We extend the hiring and firing framework of Shepp and Shiryaev (1996) to include infighting, and solve the profit-maximization problem using our numerical technique. With infighting, we find a smaller optimal firm size, and lowered firm value that stems from reduced operations and rapid...

We use our numerical technique to explore the optimality of risk-taking under financial distress. In our model, cash reserves are represented by a Brownian processes that includes an innovation parameter. When this innovation parameter goes to zero, our results show that risk-taking is optimal...

We examine the relationship between equity and foreign exchange markets at, and around, the WM/Reuters benchmark exchange rate known as the the 'Fix'. Execution at the Fix is a service offered by brokers provided they obtain the trade order before 4pm GMT. We have three main goals with this...

Extant voice research suggests that voice has a positive effect on organizations, which indicates that an unlimited amount of resources should be devoted to increasing employee voice. However, resources that can enable and facilitate voice - such as managerial attention and focus - can be costly...

Managers of firms with excess cash tend to misuse it. We extend the Radner-Shepp- Shiryaev framework, to create an incentive mechanism (the ‘carrot') to motivate managers to pay out the cash instead. The problem cannot be solved in closed- form, and we devise a numerical technique to solve it....

We examine the behavior of Fama-French factors across business cycles measured in various ways. We first split up the business cycles into four stages and examine the cumulative returns of factors in each of those stages. We then look at the behavior of the factors after a yield curve inversion...