, negative relationship with current and past profitability; and two, positive relationship with past dividends. This provides … empirical evidence to put forward strong support to Pecking Order Theory (POT) in context of profitability and dividends …

technology sector globally. The measure used in this study ROA, ROE, ROIC, ATO, profitability, debt to equity ratio, dividend …

optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA …) of the _rm. According to the empirical evidence, we let profitability follow a mean reverting process. The problem is … solved in a quasiexplicit form by computing both the optimal dividend and the optimal debt. Finally, we calibrate the model …