The basic financial purpose of corporation is creation of its value. Liquidity management should also contribute to realization of this fundamental aim. Many of the current asset management models that are found in financial management literature assume book profit maximization as the basic financial purpose. These book profit-based models could be lacking in what relates to another aim (i.e., ...

Corporate diversification is widely believed to be inefficient. It runs against one of the oldest ideas in economics, that specialization is productive. A popular explanation for its prevalence is that firms are plagued with agency problems that allow managers to enter new businesses (from which they privately benefit) at the expense of shareholders. However, the empirical evidence suggests tha...

This paper analyses the efficrency imphcations of property value maxtmizatron Commumties are open, so that utilities are parametric to housing producers and the local government. Each local government chooses its public good output to max. mire aggregate property value in the commumty, ignoring feedback effects on the composition of the housing stock. It is shown that this type of government be...

In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakehold? ...

This tutorial attempts to provide a gentle introduction to EM by way of simple examples involving maximum-likelihood estimation of mixture-model parameters. Readers familiar with ML paramter estimation and clustering may want to skip directly to Sections 5.2 and 5.3.