Baran Siyahhan

Lille Catholic University

We model the decisions to invest in local and global human capital under immigration option. Such an option enables the agent to move to another country when an stochastic "'quality of life"' index reaches a certain treshold. The agent takes the whole global human capital accu- mulated in the origin country but only a portion of local human capital...

Efficiency, Leverage and Exit: The Role of Information Asymmetry in Concentrated Industries This paper develops a real options model of imperfect competition with asymmetric information that analyzes firms' exit decisions. Optimal exit decision is linked to firm characteristics such as financial leverage and efficiency. The model shows that informa...

Despite the growing role of corporate social responsibility (CSR) and the associated environmental, social and governance (ESG) factors, even corporations within the same industry take a vastly different approach in how they manage CSR. What makes corporations adopt more ESG‐aligned investments? What role do stakeholders play? This paper studies th...

This paper develops a model of optimal education investment under uncertainty for an agent with an emigration option. We distinguish between local (country-specific) and global human capital and analyze the role of migration opportunities in human capital accumulation of different types. The analysis shows that human capital accumulation depends on...

This paper studies venture capitalists' (VCs') sequential investment decisions in a real options model. We account for VCs' risk aversion, agency costs, and VC activism. We identify two separate investment policies: when startups have positive cash flows, more risk averse and more active VCs expedite their investments while higher agency costs dela...

This paper studies investment in intellectual capital and corresponding value and risk dynamics over the innovation cycle. We assume that the innovation cycle consists of three phases, R&D, trial, and market introduction phases. We use a real option investment model to characterize firm value and risk dynamics over the innovation cycle and find tha...

This paper develops a model that analyzes the role of intellectual capital in new product development projects under both market and technological uncertainty. The firm's management responds to tech-nological uncertainty by controlling its human capital stock, which together with structural capital, makes up existing intellectual capital. The firm...

This paper studies strategic behavior in product markets with asymmetric information. A real options model is developed to investigate information revelation and signaling role capital structure. Information revelation is ensured through a learning mechanism that stems from the real options framework: firms learn from the strategic exercise of opti...

This paper investigates the strategic role of debt in a duopoly in which firms eventually have to leave the market. The market is charac- terized by asymmetric information. Comparing the benchmark model without debt to the one with debt, we argue that debt can be used as a signal to induce the competitor to leave the market earlier than it otherwis...

This paper investigates the strategic role of debt in a duopoly in which firms eventually have to leave the market. The market is charac- terized by incomplete information. Comparing the benchmark model without debt to the one with debt, we argue that debt can be used as a signal to induce the competitor to leave the market earlier than it otherwis...

We consider a firm that employs human capital to make a tech-nological breakthrough. Since the probability of success of the break-through depends on the current stock of human capital the firm has an incentive to expand its human capital stock. The present value of the patent is stochastic but can be observed during the R&D phase of the project. T...