GAVNet Collaborative Curation

Clinical suspicion and indicated SARS-CoV-2 testing, including antibody testing, might be needed to recognize and treat adults with MIS-A. Further research is needed to understand the pathogenesis and long-term effects of this condition. Ultimately, the recognition of MIS-A reinforces the need for prevention efforts to limit spread of SARS-CoV-2. COVID-19

We study the classical problem of raising capital under asymmetric information. Following Myers and Majluf, we consider firms endowed with assets in place and riskier growth opportunities. When asymmetric information is concentrated on assets in place (rather than growth opportunities), equity-like securities are more likely to be optimal. In contrast, when asymmetric information falls on growth options, debt is optimal. Intuitively, this happens because when the asset with greater volatility is less affected by asymmetric information, issuing a security with greater exposure to upside potential (such as equity) can be less dilutive than issuing a security lacking such exposure (such as debt). Our results suggest that equity is more likely to dominate debt for younger firms with larger investment needs, endowed with riskier, more valuable growth opportunities. Thus, our model can explain why high-growth firms may prefer equity over debt, and then switch to debt financing as they mature.

COVID-19 reveals hollow philosophy

Earlier this year, a slew of major tech companies announced they would make remote work a permanent part of their operations after COVID-19 forced them to give it a serious try. In response, commentators and pundits warned that scattering tech workers across the country could undermine one of the pillars of the US technology sector. The argument is that innovation is accelerated when knowledge workers are located close to each other, since proximity facilitates the circulation of ideas and knowledge.

Beijing and Washington are competing to set Asia's rules, norms, and standards. But other countries in the region are increasingly choosing to shape its future themselves.