In this paper we analyse a model of the conflicts between equityholders and debtholders regarding the optimal exercise moment for investment in a firm whose only asset is a concession contract. This setting reflects the reality of, not only traditional concessions, but also image rights and audiovisual contracts. Our results support the coexistence of two different incentives (overinvestment an...

A binomial lattice based framework for the analysis of finite investment options with finite operational phase is developed. Solutions for European and American type finite horizon investment options with optimal capital structure and a multi-stage investment setting with multiple debt issues are discussed. The analysis shows that optimal leverage ratios are not affected by option moneyness at ...

Miller's Equilibrium, Shareholder Leverage Clienteles, and Optimal Capital Structure Author(s): E. Han Kim Source: The Journal of Finance, Vol. 37, No. 2, Papers and Proceedings of the Fortieth Annual Meeting of the American Finance Association, Washington, D.C., December 28-30, 1981 (May, 1982), pp. 301-319 Published by: Blackwell Publishing for the American Finance Association Stable URL: htt...

This paper incorporates the cost of adjustment between observed and optimal leverage in explaining the variation in firm’s equity or bank-debt financing investments. Using a dynamic adjustment approach identifies the determinants to capital structure between different financial systems. In relation to firm sales U.K and U.S firms have 50-100 percent more equity financing than Swedish firms depe...

T he cyclical banks have different behavior than other banks. The structure of the balance sheet in cyclical banks is different from anti-cyclical banks. The cyclical banks have a relationship between leverage growth and asset growth while the other banks have no relationship between asset growth and leverage growth in the banking system. This relationship depends on the structure of...

In this paper we propose a framework for defining and discovering optimal association rules involving a numerical attribute A in the consequent. The consequent has the form of interval conditions (A < x, A x or A ∈ I where I is an interval or a set of intervals of the form [xl, xu)). The optimality is with respect to leverage, one well known association rule interest measure. The generated rule...

Data mapping is the essence of being human. This report follows the process of data mapping; the transmission of a structured utterance from one domain to another. It starts with signals in the world and moves through experience and engagement with the world through those signals. The paper develops descriptions of the materials and mechanisms of data mapping. The descriptions are aids and conv...

for their advice on an earlier version where a static model was developed. Abstract This paper develops a model in which an optimal capital structure and an optimal debt maturity are jointly determined in a stochastic interest rate environment. Valuation formulas are derived in closed form and numerical solutions are used to obtain comparative statics. The model yields leverage ratios and debt ...

Homogenous Charge Compression Ignition (HCCI) engines hold promise of high fuel efficiency and low emission levels for future green vehicles. But in contrast to gasoline and diesel engines, HCCI engines suffer from lack of having direct means to initiate combustion. A combustion timing controller with robust tracking performance is the key requirement to leverage HCCI application in production ...

this research applies and compares the market leverage lally method, ibbotson and sinquefield method and siegel method, to present alternative measures for market risk premium (mrp) estimation and test forecasting power of these methods in calculating expected rate of return. the higher level of leverage implies greater risk of investment in a specified stock, so higher return is expected by in...