We consider the finite time horizon dividend-ruin model where the firm pays out dividends to its shareholders according to a dividend-barrier strategy and becomes ruined when the firm asset value falls below the default threshold. The asset value process is modeled as a restricted Geometric Brownian process with an upper reflecting (dividend) barrier and a lower absorbing (ruin) barrier. Analyt...

For too long, marketers have not been held accountable for showing how marketing expenditures add to shareholder value. As time has gone by, this lack of accountability has undermined marketers’ credibility, threatened the standing of the marketing function within the firm, and even threatened marketing’s existence as a distinct capability within the firm. This article proposes a broad framewor...

There are many factors that could have a potential impact on the growth of a firm. In this research, we examined the relationship between the following economic elements: Size of the firm, Research and development expenditure, Advertisement cost, and the growth of Iranian firms of manufacturing industry. For this purpose, four digit ISIC standard data in manufacturing industry sector have been ...

This paper presents the results of the first empirical investigation of the effect of information and communication technologies (ICT) investment on business performance in Greece. It investigates the effect of both ‘hard’ ICT investment (in ICT hardware, software and networks) and ‘soft’ ICT investment (in ICT human resources, skills and organization) on firm output. It is based on data from b...

This paper offers an organizational perspective on the firm in new economic geographies. It starts with the premise of the firm as a production function in neoclassical economics and a cost minimisation device in transaction cost economics. By pointing out the inadequacy in these mainstream economic perspectives on the firm, I draw upon recent behavioral and managerial theories to develop a rel...

system dynamics is a strategic approach for modeling complex systems and analyzing their behavior. dynamic behavior in entrepreneurial system can be modeled using system dynamics approach and dynamic hypotheses about the system`s behavior can be proposed and tested using simulation and computer aided tools. however, as the review of literature shows, studies which link system dynamics modeling ...

Most capital projects have an implementation lag. We examine the effect of implementation lag on a levered firm’s investment decision. The main finding is that implementation lag can potentially have a substantial effect on a levered company’s investment trigger, and this effect can be significantly different from that of an unlevered company. The exact relationship between lag and investment t...

In this paper we present a novel Bayesian approach for default probability estimation. The methodology is based on multivariate contingent claim analysis and pair copula theory. Balance sheet data are used to asses the firm value and to compute its default probability. The firm pricing function is obtained via a pair copula approach, and Monte Carlo simulations are used to calculate the default...

Let time be continuous and indexed by t ≥ 0. Consider a horizontally differentiated oligopoly with three firms named 1, 2 and 3. Each firm is described by its brand demand function and for simplicity there are no costs of production. The firm i ∈ {1, 2, 3} produces one brand and charges at time t the unit price pit for the good of the own ∗Corresponding author. E-mail address: Magdalena.Trojano...

Within the prospect theory the paper examines production and hedging decisions of a competitive firm under price uncertainty. We consider the prospect theory for the firm's utility function in the two moment model known as (mu,sigma)-preference. In contrast to the literature our findings show that the production under uncertainty can be larger than in the certainty case. Furthermore, we demonst...