Concept
Pecking order theory
Related publications (10)
Essays in Bank Financing
This thesis examines the optimal mode of financing for banks and financial institutions. The first chapter, which is a joint work with Prof. Jean-Charles Rochet, investigates how Systemically Important Financial Institutions (SIFIs) should be financed. The ...
EPFL2017Noncommutative Valuation of Options
The aim of this note is to show that the classical results in finance theory for pricing of derivatives, given by making use of the replication principle, can be extended to the noncommutative world. We believe that this could be of interest in quantum pro ...
2016Capital Supply Uncertainty, Cash Holdings, and Investment
Semyon Malamud, Erwan Morellec, Julien Hugonnier
We develop a model of investment, financing, and cash management decisions in which investment is lumpy and firms face uncertainty regarding their ability to raise funds in the capital markets. We characterize optimal policies explicitly and show that the ...
2013Endogenous Dividend Dynamics and the Term Structure of Dividend Strips
Many leading asset pricing models predict that the term structure of expected returns and volatilities on dividend strips are upward sloping. Yet the empirical evidence suggests otherwise. This discrepancy can be reconciled if EBIT dynamics are combined wi ...
2012Corporate governance and capital structure dynamics
Erwan Morellec, Norman Schuerhoff, Boris Nikolov
We develop a dynamic tradeoff model to examine the importance of managershareholder conflicts in capital structure choice. In the model, firms face taxation, refinancing costs, and liquidation costs. Managers own a fraction of the firms equity, capture par ...
2012Corporate investment and financing under asymmetric information
Erwan Morellec, Norman Schuerhoff
We develop a dynamic model of corporate investment and financing decisions in which corporate insiders have superior information about the firm's growth prospects. We show that firms with positive private information can credibly signal their type to outsi ...
2011Collaborative working capital management in supply networks
Supply chain management is widely accepted as a means for companies to gain competitive advantage. While product and information flows have been widely covered in the literature, relatively little attention has been paid to the management of a supply chain ...
EPFL2010Large-Scale PIV surface flow measurements in shallow basins with different geometries
Anton Schleiss, Sameh Ahmad Kantoush
Shallow depth flow fields and low velocity magnitudes are often challenges for traditional velocity measuring instruments. As such, new techniques have been developed that provide more reliable velocity measurements under these circumstances. In the presen ...
2009Large-scale PIV surface flow measurements in shallow basins with different geometries
Anton Schleiss, Sameh Ahmad Kantoush
Shallow depth flow fields and low velocity magnitudes are often challenges for traditional velocity measuring instruments. As such, new techniques have been developed that provide more reliable velocity measurements under these circumstances. In the presen ...
2009Capital structure and asset prices: Some effects of bankruptcy procedures
We examine the impact of the U.S. bankruptcy procedure on the valuation of corporate securities and capital structure decisions. We provide closed-form solutions for corporate debt and equity values when defaulting firms can either liquidate their assets o ...
2004