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Nonlinear Mathematics for Uncertainty and its Applications pp 255–262Cite as

Influence of Risk Incentive by Limited Dividend Provision

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Part of the book series: Advances in Intelligent and Soft Computing ((AINSC,volume 100))

Abstract

Moral hazard problem, which has been broadly studied in economics, financial engineering and other areas, is understood as one of inefficiency to distribute the resources. It is interpreted that after some contract was concluded, one person who has more information than the other may change his behaviour and attitude toward his investment planning, causing some trouble to the other person. In this paper, we study a risk incentive problem between a creditor and shareholders, whose right to make a claim is different from each other, for corporate profits. In particular, we refer to and discuss limited provision on dividend, which may play a role to be able to solve the incentive problem. Some numerical examples are examined to illustrate the problem mentioned.

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References

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Author information

Authors and Affiliations

  1. School of Management, Tokyo University of Science, Kuki-shi, Saitama, 346-8512, Japan

    Hiroshi Inoue & Masatoshi Miyake

  2. Department of Applied Mathematics, Beiging University of Technology, 100 Pingleyuan, Chaoyang District, Beiging, 100124, China

    Li Guan

Authors
  1. Hiroshi Inoue
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  2. Masatoshi Miyake
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  3. Li Guan
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Editor information

Editors and Affiliations

  1. College of Applied Sciences, Beijing University of Technology, 100 Pingleyuan, 100124, Chaoyang District, Beijing, P.R. China

    Shoumei Li , Xia Wang  & Li Guan ,  & 

  2. Department of Systems Design and Informatics, Kyushu Institute of Technology, 680-4, Kawazu, 820-8502, lizuka, Japan

    Yoshiaki Okazaki

  3. Department of Mathematics, Shinshu University, 4-17-1 Wakasato, 380-8553, Nagano, Japan

    Jun Kawabe

  4. Department of Computational Intelligence and Systems Science, Tokyo Institute of Technology, 4259-G3-47, Nagatsuta, Midori-ku, 226-8502, Yokohama, Japan

    Toshiaki Murofushi

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© 2011 Springer-Verlag Berlin Heidelberg

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Inoue, H., Miyake, M., Guan, L. (2011). Influence of Risk Incentive by Limited Dividend Provision. In: Li, S., Wang, X., Okazaki, Y., Kawabe, J., Murofushi, T., Guan, L. (eds) Nonlinear Mathematics for Uncertainty and its Applications. Advances in Intelligent and Soft Computing, vol 100. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-22833-9_30

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  • DOI: https://doi.org/10.1007/978-3-642-22833-9_30

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-22832-2

  • Online ISBN: 978-3-642-22833-9

  • eBook Packages: EngineeringEngineering (R0)

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