We develop a continuous-time real options pricing model to study managers’incentives to cheat in the presence of equity …-based compensation policies.We show that managers’ incentives to cheat are strongly influenced by theefficiency of the justice. Our model …’s main result is that managers havegreater incentives to misreport with stock options than with common stocks.We finally …

preservation or enhancementof short term stock value around the earnings announcement has become a priority for managers …

constant volatility. In this paper, we examine the best performing parametric models against nonparametric alternatives. In … particular, we study the stochastic volatility (SV) and stochastic volatility randomjump (SVJ) models as parametric benchmarks …

We show that the volatility of a price process, which is usuallyregarded as an impediment to financial growth, can serve …

and Stein stochastic volatility model driven by two correlated Brownian motion. It turns out that in case the mean …

complex models as for example stochastic volatility model of Barndorff-Nielsen and Shephard (2001) have been developed. This … in future volatility.[...] …

the forward interest rate volatility but very sensitive to the forward credit spread volatility. …

adjusted to the volatility structure. The proposed approach leads to an efficient and exible constron met for trinomial trees …