Article history: Received 17 January 2014 Received in revised form 28 May 2014 Accepted 29 May 2014 Available online 12 June 2014 This article investigates the impact of the observation that managers can use cash to defer bankruptcy on default risk and corporate financial policies. I show that with managerial cash use to defer default, the impact of cash on default risk depends on two opposing ...

W study a seller that starts with an initial inventory of goods, has a target horizon over which to sell the goods, and is subject to a set of financial milestone constraints on the revenues and sales that need to be achieved at different time points along the sales horizon. We characterize the revenue maximizing dynamic pricing policy for the seller and highlight the effect of revenue and sale...

If product demand from abroad has a low correlation with domestic demand, we would expect export-intensive firms to have greater cashflow stability than firms that only sell domestically. This implies that they would also be able to support higher financial leverage. We test this hypothesis by looking at a sample of Indian firms. The hypothesis is tentatively accepted. Export Intensity and Fina...

This study examines the implications of the separation theorems in finance to shed light on how these theorems can be refined to accommodate real life financial applications and decision makings. We also generalize the financial theory of the firm by incorporating real options in the production function to accommodate the complexity of real world issues. This modified financial theory of the fi...

This paper provides a rationale for the relatively poor macroeconomic performance in the post-Soviet transition economies based upon the concept of financial repression. Policies undertaken to assist in financing government expenditures caused financial repression and financial fragmentation, to use the terms introduced by McKinnon (1973). After an introductory section, I introduce a theoretica...

effects of dividend policy on corporate financial growth, is a major concern of most entities. whether dividends have an influence on the value of the firm, is an important question in dividend policy. this study aimed at investigating the effects of dividend policy on financial growth of media firms. the study was conducted in nairobi at the nation media group headquarters. respondents were se...

This study examined the growth rates in agricultural investments and output in Nigeria from 19702009 using ordinary least square in a time series analysis. Findings revealed that agricultural investments and growth recorded a growth rate of 37.44 percent and 30.47 percent in the prefinancial sector reform periods. The result for the financial sector reform periods showed a growth rate of 23.00 ...

I am grateful to the Per Jacobsson Foundation, in particular Chairman Ortiz, for conferring on me the honour of delivering the Per Jacobsson Foundation Lecture for 2012. I did not have the good fortune to meet Per Jacobsson, so my familiarity with him is primarily through the references made to him in the second volume of the history of the Reserve Bank of India. He came across as a forceful pe...

A positive shock to funding, such as a major donation, causes an optimizing university to raise its admissions standards and reduce tuition charges net of financial aid across all student categories. However, the shock’s effect on enrollment may not be uniform. Student categories given little weight in the university’s objective function may be treated as “inferior goods,” that is, positive sho...