We analyse the effect of differing uncertainty assumptions on the costs of shareholder-bondholder conflicts arising from partially debt-financed investments. A partial equilibrium model, valid for a large class of diffusion processes, is developed and then applied to the specific cases of a...

The implementation of enterprise systems has facilitated the development of shared data environments within organizations and conjointly the capability for broader based management control systems (MCS). Yet, several studies have found that most organizations have experienced little change in...

Purchasing goods from distant locations introduces a significant lag between when a product is shipped and when it arrives. These transit lags are trade barriers for firms facing volatile demand, who must place orders before knowing the resolution of demand uncertainty. We provide a model in...

The current study draws upon the real option portfolio theory to examine the relationship between deregulation and corporate entrepreneurship. We propose that a firm could respond to deregulation with variance-enhancing corporate entrepreneurial activities (CEAs), which increase the portfolio...

The EU Emissions Trading Scheme challenges the cost-competitiveness of energy-intensive industries in Europe, and induces them to search for low-carbon alternatives for their process heat requirements, such as cogeneration or the employment of nuclear power plants. The high-temperature nuclear...

Valuation of infrastructure systems under climate change is a challenging issue because climate changes constantly and the influence of climate change is hardly predictable. Serious climate change effects can often be represented by frequent heavy rainfall events and floods. In response,...