The aim of this paper is to examine the pros and cons of book and fair value accounting from the perspective of the theory of banking. We consider the implications of the two accounting methods in an overlapping generations environment. As observed by Allen and Gale(1997), in an overlapping generation model, banks have a role as intergenerational connectors as they allow for intertemporal smoot...

Blockholder ownership may increase firm value because of incentive alignment or lower it because of expropriation of minority investors. Dividend policy provides a way to distinguish between the two effects since large owners may prefer low dividends if they derive private benefits from controlling firms, while minority investors may prefer high dividends that benefit all shareholders. I examin...

‎In this paper‎, ‎we consider the optimal asset control of a financial company which can control its liquid reserves by paying dividends and by issuing new equity‎. ‎We assume that the liquid surplus of the company in the absence of control is modeled by the diffusion model‎. ‎It is a hot topic to maximize the expected present value of dividends payout minus equity issuance until the time of ba...

this paper divulges the long term relationship among earning, investment and dividends from 2000 to 2011. empirical evidence was collected to explore the modigliani and miller theory of dividend irrelevance. data was collected from all the sectors but it was ensured that firms did not have negative data of earnings as it is earnings which are either transformed into investment or dividends. mul...

In this paper we consider the optimal control problem for a insurance company. Our objective is to maximize the expectation of discounted dividends and its terminal value which represents the company liquidation value upon the time of bankruptcy. The surplus of the insurance company is governed by the Brownian motion with a constant drift and a diffusion term. The company can manage its risk ex...