We consider an insurance company whose risk reserve is given by a Brownian motion with drift and which is able to invest the money into a Black–Scholes financial market. As optimization criteria, we treat mean-variance problems, problems with other risk measures, exponential utility and the probability of ruin. Following recent research, we assume that investment strategies have to be determini...

The purpose of this research is to investigate two particular forms of impression management commonly found in corporate annual reports, the distortion of narratives and graph manipulation. Little is known about the potential effects these manipulations have on decisions made by annual report users. A laboratory experiment was performed in which participants were provided with a pack of informa...

This paper uncovers an increasing proportion of quoted UK companies omitting cash dividends. Using a large panel of quoted UK companies, we estimate models for the incidence of dividend omissions and cuts as functions of financial characteristics including cash flow, leverage, investment opportunities, investment and company size. These variables account for most of the increase in omission sin...

This paper compares greenfields and acquisitions as foreign direct investment (FDI) alternatives used by transnational corporations (TNCs). First, the determinants leading to the choice of companies between the two modes of entry into a foreign market are laid out. Then, specific features of each alternative are highlighted, by contrasting the advantages and disadvantages of both types of FDI. ...

This paper concerns with the problem of determining an optimal control on the dividend and investment policy of a firm. We allow the company to make an investment by increasing its outstanding indebtedness, which would impact its capital structure and risk profile, thus resulting in higher interest rate debts. We formulate this problem as a mixed singular and switching control problem and use a...

How information systems (IS) affect organizations and enable radical organizational change has been explored from a variety of perspectives. Through a case study in the investment banking industry, we will examine the changing nature of IS–organization relationships focusing on the crucial role that IS play and will continue to play as organizations strive for competitive advantage in a global ...