We solve a deterministic impulse control problem with state dependent continuous control constraints. Impulses shift the state variable, altering subsequent continuous control constraints, making established methods difficult to apply. These functionals arise in the context of firm valuation,...

The paper develops a theory of operational cash holding considering short-term liquidity shocks due to uncertain net working capital. Debt holders provide an irrevocable credit line based on expected insolvency risk, and firms select optimal cash holding maximizing shareholder value. Debt and...

Although many studies have acknowledged the existence of negative offer premiums, where the initial bid undercuts the target's pre-announcement market price, this phenomenon has remained unexplained. Negative premiums occur frequently and are no measurement error. We show theoretically and...