The optimal dividend payout model with terminal values and its application
type: Item
instance of: scholarly article
title: The optimal dividend payout model with terminal values and its application
zbMATH Open document ID: 1427.91239
DOI: 10.1155/2017/5285690
author: Xiankang Luo
author: Pei-Min Chen
author: Jiangming Ma
published in: Mathematical Problems in Engineering
publication date: 2018-11-05T00:00:00Z
review text: Summary: 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.
Mathematics Subject Classification ID: 91G05
Mathematics Subject Classification ID: 93E20
zbMATH DE Number: 6972208
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2017/5285690
OpenAlex ID: W2775428192
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description: scientific article; zbMATH DE number 6972208