The economic impact of merger control legislation

Based on a unique dataset of legislative changes in industrial countries, we identify events that strengthen the competition control of mergers and acquisitions, analyze their impact on banks and non-financial firms and explain the different reactions observed with specific regulatory characteristics of the banking sector. Covering nineteen countries for the period 1987 to 2004, we find that more competition-oriented merger control increases the stock prices of banks and decreases the stock prices of non-financial firms. Bank targets become more profitable and larger, while those of non-financial firms remain mostly unaffected. A major determinant of the positive bank returns is the degree of opaqueness that characterizes the institutional setup for supervisory bank merger reviews. The legal design of the supervisory control of bank mergers may therefore have important implications for real activity

The economic impact of merger control: what is special about banking?

There is a long-standing debate about the special nature of banks. Based on a unique dataset of legislative changes in industrial countries, we identify events that strengthen competition policy, analyze their impact on banks and non-financial firms and explain the reactions observed with institutional features that distinguish banking from non-financial sectors. Covering nineteen countries for the period 1987 to 2004, we find that banks are special in that a more competition-oriented regime for merger control increases banks’ stock prices, whereas it decreases those of non-financial firms. Moreover, bank merger targets become more profitable and larger. A major determinant of the positive bank returns, after controlling inter alia for the general quality of institutions and individual bank characteristics, is the opaqueness that characterizes the institutional setup for supervisory bank merger reviews. Thus strengthening competition policy in banking may generate positive externalities in the financial system that offset unintended adverse side effects on efficiency introduced through supervisory policies focusing on prudential considerations and financial stability. Legal arrangements governing competition and supervisory control of bank mergers may therefore have important implications for real activity. JEL Classification: G21, G28, D4competition policy, financial regulation, legal institutions, mergers and acquisitions, Specialness of banks

The economic impact of merger control: what is special about banking?

There is a long-standing debate about the special nature of banks. Based on a unique dataset of legislative changes in industrial countries, we identify events that strengthen competition policy, analyze their impact on banks and non-financial firms and explain the reactions observed with institutional features that distinguish banking from non-financial sectors. Covering nineteen countries for the period 1987 to 2004, we find that banks are special in that a more competition-oriented regime for merger control increases banks’ stock prices, whereas it decreases those of non-financial firms. Moreover, bank merger targets become more profitable and larger. A major determinant of the positive bank returns, after controlling inter alia for the general quality of institutions and individual bank characteristics, is the opaqueness that characterizes the institutional setup for supervisory bank merger reviews. Thus strengthening competition policy in banking may generate positive externalities in the financial system that offset unintended adverse side effects on efficiency introduced through supervisory policies focusing on prudential considerations and financial stability. Legal arrangements governing competition and supervisory control of bank mergers may therefore have important implications for real activity

Quantification of Degradation of Chlorinated Hydrocarbons in Saturated Low Permeability Sediments Using Compound-Specific Isotope Analysis

This field and modeling study aims to reveal if degradation of chlorinated hydrocarbons in low permeability sediments can be quantified using compound-specific isotope analysis (CSIA). For that purpose, the well-characterized Borden research site was selected, where an aquifer−aquitard system was artificially contaminated by a three component chlorinated solvent mixture (tetrachloroethene (PCE) 45 vol %, trichloroethene (TCE) 45 vol %, and chloroform (TCM) 10 vol %). Nearly 15 years after the contaminant release, several high-resolution concentration and CSIA profiles were determined for the chlorinated hydrocarbons that had diffused into the clayey aquitard. The CSIA profiles showed large shifts of carbon isotope ratios with depth (up to 24‰) suggesting that degradation occurs in the aquitard despite the small pore sizes. Simulated scenarios without or with uniform degradation failed to reproduce the isotope data, while a scenario with decreasing degradation with depth fit the data well. This suggests that nutrients had diffused into the aquitard favoring stronger degradation close to the aquifer−aquitard interface than with increasing depth. Moreover, the different simulation scenarios showed that CSIA profiles are more sensitive to different degradation conditions compared to concentration profiles highlighting the power of CSIA to constrain degradation activities in aquitards

A validated BEM model to analyse hydrodynamic loading on tidal stream turbines blades

This is the author accepted manuscript. The final version is available from the link in this record.AWTEC 2016: 3rd Asian Wave and Tidal Energy Conference, 24-28 October 2016, SingaporeThis paper details a Blade Element Momentum (BEM) model for a 3 bladed, horizontal axis Tidal Stream Turbine (TST). The code capabilities are tested and validated by applying a range of different turbine parameters and operating conditions, where results are compared to numerous datasets. The model shows excellent agreement to performance and thrust measurements for 3 of the 4 datasets. Compared to other BEM models improved correlations are seen at higher rotational speeds. The fourth case shows over predictions of up to 30% in power at peak operating speed. In this case, CFD studies show better correlation due to the ability to capture detailed flow features around the blade as well as free surface effects, however require 3 to 4 orders of magnitude greater computational cost. Steady, non-uniform inflow functionality is incorporated into the model, where distributions of thrust and torque along the blade as well as cyclic loads are determined. These show the potential of the model to be used in combination with tools such as stress and fatigue analyses to improve the blade design process.This research is carried out as part of the Industrial Doctoral Centre for Offshore Renewable Energy (IDCORE) programme, funded by the Energy Technology partnership and the RCUK Energy programme (Grant number EP/J500847/1), in collaboration with EDF R&D

Exact location of dopants below the Si(001):H surface from scanning tunnelling microscopy and density functional theory

Control of dopants in silicon remains the most important approach to tailoring the properties of electronic materials for integrated circuits, with Group V impurities the most important n-type dopants. At the same time, silicon is finding new applications in coherent quantum devices, thanks to the magnetically quiet environment it provides for the impurity orbitals. The ionization energies and the shape of the dopant orbitals depend on the surfaces and interfaces with which they interact. The location of the dopant and local environment effects will therefore determine the functionality of both future quantum information processors and next-generation semiconductor devices. Here we match observed dopant wavefunctions from low-temperature scanning tunnelling microscopy (STM) to images simulated from first-principles density functional theory (DFT) calculations. By this combination of experiment and theory we precisely determine the substitutional sites of neutral As dopants between 5 and 15A below the Si(001):H surface. In the process we gain a full understanding of the interaction of the donor-electron state with the surface, and hence of the transition between the bulk dopant (with its delocalised hydrogenic orbital) and the previously studied dopants in the surface layer.Comment: 12 pages; accepted for publication in Phys. Rev.

A real-time pricing scheme for residential energy systems using a market maker

Voltage rise is an undesirable side-effect of solar photovoltaic (PV) generation, arising from the flow of surplus electrical power back into the grid when PV generation exceeds local demand. Customers deploying residential-scale battery storage are likely to further exacerbate voltage rise problems for electrical utilities unless the charge/discharge schedules of batteries are appropriately coordinated. In this paper, we present a real-time pricing mechanism for use in a network of distributed residential energy systems (RESs), each employing solar PV generation and battery storage. The pricing mechanism proposed in this paper is based on a Market Maker algorithm in which predicted power profiles and real-time pricing information is iteratively exchanged between a central entity and each of the RESs. The Market Maker formulation presented in this paper is shown via simulation studies to converge to a fixed price vector, thereby reducing the price volatility observed in an earlier formulation, while achieving the same reduction in power usage variability as a centralised model predictive control (MPC) scheme presented previously