Cette thèse porte sur la prédiction de la détresse financière et son impact sur le rendement des actions. L’objet principal de cette thèse est de : (i) prédire la détresse financière des petites et moyennes entreprises françaises en utilisant plusieurs spécifications économétriques tels que, le modèle Logit, les réseaux de neurones artificiels, la méthode SVM et la régression des moindres carrés partiels, et (ii) d’identifier les facteurs de risque de détresse financière à caractère systématique, explicatifs des rendements des actions, et additionnels au modèle de Fama et French (1993) tels que le momentum, la détresse relative, la liquidité et la Value-at-Risk, sur le marché boursier Français. Cette étude comporte deux parties. La première partie, composée de 2 chapitres, s’interroge sur les principaux indicateurs discriminants entre les petites et moyennes entreprises françaises saines et celles en détresse financière un an et deux ans avant la défaillance. Elle mobilise différentes approches de prédiction et aboutit à des résultats empiriques qui font l’objet d’analyse. La deuxième partie, composée aussi de 2 chapitres, étudie le pouvoir explicatif, du modèle de Fama et French (1993) augmenté de certains facteurs de risque, mais aussi des modèles alternatifs à cette approche dans le contexte français. Les tests portent aussi sur le caractère systématique des facteurs de risque additionnels ou alternatifs, explicatifs des rendements des actions. Les résultats empiriques obtenus font l’objet d’analyse et permettent de proposer des implications managériales aux décideurs. / This thesis focuses on financial distress and its impact on stock returns. The main goal of this dissertation is: (i) to predict the financial distress of French small and medium-sized firms using a number of techniques namely Logit model, Artificial Neural Networks, Support Vector Machine techniques, and Partial Least Squares, and (ii) to identify the systematic risk factors of financial distress that can explain stock returns, in addition to those of Fama and French (1993) such as the momentum, the relative distress, the liquidity, and the Value-at-Risk in the French stock market. This study has been concretized in two parts. The first part, composed of 2 chapters, wonders about the main indicators that can discriminate between distressed and non-distressed French small and medium-sized firms one and two years before default. It mobilizes different prediction techniques and leads to the empirical results that are the subject of the analysis. The second part, composed also of 2 chapters, investigates the explanatory power of Fama and French (1993) model augmented by a number of risk factors, as well as alternative models in the French context. The tests also focus on the systematic nature of the additional or alternative risk factors, explaining the stock returns. The obtained empirical results are analyzed and propose managerial implications to decision makers.

This thesis extends the 52-week high momentum literature, which was first published by George and Hwang in 2004, by stressing the parameters of the trading strategy to investigate its robustness. George and Hwang, in their seminal paper, find that the ratio of a stock’s close price to its 52-week high price is a good predictor of future returns. The thesis stresses various parameters of the strategy - such as the percent of total stocks bought and sold each period – and applies the strategy over different time periods – such as bull and bear markets. The study finds that the strategy is more profitable over the later half of the data set due to underperformance in bear markets such as the 1929 market crash and subsequent Great Depression. The results also show a significant difference in profitability between bull and bear market periods. The second half of the thesis looks at a new area in momentum, the absolute 52-week high. The strategy buys stocks whose price has increased over the previous six months, and who also close to their 52-week high price. Stocks are only bought (sold) if their price has increased (decreased) over the past six months and is close to (far from) the 52-week high price. The aim is to cut out stocks that are considered to be underperforming in the 52-week high momentum strategy, leaving only true winner and loser stocks. This strategy was found to increase the strength of the 52-week high momentum strategy, and the results show that there is no longer a significant difference between bull and bear market returns.

Abstract This dissertation contributes to the research on behavioral biases among individual investors by demonstrating how investors increase their portfolio volatility, i.e., risk, following favorable outcomes. This work also shows the influence of the first investment on subsequent risk-taking preferences. It also shows how stock prices, through unrealized capital gains, create an evident momentum effect following both bull and bear markets. The work is quite new because house money, quasi-hedonic editing rules and mental accounting are not frequently used in the financial literature. The data used are from the Finnish Central Securities Depository (FCSD), which is unique in the financial research literature. The results of the first essay indicate that individual investors purchase stocks that increase portfolio risk or volatility after a period of negative market returns. These results propose that investors attribute these returns to themselves. Therefore, they are supporting a self-attribution bias. Ergo, investors gamble with their winnings over the next investment session. This behavior is consistent with the house money effect, which has not been before analyzed in the background of the stock market. Inexperienced investors are particularly prone to this effect. The second essay investigates the effect of the outcome of the first investment on subsequent risk-taking preferences, which has not been previously analyzed in the context of financial markets. The database allows for analyses of new investors making their first stock market investment. The results show that in first or subsequent investments the win effect is stronger. The effect in the first investment situation results in higher volatility. Therefore, the result suggests that realized money is more likely to be risked in the situation of the first stock than in the situation of the other stocks. The third essay, using a technique not before applied to research regarding momentum asymmetry, shows that deviations from the holdings- or volume-based reference price, i.e., the so-called capital gains overhang, can account for momentum. The results propose that after accounting for the disposition effect, overconfidence and biased self-attribution are not able to explain momentum asymmetry. / Tiivistelmä Väitöskirja edistää yksittäisten sijoittajien käyttäytymishäiriöitä koskevaa tutkimusta osoittamalla, kuinka sijoittajat lisäävät salkun riskiä myönteisten tulosten jälkeen. Väitöskirja osoittaa myös, kuinka sijoittajat lisäävät salkun riskisyyttä ensimmäistä investointia myöhemmille riskinottopäätöksille. Se esittää myös, kuinka realisoitumattomat myyntivoitot aiheuttavat ilmeisen momentum-vaikutuksen, sekä nousevilla että laskevilla markkinoilla. Teos on melko uusi, koska talon rahoilla pelaamista, lähes-hedonisia muokkaussääntöjä ja henkistä kirjanpitoa ei käytetä kovin paljon talouskirjallisuudessa. Käytetyt tiedot ovat Rahoitustutkimuksen ainutlaatuinen Suomen Arvopaperikeskus (FCSD) aineisto. Ensimmäisessä esseessä, kun sijoittajat ovat saavuttaneet tuottoja negatiivisten markkinatuottojen jälkeen, he ostavat osakkeita, jotka lisäävät salkun riskisyyttä. Nämä tulokset viittaavat siihen, että sijoittajat määrittävät nämä tuotot itselleen. Siksi he tukevat itsemääräämisoikeutta, joten sijoittajat pelaavat voitoillaan seuraavan sijoituskauden aikana. Käyttäytyminen on yhdenmukainen talon rahan vaikutuksen kanssa. Vaikutus, jota ei ole aiemmin analysoitu osakemarkkinoiden yhteydessä. Kokemattomat sijoittajat ovat erityisen alttiita tästä vaikutuksesta. Toinen essee tutkii ensimmäisen investoinnin tuloksen vaikutusta myöhempään riskinottopäätökseen. Sitä ei ole aiemmin analysoitu rahoitusmarkkinoiden yhteydessä. Tietokannan avulla analysoidaan uusia sijoittajia, jotka tekevät ensimmäisen pörssi-investoinninsa. Tulokset osoittavat, että kummassakin tapauksessa, ensimmäiset tai toiset voitot, voittoefektit ovat voimakkaammat kuin voitto-dummy ja ensimmäisellä tasolla olevat voitot antavat suuremman vaikutuksen riskisyyteen. Kiinnostavaa on se, että tulo, joka kertoo, onko realisoitunut raha todennäköisemmin riski ensimmäisessä osakkeessa, on suurempi kuin riski muissa osakkeissa. Kolmas essee käyttää menetelmää, jota ei ole aikaisemmin käytetty momentum-symmetrian tutkimukseen. Tämä tutkimus osoittaa, että poikkeamat volyymi- tai omistukseen perustuvasta viitehinnasta, eli ns. myyntivoiton ylitys, voivat selittää momentumia. Tulokset viittaavat siihen, että disposition ja liiallisen itseluottamuksen ja harhaisen itse-attribuution jälkeen ei voida suurella todennäköisyydellä selittää momentumin epäsymmetriaa.

Cette thèse se compose de trois essais sur deux anomalies bien documentées : effet momentum et anomalie des ajustements comptables. Le premier essai examine si l'ampleur de l'anomalie des ajustements comptables est entraînée par la probabilité de détresse financière. Les résultats indiquent que l'anomalie des ajustements comptables est économiquement et statistiquement positive pour les entreprises avec une faible probabilité de détresse financière, mais non significative pour celles avec une forte probabilité de détresse financière. Cela signifie que cette anomalie des ajustements comptables est omniprésente, mais pas limitée aux entreprises avec une faible probabilité de détresse financière. Le deuxième essai étend la question de recherche abordée dans le premier essai au marché boursier émergent du Vietnam. Comme pour les résultats du premier essai, les résultats indiquent que l'anomalie des ajustements comptables est limitée aux stocks avec une faible probabilité de détresse financière. Le dernier essai examine si l'effet momentum se produit sur le marché boursier vietnamien. Les résultats confirment la présence de momentum dans le court terme et révèlent aussi que les rendements gagnants et perdants sont faiblement persistants, mais que la forte corrélation entre ces rendements gagnants et perdants crée des bénéfices momentum significatifs. / This dissertation consists of three essays on two well-documented anomalies: momentum effect and accrual anomaly. The first essay investigates whether the magnitude of accrual anomaly is driven by the financial distress probability. The results indicate that accrual anomaly is economically and statistically positive for firms with low financial distress probability, but insignificant for those with high financial distress probability. This means that that accrual anomaly is not pervasive but limited to firms with low financial distress probability. The second essay extends the research question addressed in the first essay into the emerging stock market of Vietnam. Similar to the findings in the first essay, the results indicate that the accrual anomaly is limited to the stocks with low financial distress probability. The last essay examines whether the momentum effect occurs in the Vietnamese stock market. The results support the occurrence of momentum in the short-run and also reveal that winner and loser returns are low persistent, but the strong correlation between winner and loser returns creates significant momentum profits.

La génération d’harmoniques d’ordre élevé est un processus d’interaction lumière-matière hautement non-linéaire permettant la synthèse d’impulsions sub-femtosecondes, dites attosecondes (1 as = 10⁻¹⁸ s). Mes travaux de thèse portent sur l’étude du transfert de moment angulaire lors de ce processus, afin de contrôler les caractéristiques spatiales et de polarisation du rayonnement émis dans l’extrême ultraviolet. Comme pour la matière, le moment angulaire de la lumière peut être séparé en une composante de spin, associée à l’état de polarisation du faisceau, et une composante orbitale, reliée à la forme du front d’onde. La maitrise complète du moment angulaire des harmoniques nécessite de recourir à des schémas de génération à deux faisceaux non-colinéaires, créant un réseau de diffraction dans le milieu générateur. Nous avons montré que, bien que les règles de transfert obéissent à des lois de conservation du moment angulaire, la description fine du phénomène requiert une analyse précise du champ laser dans le milieu de génération. Ces travaux ouvrent des perspectives de mise en forme avancée des impulsions attosecondes. / High-order harmonic generation is a highly nonlinear laser-matter interaction process which allows the synthesis of sub-femtosecond pulses, also called attosecond (1 as = 10⁻¹⁸ s) pulses. My PhD is centered around the study of angular momentum transfer during this process, in order to control spatial and polarization features of the radiation which is emitted in the extreme ultraviolet. As for matter, the angular momentum of light can be divided into a spin component, associated with the beam’s polarization, and an orbital component, related to the shape of the wavefront. The control of high harmonics’ angular momentum requires generating schemes involving two crossing beams, thus creating a diffraction grating in the generating medium.We have shown that, although the transfer rules obey conservation laws of the angular momentum, the fine description of the phenomenon requires an accurate analysis of the laser field in the generation medium. This work opens the road for advanced shaping of attosecond pulses.

[pt] Esta tese é composta por dois capítulos. O primeiro capítulo mostra que a presença de efeitos lead-lag no mercado de ações dos EUA é um fenômeno mais amplo do que previamente reportado pela literatura e está associado à existência de momentum de fatores de um dia. Os efeitos lead-lag estão presentes na frequência diária, sempre que as ações são expostas ao mesmo fator de risco, difundidas por quase 100 fatores. Este fenômeno não é explicado pelo efeito por indústria, reportado previamente pela literatura, efeitos de firmas de baixo valor de mercado reagindo a firmas com maior valor de mercado, assim como outros efeitos de lead-lag. O momentum de fatores de um dia está diretamente relacionado à existência de autocovariância cruzada entre ações expostas aos mesmos fatores de risco e está presente tanto na seção transversal quanto na série temporal. O momentum do fator de um dia é rentável mesmo após os custos de negociação e não apresenta quedas bruscas como outras estratégias de momentum. O momentum do fator de um mês é absorvido pelo momentum do fator de um dia, apresentando alfa negativo. A relevância do efeito do primeiro dia é confirmada com técnicas de machine learning. As reversões de curto prazo em ações também se tornam mais fortes depois de controlarmos para esse efeito de autocovariância cruzada que vem pelo componente de fatores. O segundo capítulo mostra como o momentum de fatores impacta o desempenho das estratégias de reversão de curto prazo em ações nos Estados Unidos. Benefícios significativos no desempenho podem ser alcançados se os efeitos do momento do fator forem considerados na construção de estratégias de reversão. As estratégias tradicionais de reversão de curto prazo em ações padrão têm uma exposição negativa ao momentum de fatores, uma vez que vendem as ações vencedoras de curto prazo que, em média, estão mais expostas aos fatores vencedores de curto prazo e compram ações perdedoras de curto prazo que, em média, estão mais expostas aos fatores perdedores de curto prazo. A melhor maneira de neutralizar esse efeito que prejudica a rentabilidade da reversão de curto prazo é proteger simultaneamente as exposições das ações a um conjunto elevado de fatores de risco. Por exemplo, o hedge feito apenas para os 3 fatores Fama-French não elimina completamente a exposição ao momentum de fatores. Classificar ações pelo usando o resíduo dos retornos não é tão eficiente quanto classificar nos retornos totais, pois tal estratégia não neutraliza completamente a exposição negativa ao momentum do fator. Propomos uma estratégia de reversão totalmente hedgeada que, diferentemente das estratégias convencionais de reversão de curto prazo, é lucrativa após os custos de transação, que não apresenta quedas bruscas como outras estratégias de momentum tradicional, que tem índice de Sharpe 2,5 vezes maior do que as estratégias de reversão convencionais e que é lucrativa mesmo se for restrita a apenas a ações com alto valor de mercado. / [en] This thesis is composed by two chapters. The first chapter shows that the presence of lead-lag effects in the US equity market is a broader phenomenon than previously found in the literature and is associated with the existence of a strong one-day factor momentum. Lead-lag effects are present whenever stocks are exposed to the same common risk factor, holding for almost 100 factors on a daily frequency. This phenomenon is not explained by the previously reported industry, large-cap to small-cap and other lead-lag effects. One-day factor momentum is directly related to the existence of factor-based stock cross-autocovariance and is present both in the cross-section and the time series. One-day factor momentum is profitable after trading costs and does not present crashes. One-month factor momentum is subsumed by one-day factor momentum with negative alpha in spanning tests. The relevance of the one-day effect is confirmed with machine learning techniques. Short-term reversals in stocks also become stronger after we control for this factor-based cross-autocovariance pattern. The second chapter shows how factor momentum impacts the performance of standard short-term single-equity reversal strategies in the US equity market. Significant benefits in performance can be achieved if the effects of factor momentum is considered in the construction of reversal strategies. Standard short-term reversal strategies have a negative exposure to factor momentum since they sell winner stocks that on average are more exposed to the winner factors and buy loser stocks that on average are more exposed to loser factors. The best way to neutralize this effect that drags down short-term reversal performance is to hedge stocks exposures simultaneously to a very large set of factors. For instance, hedging only with the 3 Fama-French factors does not eliminate the exposure to factor momentum. Sorting stocks using residual returns is not as efficient as sorting on total returns as it does not completely neutralize the negative exposure to factor momentum. We propose a fully-hedged reversal strategy that, differently from conventional short-term reversal strategies, is profitable after trading costs, that do not present crashes, that has Sharpe ratio 2.5 times higher than the conventional reversal strategies and that is profitable even if we restrict our sample to only large-cap stocks.

[pt] O modelo de Dois-Fluidos 1D vem sendo usado de forma abrangente em simulações industriais para prever escoamentos bifásicos em dutos. Avanços recentes na metodologia de Regime Capturing permitem a detecção das transições entre padrões de escoamento através do crescimento de instabilidades interfaciais. Contudo, devido aos procedimentos de média necessários para a redução da dimensionalidade do problema, perdas de informação tornam o modelo mal posto, i.e., perturbações de comprimentos de onda curtos são amplificados a taxas ilimitadas e soluções não físicas são obtidas. Relações de fechamento possuem um papel chave nesse problema, uma vez que estas são necessárias para fechar o sistema 1D e reintroduzem os mecanismos físicos perdidos que podem estabilizar o escoamento e tornar o modelo bem-posto. O presente trabalho propõe um modelo para o parâmetro de fluxo de quantidade de movimento da fase líquida (ou fator de forma), baseado na distribuição da velocidade do filme, que depende das grandezas locais do escoamento. A Teoria de Estabilidade Linear (LST) pode ser usada para avaliar a influência dos parâmetros de fechamento no crescimento de perturbações e na hiperbolicidade do modelo. A abordagem viscosa da análise de estabilidade diferencial de Kelvin-Helmholtz e a análise discreta de von Neumann são realizadas para avaliar relações de fechamento comumente utilizadas na literatura, bem como as formulações propostas para o parâmetro de fluxo. Simulações numéricas são realizadas, e relações de dispersão numéricas são extraídas dos resultados para verificar as previsões com os dados da LST. Uma avaliação numérica rigorosa dos novos modelos do parâmetro de fluxo com um grande banco de dados experimental é realizada. Os resultados mostraram que as correlações propostas superam os valores padrão constantes de fator de forma para avaliações de gradiente de pressão e espessura do filme de líquido. Os modelos também mostraram melhor consistência ao longo do extenso banco de dados. / [en] The 1D Two-Fluid model has been widely used in industrial simulations to predict two-phase flows in pipelines. Recent advances of the Regime Capturing methodology allow for the detection of flow pattern transitions from the onset and development of interfacial instabilities. However, due to the averaging processes required to reduce the dimensionality of the problem, the loss of information renders the model ill-posed, i.e., short wavelengths disturbances are amplified at an unbounded rate and unphysical solutions are obtained. Closure relations play a key role in this problem, since they are required to close the 1D system. Further, the reintroduction of the missing physics may stabilize the flow and render the model well-posed. The present work proposes a model for the liquid momentum flux parameter based on the liquid film velocity profile that is dependent on the local flow quantities. Linear Stability Theory (LST) can be used to assess the influence of closure parameters in the growth of disturbances and to evaluate the hyperbolicity of the model. A viscous approach of the differential Kelvin-Helmholtz and a discrete von Neumann stability analyses are performed to evaluate commonly employed closure models and the proposed formulations for the liquid momentum flux parameter. Numerical simulations are performed, and numerical dispersion relations are extracted from the results to verify the predictions against LST data. A rigorous numerical evaluation of the novel momentum flux parameter models against a large experimental database taken from the literature is carried out. Results show that the proposed models outperform the standard constant 𝐶𝐿 values for both pressure drop and liquid film thickness. The models also showed better overall consistency throughout the extensive experimental database.

Das Kernsystem zur approximativen Verarbeitung numerischer Informationen - das approximative Mengensystem (AMS) - ist, ebenso wie Systeme zur Verarbeitung räumlicher Informationen, im parietalen Cortex (PC) implementiert. Hier integriere ich 9 experimentelle Studien in vier Teilen und zeige, wie abstrakte mathematische Fähigkeiten mit dem AMS zusammenhängen. Die Hypothese ist, dass die mathematischen Leistungen des Menschen auf grundlegenden Konzepten (Raum, Zahl) aufbauen indem sie kortikale Areale ko-optieren, deren ursprüngliche Organisation für die neuen kulturellen Bedürfnisse geeignet erscheinen. Teil eins zeigt mittels des Operationalen Momentum Effekts, dass (nicht-)symbolisches Rechnen auf das AMS zurückgreift und Kopfrechnen evolutionär alte Strukturen im PC ko-optiert: Durch Anwendung multivariater Lernalgorithmen auf funktionelle Gehirnaktivierungen im posterioren PC während basaler perzeptueller Aufgaben (Sakkaden) konnte ich später ausgeführter Additionen von Subtraktionen unterscheiden. Dies ist ein Hinweis auf das kulturelle Recycling kortikaler Karten für kulturell bedingte kognitive Funktionen. Teil zwei untersucht die Folgen der Implementierung numerischer Informationen im PC. Die Verarbeitung numerischer Informationen konnte auch unter Crowding-Bedingungen nachgewiesen werden, was auf einen bevorzugten, nicht-bewusst vermittelten Zugang numerischer Informationen zum kognitiven System deuten könnte, wie sie bereits für andere visuelle Informationen, die im PC verarbeitet werden gezeigt wurde. Auch die Interferenz zwischen räumlichen und numerischen Informationen kann als Konsequenz der kortikalen und repräsentationalen Überlappung verstanden werden. In Teil drei und vier argumentiere ich, dass Kopfrechenfähigkeiten durch die Befähigung, Ordinalität zu verarbeiten, im AMS verankert sind und zeige technische, Stimulus-inhärente Faktoren auf, die problematisch bei der Unterscheidung zwischen approximativem und exaktem Rechnen sein können. / A plethora of evidence supports the idea of a core system in the parietal cortex (PC) of the human brain that enables us to approximately process numerical information, the approximate number system (ANS). By synthesizing nine experimental studies in four parts, I argue how abstract mathematical competencies are linked to the ANS and PC. The hypothesis is that human mathematics builds from foundational concepts (space, number) by progressively co-opting cortical areas whose prior organization fits with the cultural need. In part one the operational momentum effect demonstrates that (non-)symbolic approximate calculation partly relies on the ANS, and that mental arithmetic co-opts evolutionarily older cortical systems in PC. Low-level perceptual processes such as saccades lead to spatial patterns of activation in posterior parts of PC that are predictive of patterns during abstract approximate calculation processes. This is interpreted in terms of cultural recycling of cortical maps for cognitive purposes that go beyond the evolutionary scope of a given region. Part two investigates the consequences of the parietal implementation of numerical magnitude information. Akin to other visual properties that are processed in PC this may favour a privileged, non-conscious access of numerical information to the cognitive system even under a crowding regime. Also, the interference between spatial and numerical information can be interpreted as a consequence of a representational and cortical overlap. Part three elucidates the grounding of mental arithmetic abilities in the ANS and argues for a mediation of the association between ANS and symbolic arithmetic via numerical ordering abilities, which in turn rely on neural circuits in right-hemispheric prefrontal cortex. In part four I will argue that the involvement of approximate calculation in high-level symbolic calculation remains elusive due to a number of technical issues with stimulus-inherent numerical features.

Utilising tidal currents as a renewable energy resource is presently under consideration to meet the requirements of increasing worldwide energy demand and the need to reduce carbon emissions. In this respect, in-stream tidal devices are proposed to convert the kinetic energy of currents into useful extractable power. In order to extract a useful amount of energy from tidal currents, the proposed devices need to be deployed in an array or farm-like format. Due to the thrust exerted by the devices within an array, the natural flow regime will inevitably be changed. In light of this, this study aims to estimate the maximum power that can be extracted by tidal turbine arrays and assess the far-field effects of energy extraction in the designated areas around the UK for various array configurations. In this thesis, the ocean tides are modelled using the long wave equations, commonly referred as the shallow water equations (SWEs). A numerical solver based on a Runge-Kutta discontinuous Galerkin finite element method is employed to solve the SWEs. One main advantage of the discontinuous Galerkin method is that it approximates the solution individually at each element, which allows for discontinuities within the solution system while ensuring mass conservation locally and globally. The selected numerical solver has been verified against several benchmark tests. It is then modified to include a line discontinuity to represent the effect of tidal turbine array(s) in a coastal basin. The algorithm implemented in the numerical solver involves a sub-grid model, which is based on Linear Momentum Actuator Disk Theory (LMADT) to approximate the local flow-field in the presence of the turbines. This near-field approach allows the flow velocity at the turbine to be estimated with a greater accuracy. As the power available to the turbines is related to the velocity at the turbine blades, the characterisation of the designated tidal site as a resource using LMADT may be more accurate than previously proposed methods. An additional advantage of using LMADT is that it provides a distinction between the power extracted by the turbines and the total amount of power that is removed from the tidal stream, including the wake mixing losses. The methodology employed in this thesis has been applied to two tidal basins around the UK; the Anglesey Skerries (a headland) and the Bristol Channel (an oscillating bay). A comprehensive unstructured triangular finite element model has been constructed to simulate the naturally occurring tides at these regions. The constructed model has then been validated against field measurement. The validated model is used to conduct parametric studies, which evaluate the importance of tidal array locations, configurations and operating conditions on the available power at the Anglesey Skerries and the Bristol Channel sites. The parametric study aims to evaluate a realistic upper limit of available power at each site considered. This study also provides a unique analysis to examine the potential tidal farm interactions by deploying several tidal arrays at both Anglesey Skerries and the Bristol Channel.

The physical-layer security of a line-of-sight (LOS) free-space optical (FSO) link using orbital angular momentum (OAM) multiplexing is studied. We discuss the effect of atmospheric turbulence to OAM-multiplexed FSO channels. We numerically simulate the propagation of OAM-multiplexed beam and study the secrecy capacity. We show that, under certain conditions, the OAM multiplexing technique provides higher security over a single-mode transmission channel in terms of the total secrecy capacity and the probability of achieving a secure communication. We also study the power cost effect at the transmitter side for both fixed system power and equal channel power scenarios.