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In quantitative finance, there have been numerous new aspects and developments related with the stochastic control and optimization problems which handle the controlled variables of performing the behavior of a dynamical system to achieve certain objectives. In this paper, we address the optimal trading strategies via price impact models using Heston stochastic volatility framework including jump processes either in price or in volatility of the price dynamics with the aim of maximizing expected return of the trader by controlling the inventories. Two types of utility functions are considered: quadratic and exponential. In both cases, the remaining inventories of the market maker are charged with a liquidation cost. In order to achieve the optimal quotes, we control the inventory risk and follow the influence of each parameter in the model to the best bid and ask prices. We show that the risk metrics including profit and loss distribution (PnL), standard deviation and Sharpe ratio play important roles for the trader to make decisions on the strategies. We apply finite differences and linear interpolation as well as extrapolation techniques to obtain a solution of the nonlinear Hamilton-Jacobi-Bellman (HJB) equation. Moreover, we consider different cases on the modeling to carry out the numerical simulations. [ABSTRACT FROM AUTHOR]

In March 2021, the default of Archegos, a US family office, led to large losses for some global banks. Archegos was able to accumulate large exposures to, and leverage on, equities by entering into derivatives transactions with bank counterparties. When the price of the underlying stocks started to decline, the firm was unable to meet variation margins, resulting in the liquidation of the stocks by the counterparty banks. In this paper, European Market Infrastructure Regulation (EMIR) data is used to analyse Archegos' positions and show that it is possible to track the steep increase in concentrated exposures that the family office undertook in February and March 2021. The findings show how regulatory data collected under EMIR can be used to monitor leverage and concentration risk in derivatives markets. [ABSTRACT FROM AUTHOR]

Copyright of Safety & Fire Technology (2657-8808) is the property of Centrum Naukowo-Badawcze Ochrony Przeciwpozarowej and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Indian insolvency regime has undergone a historic change with the introduction of the Insolvency and Bankruptcy Code, 2016. This paper empirically analyses the effectiveness of the Code in the Indian economy. The paper also studies the insolvency frameworks that existed in India, the distinguishing features, and the legal framework of the Code. The analysis of the current status of the Indian insolvency regime with timelines and cross-sectional data clarifies the non-performing assets trajectory, recovery rates, and time required under different recovery mechanisms, a summary of cases under the new Code and the status of India in the international insolvency systems. The empirical evidence of this study suggests that the Code is an improvement over its predecessors in terms of recovery rates, resolution of non-performing assets, and resolution costs. The Code should be subjected to necessary improvements to evolve and become a foolproof mechanism. Suggestions to that effect are offered in the final section. [ABSTRACT FROM AUTHOR]

Landmines still pose a serious threat mostly to civilians. Therefore, there is no doubt that working on the methods of landmines’ detection and liquidation should be considered extremely important. In this paper, we introduce the active infrared thermography with microwave excitation used in nonmetallic landmines’ detection. The effectiveness of the method is strongly dependent on the manner in which microwaves illuminate the ground. In this paper, we propose a new waveguide flange’s construction, which guarantees the uniform field distribution, and through this, a relatively uniform microwave heating on a certain area. The flange’s shape is based on box-horn. Its dimensions will be determined using a hybrid optimization algorithm. Results obtained in an optimization process will be validated using the numerical models. The experiments showing flange’s efficiency, concerning heating of sand itself and sand with buried landmines, will also be presented. [ABSTRACT FROM PUBLISHER]

We present a dynamic, continuous-time model in which risk averse inside equityholders set a bank's lending, payout, and financing policies, and the exposure of bank assets to crashes. We examine whether bailouts encourage excessive lending and risk taking compared to liquidation or bail-ins with debt-to-equity conversion or debt write-downs. The effects of the prevailing insolvency resolution mechanism (IRM) on the probability of insolvency, loss in default, and the bank's value suggest no single IRM is a panacea. We show how a bailout fund financed through a tax on bank dividends resolves bailouts without public money and without distorting insiders' incentives. [ABSTRACT FROM AUTHOR]

Given the current wave of gross inability to meet financial obligations by many business owners, this paper examines the legal and accounting implications of insolvency (leading to bankruptcy) to businesses and its developmental contribution to Nigeria's burgeoning economy. We employed a desk review, exploring the different meanings, implications and consequences of bankruptcy and its applications from literature sources. Literature sources include academic and newspaper publications as well as other relevant articles and internet sources. We find that statutory bankruptcy provisions as well as institutional support for bankruptcy proceedings may still be inadequate to respond to these peculiar times as culture plays its own role. Unfortunately, we could hardly get information on bankruptcy proceedings in Nigeria, which testifies to its suboptimality as an effective debt recovery mechanism. In addition, the difficulty in ascertaining which debtor is trying to sabotage the efforts of their creditors is a significant challenge. Creditors on the other hand are mostly averse to initiating a bankruptcy proceeding due to traditional and socio-cultural concerns. This paper reports the consequence of insolvency leading to Bankruptcy and its implication to business development in Nigeria from the legal and accounting eyes. [ABSTRACT FROM AUTHOR]

The recent decision of the Supreme Court of India in Welspun Specialty Solutions Limited v Oil and Natural Gas Corporation Ltd discusses several issues critical to Indian contract law. The court considered the important issue of the interface between liquidated damages clause and time-as-essence stipulations. This paper discusses the decision and critically evaluates its reasoning. It argues that the question of whether time is of the essence of an agreement is not relevant for determining whether liquidated damages are payable under the agreement. [ABSTRACT FROM AUTHOR]

Prior literature shows that how creditors monitor borrowers and exercise control rights affect borrowers' investment and financial policies, but little is known about their impact on borrowers' operating decisions. The availability of a credit default swap (CDS) reduces creditors' monitoring incentives ex ante but increases their liquidation incentives in the events of default ex post. After the inception of CDS trading, reference firms exhibit an increase in the elasticity of cost structure. Results are consistent in instrumental variable analyses and are robust with alternative matching samples. The increase in cost structure elasticity is more pronounced for firms with greater credit risk and more restrictive covenants and financially constrained firms, and those face greater product market competition and provide higher convexity in managers' compensation. We provide the first evidence showing that managers choose a more elastic cost structure when creditors become less forgiving. Data Availability: All the data used in this paper are from publicly available databases. JEL Classifications: D24; G32; M41. [ABSTRACT FROM AUTHOR]

This paper identifies a new channel through which bankrupt firms undergoing liquidation impose negative externalities on their nonbankrupt peers. The liquidation of a retail chain weakens the economies of agglomeration in any given local area, reducing the attractiveness of retail centers for remaining stores and leading to contagion of financial distress. We find that firms with greater geographic exposure to bankrupt retailers are more likely to close stores in affected areas. We further show that the effect of these externalities on nonbankrupt peers is higher when affected stores are smaller and are operated by firms in financial distress. [ABSTRACT FROM AUTHOR]

Copyright of Faculty of Letters Journal of Social Sciences / Cumhuriyet Üniversitesi Sosyal Bilimler Dergisi is the property of Cumhuriyet University, Faculty of Arts & Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The paper investigates the influence of the speed of liquidation of insolvent firms on leverage. The theoretical model presented formalizes the intuitive view that an increase in liquidation speed is expected to decrease average leverage as highly leveraged firms exit. Analysis of Indian data, however, suggests that an increase in liquidation speed increases average leverage. This finding is linked to influential observations at the right tail of the leverage distribution. We propose an asset-weighted variant of the proposition that holds with empirical data. [ABSTRACT FROM AUTHOR]

Regression is one of the most common statistical tools used in exploring relationships between socio-economic phenomena. Traditional regression models, however, have limited reliability in case of spatial data. One solution to this problem is the geographically weighted regression (GWR), which considers spatial processes as variables. Traditional GWR assumes that all modelled processes operate on the same spatial bandwidth. A novel extension allows each relationship to vary according to different spatial bandwidths, leading to the multiscale geographically weighted (MGWR) method. This paper is comparing standard OLS, GWR and MGWR by investigating corporate liquidation. The author estimated the spatial variability of settlement-level corporate liquidations using meso-level economic, municipal, and transportation data. The findings of the three models indicated that MGWR outperformed the other two methods. Among the economic factors affecting liquidation, the global effect of the unemployment rate and the local effect of per capita income may be observed. The presence of bank branches in the settlement and the weight of the industrial sector significantly impact business liquidations, as well as transportation indicators. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to illustrate an application of Cross-Boarder Insolvency Act 2008 (Cth) as instigated by the joint sitting of the Full Federal Court of Australia and the High Court of New Zealand pertaining to the Halifax Investment Services Pty Ltd liquidation case. Design/ methodology/ approach: The method of investigation employed is a legal method of critical analysis of legislation and case law. Results/ findings: The Halifax Case provides an example of a situation where the Cross-Border Insolvency Act was applied with the cooperation of two separate international jurisdictions. [ABSTRACT FROM AUTHOR]

We study the problem of executing a large multi-asset portfolio in a short time period where the objective is to find an optimal trading strategy that minimizes both the trading cost and the trading risk measured by quadratic variation. We contribute to the existing literature by considering a multi-dimensional geometric Brownian motion model for asset prices and proposing an efficient Markov chain approximation (MCA) approach to obtain the optimal trading trajectory. The MCA approach allows us not only to numerically compute the optimal strategy but also to theoretically analyse the influence of factors such as price impact, risk aversion and initial asset price on the optimal strategy, providing both quantitative and qualitative guidance on the trading behaviour. Numerical results verify the theoretical conclusions in the paper. They further illustrate the effects of cross impact and correlations on the optimal execution strategy in a multi-asset liquidation problem. [ABSTRACT FROM AUTHOR]

Harmonizing Member States' insolvency frameworks has been a goal for the European Union for the past years, dating back to 2016, when the European Commission issued a Proposal for a Directive on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency, and discharge proceedings [COM (2016) 723 final], based on the Commission's Recommendation regarding a new approach to business failure and insolvency [C(2014) 1500 final]. This led to the Directive (EU) 2019/1023 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency, and discharge of debt, and amending Directive (EU) 2017/1132. One key topic addressed by the "Directive proposal" [COM(2022) 702 final] is the "pre-pack proceeding", meant to offer an efficient alternative for safeguarding businesses. Underlining the achievements of this Directive proposal by regulating pre-packed administrative proceedings is our scope in this paper. [ABSTRACT FROM AUTHOR]

Copyright of Revista Brasileira de Previdência is the property of Revista Brasileira de Previdencia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Privatisation together with the related social consequences and impact on the economy represent key challenges facing the former communist countries. This paper aims to assess how the privatisation of socially owned enterprises (SOEs) affects economic growth, entailing an empirical test using a panel effects regression analysis on a sample of 571 SOEs (or 1,600 assets) over a 16-year period (2003–2018). We find that privatisation at the aggregate level does not boost economic growth; in particular, the methods used to privatise SOEs or parts of them are not a determining factor. We also show that the quality of institutions is fragile, confirming a negative associations with economic growth. We also show that the effects of privatisation vary according to the method used, although we note that the sale of SOEs or parts thereof in the first decade of privatisation has been quite selective, devoid of development effects and faced with serious impediments to privatisation funds being directly invested in the economy. [ABSTRACT FROM AUTHOR]

The pattern of fraud in reorganization operations follows a route very well known by economic criminals that is difficult to combat or prove. Frauds that occur in reorganization operations, be they reorganizations, insolvencies, liquidations or mergers, are sometimes at the limit of the law, at least in terms of documentation. However, the Romanian legislation also punishes the intention, which, however, does not appear in supporting documents and thus, represents the main problem in this sector. The aim of this paper is to present and analyze the particularities of fraud in reorganization operations, in terms of merger, insolvency, liquidation, but also other types of fraud that may occur within a company. [ABSTRACT FROM AUTHOR]

This paper proposes a two-period model to examine which bankruptcy procedure is better for both the debtor and creditor when insolvency happens. Our theoretical model depicts how firm size, industry characteristics, equity structure, and debt structure determine firms' bankruptcy resolutions. Using a comprehensive sample of bankrupt firms in the United States, we verify the predictions of a theoretical model. In our study, we deploy Probit and Logit models to address the predictions in the theoretical framework and conduct a series of robustness checks with econometric methods like Propensity Score Matching to confirm the empirical results. This paper finds that firms with larger size have more chance to file for Chapter 11 reorganization when insolvency happens. We also find that firms in asset-heavy (asset-light) industries are more likely to be reorganized (liquidated) under U.S. bankruptcy code. [ABSTRACT FROM AUTHOR]

Two problems appear to be most topical in conjunction with mortgage valuation practices during an economic crisis: the assessment of sustainable long-term mortgage values and the assessment of liquidation discounts to prevailing market values which would provide for the most advantageous liquidation/quick sale strategy. This paper addresses the latter issue, which has traditionally proven intractable to analytical modeling. Apart from reviewing some research devoted to the subject of liquidation value modeling, predominantly from the Eastern European perspective, where this issue has, for years, commanded a particular economic interest, this paper synthesizes the best features of this research and builds on it to propose its own model, which lays equal emphasis on both the sellerside and demand-side perspectives. The first perspective accounts for the financial interests of a lender in forced sale disposals, while the latter perspective engages economic analysis on the side of market feasibility of identified efficient lender disposal strategies. By negotiating both perspectives, an optimal analytic solution to the issue of liquidation value discounts can be obtained. This is achieved by what we call a SI-MI framework which is developed throughout the paper. We also adapt this framework specifically to the mortgage banking context where we use it to bring to light some rarely discussed linkages between the LTV policies of a bank and its mortgage liquidation strategies. This also allows us to propose a model and an LTV formula which can help organize thinking about optimal LTV policies in credit issuing processes. We hope that, with the re-appearance of liquidation value basis/premise of valuation as a recognized international basis of valuation in the new edition of the International Valuation Standards (IVS 2017), the findings of this paper will become topical. [ABSTRACT FROM AUTHOR]

Copyright of Scientific Journal of the Military University of Land Forces is the property of Gen. Tadeusz Kosciuszko Military Academy of Land Forces and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this paper, we generalize the Almgren-Chriss's market impact model to a more realistic and flexible framework and employ it to derive and analyze some aspects of optimal liquidation problem in a security market. We illustrate how a trader's liquidation strategy alters when multiple venues and extra information are brought into the security market and detected by the trader. This study gives some new insights into the relationship between liquidation strategy and market liquidity, and provides a multi-scale approach to the optimal liquidation problem with randomly varying volatility. [ABSTRACT FROM AUTHOR]

This paper constructs a theoretical model to examine the LOLR policy when a central bank can imperfectly screen insolvent from solvent banks. We find that: (1) Central bank screening produces a "positive" stigma associated with central bank borrowing by punishing insolvent banks. (2) With central bank screening, the LOLR policy in fact reduces moral hazard rather than inducing it. (3) If the central bank can better identify solvent and insolvent banks when they apply for central bank loans, it will improve social welfare first by forcing the insolvent banks to efficiently liquidate their assets and second by deterring banks from choosing the risky assets to start with. [ABSTRACT FROM AUTHOR]

The aim of this paper is to question the significance of Derrida's deconstruction of the concepts of subject and history. While 'postmodernity' tends to be characterized by philosophical critique as the 'liquidation of the subject' or the 'end of history', I attempt to show that Derrida's deconstruction of 'subjectivity' and 'historicity' is not an elimination or destruction of these concepts, but an attempt to transform them in order to free them from their metaphysical-teleological presuppositions. This paper argues that this transformation, which begins in Derrida's and continues in Stiegler's texts, leads to the notions of 'psycho-social individuation' and 'doubly epokhal redoubling'. I maintain that such notions 'supplement' the metaphysical concepts of subject and history by forcing a reconsideration of the technical conditions of psychic individuation and the technological conditions of 'epochality'. [ABSTRACT FROM AUTHOR]

The paper analyses the public section of the 2015, 2016 and 2017 resolution plans of the eight largest US Global Systemically Important Banks (G-SIBs). It unfolds the beneficial effects that the statutory obligation to draft such plans had on the rationalisation of groups' structure and on US G-SIBs insolvency preparedness. However, the detailed analysis of those plans also shows how banks have almost uniformly chosen a Single Point of Entry (SPOE) resolution strategy which may not be rapid and orderly and may not be the most effective strategy overall given the location and the type of entities covered. This leads the author to argue that the choice of an SPOE may be the preferred option of the relevant US Agencies, leading to a phenomenon of 'regulatees' capture'. The paper also shows how in case of insolvency of a US based G-SIB with entities located in the EU, tensions may arise with the relevant EU authorities. This is mainly because of the uncertainty driven: by non-uniform triggering events; by the existence of two types of resolution plans in the US; by the over-reliance on pre-positioned loss absorbing capital at group level (which may not overcome the double leverage problem); by deficiencies in US law to deal with the liquidation of G-SIBs under an SPOE; and by a possibly different regulatory culture in the US and the EU which may afford dissimilar degrees of protection to bank stakeholders. [ABSTRACT FROM AUTHOR]

This paper derives closed-form solutions for values of debt and equity in a continuous-time structural model in which the demands of creditors to be repaid cause a firm to be put into bankruptcy. This allows discussion of the effect of creditor coordination in recovering money on the values of debt, equity, and the firm, as well as on optimal capital structure. The effects of features of bankruptcy codes that prevent coordination failures between creditors, such as automatic stays and preference law, are also considered. The model suggests that such features, while preventing coordination failures, can decrease welfare. [ABSTRACT FROM PUBLISHER]

The pricing of corporate debt is still a challenging and active research area in corporate finance. Starting with Merton (1974), many authors proposed a structural approach in which the value of the assets of the firm is modeled by a stochastic process, and all other variables are derived from this basic process. These structural models have become more complex over time in order to capture more realistic aspects of bankruptcy proceedings. The literature in this area emphasizes closed-form solutions that are derived by either partial differential equation methods or analytical pricing techniques. However, it is not always possible to build a comprehensive model with realistic model features and achieve a closed-form solution at the same time. In this paper, we develop a binomial lattice method that can be used to handle complex structural models such as ones that include Chapter 11 proceedings of the U.S. bankruptcy code. Although lattice methods have been widely used in the option pricing literature, they are relatively new in corporate debt pricing. In particular, the limited liability requirement of the equity holders needs to be handled carefully in this context. Our method can be used to solve the Leland (1994) model and its extension to the finite maturity case, the more complex model of Broadie, Chernov, and Sundaresan (2007), and others. [ABSTRACT FROM AUTHOR]

This paper provides a competitive equilibrium model of capital structure and industry dynamics. In the model, firms make financing, investment, entry, and exit decisions subject to idiosyncratic technology shocks. The capital structure choice reflects the tradeoff between the tax benefits of debt and the associated bankruptcy and agency costs. The interaction between financing and production decisions influences the stationary distribution of firms and their survival probabilities. The analysis demonstrates that the equilibrium output price has an important feedback effect. This effect has a number of testable implications. For example, high growth industries have relatively lower leverage and turnover rates. [ABSTRACT FROM AUTHOR]

There have been several cases in recent years where credit default swap (CDS) buyers and sellers intervene in the restructuring of a distressed firm. We show theoretically that this can increase firm value. Intervention by CDS buyers solves the commitment problem between equity and debt holders but increases the probability of inefficient liquidation. Intervention by CDS sellers reduces the issue of excessive liquidation while keeping the benefits of CDS buyer intervention. Having both types of intervention decouples the commitment problem from the liquidation problem. Under certain assumptions, the so-called empty creditor problem can be solved, and firm value reaches first best. This paper was accepted by Lukas Schmid, finance. Supplemental Material: The internet appendix is available at https://doi.org/10.1287/mnsc.2023.4717. [ABSTRACT FROM AUTHOR]

The present paper is focused on the solution of optimal control problems such as optimal acquisition, optimal liquidation, and market making in relation to the high-frequency trading market. We have modeled optimal control problems with the price approximated by the diffusion process for the general compound Hawkes process (GCHP), using results from the work of Swishchuk and Huffman. These problems have been solvedusing a price process incorporating the unique characteristics of the GCHP. The GCHP was designed to reflect important characteristics of the behaviour of real-world price processes such as the dependence on the previous process and jumping features. In these models, the agent maximizes their own utility or value function by solving the Hamilton–Jacobi–Bellman (HJB) equation and designing a strategy for asset trading. The optimal solutions are expressed in terms of parameters describing the arrival rates and the midprice process from the price process, modeled as a GCHP, allowing such characteristics to influence the optimization process, aiming towards the attainment of a more general solution. Implementations of the obtained results were carried out using real LOBster data. [ABSTRACT FROM AUTHOR]

Copyright of Istanbul Commerce University Journal of Social Sciences / İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi is the property of Istanbul Commerce University Journal of Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article presents case studies of several financial markets and institutions. Vulnerabilities and funding mechanism are examined. The mitigation of financial market stress and restoration of liquidity among intermediaries are also evaluated. An overview of the concept of an asset-backed commercial paper is provided.

The European Union (EU) has been debating for several years whether to change from the legal capital regime as regulated under the Second Company Law Directive to a solvency test regime as applied in the USA, for example. Based on an analysis of direct compliance costs and capital maintenance systems in non-EU countries, the EU decided not to change the regulatory regime in the short term. This paper focuses on the indirect costs of these two regimes. The paper develops a model in which payouts are restricted by one of the two regimes and the equity holders have the choice between extending and liquidating the existing investments. I find that both regimes will create first-best incentives if their respective design parameters are properly balanced. Under a legal capital regime, however, first-best will be a random event, because accounting standards typically do not allow for the necessary interdepencies between the accounting for liabilities and investments. The advantage of a solvency test with respect to the implementation of first-best incentives diminishes if equity holders can misreport future prospects. Under the legal capital regime, misreporting incentives can be excluded by sufficiently conservative depreciation. A solvency test designed to achieve efficient decisions will always create incentives to overstate future cash flows. [ABSTRACT FROM PUBLISHER]

This paper is written against the background of frequent bank failures, mergers and winding-up of banks which have caused a great deal of apprehension in the minds of bank customers, depositors and creditors in Nigeria. The paper therefore is aimed at interrogating the legislative intervention in this regard and in particular the role that the Nigeria Deposit Insurance Act has played in mitigating the uncertainty and hardship that has been occasioned by incessant bank failures in the country. The method of research here is the use of the NDIC Act and other related legislation as primary sources of research in addition to secondary sources such as works authored by legal scholars. The paper has found that legislative intervention has reduced the incidents of bank failure and also offered a number of protections to bank customers and their deposits. The paper has however, discovered shortcomings in the law that need to be amended if bank deposits are to be accorded adequate protection in the event of liquidation or winding up. It has therefore recommended, among other things, the proportionate repayment of bank deposits in the event of liquidation, intensification of the work of bank examiners, and increased penal sanctions on bank directors and senior management staff whose actions cause bank failure. The overall implication of the study is that when its recommendations are implemented there would be greater confidence and stability in the banking sector which would in turn boost economic growth in the country. [ABSTRACT FROM AUTHOR]

The presence of strategic customers may force an already financially distressed firm into a death spiral: sensing the firm's financial difficulty, customers may wait strategically for deep discounts in liquidation sales. In turn, such waiting lowers the firm's profitability and increases the firm's bankruptcy risk. Using a two-period model to capture these dynamics, this paper identifies customers' strategic waiting behavior as a source of a firm's cost of financial distress. We also find that customers' anticipation of bankruptcy can be self-fulfilling: when customers anticipate a high bankruptcy probability, they prefer to delay their purchases, making the firmmore likely to go bankrupt than when customers anticipate a low probability of bankruptcy. Such behavior has important operational and financial implications. First, the firm acts more conservatively when facing either more severe financial distress or a large share of strategic customers. As its financial situation deteriorates, the firmlowers inventory alone when financial distress is mild or only a small share of customers are strategic and lowers both inventory and price in the presence of severe financial distress and a large fraction of strategic customers. Under optimal price and inventory decisions, strategic waiting accounts for a large part of the firm's total cost of financial distress, although a larger proportion of strategic customers may result in a lower probability of bankruptcy. In addition to inventory reduction and (immediate) price discount, we find that a deferred discount, in the form of rebates and/or store credits for future purchases, can act as an effective mechanism to mitigate strategic waiting. As a contingent price reduction, deferred discounts align the interests of customers and the firm and are most effective when the fraction of strategic customers is high and the firm's financial distress is at a medium level. [ABSTRACT FROM AUTHOR]

The article discusses the wooden money of Citizens Bank of Tenino, Washington. On December 7, 1931, the Citizens Bank of Tenino closed its doors. This was only one of 1,055 bank suspensions in the fourth quarter of 1931. The issue of paper scrip has been resorted to by other communities under similar circumstances in order to stimulate local trade and hence was in no sense unique. When the bank closed, the buying power of the depositors was at once frozen. The receiver of the bank estimated that a liquidating dividend of 25 per cent could be paid within a few months. Thousands of autos pass through the town daily, especially during the tourist season. Every Main Street service station, hotel, and restaurant advertised wooden money. More than one gasoline tank has been filled or meal served in recent months because the tourist had heard of wooden money and wanted to obtain samples. The extent to which the community will profit from outside sales of wooden money cannot be determined until the liquidation is closed.

This paper aims at making a synthesis of the fiscal aspects related to incomes from investments earned by natural persons. We have taken into account the criteria used to classify incomes from investments. For each category of incomes from investments, we will present the obligations concerning the calculation, the calculation, declaration and payment of the tax on incomes from investments and social security contributions. In order to facilitate the understanding of how tax laws are applied, in the case of incomes from dividends and interests examples are given from the financial and accounting activity of the legal entities that are taxpayers for taxes on incomes from investments. [ABSTRACT FROM AUTHOR]