In this paper, a dynamic terms of sale model is developed which suggests deep cash discounts can be partially explained by the positive relationship between the shadow value of sales and the optimal cash discount. The effect of sales volume uncertainty on the magnitude of cash discounts is also explored. Numerical results suggest the relationship between uncertainty and cash discounts is nonlin...

We consider the impulse control of Levy processes under the infinite horizon, discounted cost criterion. Our motivating example is the cash management problem in which a controller is charged a fixed plus proportional cost for adding to or withdrawing from her reserve, plus an opportunity cost for keeping any cash on hand. Our main result is to provide a verification theorem for the optimality ...

By postulating a simple stochastic process for the firm’s cash flows in which the drift and the variance of the process depend on the investment policy of the firm, we develop a theoretical model, determine the optimal investment policy and, given this policy, calculate the ratio of the current value of the firm and the current cash flow which we call the “cash flow multiplier”. The main contri...

We study two types of robust contracting problem under hidden action in continuous time. In type I problem, the principal is ambiguous about the project cash flows, while he is ambiguous about the agent’s beliefs in type II problem. The principal designs a robust contract that maximizes his utility under the worst-case scenario subject to the agent’s incentive and participation constraints. We ...

Calculating total cast of bank resources procurement methods which include current -free loan deposit, saving interest-free loan deposit, regular and net short-term investment deposit, long-term investment deposit and surety bond cash deposit and presenting their optimal integration require precise scientific studies. Hence, this study is an attempt to know which methods are the best optimal in...

We consider symbolic characterizations of the Compact ECash protocol of Camenisch, Hohenberger, and Lysyanskaya [CHL05]. E-cash protocols [Cha82,CFN88] aim at providing robust abstractions for anonymous payment protocols. Properties of interest include, for instance, that users can spend coins anonymously, that users cannot forge coins, and that user should not spend the same coin twice without...

This paper reports the results of laboratory experiments in which subjects are offered contracts structured like equity compensation packages, which result in subjects receiving cash payments that are a function of their effort and random factors. We compare the experimental outcomes from alternative contractual forms to theoretical benchmarks and report the efficiency of the contracts to provi...

Recently, market globalization and competition have forced companies to find alternative means to boost sales and revenue. The use of the cash flow is increasingly becoming a viable alternative for managers to improve their company’s profitability in a supply chain. In today’s business transactions, a supplier usually asks a manufacturer to pay via the advance-cash-credit (ACC) payment scheme i...

Uninformed investors facing future carrying cost (liquidity) shocks determine primary market prices for asset-backed securities. A liquidity provider subsequently buys tendered securities in competitive secondary markets. Liquidity provision is distorted by a speculator receiving a private signal regarding cash flow. Optimal structuring minimizes total trading loss and carrying cost discounts d...