The popular argument for convertibles holds that they provide issuers with "cheap" debt and allow them to sell equity at a premium over current value. Objecting to the "free lunch" implied by such an argument, financial economists have offered other explanations that show how the combination of...

Though maturity matching is a common practice in real finance, no academic study has been conducted yet on cross-sectional variations in the degree of maturity matching. This study derives hypotheses on the maturity matching and empirically tests them. We show that firms with a higher degree of...

This paper presents a general cost model and the methods of solution for determining the optimum combination of capacities of the production facilities of a steady-state production system. The model is applied to the practical problem of finding the optimum combination of capacities of the...