• Publications
  • Influence
Real options, agency conflicts, and optimal capital structure
Abstract We examine the impact of a stockholder–bondholder conflict over the timing of the exercise of an investment option on firm value and corporate financial policy. We find that anExpand
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On the investment-uncertainty relationship in a real options model
Abstract It appears to be widely accepted in the real options literature that an increase in uncertainty should have an inhibiting effect on investment. Our article demonstrates that the notion of aExpand
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The effect of mean reversion on investment under uncertainty
Abstract Mean-Reverting processes are appropriate for most “real option” investment models, yet Geometric Brownian Motion (GBM) processes are generally used for tractability. Hassett and Metcalf (J.Expand
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Can tax convexity be ignored in corporate financing decisions
The standard modeling practice in corporate finance has been to assume a linear tax schedule. This paper extends the structural contingent-claim model of corporate finance to incorporate a moreExpand
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Optimal Dividend Policy with Mean-Reverting Cash Reservoir
Motivated by empirical evidence and economic arguments, we assume that the cash reservoir of a financial corporation follows a mean reverting process. The firm must decide the optimal dividendExpand
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Early and late calls of convertible bonds: Theory and evidence
Many convertible bonds are called too early or too late relative to the perfect markets decision rule of Ingersoll, 1977a and Ingersoll, 1977b. We re-examine the convertible call decision underExpand
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The Trade-Off Model with Mean Reverting Earnings: Theory and Empirical Tests
The 'trade-off theory' of capital structure predicts a positive relationship between earnings and leverage, contradictory to well established empirical evidence. Since corporate earnings are known toExpand
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Commodity betas with mean reverting output prices
This paper provides a theoretical derivation of commodity beta (stock price sensitivity to commodity price) using a contingent-claim model. The model incorporates operating leverage, financialExpand
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Large-Eddy Simulation of Wake and Boundary Layer Interactions Behind a Circular Cylinder
Large-eddy simulations (LESs) of flow past a circular cylinder in the vicinity of a flat plate have been carried out for three different gap-to-diameter (G/D) ratios of 0.25, 0.5, and 1.0 (where GExpand
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Vortex dynamics of a cylinder wake in proximity to a wall
Abstract Large-eddy simulations (LES) are used to investigate the modifications of wake dynamics and turbulence characteristics behind a circular cylinder placed near a wall for varyingExpand
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