Title :
A Model on Corporate Investment and Financial Decisions
Author :
Lin, Sida ; Wang, Fengxia ; Ren, Shuming ; Xia, Zunquan
Author_Institution :
Sch. of Math. Sci., Univ. of Technol., Dalian, China
fDate :
June 30 2009-July 2 2009
Abstract :
The relationship between the corporate investment and financing decisions is one of the important issues in the corporate finance theory. This paper aimed at how managers develop reasonable investment and financing strategies to maximize the corporate profits. We construct a constrained optimization model as a decision tool for optimal investment strategies and optimal capital structure. A risk constraint based on VaR and CVaR is introduced in this paper, which can reflect the corporate financial risks more intuitively and reasonably than traditional methods.
Keywords :
decision making; investment; optimisation; risk analysis; CVaR; VaR; constrained optimization model; corporate finance theory; corporate financial risks; corporate investment; decision tool; financial decisions; optimal capital structure; optimal investment strategies; risk constraint; Constraint optimization; Costs; Decision making; Electronic mail; Finance; Financial management; Industrial relations; Investments; Mathematical model; Reactive power; CVaR; Capital structure; Investment decision; Risk constraint; VaR;
Conference_Titel :
New Trends in Information and Service Science, 2009. NISS '09. International Conference on
Conference_Location :
Beijing
Print_ISBN :
978-0-7695-3687-3
DOI :
10.1109/NISS.2009.214
