This study aims at analyzing the relationship between firm R&D intensity and market risk using crosssectional data of 333 firms of the Indian industries from 2005 to 2009. For this, a theoretical model has been developed. The results of the theoretical model show that there is an inverse relationship between firm R&D intensity and market risk. The empirical results show that after controlling f...

This paper uses a general equilibrium model to study the source and reward of asymmetric volatility or skewness of market returns in an exchange economy. In particular, the dividend growth rate is modeled as a stochastic volatility process and the representative agent is characterized by Epstein-Zin preferences. The equilibrium equity premium, risk-free rate, and asymmetric volatility (measured...

In the Cramér-Lundberg model and its di usion approximation, it is a classical problem to nd the optimal dividend payment strategy that maximizes the expected value of the discounted dividend payments until ruin. One often raised disadvantage of this approach is the fact that such a strategy does not take the life time of the controlled process into account. In this paper we introduce a value f...

This paper deals with optimal dividend payment problem in the general setup of a piecewise-deterministic compound Poisson risk model. The objective of an insurance business under consideration is to maximize the expected discounted dividend payout up to the time of ruin. Both restricted and unrestricted payment schemes are considered. In the case of restricted payment scheme, the value function...

For the classical Cramér-Lundberg risk model, a dividend strategy of threshold type has recently been suggested in the literature. This strategy consists of paying out part of the premium income as dividends to shareholders whenever the free surplus is above a given threshold level. In contrast to the well-known horizontal barrier strategy, the threshold strategy can lead to a positive infinite...

Non-restoring division involves shifting and add/subtract operations. This paper proposes method to reduce the number of bits in shift operation during non restoring operations. The upper half of the dividend is shifted instead of whole dividend. The least significant bit of the shifted number is set to the value in lower half of the dividend depending on the iteration. The design is synthesize...

Civil wars dramatically reduce income. Peace might therefore be expected to generate a dividend which both the government and the private sector can spend. Paradoxically, those civil wars which are prolonged and therefore do most damage create only small instant peace dividends. Income has fallen because capital has been lost and so cannot recover until capital has been reaccumulated. However, ...

Recent studies on the so-called double dividend hypothesis find that environmental tax swaps exacerbate the costs of the tax system and therefore do not produce a double dividend. We extend these models by incorporating a fixed-factor in the production of the polluting good and, therefore, allowing Ricardian rents to be generated in the economy. In this setting, an environmental tax reform with...

It is generally conceded that dividend pricing models are poor predictors of asset prices. This finding is sometimes attributed to excess volatility or to a dividend process manipulated by firm managers. In this paper, we present rather powerful panel tests of the dividend pricing relation using a unique data set in which dividends are set by market forces independent of managers’ preferences. ...

This article documents how the changing composition of U.S. publicly traded firms has prompted a decline in the long-run mean of the aggregate dividend-price ratio, most notably since the 1970s. Adjusting the dividend–price ratio for such changes resolves several issues with respect to the predictability of stock market returns: The adjusted dividend-price ratio is less persistent, in-sample ev...