High Liquid Level Research Articles

The Value of Financial Market Insolvency Safe Harbours

'Safe harbour' is shorthand for a bundle of privileges in insolvency which are typically afforded to financial institutions. They are remotely comparable to security interests as they provide a financial institution with a considerably better position as compared to other creditors should one of its counterparties fail or become insolvent. Safe harbours have been and continue to be introduced widely in financial markets. The common rationale for such safe harbours is that the protection they offer against the fallout of the counterparty’s insolvency contributes to systemic stability, as the dreaded ‘domino effect’ of insolvencies is not triggered from the outset. However, safe harbours also come in for criticism, being accused of accelerating contagion in the financial market in times of crisis and making the market more risky. This paper submits that the more important argument for the existence of safe harbours is liquidity in the financial market. Safe harbour rules do away with a number of legal concepts, notably those attached to traditional security, and thereby allow for the exponentiation of liquidity. Normative decisions of the legislator sanction safe harbours as modern markets could not exist without these high levels of liquidity. To the extent that safe harbours accelerate contagion in terms of crisis, which in principle is a valid argument, specific regulation is well suited to correct this situation, whereas to repeal or significantly restrict the safe harbours would be counterproductive.

Influence of Intellectual Capital Investment, Risk, Industry Membership and Corporate Governance Mechanisms on the Voluntary Disclosure of Intellectual Capital by UK Listed Companies

<p>This research examines the cross-sectional effect of intellectual capital investment, financial measures of market and company specific risk, industry membership and corporate governance on the extent of voluntary disclosure of intellectual capital (VDIC) in a sample of 443 FTSE All Share Index company annual reports for the year 2003/2004. The extent of disclosure is measured by a disclosure index (DI) based on intellectual capital (IC) attributes included in the narratives and illustrations of the annual reports. The research predicts that agency costs are mitigated by VDIC and that the benefits of signalling IC may outweigh competitive and proprietary costs that may be more prevalent in innovative and technological companies; furthermore, that effective corporate governance measures enhance VDIC particularly in those companies found to have a higher level of intangible assets (IA) in their resource base. The results suggest that companies associated with less financial risk, reduced debt, higher levels of liquidity and accompanied by growth are characterised with higher levels of VDIC. Although less significant, the results on market risk indicate a positive influence on VDIC. Furthermore, the extent of VDIC in annual reports is enhanced when large companies operating in high-tech and innovative industries are characterised by investments in employees; in contrast, companies associated with research and development processes tend to be more secretive with respect to VDIC. The results suggest that companies that are able to maintain adequate governance systems through segregation of executive and non-executive duties and to a less extent through the presence of experienced non-executive directors exhibit higher levels of disclosure.</p>

Design and demonstration of a liquid level fiber sensor based on self-imaging effect

A novel liquid level fiber sensor based on self-imaging properties of the multimode interference (MMI) in no core fiber (NCF) is proposed and demonstrated. Based on the beam propagation method (BPM) simulation, a NCF of optimal length is selected to act as a sensing head and tunable filter in a ring cavity fiber laser. For high liquid level sensing, a height conversion setup based on atmospheric pressure balance principle is designed and the sensitivity is magnified 5 times. A 50cm range of liquid level can be detected by monitoring the peak wavelength shift of output laser. The sensor exhibits an excellent linear response (R2=0.9999) and a sensitive response to different liquid refractive index (RI). The sensitivity of the single mode-no core- single mode (SNS) sensor is 108.8pm/mm and the accuracy is about 1% at the resolution of 0.1nm of detection using an OSA with the liquid RI of 1.4152, which is the highest accuracy for a 50cm liquid level range to our best knowledge.

SAGD Well-Pair Completion Optimization Using Scab Liner and Steam Splitters

Summary The steam-assisted-gravity-drainage (SAGD) process has been widely used commercially in western Canada for bitumen production. Improving the oil-production rate and reducing the steam/oil ratio (SOR) have been the focus of the industry. In heterogeneous reservoirs, oil production could be impeded by steam breakthrough at one location of the producer and higher liquid level above the other sections of the producer. Various completion methods have been proposed to improve production efficiency. Outflow-control devices (OCDs), such as steam splitters, are used to match steam delivery to reservoir requirements, and inflow-control devices (ICDs) may be used in producers to maximize oil production. Scab liners are the most widely used type of ICD. In general, oil drainage into producers may need to be slowed at some locations and sped up at other locations of the well. In this study, we address how to design SAGD injector and producer completions using steam splitters and scab liners. Results from reservoir simulation with coupled wellbore hydraulics will be presented to show how a well pair could be optimized by attaining favorite pressure profiles inside the injector and producer liners. This investigation will also address sensitivities on steam-splitter location, size, and number of holes, as well as size and length of scab liners.

Global banking, global crises? The role of the bank balance-sheet channel for the transmission of financial crises

We examine whether shocks to leveraged creditors with cross border holdings have an incidence on debtor countries׳ risk of suffering financial turmoil. We construct a new proxy of shocks to international banks׳ balance-sheets using credit ratings and the structure of their international assets. This allows us investigating the effect of (foreign) bank balance-sheet shocks on domestic financial turmoil in a large sample of 146 developed and emerging economies from 1984 to 2011. Our proxies of shocks towards bank balance-sheets are strong predictors of systemic banking crises in their debtor countries. Confirming these results, bilateral bank flows significantly decrease when creditor banks׳ assets are hit by negative shocks, as measured by credit rating downgrades from third-party countries. Short-term liabilities towards global banks appear to increase roll-over and funding risks, thereby amplifying the impact of shocks to foreign lenders’ balance-sheets. Domestic banking sectors vulnerabilities, such as illiquid assets and a low deposit-asset ratio, are found to increase crisis contagion risk. In contrast, a high level of global liquidity attenuates the transmission of shocks to international banks׳ assets to debtor countries.

Identifying the Gaps in Students’ Understanding of Manometer Reading

Physics, widely regarded as a difficult subject, is also abstract in nature whereby most of its concepts are intangible and hard to imagine. For instance, the concept of pressure, although it is a difficult concept to learn, it is also an important topic to master. Pressure not only appears in physics but also in other scientific fields such as in chemistry as one of the physical changes in the rate of change of reactions, and in biology or medicine involving blood pressure. In this study, students’ understanding on the topic of pressure will be reported. Specifically, in identifying the students’ misconceptions on manometer reading. A manometer is an instrument that uses a U-tube containing a liquid (either mercury or water) to measure gas pressure. From the interviews conducted with eleven Year 9 students, two main misconceptions were identified. The first misconception was on the existence of air pressure. The students failed to recognise its presence, as the effects of air pressure are often not obvious and undetectable. Additionally, two students on two separate interview occasions had referred to air pressure as vacuum. Another misconception was mistakenly taking the high liquid level of a manometer column as high pressure acting on that side and vice versa. This misconception is caused by again failing to comprehend that air and also gas pressure can cause liquid levels to change. Identifying these misconceptions will indeed assist Physics secondary school teachers to confront the issues relating to the difficulty concerning the pressure concept. DOI: 10.5901/mjss.2015.v6n4s1p27

Hodnocení vlivu zastoupení rodiny ve vlastnické a řídící struktuře firem na jejich finanční výkonnost pomocí metody zkoumání shody párů

The role of family businesses in management theory has been getting a topic of interest of academics and practitioners. This paper deals with the analysis of performance and financial structure gaps between Czech family and nonfamily firms. Using surname matching definition, we created a sample of 890 Czech large and medium-sized family businesses. Then we used the matched-pair investigation to determine the major gaps in profitability, labor productivity, liquidity and leverage between family and nonfamily firms. The results suggest that Czech family businesses are more profitable in terms of return on assets, profit margin and absolute values of earnings. Czech family businesses also have higher labor productivity and capital intensity, however, the asset turnover appears to be lower. Another important finding is that the overall level of debt is lower in the case of family companies which is accompanied by a higher level of liquidity and working capital.

The Value of Insolvency Safe Harbours

‘Safe harbour’ is shorthand for a bundle of privileges in insolvency which are typically afforded to financial institutions. They are remotely comparable to security interests as they provide a financial institution with a considerably better position as compared to other creditors should one of its counterparties fail or become insolvent. Safe harbours have been introduced widely and continue to be introduced in financial markets. The common rationale for such safe harbours is that the protection against the fallout of the counterparty’s insolvency contributes to systemic stability, as the feared ‘domino effect’ of insolvencies is not triggered from the outset. However, safe harbours are also criticised for accelerating contagion in the financial market in times of crisis and making the market more risky. This paper submits that the more important argument for the existence of safe harbours is liquidity in the financial market. Safe harbour rules do away with a number of legal concepts, notably those attached to traditional security, and thereby allow for an exponentiation of liquidity. Normative decisions of the legislator sanction safe harbours as modern markets could not exist without these high levels of liquidity. To the extent that safe harbours accelerate contagion in terms of crisis, which in principle is a valid argument, specific regulation is well suited to correct this situation, whereas a repeal or significant restriction of the safe harbours would be counterproductive.

Determinants of Return on Assets in Romania: A Principal Component Analysis

Abstract This paper examines the impact of capital structure, as well as its determinants on the financial performance of Romanian companies listed on the Bucharest Stock Exchange. The analysis is based on cross sectional regressions and factor analysis, and it refers to a ten-year period (2003-2012). Return on assets (ROA) is the performance proxy, while the capital structure indicator is debt ratio. Regression results indicate that Romanian companies register higher returns when they operate with limited borrowings. Among the capital structure determinants, tangibility and business risk have a negative impact on ROA, but the level of taxation has a positive effect, showing that companies manage their assets more efficiently during times of higher fiscal pressure. Performance is sustained by sales turnover, but not significantly influenced by high levels of liquidity. Periods of unstable economic conditions, reflected by high inflation rates and the current financial crisis, have a strong negative impact on corporate performance. Based on regression results, three factors were considered through the method of iterated principal component factors: the first one incorporates debt and size, as an indicator of consumption, the second one integrates the influence of tangibility and liquidity, marking the investment potential, and the third one is an indicator of assessed risk, integrating the volatility of earnings with the level of taxation. ROA is significantly influenced by these three factors, regardless the regression method used. The consumption factor has a negative impact on performance, while the investment and risk variables positively influence ROA.

Factors Affecting Performance of Commercial Banks in Uganda -A Case for Domestic Commercial Banks

The study seeks to establish the underlying factors responsible for performance of domestic and foreign commercial banks in Uganda. The factors are analyzed in light of structure–conduct performance (SCP) and Efficiency hypothesizes (ES). This is supplemented by Global advantage theory together with Home field theory. The study analyses performance of all licensed domestic commercial banks, represented by the average performance. Using Linear multiple regression analysis over the period 2000-2011, the study found out that, management efficiency; asset quality; interest income; capital adequacy and inflation are factors affecting performance of domestic commercial banks in Uganda over the period 2000-2011. Policy implications that emerged from the studyare as follows; efficient management; credit risk management; capital adequacy levels; diversification and commercial bank investments. Monetary policy regulations and instruments should not enforce high liquidity and capital adequacy levels. Regulations on noninterest income activities should be put in place to harmonize the impact of diversification on all commercial banks’ performance and to avoid exploitation of bank customers.

The Price Behavior of REITs Surrounding Extreme Market-Related Events

We examine REIT behavior around extreme market-wide price occurrences. In general, we find that REITs that have higher levels of liquidity and that are larger in size tend to impound information more quickly and reverse more speedily after an extreme event. Also, we find that Equity REITs have stronger liquidity effects and Mortgage REITs have stronger size effects. Exante beta is also useful in explaining price behavior. For example, pre-betas are significantly positively related to turnover ratios; while pre-event betas are negatively associated with quoted bid-ask spreads. This implies a high-beta, high-liquidity relation for REIT stocks. Additionally, we find that large REIT stocks have high pre-event betas. Overall, the stronger explanatory variables are liquidity and size in determining price movements around extreme market events for REIT stocks.

Measuring portfolio risks

Every natural and legal entity strives to increase their own assets by investing. Investment portfolios are most investors' first choice, since they offer an ideal level of yield with a certain level of risk. This makes them quite lucrative and at the same time they have relatively high levels of liquidity, so investors can withdraw their investments in case the liquidity gets reduced. That said, the goal of this paper is to offer a guide to bringing decisions related to portfolios in modern markets, as well as making the most efficient choice of shares of the said portfolios. Consequently, that helps the investors meet their aspiration levels with respect to yields and risks they are willing to take to achieve them.

Reflective liquid level sensor based on modes conversion in thin-core fiber incorporating titled fiber Bragg grating.

A simple and compact reflective liquid level sensor based on modes conversion in the thin-core fiber incorporating one tilted fiber Bragg grating (TFBG) is proposed and experimentally demonstrated. A piece of thin-core fiber containing one TFBG ensures the modes conversion between the core mode and cladding modes. The external liquid can induce the cladding modes covert to the radiation modes and lead to the decrement of the collected cladding modes power, then the liquid level can be measured from the collected cladding modes power. The modes conversion in the proposed structure is theoretically analyzed. The experimental results show the high liquid level sensitivity and temperature immunity of the proposed sensor, and its significant advantage is that the measurement range is not limited to the length of the TFBG itself.

High resolution simultaneous dual liquid level measurement system with CMOS camera and FPGA hardware processor

In this paper a new high precision automatic measurement system for liquid level measurement in membrane distillation application is presented. Membrane distillation (MD) is a relatively new process that is being investigated worldwide. It has some advantages in relation to other separation processes such as conventional distillation and reverse osmosis (RO), which are: high quality of distillate, low operating temperatures, low operating pressure, low power consumption allowing the use of alternative energy sources such as solar and geothermal energy.For MD process it is necessary a very high precision system to measure the solution level in the reservoirs, able to detect changes smaller than 0.05mm. This is due to the small fluxes through the membrane, and therefore it is necessary to detect the small changes produced in the liquid levels in the reservoirs. Until now such measurement has been made manually, by means of a cathetometer, but it resulted very uncomfortable. In order to overcome this issue, a high resolution and accuracy system (0.013±0.008mm), that makes automatic measurements of both reservoirs, cold and hot, is proposed. This system is based on a laser beam, assisted with a high resolution 3Mpixels CMOS camera and a computer vision processor implemented in a FPGA, with a measurement rate up to 12 times per second.

Firms as liquidity providers: Evidence from the 2007–2008 financial crisis

Using a supplier–client matched sample, we study the effect of the 2007–2008 financial crisis on between-firm liquidity provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high precrisis liquidity levels increased the trade credit extended to other corporations and subsequently experienced better performance as compared with ex ante cash-poor firms. Trade credit taken by constrained firms increased during this period. These findings are consistent with firms providing liquidity insurance to their clients when bank credit is scarce and offer an important precautionary savings motive for accumulating cash reserves.

Dow Jones Industrial Average to Hit 15,000 Level in November 2013

Dow to hit 15,000 due to high levels of liquidity, supportive growth in the US economy and improving global growth.

DME FPSO선박의 탱크해석 및 Rolling 유동에 따른 증발 실험연구

DME는 천연가스로부터 합성할 수 있는 대량의 에너지원이 된다. 한국가스공사는 DME 상업규모의 생산플랜트를 개발하고 이의 국내 공급을 위해 해외 자원 확보를 추진하고 있다. 본 논문은 응력과 변형 해석을 통하여 DME저장탱크의 설계기준을 제공하였고, DME FPSO저장탱크의 증발현상을 파악하기 위하의 증발을 발생시키는 원인인 열유입과 선박의 유동에 따른 증발량 실험을 수행하였다. 실험결과, 롤링의 각도가 커지고 액체 충전량이 많을수록 증발량이 증가하였다. 롤링각도가 15도 일 때의 증발량은 정지상태의 열유입 만에 의한 증발량 보다 약 20%가 증가하였다.

COMPORTAMENTO DOS DEZ MAIORES BANCOS BRASILEIROS DURANTE A CRISE DO SUBPRIME: UMA ANÁLISE POR MEIO DE INDICADORES CONTÁBEIS

The aim of this paper is to demonstrate the behavior of the ten largest Brazilian banks between June 2008 and September 2009, based on the analysis of financial indicators. Therefore, 16 three-monthly indices were calculated, extracted from financial statement information, which characterizes a documentary research. The indices were separated in five categories: liquidity, capital, profitability, income and market. The obtained results appointed that most financial institutions in the sample were able to manage their resources so as to gain conditions to maintain credit initially. Then, as from the first term of 2009, driven by public banks, they increased their credit operations. In addition, most banks revealed an anti-cyclical trend to encourage productive activities, preferably activities with higher liquidity levels, to the detriment of profitability, which reveals a more conservative attitude. Finally, it was verified that government initiatives, the Brazilian economic balance and the resources the banks offered helped to produce an environment to reactivate business activities during the most acute period of the subprime crisis.

Firms as Liquidity Providers: Evidence from the 2007-2008 Financial Crisis

Using a supplier-client matched sample, we study the effect of the 2007-2008 financial crisis on between-firm liquidity provision. Consistent with a causal effect of a negative shock to bank credit, we find that firms with high pre-crisis liquidity levels increased the trade credit extended to other corporations and subsequently experienced better performance as compared to ex-ante cash-poor firms. Trade credit taken by constrained firms increased during this period. These findings are consistent with firms providing liquidity insurance to their clients when bank credit is scarce and provide an important precautionary savings motive for accumulating cash reserves.

Enterprise Risk Management Practices in Slovenia and Their Impact on Performance

Article deals with perceived corporate risk management determinants of Slovene firms. There are quite some theoretical explanations of reasonable behavior of corporate financial managers in financial literature. I briefly introduce maximization of wealth theory (Smith and Stulz, 1985; Froot, Scharfstein and Stein, 1993) and agency theory (Tufano, 1998) and point to different techniques firms can use to better decrease various exposures. After the introduction reach empirics should provide deeper insights into this challenging topic. In the first empirical part I follow some aspects of well-cited article of Graham and Harvey (2001) dealing with modern corporate finance practices of US firms. Paper reveals the determinants of different types of risk Slovene firms consider as crucial. In the second empirical part, it tests hypotheses about performance of 137 surveyed Slovene firms differentiated by risk management practices. Those have been uniquely profiled using the answers acquired in the survey of corporate finance practices of Slovene Institute of Auditors and Research Center of Faculty of Economics. Generally, surveyed Slovene firms do not frequently use CAPM as a common base for risk premium determination. Differences are not significant between groups of small and large firms. However, large surveyed firms pay more attention to information about exchange rate movements, which also holds true in the case of the firms recording substantial proportion of foreign sales. Analysis sheds light on the degree of leverage and firms' behavior. Levels of debt are dependent upon degree of operating leverage. However, total debt to a much lesser extent than long-term debt only. This effect comes at least to some extent to a surprise, since during transition short-term debt served as close substitute for long-term debt of Slovene firms and had being systematically rolled over. Relation is not significantly stronger by firms that are more aware of the need to employ risk management techniques. However, I argue that more risk aware firms show better financial performance, manage assets more efficiently, reach higher productivity and liquidity levels, and use more debt. That means Slovene corporate reality rather supports wealth maximization theory. What seems to be more of a puzzle are significant differences with counterintuitive direction by efficiency ratios mean comparisons. Firms with more sophistication in the area of risk management have lower total assets- and fixed assets turnover, and employ more assets per employee. Even though efficiency rises with risk awareness, many firms seem to be classified as most risk aware because of the type of assets. The reason in fact comes from the need of more capital-intense firms to better deal with risks.