Purpose – The purpose of this paper is to present a model and simulation results for the corporate financial value of an industry in a cobweb economy. Production‐consumption cycles affect profit and financial needs in terms of equity and debt capital, and thus corporate value over time. The...

Financial modelling is extensively used in all sectors of today’s business environments. In particular, it is used as a tool in the preparation of plans, budgets and many corporate projections. Simulation modelling is not widely used in this area, although it is popular and used in other areas...