Funding combination is the most important issue for the companies while they know the amount of required capital. Companies should be careful regarding the appliance of financial providing methods compatible with the investment strategy of company and profitability. This study seeks to examine the relationship between the capital structure and the profitability of pharmaceutical companies in...

  Funding combination is the most important issue for the companies while they know the amount of required capital. Companies should be careful regarding the appliance of financial providing methods compatible with the investment strategy of company and profitability. This study seeks to examine the relationship between the capital structure and the profitability of pharmaceutical companies in...

We analyze a continuous-time model of dynamic project choices by an agent that is relevant to various important issues in financial economics. An agent controls the drift and volatility of a lognormal output process by dynamically selecting one of N projects. Under broad conditions, the optimal risk-taking policy is characterized by at most K − 1 unique switching triggers, where K is the number...

We model dynamic investment, financing and default decisions of a firm, which begins its life with a collection of growth options. The firm exercises them optimally over time, and finances the costs of investment by adjusting its capital structure, which trades off the tax benefits with the distress cost of debt and the agency cost of investment distortions from potential debt overhang. Conflic...

This paper provides some empirical evidence and a theory of the relationship between residual wage inequality and the increasing dispersion of capital/labor ratios across ...rms. I document the increasing variance of capital/labor ratios across ...rms in the US labor market using Compustat data. I also show that the increase in the variance of capital/labor ratios across ...rms is related to th...

The Dynamic Programming approach for a family of optimal investment models with vintage capital is here developed. The problem falls into the class of infinite horizon optimal control problems of PDE’s with age structure that have been studied in various papers (see e.g. [11, 12], [30, 32]) either in cases when explicit solutions can be found or using Maximum Principle techniques. The problem i...