Using terrorist attacks as an exogenous shock to uncertainty, we provide evidence that firms located near terrorism-stricken areas are less likely takeover targets for two years after the attack and receive lower acquisition premiums. The latter finding is reflected in target firm abnormal returns synergy gains. Additionally, areas, associated with a share of synergies, withdrawn deals rise, ac...

Does economic uncertainty promote the implementation of structural reforms? We answer this question using one most exhaustive cross‐country panel data sets on reforms in six major areas and measuring with stock market volatility. To identify causality, we exploit exogenous differential variation countries' exposure to foreign volatility shocks due predetermined time‐invariant bilateral characte...

We provide a multi-factor real option model for a single harvest and then for perpetual forest harvesting, which extends the Faustmann (1849) approach to infinite rotations with multi-factor uncertainty. We examine separately forest growth and timber prices (and eventually credits/penalties for CO2 uptake/release upon harvest), so the forester can focus on critical exogenous and partially endog...

Given experimental data and a priori assumptions on nominalmodel and a linear fractional transformation uncertainty structure, feasible conditions for model validation is given. All unknown but bounded exogenous inputs are assumed to occur at the plant outputs. With the satisfaction of the feasible conditions for model validation, it is shown that a parameterization of all model validating sets...

Human and mouse subjects tried to anticipate at which of 2 locations a reward would appear. On a randomly scheduled fraction of the trials, it appeared with a short latency at one location; on the complementary fraction, it appeared after a longer latency at the other location. Subjects of both species accurately assessed the exogenous uncertainty (the probability of a short versus a long trial...

In this paper we study the closed-loop dynamics of linear time-invariant systems with feedback control laws that are described by set-valued maximal monotone maps. The class of systems considered in this work is subject to both, unknown exogenous disturbances and parameter uncertainty. It is shown how the design of conventional sliding mode controllers can be achieved using maximal monotone ope...

To operate in human-robot coexisting environments, intelligent robots need to simultaneously reason with commonsense knowledge and plan under uncertainty. Markov decision processes (MDPs) and partially observable MDPs (POMDPs), are good at planning under uncertainty toward maximizing long-term rewards; P-LOG, a declarative programming language under Answer Set semantics, is strong in commonsens...

Motivated by the need of developing stochastic nonlinear model-based methods to characterize uncertainty for chemical process estimation, control, identification, and experiment design purposes, in this paper the problem of characterizing the global dynamics of single-state nonlinear stochastic system is addressed. An isothermal CSTR with Langmuir-Hinshelwood kinetics is considered as represent...

In this paper, a new method of H filtering for Lipschitz nonlinear systems is proposed in the form of an LMI optimization problem. The proposed filter has guaranteed decay rate (exponential convergence) and is robust against unknown exogenous disturbance. In addition, thanks to the linearity of the proposed LMIs in the admissible Lipschitz constant, it can be maximized via LMI optimization. Th...

A Hierarchal Bayesian model is presented for one season-ahead forecasts of summer rainfall and streamflow using exogenous climate variables for east central China. The model provides estimates of the posterior forecasted probability distribution for 12 rainfall and 2 streamflow stations considering parameter uncertainty, and cross-site correlation. The model has a multi-level structure with reg...