Fiche du document
2022
- handle: 10670/1.ctwx4f
- hal: hal-04164661
- doi: 10.1016/j.jet.2022.105522
- WOS: 000848083500003
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jet.2022.105522
info:eu-repo/semantics/OpenAccess
Mots-clés
Corporate cash management Corporate life cycle Learning Singular control C - Mathematical and Quantitative Methods/C.C0 - General/C.C0.C02 - Mathematical Methods C - Mathematical and Quantitative Methods/C.C1 - Econometric and Statistical Methods and Methodology: General/C.C1.C11 - Bayesian Analysis: General C - Mathematical and Quantitative Methods/C.C6 - Mathematical Methods • Programming Models • Mathematical and Simulation Modeling/C.C6.C61 - Optimization Techniques • Programming Models • Dynamic Analysis G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G33 - Bankruptcy • Liquidation G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G35 - Payout PolicySujets proches
Standard of value Stage Dramatics Histrionics Theatre Professional theater Stage Drama, Modern Plays Drama--Philosophy Capitalization (Finance) Managerial finance Corporate financial management Financial management of corporations Financial management, Corporate Corporate finance Corporation finance Financial analysis of corporations Business finance Financial planning of corporations Stage HistrionicsCiter ce document
Jean-Paul Décamps et al., « Learning about profitability and dynamic cash management », HAL-SHS : économie et finance, ID : 10.1016/j.jet.2022.105522
Métriques
Partage / Export
Résumé
We study a dynamic model of a firm whose shareholders learn about its profitability, face costs of external nancing and costs of holding cash. The shareholders' problem involves a notoriously challenging singular stochastic control problem with a two-dimensional degenerate diffusion process. We solve it by means of an explicit construction of its value function, and derive a corporate life-cycle with two stages: a "probation stage" where it is never optimal for the firm to issue new shares, and a "mature stage" where the firm resorts to the market whenever needed. The cash target level is non-monotonic in the belief about the profitability and reaches its highest value on the edge between the two stages. It follows new insights on the firm's volatility and its payout ratio which depend on the firm's stage in its life cycle.