We study how contingent capital that converts in equity ahead of default affects bank risk-shifting. Going concern conversion restores equity value in highly levered states, thus reducing heightened risk incentives. In contrast, conversion at default for traditional bail-inable debt has no effect on endogenous risk. The main beneficial effect comes from reduced leverage at conversion. In contra...

We develop a model in which cash-constrained entrepreneurs seek a venture capitalist (VC) to finance a new firm. Costly monitoring is employed by VCs to reduce entrepreneurial moral hazard. When monitoring reveals poor performance, VCs want to punish the entrepreneur with liquidation. However, when assets are specific and liquidation would lead to a loss, VCs choose to renegotiate the terms of ...

there are several courtyards of historical buildings in iran that have changed their original function because of reuse and have adopted for physical adjustments of the renovation projects. usually they are covered by lightweight roofsand have been used as religious spaces, praying or audience halls, restaurants, exhibitions rooms, etc. unfortunately most of these lightweight roofs have inappro...

We describe an experimental platform for testing the DarkO tail-sitter drone in open wind tunnel experiment. The convertible UAV is developed and 3D printed at Ecole Nationale de l'Aviation Civile (ENAC), Toulouse (France). objective of to allow control laws a realistic secure context. propose test bench with single degree freedom corresponding pitch axis. design linear proportional/integral fe...

Recent work has highlighted the importance of the constraint-based mining paradigm in the context of frequent itemsets, associations, correlations, sequential patterns, and many other interesting patterns in large databases. In this paper, we study constraints which cannot be handled with existing theory and techniques. For example, , , ( can contain items of arbitrary values) "!$# %'&)( , are ...

A convertible authenticated encryption scheme simultaneously provides the functions of integration, authentication, confidentiality, and non-repudiation. In this paper, we first separately point out that any adversary can forge a converted signature in Araki’s scheme and MaChen’s scheme. Moreover, we further improve the weakness in WuHsu’s scheme, which is to convert the signature into an ordin...

The model of pricing American-style convertible bond is formulated as a zero-sum Dynkin game, which can be transformed into a parabolic variational inequality PVI . The fundamental variable in this model is the stock price of the firm which issued the bond, and the differential operator in PVI is linear. The optimal call and conversion strategies correspond to the free boundaries of PVI. Some p...

A convertible bond is a security that the holder can convert into a specified number of underlying shares. We enrich the standard model by introducing some default risk of the issuer. Once default has occured payments stop immediately. In the context of a reduced form model with infinite time horizon driven by a Brownian motion, analytical formulae for the no-arbitrage price of this American co...

The progress in communication and hardware technology increases the computational capabilities of personal devices. Data is produced massively from ubiquitous devices that cannot be stored locally. Moreover, third party authorities in order to increase their value in the market with more knowledge, seek to collect individual data inputs, such that they can make a decision with more relevant inf...