6 × 10-11M) was similar to that obtained from binding studies. Specific binding of angiotensin II at physiological plasma concentration to rat glomeruli and correlation of this binding with glomerular vasoreactivity suggest a physiological role for this hormone in regulation of glomerular filtration.Récepteurs rénaux glomérulaires de l'angiotensine II. L'Angiotensine II monoiodée (2000 mCi/μmole) se lie spécifiquement aux glomérules de rat isolés. L'équilibre est atteint au bout de 12 mn et la fixation spécifique représente plus de 95% de la fixation totale. L'addition d'un excès d'angiotensine non marquée détermine une dissociation rapide de l'hormone fixée. Les constantes d'association (k1) et de dissociation (k-1) calculées à partir des expériences de fixation en fonction du temps sont égales à 0,254±0,078 × 1010M-1 mn-1 et 0,102±0,018 mn-1, respectivement. Le rapport k-1/k1 (KD) est égal à 4,51 ±0,55 × 10-11M. L'angiotensine II, éluée à pH acide de ses sites glomérulaires de liaison, garde la capacité de se lier de nouveau à des membranes fraîches. L'angiotensine II, l'angiotensine I, la ileu8-angiotensine II et la sarc1-ileu8-angiotensine II sont des inhibiteurs compétitifs de la 125I-angiotensine II, tous de même efficacité. Le diamètre glomérulaire moyen mesuré dans une préparation de glomérules isolés décroît en fonction de la concentration de la 125I-angiotensine II selon une courbe sigmoïde (effet contre le log de la dose) et le KD calculé (6 × 10-11M) est semblable à celui obtenu à partir des expériences de liaison. La fixation spécifique aux glomérules de rat de l'angiotensine II à des concentrations identiques à celles présentes physiologiquement dans le plasma, ainsi que la corrélation entre la liaison de l'hormone aux glomérules et la vasomotricité glomérulaire suggèrent un rôle physiologique de l'angiotensine II dans la filtration glomérulaire

Quiet bubbles

Motivated by the recent subprime mortgage crisis, we explore whether speculative bubble models of equity based on investor disagreement and short-sales constraints can also provide an explanation for the overvaluation of debt contracts. We find that this is unlikely. Equity bubbles are loud: price and volume go together as investors speculate on capital gains from reselling to more optimistic investors. But this resale option is limited for debt since its upside payoff is bounded. Debt bubbles then require an optimism bias among investors. But greater optimism leads to less speculative trading as investors view the debt as safe and having limited upside. Debt bubbles are hence quiet-high price comes with low volume. We find the predicted price-volume relationship of credits over the 2003-2007 credit boom. © 2013 Elsevier B.V

Quiet Bubbles

Motivated by the recent subprime mortgage crisis, we explore whether speculative bubble models of equity based on investor disagreement and short-sales constraints can also provide an explanation for the overvaluation of debt contracts. We find that this is unlikely. Equity bubbles are loud: price and volume go together as investors speculate on capital gains from reselling to more optimistic investors. But this resale option is limited for debt since its upside payoff is bounded. Debt bubbles then require an optimism bias among investors. But greater optimism leads to less speculative trading as investors view the debt as safe and having limited upside. Debt bubbles are hence quiet-high price comes with low volume. We find the predicted price-volume relationship of credits over the 2003-2007 credit boom. © 2013 Elsevier B.V

Synthesis of Prostaglandins and Lipoxygenase Products by Rat Glomeruli during Development

In glomeruli isolated from adult rats, arachidonic acid (C20:4) is metabolized through at least two different pathways: the lipoxygenase and the cyclooxygenase pathway, resulting in the synthesis of 12-hydroxyeicosatetraenoic acid (12-HETE) and four prostaglandins (PG) respectively. Because renal blood flow (RBF) and glomerular filtration rate (GFR) increase during development, and because C20:4 metabolites are implicated in their local regulation, the conversion of &lt;sup&gt;3&lt;/sup&gt;H-C20:4 was studied in 3 groups of rats; group A: 4 days old, 10 g; group B: 10 days old, 25 g; group C: 60 days old, 200 g. Glomeruli mechanically isolated from blanched kidneys were incubated with 5.4 × 10&lt;sup&gt;––&lt;/sup&gt;&lt;sup&gt;8&lt;/sup&gt;&lt;i&gt;M&lt;/i&gt;&lt;sup&gt;3&lt;/sup&gt;H-C20:4. Lipoxygenase and cyclooxygenase products were extracted and resolved by high-performance liquid chromatography (HPLC); quantitative determination of PGs was performed by radioimmunoassay (RIA). The results are: (1) conversion of C20:4 to lipoxygenase product is predominant in comparison to cyclooxygenase products; (2) conversion of labeled C20:4 into 12-HETE is constant with age; (3) identified cyclooxygenase products, PGE&lt;sub&gt;2&lt;/sub&gt;, and particularly PGF&lt;sub&gt;2α&lt;/sub&gt; are maximum in group B; (4) the variation of C20:4 metabolism during development suggest that these products may be involved in the maturation and the regulation of glomerular functions.</jats:p

Prostaglandin synthesis by glomeruli isolated from rats with glycerol-induced acute renal failure.

In vitro PG synthesis by glomeruli isolated from rats with glycerol-induced acute renal failure (ARF) was measured by radiometric high performance liquid chromatography after incubation with [14C]arachidonic acid and radioimmunoassay (RIA). The four PGs, 6-keto-PGF1 alpha, TXB2, PGF2 alpha, and PGE2 were each synthesized by glomeruli from both control and treated rats but the synthesis rates were greater after glycerol. This increase was not apparent 1 hour after injection but, at 24 hours, all PGs were produced in greater amounts by glomeruli of treated rats. Thus, we studied PGE2, PGE2 alpha, and TXB2 synthesis by glomeruli at various time intervals after induction of ARF using direct RIA, PGF 2 alpha and TXB2 synthesis were greater only at 24 hours and only in the presence of arachidonic acid, whereas PGE2 synthesis was greater at 24 hours, irrespective of arachidonic acid, but at 48 hours only with arachidonic acid. The stimulatory effect of arachidonic acid was always greater in glycerol-treated than in control rats for these three PGs in the later period, whereas a significant decrease for PGE2 was observed at 1 hour. The late increase in PG synthesis may be due to stimulation of the renin-angiotensin system since it was abolished in rats pretreated for 48 hours with captopril. A late increase in PG synthesis by the papilla of the treated rats also was observed. We concluded that any increase in the glomerular production of vasoconstrictor PGs could contribute to the maintenance of acute renal failure, whereas the early fall in the stimulatory effect of arachidonic acid on PGE2 synthesis could play a role in its initiation.</jats:p