Tools
Tools
Pierre, Erwan, Villeneuve, Stéphane
and Warin, Xavier
(2014)
Liquidity Management with Decreasing-returns-to-scale and Secured Credit Line.
TSE Working Paper, n. 14-542, Toulouse
Preview |
Text
Download (636kB) | Preview |
Abstract
This paper examines the dividend and investment policies of a cash constrained firm that has access to costly external funding. We depart from the literature by allowing the firm to issue collateralized debt to increase its investment in productive assets resulting in a performance sensitive interest rate on debt. We formulate this problem as a bi-dimensional singular control problem and use both a viscosity solution approch and a verification tech- nique to get qualitative properties of the value function. We further solve quasi-explicitly the control problem in two special cases.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | November 2014 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Investment, dividend policy, singular control, viscosity solution |
| JEL Classification: | C61 - Optimization Techniques; Programming Models; Dynamic Analysis G35 - Payout Policy |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse 1 Capitole |
| Site: | UT1 |
| Date Deposited: | 04 Jul 2016 08:13 |
| Last Modified: | 02 Apr 2021 15:53 |
| OAI Identifier: | oai:tse-fr.eu:28789 |
| URI: | https://publications.ut-capitole.fr/id/eprint/22190 |
Available Versions of this Item
- Liquidity Management with Decreasing-returns-to-scale and Secured Credit Line. (deposited 04 Jul 2016 08:13) [Currently Displayed]
