This work explores the role of executive compensation in determining the capital structure decisions of a firm. CEOs experience a large personal cost of default that interacts through the risk adjusted probability of default with their compensation contract. Since default happens in a particularly costly state of the world for a CEO whose compensation contract consists primarily of pay for perf...

We investigate bank holding companies’ window dressing of quarter-end financial leverage through short-term borrowings, and the stock market reaction around the public release of information that can be used to infer such window dressing. We find evidence of downward window dressing of repo and federal funds liabilities that appear material for a large fraction of the sample, particularly among...

The statistical leverage scores of a complex matrix A ∈ Cn×d record the degree of alignment between col(A) and the coordinate axes in Cn. These score are used in random sampling algorithms for solving certain numerical linear algebra problems. In this paper we present a max-plus algebraic analogue for statistical leverage scores. We show that max-plus statistical leverage scores can be used to ...

â â â â â â â â â â â  â  abstract â  the foreign exchange market (fx market) accounts for 40% of the total volume of the world’s e-commerce by its own. based on statistics, sometimes up to 90 per cent of the traders lose their total capital in this market just within six months to one year and leave this market. the probability of loss in the fx market can be estimated by probability theory....

The decision to leverage companies as cash reserves advance business processes is widely practiced by in developing countries. Leverage describes a company's ability use funds that have fixed burden increase the level of income for owner company. In addition, used measure pay all its obligations, both short-term and long-term, if company dissolved or expanded. purpose this study see effect fina...

This paper studies an economy in which demand spillovers make firms’ production decisions strategic complements. Firms choose their operating leverage trading off higher fixed costs for lower variable costs. Operating governs exposures to aggregate labor productivity shock. In equilibrium, firms exhibit excessive because they do not internalize that with is more likely fall into a recession fol...

The primary attempt of this paper is to evaluate the performance of manufacturing companies based on CVP (Cost-Volume-Profit) analysis in Bangladesh. To attain this purpose, 14 manufacturing companies have been surveyed from Textile Industry. This study has also been attempted to examine the influence of key indicators of CVP analysis in performance evaluation in textile industry. The study fin...

This paper explores the leverage determinants across firms’ sizesbased on the two main theories behind the capital structure, the trade-offand the pecking order theories. A panel data is sued to find therelationship between capital structure and the variables that proxy forbenefits and costs of debt during 1990 to 2006. Our findings show thatboth principles help to explain the capital structure...

The purpose of this paper is to investigate the relationship between a firm’s capital structure (i.e., leverage) and its operating environment, taking into account firm efficiency, asset structure, profitability, size, age risk) industry effects. For sample Greek pharmaceutical, cosmetic detergent (PCD) enterprises, efficiency was estimated using bootstrapped data envelopment analysis (DEA), le...