AGENCY COSTS AND THE SIZE DISCOUNT: EVIDENCE FROM ACQUISITIONS

Many scholars have found a negative relationship between a firm’s size and its value, as measured by Tobin’s q. This result is called the size discount. There are hypotheses about why the size discount exists, but none have been rigorously empirically tested. This paper argues that the size discount is created by the inability of shareholders to minimize agency costs in larger companies. Statistical tests suggest that the size discount only appears in large firms with managers that impose excessive agency costs upon their shareholders. Empiricists who use Tobin’s q to proxy for growth opportunities may need a different proxy.Agency costs; size discount; acquisitions; corporate governance.

An Experimental Examination of Competitor-Based Price Matching Guarantees

We use experimental methods to demonstrate the anti-competitive potential of price matching guarantees in both symmetric and asymmetric cost duopolies. Our findings establish that when costs are symmetric, price-matching guarantees significantly increase market prices. In markets with cost asymmetries, guaranteed prices remain high relative to prices without the use of guarantees, but the overall ability of price guarantees to act as a collusion facilitating device becomes contingent on the relative cost difference. Lesser use of guarantees, combined with lower average prices and slower convergence to the collusive level, suggest that the mere presence of cost asymmetries may curtail collusive behavior.Price Matching; Price Guarantees; Laboratory; Collusion

Translational cooling and storage of protonated proteins in an ion trap at subkelvin temperatures

Gas-phase multiply charged proteins have been sympathetically cooled to translational temperatures below 1 K by Coulomb interaction with laser-cooled barium ions in a linear ion trap. In one case, an ensemble of 53 cytochrome c molecules (mass ~ 12390 amu, charge +17 e) was cooled by ~ 160 laser-cooled barium ions to less than 0.75 K. Storage times of more than 20 minutes have been observed and could easily be extended to more than an hour. The technique is applicable to a wide variety of complex molecules.Comment: same version as published in Phys. Rev.

Evaluation of cosmic ray rejection algorithms on single-shot exposures

To maximise data output from single-shot astronomical images, the rejection of cosmic rays is important. We present the results of a benchmark trial comparing various cosmic ray rejection algorithms. The procedures assess relative performances and characteristics of the processes in cosmic ray detection, rates of false detections of true objects and the quality of image cleaning and reconstruction. The cosmic ray rejection algorithms developed by Rhoads (2000), van Dokkum (2001), Pych (2004) and the IRAF task xzap by Dickinson are tested using both simulated and real data. It is found that detection efficiency is independent of the density of cosmic rays in an image, being more strongly affected by the density of real objects in the field. As expected, spurious detections and alterations to real data in the cleaning process are also significantly increased by high object densities. We find the Rhoads' linear filtering method to produce the best performance in detection of cosmic ray events, however, the popular van Dokkum algorithm exhibits the highest overall performance in terms of detection and cleaning.Comment: 12 pages, 4 figures, accepted for publication in PAS

Closing the Teacher Quality Gap in Philadelphia: New Hope and Old Hurdles

This study of teacher staffing issues in the School District of Philadelphia, the third in a series, outlines the degree to which the district has succeeded in upgrading teachers' professional credentials, recruiting and retaining them, and equitably distributing experienced and credentialed teachers across all types of schools. Since the passage of NCLB and the state's takeover of the district in 2001, the district has succeeded in improving the certification rates of its teachers, especially new teachers, and in drastically cutting the number of emergency-certified teachers and classroom vacancies. It has also improved new teacher retention and has modernized and decentralized its hiring process. At the same time, it has not been able to change the pattern of having the least qualified teachers in schools serving the highest percentages of poor and minority students nor its poor long-term rate of teacher retention. The district is also challenged to speed up and simplify its hiring and school placement process and to hire more minority teachers

Cytological analysis of MRE11 protein during early meiotic prophase I in Arabidopsis and tomato

Early recombination nodules (ENs) are multiprotein complexes that are thought to be involved in synapsis and recombination, but little is known about their components or how they may be involved in these events. In this study, we describe the cytological behavior of a possible EN component, MRE11, a protein that is important for the repair of the numerous, programmed deoxyribonucleic acid double-strand breaks (DSBs) that occur early in the meiotic prophase. By immunofluorescence, many MRE11 foci were associated with chromosomal axes during early prophase I in both wild-type Arabidopsis and tomato primary microsporocytes. Similar patterns of MRE11 foci were observed in two Arabidopsis mutants (Atspo11-1 and Atprd1) that are defective in DSB formation and synapsis. In tomato chromosomes, MRE11 foci were more common in distal euchromatin than in proximal heterochromatin, consistent with known EN patterns. However, electron microscopic immunogold localization demonstrated that only about 10% of ENs were labeled, and most MRE11 label was associated with synaptonemal complex components. Thus, in plants, MRE11 foci are not dependent on DSB formation, and most MRE11 foci do not correspond to ENs. More generally, our results show that the simple presence of large numbers of fluorescent foci associated with synapsing chromosomes is insufficient evidence to equate these foci with ENs

Pupae transplantation to boost early colony growth in the weaver ant Oecophylla longinoda Latreille (Hymenoptera: Formicidae)

Oecophylla ants are currently used for biological control in fruit plantations in Australia, Asia and Africa and for protein production in Asia. To further improve the technology and implement it on a large scale, effective and fast production of live colonies is de¬sirable. Early colony development may be artificially boosted via the use of multiple queens (pleometrosis) and/or by adoption of foreign pupae in developing colonies. In the present experiments, we tested if multiple queens and transplantation of pupae could boost growth in young Oecophylla longinoda colonies. We found out that colonies with two queens artificially placed in the same nest, all perished due to queen fighting, suggesting that pleometrosis is not used by O. longinoda in Benin. In contrast, pupae transplantation resulted in highly increased growth rates, as pupae were readily adopted by the queens and showed high survival rates (mean = 92%). Within the 50-day experi¬ment the total number of individuals in colonies with 50 and 100 pupae transplanted, increased with 169 and 387%, respectively, compared to colonies receiving no pupae. This increase was both due to the individuals added in the form of pupae but also due to an increased per capita brood production by the resident queen, triggered by the adopted pupae. Thus pupae transplantation may be used to shorten the time it takes to produce weaver ant colonies in ant nurseries, and may in this way facilitate the imple-mentation of weaver ant biocontrol in West Africa