Optimal Monetary Provisions in Plural Form Franchise Systems: A Theoretical Model of Incentives with Two Risk-Averse Agents

Futures Markets and Firm Decisions Under Price, Production, and Financial Uncertainty

Journal of Agricultural and Applied Economics ◽

10.1017/s0081305200006099 ◽

1986 ◽

Vol 18 (2) ◽

pp. 39-50 ◽

Cited By ~ 7

Author(s):

Vickie J. Alexander ◽

Wesley N. Musser ◽

George Mason

Keyword(s):

Risk Management ◽

Theoretical Model ◽

Futures Markets ◽

Theory Of The Firm ◽

Marketing Strategies ◽

Financial Risks ◽

Risk Averse ◽

Optimal Amount ◽

Financial Uncertainty ◽

Fixed Quantity

AbstractIncorporation of futures markets into the theory of the firm under uncertainty has received considerable attention in risk management. A theoretical model of optimal firm decisions in cash and futures markets considering price, production, and financial risks is presented. Production and marketing strategies for corn and soybeans in Georgia and Illinois are analyzed to determine the optimal amount of futures contracting which may be a hedge or a speculative position. A partial hedge is optimal for most situations for risk averse producers when the amount hedged is variable. With fixed quantity transactions, speculative and cash positions, but not hedging, tend to be E-V efficient.

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Information asymmetry and incentive contracting with the tax department

Review of Accounting and Finance ◽

10.1108/raf-04-2016-0063 ◽

2017 ◽

Vol 16 (3) ◽

pp. 385-402 ◽

Cited By ~ 1

Author(s):

Horn-chern Lin ◽

Tao Zeng

Keyword(s):

Theoretical Model ◽

Information Asymmetry ◽

Private Information ◽

Relevant Information ◽

Tax Planning ◽

Risk Averse ◽

Content Type ◽

Incentive Schemes ◽

The Impact ◽

Optimal Incentives

Purpose This paper aims to examine the design of optimal incentives for a firm’s tax department in the presence of information asymmetry. Design/methodology/approach This paper provides a theoretical model to examine the design of optimal incentives. The focus is on a situation in which a risk-averse tax department has private information about its efficiency type or effort to be exerted before the firm sets the incentive schemes. Findings This paper shows that a tax department’s risk aversion leads to a decline in the fraction of the cost borne by the tax department. It also shows that the optimal contract schemes should be designed to filter out as much uncontrollable risk as possible by using third-party information relevant to a tax department’s realized cost. Social implications It contributes to a better understanding of the impact of corporate incentive plans on firms’ tax practices. This study, by designing a theoretical model, helps explain why there exist differences in tax planning across firms based on the finding that incentives for tax planning activities differ across firms. Originality/value This paper is the first study that considers the situation in which tax managers’ risk-averse and types, as well as relevant information collected by the firms, can be used to set up incentive schemes and investigates whether and how the incentive schemes will be affected when firms improve their prior information by acquiring relevant information before the tax department acts.

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Sovereign Debt Restructurings: Delays in Renegotiations and Risk Averse Creditors

Journal of the European Economic Association ◽

10.1093/jeea/jvz080 ◽

2020 ◽

Vol 18 (5) ◽

pp. 2394-2440 ◽

Cited By ~ 1

Author(s):

Tamon Asonuma ◽

Hyungseok Joo

Keyword(s):

Quantitative Analysis ◽

Theoretical Model ◽

Business Cycles ◽

Sovereign Debt ◽

Gdp Growth ◽

Risk Averse ◽

Stylized Facts ◽

Theoretical Predictions ◽

Financial Cycles

Abstract Foreign creditors’ business cycles influence both the process and the outcome of sovereign debt restructurings. We compile two datasets on creditor committees and chairs and on creditor business and financial cycles at the restructurings. We find that when creditors experience high GDP growth, restructurings are delayed and settled with smaller haircuts. To rationalize these stylized facts, we develop a theoretical model of sovereign debt with multiround renegotiations between a risk averse sovereign debtor and a risk averse creditor. The quantitative analysis of the model shows that high creditor income results in both longer delays in renegotiations and smaller haircuts. Our theoretical predictions are supported by data.

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A theoretical model for understanding dentists' behavior in treating patients with AIDS

Journal of Dental Education ◽

10.1002/j.0022-0337.1991.55.11.tb02589.x ◽

1991 ◽

Vol 55 (11) ◽

pp. 708-716 ◽

Cited By ~ 1

Author(s):

MS Chen

Keyword(s):

Theoretical Model

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Life after Heart Transplantation

European Psychologist ◽

10.1027//1016-9040.7.4.285 ◽

2002 ◽

Vol 7 (4) ◽

pp. 285-294 ◽

Cited By ~ 2

Author(s):

Lucia Savadori ◽

Lorella Lotto ◽

Rino Rumiati

Keyword(s):

Heart Transplantation ◽

Frame Of Reference ◽

Physician Communication ◽

Risk Averse ◽

Medical Team ◽

Perceived Knowledge ◽

Surgical Technology ◽

Postoperative Therapy ◽

Life Expectation ◽

Risk Judgments

Progress in surgical technology and in postoperative therapy has remarkably increased life expectation after heart transplantation. Nevertheless, patients still show a resistance to resume a normal life after transplantation, for example, to return to work. In this study we assume that after surgery patients become risk averse because they achieve a positive frame of reference. Because of this propensity toward risk aversion, they withhold from engaging in behavior that their physical condition would allow them in principle. Coherent with this assumption we found that compared to the medical team patients overestimate the degree of risk for routine activities. The study also showed that the representation of risk by the patients could be captured by a dreadfulness factor and a voluntariness factor. Patients' risk judgments were strongly and specifically predicted by the perceived degree of dreadfulness of the activity and, to a lesser extent, by the perceived knowledge of the consequences. Implications for patient-physician communication were explored.

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A Model for Analyzing Suicide Prevention

Crisis ◽

10.1027//0227-5910.21.2.80 ◽

2000 ◽

Vol 21 (2) ◽

pp. 80-89 ◽

Cited By ~ 3

Author(s):

Maila Upanne

Keyword(s):

Risk Factors ◽

Theoretical Model ◽

Protective Factors ◽

Suicide Prevention ◽

Suicide Risk ◽

Practical Work ◽

Individual Risk ◽

Self Assessment ◽

Prevention Project ◽

Individual Risk Factors

This study monitored the evolution of psychologists' (n = 31) conceptions of suicide prevention over the 9-year course of the National Suicide Prevention Project in Finland and assessed the feasibility of the theoretical model for analyzing suicide prevention developed in earlier studies [ Upanne, 1999a , b ]. The study was formulated as a retrospective self-assessment where participants compared their earlier descriptions of suicide prevention with their current views. The changes in conceptions were analyzed and interpreted using both the model and the explanations given by the subjects themselves. The analysis proved the model to be a useful framework for revealing the essential features of prevention. The results showed that the freely-formulated ideas on prevention were more comprehensive than those evolved in practical work. Compared to the earlier findings, the conceptions among the group had shifted toward emphasizing a curative approach and the significance of individual risk factors. In particular, greater priority was focused on the acute suicide risk phase as a preventive target. Nonetheless, the overall structure of prevention ideology remained comprehensive and multifactorial, stressing multistage influencing. Promotive aims (protective factors) also remained part of the prevention paradigm. Practical working experiences enhanced the psychologists' sense of the difficulties of suicide prevention as well as their criticism and feeling of powerlessness.

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