Optimal Financing and Dividend Strategies with Time Inconsistency in a Regime Switching Economy

<figure class="figure-group responsive"><div class="sub-figure" id="a"><object data="https://static-preview.hindawi.com/articles/complexity/volume-2019/8479503/figures/8479503.fig.004a.svgz" name="8479503.fig.004a" type="image/svg+xml"></object><div class="fig-label">(a) Firm value-capital ratio</div></div><div class="sub-figure" id="b"><object data="https://static-preview.hindawi.com/articles/complexity/volume-2019/8479503/figures/8479503.fig.004b.svgz" name="8479503.fig.004b" type="image/svg+xml"></object><div class="fig-label">(b) Investment-capital ratio in state </div></div><div class="sub-figure" id="c"><object data="https://static-preview.hindawi.com/articles/complexity/volume-2019/8479503/figures/8479503.fig.004c.svgz" name="8479503.fig.004c" type="image/svg+xml"></object><div class="fig-label">(c) Firm value-capital ratio in state </div></div><div class="sub-figure" id="d"><object data="https://static-preview.hindawi.com/articles/complexity/volume-2019/8479503/figures/8479503.fig.004d.svgz" name="8479503.fig.004d" type="image/svg+xml"></object><div class="fig-label">(d) Investment-capital ratio in state </div></div></figure>

<p>Firm value-capital ratio and investment-capital ratio for two preferences in a regime switching economy.</p>

Complexity

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Figure 4

Figure 4: Optimal Financing and Dividend Strategies with Time Inconsistency in a Regime Switching Economy 