We analyze equilibrium leverage dynamics in a dynamic tradeoff model when the firm is unable to commit to a leverage policy ex ante. We develop a methodology to characterize equilibrium equity and debt prices in a general jump-diffusion framework, and apply our approach to the standard Leland (1998) setting. Absent commitment, the leverage ratchet effect (Admati et al. 2015) causes firms to tak...

Nonlinear Black–Scholes equations have been increasingly attracting interest over the last two decades, since they provide more accurate values by taking into account more realistic assumptions, such as transaction costs, risks from an unprotected portfolio, large investor’s preferences or illiquid markets, which may have an impact on the stock price, the volatility, the drift and the option pr...

This paper seeks to encompass elements of both the Modigliani and Miller (1958, 1963) and Jensen and Meckling (1976) approaches to optimal capital structure within a unified framework with shadow costs of incomplete information. Making the most of the major work of Merton (1987), Leland (1996, 1998) and Bellalah (2001a), we put forward a model that reflects the interaction of financing decision...

Metastases are tumors that develop at a distance from their primary origin and are responsible for the death of 90% of cancer patients. For over a century the notion of seed (migrating cells) and soil (the locus where those cells anchor) provided an accurate account of which were the protagonists in their genesis. Despite aggressive efforts to unravel the dynamics involving migrating cells and ...

In this paper, we proved the following result: Let G be a (k + 2)-connected, non-(k − 3)apex graph where k ≥ 2. If G contains three k-cliques, say L1, L2, L3, such that |Li ∩ Lj| ≤ k − 2(1 ≤ i < j ≤ 3), then G contains a Kk+2 as a minor. Note that a graph G is t-apex if G− X is planar for some subset X ⊆ V (G) of order at most t . This theorem generalizes some earlier results by Robertson, Seym...

This review examines the current two leading hypotheses relating to cancer neogenesis-the somatic mutation theory (SMT) and the tissue organization field theory (TOFT)-and focuses on four specific issues. What are the details of the process that changes the epigenetic cargo of the exosomes a cell produces when it becomes malignant? Can exosomes produced by a malignant cell induce on their own a...

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