This paper studies financial policy, investment decisions and the threat of dismissal when managers value control and investments generate manager-specific value. A high probability of investigation focuses the manager on the profitability of replacement and therefore managerspecific value. The probability of an investigation increases when the firm enters bankruptcy. Thus, high debt levels foc...

In this paper, a compound binomial model with a constant dividend barrier and random income is considered. Two types of individual claims, main claims and byclaims, are defined, where every by-claim is induced by the main claim and may be delayed for one time period with a certain probability. The premium income is assumed to another binomial process to capture the uncertainty of the customer’s...

We study a family of diffusion models for compounded risk reserves, which account for the investment income earned and for the inflation experienced on claim amounts. We are interested in the models which the dividend payments are paid from the risk reserves. After defining the process of conditional probability over finite time, the classical diffusion processes results turn the nonlinear stoc...

Three factors significantly influence profit repatriations by U.S. multinational firms: tax considerations, domestic financing and investment needs, and agency problems inside firms. Dividend repatriations are surprisingly persistent and resemble dividend payments to external shareholders. Tax considerations are influential but not decisive. Affiliates whose organizational forms carry differing...

This paper discusses the optimal dividend and capital injection problems when an insurance company has two lines of business with common shock dependence. Suppose that manager time-inconsistent preference, which can be described by a quasi-hyperbolic discount function. The value is measured expected discounted payments minus costs injection. goal to find out strategies for maximizing company. B...

We consider in this paper the optimal dividend problem for an insurance company whose uncontrolled reserve process evolves as a classical Cramér–Lundberg model with arbitrary claim-size distribution. Our objective is to find the dividend payment policy which maximizes the cumulative expected discounted dividend pay-outs until the time of bankruptcy imposing a ceiling on the dividend rates. We c...

This paper investigates dividend optimization of an insurance corporation under a more realistic model which takes into consideration refinancing or capital injections. The model follows the compound Poisson framework with credit interest for positive reserve, and debit interest for negative reserve. Ruin occurs when the reserve drops below the critical value. The company controls the dividend ...

In this paper, we study the perturbed risk model with a threshold dividend strategy and proportional investment. The insurance companies are allowed to invest their surplus in financial market consisting of risk-free asset risky fixed proportions; assets modeled by jump-diffusion process. Firstly, using theory stochastic process analysis, obtained integro-differential equations satisfied expect...

1. GENERAL TECHNIQUE The object of our study is s = (So, Sl , ..., SN) = (S,,)O<,,<N (1) where each Sn is a m-dimensional stochastic (real valued) vector, i.e. Sn = (sn(l), s~, 2), ..., S~ '')) (2) defined on a probabili ty space (f~, .~', P) and adapted to a filtration (.~'n)O<n<N with .~'0 being the o-algebra consisting of all null sets and their compl-efflents. In this paper we interpret S!/...