Optimal Operating Strategies under Stochastic Cash Flows

Name: Optimal Operating Strategies under Stochastic Cash Flows
Price: 67.73 USD
Availability: InStock
ISBN: 9783846508107

ISBN-10: 3846508101

ISBN-13: 9783846508107

Edition: N/A

Authors: Arnav Sheth

List price: $59.00

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Description:

We solve a series of four stochastic control problems for a firm whose cash flows are a diffusion process that includes (individually): (i) Financial distress costs; (ii) Costs of company politics; (iii) Agency costs of free cash flow and; (iv) Physical asset upgrades. Amongst other things, our results show that: (a) There are conditions for which asset substitution (risk taking when close to broke) is optimal, with financial distress costs; (b) When politicking amongst employees exists, it is optimal to keep the firm extremely small by downsizing frequently; (c) Increasing the free cash boundary (or equivalently increasing cash obligations) would reduce the agency costs associated with…

Book details

List price: $59.00
Publisher: Lambert Academic Publishing
Binding: Paperback
Pages: 180
Size: 6.00" wide x 9.00" long x 0.41" tall
Weight: 0.594
Language: English