The primary objective of this book is to demonstrate that a firm's financing decisions depend among other things on bargaining power considerations, and to illustrate potential causes for this dependency. Based on a principal-agent analysis where a lender (principal) and a firm (agent) bargain over the financing of the firm’s risky project, the author illustrates and analyzes the importance of bargaining power on finance decisions.

This book presents in detail methodologies for the Bayesian estimation of sing- regime and regime-switching GARCH models. These models are widespread and essential tools in n ancial econometrics and have, until recently, mainly been estimated using the classical Maximum Likelihood technique. As this study aims to demonstrate, the Bayesian approach o ers an attractive alternative which enables small sample results, robust estimation, model discrimination and probabilistic statements on nonlinear functions of the model parameters. The author is indebted to numerous individuals for help in the preparation of this study. Primarily, I owe a great debt to Prof. Dr. Philippe J. Deschamps who inspired me to study Bayesian econometrics, suggested the subject, guided me under his supervision and encouraged my research. I would also like to thank Prof. Dr. Martin Wallmeier and my colleagues of the Department of Quantitative Economics, in particular Michael Beer, Roberto Cerratti and Gilles Kaltenrieder, for their useful comments and discussions. I am very indebted to my friends Carlos Ord as Criado, Julien A. Straubhaar, J er ^ ome Ph. A. Taillard and Mathieu Vuilleumier, for their support in the elds of economics, mathematics and statistics. Thanks also to my friend Kevin Barnes who helped with my English in this work. Finally, I am greatly indebted to my parents and grandparents for their support and encouragement while I was struggling with the writing of this thesis.

The primary objective of this book is to demonstrate that a firm's financing decisions depend among other things on bargaining power considerations, and to illustrate potential causes for this dependency. Based on a principal-agent analysis where a lender (principal) and a firm (agent) bargain over the financing of the firm’s risky project, the author illustrates and analyzes the importance of bargaining power on finance decisions.

In the time it takes to read this sentence, about fifteen people will be added to the world's population. Read the sentence again, and there will be thirty. Tomorrow, each of these people will be demanding greater prosperity. Production and consumption are increasing fast but will have to grow even faster in the future to keep up with population growth and a world increasingly divided by inequality. How should we react to these trends? Certainly, many use growth figures to forecast disaster. But there is an alternative vision: one of a sustainable future, in which growth is seen not as a threat, but as the driving force behind innovation. This is the scenario worked out in the Netherlands by Sustainable Technology Development (STD), a five-year programme of research and "learning-by-doing" based on setting up new innovation networks and working with new methods to search for sustainable technological solutions. In order to make sustainability tangible, STD made a leap in time. What human needs will have to be satisfied fifty years from now? Taking a sustainable future vision as a starting point, STD demonstrated what steps we should take today for new technologies and systems to be in place in time. These results are now available for the first time in a comprehensive, specifically written English-language book, together with a description of the unique working method of STD and the results and key lessons from a set of the programme's illustrative case studies. This book serves as a manual for industry, governments and social leaders wanting to prepare themselves for a sustainable future. Sustainable Technology Development sets out the programme's underpinning philosophy and describes its approach, methods and findings. Delivering sustainability means finding ways to meet human needs using a fraction of the natural resources we use today. The world's richer nations would be wise to target at least ten-fold improvements by 2050 in the productivity with which conventional natural resources and environmental services are used. And they need to bring new, sustainable resources on-stream to augment the resource base and replace the use of unsustainable alternatives. Sustainable Technology Development marks a significant contribution to our understanding of innovation processes and how these might be influenced in favour of sustainable technology development. In principle, technology could play a pivotal role in sustainable development. Whether it does or not depends on whether innovators can be encouraged to make this an explicit goal, adopt long-term time-horizons and search for renewable technologies. Given the long lead-times involved, there is no time to waste in beginning the search. The STD programme has begun to make inroads into one of the most urgent of all needs concerning sustainable development: that for innovation in the innovation process itself.

Most of the existing portfolio selection models are based on the probability theory. Though they often deal with the uncertainty via probabilistic - proaches, we have to mention that the probabilistic approaches only partly capture the reality. Some other techniques have also been applied to handle the uncertainty of the ?nancial markets, for instance, the fuzzy set theory [Zadeh (1965)]. In reality, many events with fuzziness are characterized by probabilistic approaches, although they are not random events. The fuzzy set theory has been widely used to solve many practical problems, including ?nancial risk management. By using fuzzy mathematical approaches, quan- tative analysis, qualitative analysis, the experts’ knowledge and the investors’ subjective opinions can be better integrated into a portfolio selection model. The contents of this book mainly comprise of the authors’ research results for fuzzy portfolio selection problems in recent years. In addition, in the book, the authors will also introduce some other important progress in the ?eld of fuzzy portfolio optimization. Some fundamental issues and problems of po- folioselectionhavebeenstudiedsystematicallyandextensivelybytheauthors to apply fuzzy systems theory and optimization methods. A new framework for investment analysis is presented in this book. A series of portfolio sel- tion models are given and some of them might be more e?cient for practical applications. Some application examples are given to illustrate these models by using real data from the Chinese securities markets.

This book analyzes how corporate finance decisions influence strategic competition and innovation of firms in the product market. We consider bank loan financing and venture capital financing. Due to assymetric information, firms must sign special contracts with banks or venture capitalists. The financial contracts, in turn, determine the competitive strategies of firms in the product market. Firms compete in prices for market shares. In addition to that, firms invest in R&D in order to induce product or process innovation. We show that better access to financial resources improves a firm's market position and leads to a higher rate of innovation. Cash-rich firms may even decide to prey upon financially restricted rivals in order to prevent new market entry or to induce market exit.