or differential equations, which are verified through computer simulations. The analysis provides convenient approximate or exact solutions as well as useful convergence time and growth ratio estimates. The paper recommends practical application of the analyses and suggests a number of paths for more detailed

key asset markets phenomena. In our economy, financial markets dislike economic uncertainty and better long-run growth prospects raise equity prices. The model can justify the equity premium, the risk-free rate, and the volatility of the market return, risk-free rate, and the price-dividend ratio

and 1991. The result is robust to numerous controls for company size, industry membership, inside stock ownership, growth opportunities, and alternative corporate governance structures. Companies with small boards also exhibit more favorable values for financial ratios, and provide stronger CEO performance

We introduce α-synchronous relations for a rational number α. We show that if a rational relation is both α- and α ′-synchronous for two different numbers α and α ′ , then it is recognizable. We give a synchronization algorithm for α-synchronous transducers. We also prove the closure under boolean operations and composition of α-synchronous relations. 1

and maximize the signal-to-interference-plus-noise ratio at the receivers. Regularization enables linear growth and works especially well at low signal-to-noise ratios (SNRs), but as we show in the second part, an additional step is needed to achieve near-capacity performance at all SNRs.

's market-to-book ratio. Companies appear to go public not to finance future investments and growth, but rather to rebalance their accounts after a period of high investment and growth. IPOs are also followed by a reduction in the cost of credit and an increased turnover in control. These findings highlight

As a consequence of optimal investment choices, a firm’s assets and growth options change in predictable ways. Using a dynamic model, we show that this imparts predictability to changes in a firm’s systematic risk, and its expected return. Simulations show that the model simultaneously reproduces

that these ratios should be useful in forecasting future dividend growth, future earnings growth, or future productivity growth. We conclude that, overall, the ratios do poorly in forecasting any of these.

of the threshold estimate is nonstandard. A method to construct asymptotic confidence intervals is developed by inverting the likelihood ratio statistic. It is shown that this yields asymptotically conservative confidence regions. Monte Carlo simulations are presented to assess the accuracy of the asymptotic

of dividend ratios to predict equity premia. Cochrane’s (1997) accounting identity—that dividend ratios have to predict long-run dividend growth or stock returns—empirically holds only over horizons longer than 5–10 years. Over shorter horizons, dividend yields primarily forecast themselves.