In today's world of financial uncertainty, one major public concern is to assess (and possibly
improve) the stability of companies that take on risks. Actuaries have been aware of that …

We examine the determinants and implications of holdings of cash and marketable
securities by publicly traded US firms in the 1971–1994 period. In time-series and cross …

We study optimal bank capital choice as a dynamic trade‐off between the opportunity cost of
equity, the loss of franchise value following a regulatory minimum capital violation, and the …

Banks' holding of reasonable capital buffers in excess of minimum requirements could
alleviate the procyclicality problem potentially exacerbated by the rating-sensitive capital …

Financial liberalization often leads to financial crises. This link has usually been attributed to
poorly designed banking systems, an explanation that is largely static. In this paper we …

We consider a class of singular stochastic control problems arising frequently in applications
of stochastic control. We state a set of conditions under which the optimal policy and its …

We consider the optimal stopping of a linear diffusion in a problem subject to both a
cumulative term measuring the expected cumulative present value of a continuous and …

Conceptually, an Islamic bank has an equity-based capital structure, dominated by
shareholders' equity and investment deposits based on profit and loss sharing (PLS). There …

Summary The European Union is increasingly relying on direct payments to support farm
incomes. Recent research has shown that a direct payment may increase production and …

We consider a model in which a firm faces two types of liquidity risks: a Brownian risk and a
Poisson risk. The firm chooses a dividend policy to maximize shareholder value. We …