scholarly journals Optimal Dynamic Investment Policy for Different Tax Depreciation Rates and Economic Depreciation Rates

2000 ◽  
Vol 106 (1) ◽  
pp. 23-48 ◽  
Author(s):  
J. L. Wielhouwer ◽  
A. De Waegenaere ◽  
P. M. Kort
Keyword(s):  
Investment Policy ◽  
Dynamic Investment ◽  
Optimal Dynamic ◽  
Tax Depreciation ◽  
Economic Depreciation

scholarly journals COMPARISON OF MEAN VARIANCE LIKE STRATEGIES FOR OPTIMAL ASSET ALLOCATION PROBLEMS

2012 ◽  
Vol 15 (02) ◽  
pp. 1250014 ◽  
Author(s):  
J. WANG ◽  
P. A. FORSYTH
Keyword(s):  
Asset Allocation ◽  
Optimal Investment ◽  
Quadratic Variation ◽  
Investment Policy ◽  
Investment Policies ◽  
Efficient Frontiers ◽  
Dynamic Investment ◽  
Optimal Dynamic ◽  
Hamilton Jacobi Bellman ◽  
Mean Variance

We determine the optimal dynamic investment policy for a mean quadratic variation objective function by numerical solution of a nonlinear Hamilton-Jacobi-Bellman (HJB) partial differential equation (PDE). We compare the efficient frontiers and optimal investment policies for three mean variance like strategies: pre-commitment mean variance, time-consistent mean variance, and mean quadratic variation, assuming realistic investment constraints (e.g. no bankruptcy, finite shorting, borrowing). When the investment policy is constrained, the efficient frontiers for all three objective functions are similar, but the optimal policies are quite different.

scholarly journals Influence of Working Capital Management and Policy to Profitability of Retail Trading Sector in Indonesia

2021 ◽  
Vol 04 (12) ◽  
Author(s):  
Eric Tjandra ◽  
Keyword(s):  
Panel Data ◽  
Investment Policy ◽  
Working Capital ◽  
Financing Policy ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Panel Data Regression ◽  
Data Regression ◽  
Retail Trading ◽  
Tax Depreciation

Working Capital (WC) is an important aspect of any firms because of its correlation to risk (liquidity) and return (profitability). This research examines the influence of WC Management and Policy (WCMP) to profitability of 21 listed retail trading sector firms in Indonesia from 2011-2020 using panel data regression. In this research, WC Management (WCM) is measured by Cash Conversion Cycle (CCC) and its components which are Days Sales Outstanding (DSO), Days Inventory Outstanding, and Days Payable Outstanding (DPO); WC Policy is measured current assets divided by total assets or referred to as WC Investment Policy (WCIP) and current liabilities divided by total assets or referred to as WC Financing Policy (WCFP); and profitability is measured by Earnings Before Interest, Tax, Depreciation, and Amortization Margin (EBITDAM). The results show that firms can increase EBITDAM by shortening CCC, primarily through shortening DIO and lengthening DPO. Further, firms may improve EBITDAM by adopting a conservative WC Policy instead of an aggressive one, which means having higher current assets and lower current liabilities with respect to total assets.

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