The Optimal Dividend Payout Model with Terminal Values and Its Application
Joint Authors
Chen, Peimin
Ma, Jiangming
Luo, Xiankang
Source
Mathematical Problems in Engineering
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-12-12
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
For some firms with large nonliquid assets, preferred shareholders can still get back a little bit of money when the firms finish disbursement of loans at the status of bankruptcy.
For such a situation, to investigate the optimal dividend policy, a stochastic dynamic dividend model with nonzero terminal bankruptcy values is put forward in this paper.
Moreover, an analytic solution for the optimal objective function of the discounted dividends is provided and verified.
An important application of this result is that it can be employed to construct the solution for the optimal value function on the dividend problem with bailouts at bankruptcy.
Further, the relationship for the solutions of these two different problems is demonstrated.
In the end, some numerical examples are provided to support our theoretical results and the corresponding economic interpretations are illustrated.
American Psychological Association (APA)
Luo, Xiankang& Chen, Peimin& Ma, Jiangming. 2017. The Optimal Dividend Payout Model with Terminal Values and Its Application. Mathematical Problems in Engineering،Vol. 2017, no. 2017, pp.1-15.
https://search.emarefa.net/detail/BIM-1190686
Modern Language Association (MLA)
Luo, Xiankang…[et al.]. The Optimal Dividend Payout Model with Terminal Values and Its Application. Mathematical Problems in Engineering No. 2017 (2017), pp.1-15.
https://search.emarefa.net/detail/BIM-1190686
American Medical Association (AMA)
Luo, Xiankang& Chen, Peimin& Ma, Jiangming. The Optimal Dividend Payout Model with Terminal Values and Its Application. Mathematical Problems in Engineering. 2017. Vol. 2017, no. 2017, pp.1-15.
https://search.emarefa.net/detail/BIM-1190686
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1190686