This study uses 462,678 monthly observations of US-listed firms for the period 1990–2018 to document a strong positive relationship between short-term changes in financial distress risk and future stock price crashes. result is economically significant as one interquartile increase main explanatory variable any month increases probability crash by 8.33% relative its mean value. The findings wit...

This paper presents a branch–and–price algorithm for the Capacitated Hub Location Problem with Single Assignment, in which Lagrangean relaxation is used to obtain tight lower bounds of the Restricted Master Problem (RPM). It is shown how to solve the pricing problem for finding new columns to be added to the RMP, or for proving that the lower bound of the current RMP is valid. Also, a lower bou...

The common paradigm for risk-neutral real-option pricing is a special case encompassed within our general model for valuing investment opportunities. Risk-neutral real option prices deviate from the risk-averse real option values that apply in an incomplete market, giving different rankings of investment opportunities and different optimal exercise strategies. Unlike risk-neutral prices, more g...

W every firm in a supply chain bears supply risk (the cost of insufficient supply), some firms may, even with wholesale price contracts, completely avoid inventory risk (the cost of unsold inventory). With a push contract there is a single wholesale price and the retailer, by ordering his entire supply before the selling season, bears all of the supply chain’s inventory risk. A pull contract al...