We apply to the concrete setup of a bank engaged into bilateral trade portfolios the XVA theoretical framework of Albanese and Crépey (2017), whereby so-called contra-liabilities and cost of capital are charged by the bank to its clients, on top of the fair valuation of counterparty risk, in order to account for the incompleteness of this risk. The transfer of the residual reserve credit capita...

I build a model of neoclassical production to examine the capital market and welfare effects of a uniform accounting standard (like IFRS). Firms vary in their cost of compliance to the standard, and investors vary in their cost of learning diverse standards for capital allocation. I show that a uniform accounting standard increases the quantity of capital in the economy and lowers the cost of c...

The aim of this paper is to empirically investigate the effect of Intellectual Capital (IC) and its components on financial performance of Iranian banks accepted in Tehran Stock Exchange (TSE). The financial performances were measured by return on equity (ROE), return on assets (ROA), assets turnover (ATO), and book to market ratio (MB). This research covers 14 banks listed in TSE over the peri...

Agency cost theory is an important branch of capital structural theory. Free cash flow has significant impact on agency cost. The combination of research on these two fields would help to build and extend the theoretical system. Based on agency cost theory, the present study firstly categorized the characteristics of free cash flow as well as the statistical methodologies. Furthermore, the exis...

The design of buildings is a multi-criterion optimization problem, there always being a tradeoff to be made between capital expenditure, operating cost, and occupant thermal comfort. This paper investigates the application of a multi-objective genetic algorithm (MOGA) search method in the identification of the optimum payoff characteristic between the elements of the building design problem. Re...

Literature provides several intellectual capital models. Nevertheless, the need for adapting theoretical models to the new social and economic trends justifies an effort in improving previous proposals. Taking into account the main contributions in the field, the Intellectus Knowledge Forum presents to the international scientific and professional community a new model to better understanding t...

organizational entrepreneurship as one of the main forms of entrepreneurship has a key role in success of organizations and ventures. on the other hand, among the various factors influencing the organizational entrepreneurship development, intellectual capital, as one of the valuable organization's resources, is considered an essential factor in the institutionalization and development of ...

Levy and Arditti (1973) introduced depreciable assets into the Modigliani and Miller (1958) model, and analyzed the implications for the cost of capital. Assuming that the firm reinvests indefinitely to maintain a constant expected cash flow, they found that depreciation increases the cost of capital before and after tax. Most of their assumptions are maintained. However, commitment to perpetua...