The joint determination of capital structure and investment risk is examined. Optimal capital structure re ects both the tax advantages of debt less default costs (Modigliani-Miller), and the agency costs resulting from asset substitution (Jensen-Meckling). Agency costs restrict leverage and debt maturity and increase yield spreads, but their importance is relatively small for the range of envi...

IES’s research has defined engagement, created an engagement measure and provided an engagement diagnostic tool. We have established that our measure and diagnostic tool work well in a variety of settings and sectors, and identified the major challenges that must be faced by organisations wishing to reap the benefits of high engagement levels. Raising engagement levels, and maintaining them, ta...

A simple valuation model with time varying investment opportunities is developed and estimated. The model assumes that the investment opportunity set is completely described by the real interest rate and the maximum Sharpe ratio, which follow correlated Ornstein-Uhlenbeck processes. The model parameters and time series of the state variables are estimated using US Treasury bond yields and expec...

The purpose of this study was to determine the effect of financial distress on investment behavior for the years of 2011 to 2016. The statistical population of the research is Tehran Stock Exchange. According to the systematic elimination method, 104 companies have been selected as the statistical sample. In this research, financial distress is independent variable and corporate investmen...

After the initial design of a portfolio the fund manager is constantly confronted with the following decision problem of Portfolio Re-Optimization: Due to changes on the market the given portfolio has become infeasible because of violations to the investment guidelines and/or sub-optimal due to under-performance with respect to yield, risk etc. In this daily situation the fund manager has to re...

This paper empirically analyzes the non-monotonic influence that interest rate changes have on irreversible investment in income producing properties. Using the complete history of quarterly capital improvements for 1,416 commercial properties over the 1978 to 2009 period, we find strong evidence of the non-monotonic effect for apartment, office, and retail properties, but not for industrial pr...

On Feb 4, 2016, after 7 years of negotiations, representatives from the USA, Japan, and ten other countries signed one of the largest trade and investment agreements in years, the Trans-Pacifi c Partnership (TPP). The negotiations were closed to the public, who only glimpsed drafts of the agreement when they were occasionally leaked. The participants were heavily lobbied by major industries. An...

TAKE HOME MESSAGES: 1. Average milk yield was similar for cows in ADS-ST or KK (91.2 vs. 93.0 lbs/d) pens. 2. 1st lactation heifers in the KK pen tended to produce more milk (83.4 vs. 81.0 lbs/d). 3. The initial investment for the ADS-ST was less ($58,500 vs. $118,067). a. ADS-ST = $234/cow vs. $472/cow for the KK coolers. 4. ADS-ST used less electricity, water and had lower daily costs ($27.30...

This paper studies the relationship between public debt and economic growth for selected emerging markets performing panel data estimations. Several regressor variables are included, but the main focus is on public debt. The results reveal a significant positive correlation between public debt and the subsequent growth rate of per capita GDP. Population and investment also yield a significant p...

The literature about genomics and bioinformatics achievements in high-impact journals such as Nature and Science has raised disproportionate expectations amongst the general public about fast and revolutionary drugs and breakthroughs in biomedicine. However, the yield obtained by database mining activities has been modest, as reported in the February 2001 issues of these journals featuring the ...