This paper studies the financing of durable assets in a model with collateral constraints due to limited enforcement. Durability affects the ease of financing: we show that more durable assets require larger down payments of internal funds per unit of capital making them harder to finance, because durability raises the price of an asset and hence the overall financing need more than its collate...

We establish the fundamental theorem of asset pricing to a model with proportional transaction costs on trading in shares and different interest rates for borrowing and lending of cash. We show that such a model is free of arbitrage if and only if one can embed in it a friction-free model that is itself free of arbitrage, i.e. if there exists an artificial friction-free price for the stock betw...

Seasoned equity offerings (SEOs) are sales of stock after the initial public offering. They are a means to raise funds through the sale of stock rather than the issuance of additional debt. We propose a method to predict the characteristics of firms that undertake this form of financing. Our procedure is based on logistic regression where firm-specific variables are obtained from the perspectiv...

We consider a financial contract that delivers a single cash flow given by the terminal value of a cumulative gains process. The problem of modelling such an asset and associated derivatives is important, for example, in the determination of optimal insurance claims reserve policies, and in the pricing of reinsurance contracts. In the insurance setting, aggregate claims play the role of cumulat...

A resource investment problem is a project-scheduling problem in which the availability levels of the resources are considered decision variables and the goal is to find a schedule and resource requirement levels such that some objective function optimizes. In this paper, we consider a resource investment problem in which the goal is to maximize the net present value of the project cash flows. ...

A resource investment problem is a project-scheduling problem in which the availability levels of the resources are considered as decision variables and the goal is to find a schedule, and resource requirement levels, such that some objective function optimizes. In this paper, we consider a resource investment problem in which the goal is to maximize the net present value of the project cash fl...

There is widespread agreement among leading debt management practitioners about the adequacy of debt servicing cash flow simulation technique to estimate the cost and risk of a sovereign liability portfolio. This practice gains a solid theoretical platform when re-cast into an asset liability management (ALM) framework. The issue then becomes how to incorporate the government’s assets into cost...

We are passing through information age with lightning communication speed. Information asset storage in Cloud and retrieval in the net has become the new invisible corporate voyage into the information space. Information Assets are a valuable source of Knowledge for both Information asset creator as well as the user. These are fluid assets that change overtime based on several internal and envi...

NIKUNJ KAPADIA is with the Isenberg School of Management at the University of Massachusetts. T he recent proliferation of hedge funds has brought to the forefront the types of trading strategies that distinguish hedge funds from the more conservative mutual funds. Two major sets of trading strategies have been in the spotlight: market-neutral trades, and trades that rely on the spread between t...

The problem in this research is the fluctuation amount of net sales, total assets, and income. That is, also affects company's financial performance. To find out performance, it can be calculated using ratios. method used a qualitative quantitative data through primary secondary sources. collection techniques were observation, documentation interview techniques. Based on Return On Asset, Total ...