Associating corporate performance and shareholder value creation to growth in earnings (or sales) has been the modus operandi in the investment industry, greatly influencing managerial compensation schemes and portfolio decisions. This paper sheds light on the relationship between growth and...

Multiple peril insurance schemes (e.g., revenue and earnings insurance) provide protection against adverse movements in several named risks. Their indemnity payoff function resembles that of exotic options with complex contingencies. In this paper we show how the option-based pricing techniques...

In the presence of uncertainty and irreversibility, dynamic decision problems should not be solved using expected net present value analysis. The right to delay a decision can be valuable. We show that the value of this right equals Arrow and Fisher's [K. J. Arrow and A. C. Fisher, Environmental...

Associating corporate performance and shareholder value creation with growth in earnings (or sales) has been the modus operandi in the investment industry. It has greatly influenced managerial compensation schemes and portfolio decisions. We shed light on the relationship between growth and...

We examine the impact of stock market wealth and business cycles on gambling. Rising stock market wealth is expected to increase expenditures on entertainment goods, including gambling. Conversely, rising volatility is expected to draw betting outlays to the stock markets. Gambling is also...