arXiv research

Firms with different ownership structures could be argued to have different levels of efficiency.Highly concentrated firms are expected to be more efficient as this type of ownership structure may alleviate the conflict of interest between managers and shareholders.In Malaysia, public-listed firms have been found to ha…

Based on the work of Suzuki (2002), we consider a generalization of Merton's asset valuation approach (Merton, 1974) in which two firms are linked by cross-ownership of equity and liabilities. Suzuki's results then provide no arbitrage prices of firm values, which are derivatives of exogenous asset values. In contrast …

NTL protects AI models by restricting their generalization ability to specific domains.

Study simulates liquidity in fractional ownership markets using ABM.

This article presents results from the first statistically significant study of causes of cost escalation in transport infrastructure projects. The study is based on a sample of 258 rail, bridge, tunnel and road projects worth US$90 billion. The focus is on the dependence of cost escalation on (1) length of project imp…

Data taggants verify dataset ownership without harming models or requiring model internals.

Study shows foreign institutional investment increases liquidity commonality in large Australian stocks.

The price of a given stock is exactly known only at the time of sale when the stock is between the traders. If we know the price (owner) then we have no information on the owner (price). A more general description including cases when we have partial information on both price and ownership is obtained by using the quan…

Ownership cost calculation plays an important role in optimal operation of distributed energy resources (DERs) and microgrids (MGs) in the future power system, known as smart grid. In this paper, a general framework for ownership cost calculation is proposed using uncertainty and risk analyses. Four ownership cost calc…

We generalize Merton's asset valuation approach to systems of multiple financial firms where cross-ownership of equities and liabilities is present. The liabilities, which may include debts and derivatives, can be of differing seniority. We derive equations for the prices of equities and recovery claims under no-arbitr…

This paper uses graph neural networks to predict SME default risk using transaction and ownership networks.

The paper shows how cross-ownership increases equity correlations during financial crises.

Paper introduces proof-of-learning to verify ML model training.

In this paper, we consider a dynamic asset pricing model in an approximate fractional economy to address empirical regularities related to both investor protection and past information. Our newly developed model features not only in terms with a controlling shareholder who diverts a fraction of the output, but also goo…

Multinational corporations use highly complex structures of parents and subsidiaries to organize their operations and ownership. Offshore Financial Centers (OFCs) facilitate these structures through low taxation and lenient regulation, but are increasingly under scrutiny, for instance for enabling tax avoidance. Theref…

The commercialization of deep learning creates a compelling need for intellectual property (IP) protection. Deep neural network (DNN) watermarking has been proposed as a promising tool to help model owners prove ownership and fight piracy. A popular approach of watermarking is to train a DNN to recognize images with ce…

NFTs revolutionize art sales by providing proof of ownership.

We introduce a model for the adaptive evolution of a network of company ownerships. In a recent work it has been shown that the empirical global network of corporate control is marked by a central, tightly connected "core" made of a small number of large companies which control a significant part of the global economy.…

Paper introduces a new edge exchangeable block model for complex networks.

Unified theory of ownership concentration, overlap, and dependence.

Investors trade based on shifting prices, leading to market inefficiencies.

The sustainability conditions for the market participants with a different ownership model were also determined. It was revealed, that the nonlinear form of the equations describing the market behavior with the prevailing private capital, predetermines the development of such a market according to the subharmonic casca…

For the convenience of readers of the article {\em No-arbitrage pricing under systemic risk: accounting for cross-ownership} (Fischer, 2012, arXiv:1005.0768), a full proof of Lemma A.5 and a shorter proof of Lemma A.6 of that paper are provided.

Cryptocurrencies evolve through survival of the fittest, modeled with evolutionary finance.

Entangled watermarks improve model defense against extraction attacks.

As companies continue to invest heavily in larger, more accurate and more robust deep learning models, they are exploring approaches to monetize their models while protecting their intellectual property. Model licensing is promising, but requires a robust tool for owners to claim ownership of models, i.e. a watermark. …

A simple quantitative example of a reflexive feedback process and the resulting price dynamics after an exogenous price shock to a financial network is presented. Furthermore, an outline of a theory that connects financial reflexivity, which stems from cross-ownership and delayed or incomplete information, and no-arbit…

Study shows how business cycle affects dividend payout based on managerial stock incentives.

Bangladesh's banking sector improved through financial reforms, but challenges remain.

Decentralized machine learning is a promising emerging paradigm in view of global challenges of data ownership and privacy. We consider learning of linear classification and regression models, in the setting where the training data is decentralized over many user devices, and the learning algorithm must run on-device, …

Model analyzes Proof-of-Stake network dynamics and speculative capital effects on token prices.

We study the possibility of completing data bases of a sample of governance, diversification and value creation variables by providing a well adapted method to reconstruct the missing parts in order to obtain a complete sample to be applied for testing the ownership-structure/diversification relationship. It consists o…

Study finds corporate boards with women appoint more women, leading to better profitability.

We propose a methodological framework to study the dynamics of inter-regional investment flow in Europe from a Complex Networks perspective, an approach with recent proven success in many fields including economics. In this work we study the network of investment stocks in Europe at two different levels: first, we comp…

Much research in systemic risk is focused on default contagion. While this demands an understanding of valuation, fewer articles specifically deal with the existence, the uniqueness, and the computation of equilibrium prices in structural models of interconnected financial systems. However, beyond contagion research, t…

Deep learning models for semantic segmentation of images require large amounts of data. In the medical imaging domain, acquiring sufficient data is a significant challenge. Labeling medical image data requires expert knowledge. Collaboration between institutions could address this challenge, but sharing medical data to…

This paper investigates the effect of cross-shareholding on stock price synchronicity, as a measure of price informativeness, of the listed firms in the Chinese stock market. We gauge firms' levels of cross-shareholdings in terms of centrality in the cross-shareholding network. It is confirmed that it is through a nois…

The structure of the control network of transnational corporations affects global market competition and financial stability. So far, only small national samples were studied and there was no appropriate methodology to assess control globally. We present the first investigation of the architecture of the international …

The trade of a fixed stock can be regarded as the basic process that measures its momentary price. The stock price is exactly known only at the time of sale when the stock is between traders, that is, only in the case when the owner is unknown. We show that the stock price can be better described by a function indicati…

We investigate the community structure of the global ownership network of transnational corporations. We find a pronounced organization in communities that cannot be explained by randomness. Despite the global character of this network, communities reflect first of all the geographical location of firms, while the indu…

Typical large-scale recommender systems use deep learning models that are stored on a large amount of DRAM. These models often rely on embeddings, which consume most of the required memory. We present Bandana, a storage system that reduces the DRAM footprint of embeddings, by using Non-volatile Memory (NVM) as the prim…

A blockchain replaces central counterparties with time-consuming consensus protocols to record the transfer of ownership. This settlement latency slows cross-exchange trading, exposing arbitrageurs to price risk. Off-chain settlement, instead, exposes arbitrageurs to costly default risk. We show with Bitcoin network an…

Perpetual futures offer leverage without maturity, with prices influenced by funding rates.

Cryptocurrency and NFT prices are highly correlated, mirroring historical bubbles.

Flow taxes and stock taxes preserve portfolio neutrality under specific conditions.

This paper introduces an information-based model for the pricing of storable commodities such as crude oil and natural gas. The model uses the concept of market information about future supply and demand as a basis for valuation. Physical ownership of a commodity is taken to provide a stream of convenience dividends eq…

Study finds super-efficiency correlates more strongly with stock market valuation than ROA in Chinese banks.

Passenger Name Records (PNRs) are at the heart of the travel industry. Created when an itinerary is booked, they contain travel and passenger information. It is usual for airlines and other actors in the industry to inter-exchange and access each other's PNR, creating the challenge of using them without infringing data…