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Reports from Swiss Federal Institute of Technology Highlight Recent Findings in Mathematical Economics

May 27, 2014

By a News Reporter-Staff News Editor at Journal of Mathematics -- Investigators discuss new findings in Mathematical Economics. According to news reporting out of Zurich, Switzerland, by VerticalNews editors, research stated, "Several recent papers have studied the impact of macroeconomic shocks on the financial policies of firms."

Our news journalists obtained a quote from the research from the Swiss Federal Institute of Technology, "However, they only consider the case where these macroeconomic shocks affect the profitability of firms but not the financial markets conditions. We study the polar case where the profitability of firms is stationary, but interest rates and issuance costs are governed by an exogenous Markov chain."

According to the news editors, the research concluded: "We characterize the optimal dividend policy and show that these two macroeconomic factors have opposing effects: all things being equal, firms distribute more dividends when interest rates are high and less when issuing costs are high."

For more information on this research see: Optimal dividend policy with random interest rates. Journal of Mathematical Economics, 2014;51():93-101. Journal of Mathematical Economics can be contacted at: Elsevier Science Sa, PO Box 564, 1001 Lausanne, Switzerland. (Elsevier -; Journal of Mathematical Economics -

Our news journalists report that additional information may be obtained by contacting E. Akyildirim, ETH, Swiss Fed Inst Technol, Zurich, Switzerland. Additional authors for this research include I.E. Guney, J.C. Rochet and H.M. Soner.

Keywords for this news article include: Zurich, Europe, Switzerland, Mathematical Economics

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Source: Journal of Mathematics

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