Performance of a random number of complex systems in the environment of a random number of competing and catastrophic information risks

The paper makes use of the concept of a random sum of nonnegative random variables and the concept of a minimum of a random number of nonnegative random variables in order to formulate a stochastic model. Sufficient conditions for embedding the formulated stochastic model into an important class of stochastic models are also established. Moreover, the paper establishes applications of the model in investigating the performance of a random number of complex systems being in the environment of a random number of competing and catastrophic information risks.peer-reviewe

Value based corporate finance in the secondary sector in Greece

The purpose of the present research is to evaluate the value creation capacity of the secondary sector firms, listed in the Athens Stock Exchange over the period 2000 – 2004, using the Economic Value Added Model developed by Stern Stewart & Co. The percentage of the sample firms with a negative Economic Value Added ranges from 48% to 61%; the majority of the firms experience positive return on the capital invested, but this is not enough to cover their weighted average cost of capital. Two industries have positive average Economic Value Added in all five years, while the remaining two have positive average Economic Value Added in only two years. All industries in all five years have positive average return on the capital invested, however some of them have disproportionately high weighted average cost of capital.peer-reviewe

Formulating a stochastic discounting model with actuarial and risk management applications

Stochastic discounting models are generally recognized as extremely strong analytical tools for a very wide variety of fundamental areas in the actuarial discipline. The paper is mainly devoted to the formulation, investigation and application in the actuarial discipline of a stochastic discounting model. It is shown that the formulated stochastic discounting model can substantially support the role of proactivity in making insurance decisions