The stock market convulsions and corporate scandals of 2001 and 2002 have reignited debate on the purposes of the corporation and, in particular, the goal of shareholder value maximization. We revisit the debate, re-examine the traditional rationales, and develop a set of new arguments for why the preferred objective function for the corporation must unambiguously continue to be the one that sa...

This paper discusses a new approach to contingent claim valuation in general incomplete market models. We determine the neutral derivative price which occurs if investors maximize their local utility and if derivative demand and supply are balanced. We also introduce the sensitivity process of a contingent claim. This process quantifies the reliability of the neutral derivative price and it can...

This conceptual paper focuses on the relationship between insolvency, capital structure, and value creation. The aim is twofold: to define risk-based measures able absorb effects of financial distress avoid corporate default; verify conditions limits use these in policies. based insolvency risk will be defined by recalling concepts Cash Flow-at-Risk Capital-at-Risk. A first check usefulness the...

Performance of Language Identification (LID) System using Gaussian Mixture Models (GMM) is limited by the convergence of Expectation Maximization (EM) algorithm to local maxima. In this paper an LID system is described using Gaussian Mixture Models for the extracted features which are then trained using Split and Merge Expectation Maximization Algorithm that improves the global convergence of E...

This work is concerned with the construction of approximate solutions for the Lagrange multipliers involved in information-theoretic non-Gaussian random field models. Specifically, representations of physical fields with invariance properties under some orthogonal transformations are considered. A methodology for solving the optimization problems raised by entropy maximization (for the family o...