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Author

Jinxia Zhu

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Open access Aug 2026

Value maximization under present-biased preferences

We examine a value-maximizing problem involving present-biased behavior, a prevalent and empirically observed psychological phenomenon, in a firm’s strategic decisions on earnings retention, payout, and capital injections. By modeling present-biased preferences using stochastic quasi-hyperbolic discounting, we frame...

Kai-Xin Yan, Wen-Yuan Wang, Jinxia Zhu · 0 citations
Preprint Jun 2026

Balancing Shareholder Value and Financial Stability under a Reduced-Form Liquidation Model

Modern resolution and prudential regimes increasingly wind up a distressed firm not at a single hard threshold but through a graduated, state-dependent process. We study how the design of such a regime shapes the trade-off between shareholder value and financial stability for a firm whose surplus follows a general diff...

Benjamin Avanzi, Bernard Wong, Jinxia Zhu · 0 citations

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