The purpose of this review is to analyze all existing theories of the capital structure (with their
advantages and disadvantages) in order to understand all aspects of the problem and make …

Like Caesar's Gaul, corporate finance is divided into three parts: theoretical, empirical, and
normative. Important advances in any one of these three typically generate good ideas for …

We are interested in the tail behavior of the randomly weighted sum∑ i= 1 n 𝜃 i X i
∑_i=1^nθ_iX_i, in which the primary random variables X 1,…, X n are real valued …

We develop aq theory of investment with endogenous leverage, payout, hedging, and risk-
taking dynamics. The key frictions are costly equity issuance and incomplete markets. We …

According to the gradient allocation principle based on a positively homogeneous and
subadditive risk measure, the capital allocated to a sub-portfolio is the Gâteaux derivative …

Financial institutions use risk measures to calculate the marginal capital cost when
expanding the exposure to a certain risk within their portfolio. We reverse this approach by …

We study how a bank allocates capital across its business units when facing multiple
constraints over several periods. If a constraint tightens–be it because of stricter regulation …

We introduce a new model for optimal internal capital allocation, which would allow banks to
maximize their Return on Risk-Adjusted Capital (RORAC) under regulatory and capital …

We revisit the foundations of economic capital and RAROC calculations prevalent in the
insurance industry by extending the canonical static setting to a dynamic model with different …

In this paper, we propose a novel multivariate shortfall risk measure to evaluate the systemic
risk of a financial system, where the allocation weight is scenario-dependent and optimally …