This paper presents an application of risk sensitive control theory in financial decision making. Specifically, we develop optimal, risk-sensitive investment strategies for a long-term investor who is interested in optimal allocation of her/his capital between cash, equities and fixed income instruments. The long-term fixed income instruments used are so called rolling-horizon bonds. In order t...

Does being located near institutional investors benefit corporations? We examine whether the ‘presence’ of local institutional investors, as measured by the equity assets under management of local institutions, reduces information asymmetry in the stock market. Firms in high institutional presence areas experience higher liquidity, faster information incorporation, lower costs of equity capital...

Three main types of mortgages are fixed interest contracts which automatically fall due on the sale of a dwelling, fixed rate loans which are assumable by a buyer, and floating rate instruments. When interest rates rise, the fall in the economic value of these assets in savings and loan associations' portfolios varies from one form of mortgage to another. For either of the fixed interest rate c...

1 The electoral consequences of the change in federal grant spending per capita. These six models replicate the results from Tables 1-4 in the manuscript using the change in per capita grant spending in a county as the independent variable of interest, instead of the percentage change in grant spending in the county. The results are substantively identical to those presented in the manuscript. ...

The simplest net working capital can be defined as the difference between value of current assets and short-term liabilities together with other accruals. It is equivalent to part financed equity, provisions for liabilities, long-term remaining Therefore, it that finances only are not liabilities. This amount fixed capital. Summing up, company’s assets.