Production planning is performed through diverse methods according to the type of the system it is structured upon. One of the most important steps before production planning is to determine which system best fits the firm, and how the facilities should be designed. Both job-shop and group-technology systems have their own pros and cons, each of which is suitable to a specific kind of factory. ...

The evidence presented here is inconsistent with variants of corporate finance theory which hold that the option properties of growth opportunities or asset substitution incentives are first-order determinants of equity values, but it is supportive of risk management and capital structure theories that emphasize the costs of cash flow volatility. Specifically, controlling for known determinants...

________________________________________________________________________ Abstract. The Firm-Value Risk Model combines the technology of actuarial optimal dividends models with insights regarding financial frictions from financial economics, especially as they apply to risk transfer in (re)insurance firms. This paper illustrates, by numerical solution of a set of case studies, how certain styliz...

An extensive finance literature has suggested that independent (outside) directors monitor firm management and thereby increase firm value. Monitoring by a firm’s independent directors is, however, costly and the level of board monitoring should be endogenously determined as a function of firm characteristics. We show that a negative relationship between board monitoring and uncertainty is a di...

In this empirical study, we investigate the effects of IT investments on firm risk-return profile, emphasizing the complementarities between IT investments and firm boundary strategies; i.e., diversification and vertical integration. Our results are consistent with a strong moderating role of IT in leveraging firm boundary strategies on both the return and risk dimensions of firm financial perf...

We study how financial flexibility impacts on firm's investment decisions under uncertainty. use a comprehensive dataset covering US firms for the period 1983–2019. develop baseline model of uncertainty and characterize bindingness constraints. then this to explore firms’ responses in presence constraints different assumptions regarding value they assign flexibility. Our results point negative ...