This paper presents a numerical scheme that avoids iterations to solve the nonlinear partial differential equation system for pricing American puts with constant dividend yields. Upon applying a frontfixing technique to the Black-Scholes partial differential equation, a predictor-corrector finite difference scheme is proposed to numerically solve the discrete nonlinear scheme. In the comparison...

in this paper, a compound binomial risk model in the presence of a constant dividend barrier is studied. two types of individual claims, main claims and by-claims, are defined, where every by-claim is induced by the main claim randomly and may be delayed for one time period with a certain probability. in the evaluation of the moments of the present value of dividends, the interest rates are ass...

We consider a two-dimensional optimal dividend problem in the context of two insurance companies with compound Poisson surplus processes, who collaborate by paying each other’s deficit when possible. We solve the stochastic control problem of maximizing the weighted sum of expected discounted dividend payments (among all admissible dividend strategies) until ruin of both companies, by extending...

I document that dividend growth and consumption growth comove procyclically. This new stylized fact empirically resolves the “Duffee Puzzle”—stock returns and consumption growth covary procyclically (Duffee, 2005)—but contradicts extant theoretical assumptions in asset pricing models. I then design a new data generating process (DGP) for the joint consumption-dividend dynamics which fits the pr...

‎In this article‎, ‎we develop two nonparametric smoothing estimators for parameter of a time-variant parametric model‎. ‎This parameter can be from any parametric family or from any parametric or semi-parametric regression model‎. ‎Estimation is based on a two-step procedure‎, ‎in which we first get the raw estimate of the parameter at a set of disjoint time...

We prove global well-posedness below the charge norm (i.e., the L 2 norm of the Dirac spinor) for the Dirac-Klein-Gordon system of equations (DKG) in one space dimension. Adapting a method due to Bourgain, we split off the high frequency part of the initial data for the spinor, and exploit nonlinear smoothing effects to control the evolution of the high frequency part. To prove the nonlinear sm...

The study of dividend policy has captured the attention of finance scholars since the middle of the last century. There is a literature gap as very few studies have been carried out in the UAE and no study investigated the determinants of dividend payout policy in the UAE banking sector. The objective of this study is to investigate the impact of liquidity and profitability on the dividend poli...

Dividend is the return that an investor receives when purchasing a company’s shares. The decision to pay these dividends to shareholders concerns several other groups of people, such as financial managers, consulting firms, individual and institutional investors, government and monitoring authorities, and creditors, just to name a few. The prediction and modelling of this decision has received ...

Using quarterly data and benchmarks based on past performance-characteristics, I find little evidence that earnings change following 661 dividend decreases and 872 dividend omissions between 1980 and 1998. The exception is that earnings deteriorate during the quarter of dividend omissions, but they recover within a couple of quarters. My results further suggest that the lack of a more pronounce...