Search
 
loader loading subjects...
cover
Stochastic Control Methods for the Joint Optimization of the Risk and Dividend Policies of a Firm
Abel Cadenillas
53 - 68
10.3233/978-1-60750-835-9-53
Studies in Probability, Optimization and Statistics
Volume 4: New Trends in Financial Engineering
Abstract

We consider a firm that simultaneously controls its risk and dividend policies. However, a reduction in risk generates a reduction in its potential profits. The management also decides the times and the amount of dividends to be paid out to the shareholders, taking into account that there are fixed costs and taxes associated with each dividend payment. We present a survey that shows how the methods of mixed classical-impulse stochastic control can be applied to model and solve these problems. We also present some open problems.

$35.00 / €27.50 / £22.00
Add PDF to cart