Modelling of foreign investment and capital structure decisions under uncertainty

• Project/Area Number: 24730283
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Public finance/Monetary economics
• Research Institution: Ryukoku University
• Principal Investigator: Tian Yuan 龍谷大学, 経済学部, 准教授 (10609895)
• Project Period (FY): 2012-04-01 – 2016-03-31
• Project Status: Completed (Fiscal Year 2015)
• Budget Amount: ¥3,900,000 (Direct Cost: ¥3,000,000、Indirect Cost: ¥900,000); Fiscal Year 2014: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000); Fiscal Year 2013: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000); Fiscal Year 2012: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
• Keywords: 投資 / 資金調達 / リアルオプション / 資本構成 / 時間非整合的な選好 / 海外投資 / 補助金 / 法人税率の削減 / 負債移転

Outline of Final Research Achievements

This research mainly examines the following 3 topics qualitatively and quantitatively: (i) the impact of international debt shifting and exchange rate uncertainty on investment and capital structure decisions of foreign subsidiary, (ii) two policies for the host government to attract foreign direct investment: investment cost subsidy and tax rate reduction, and (iii) investment and capital structure decisions under time-inconsistent preferences.

Research Products

• [Journal Article] Capital structure and investment decisions under time-inconsistent preferences (2016)
  • Author(s): Yuan Tian
  • Journal Title: Journal of Economic Dynamics and Control Volume: 65 Pages: 83-104
  • DOI: 10.1016/j.jedc.2016.02.001
  • Peer Reviewed / Open Access / Acknowledgement Compliant
• [Journal Article] Monopolistic dealer versus broker: Impact of proprietary trading with transaction fees (2014)
  • Author(s): Nishide Katsumasa and Yuan Tian
  • Journal Title: SSRN Working Paper Series Volume: No.2470355 Pages: 1-26
• [Journal Article] Investment and capital structure decisions under time-inconsistent preferences (2013)
  • Author(s): Masaaki Kijima and Yuan Tian
  • Journal Title: KIER Discussion Paper Series Volume: 不明
• [Journal Article] Investment and capital structure decisions of foreign subsidiary with international debt shifting and exchange rate uncertainty (2012)
  • Author(s): Kijima, M. and Tian, Y.
  • Journal Title: Decisions in Economics and Finance Volume: March Issue: 2 Pages: 1-29
  • DOI: 10.1007/s10203-012-0129-3
  • Peer Reviewed
• [Presentation] Monopolistic dealer versus broker: Impact of proprietary trading with transaction fees (2015)
  • Author(s): Yuan Tian
  • Organizer: INFORMS 2015
  • Place of Presentation: Philadelphia, USA
  • Year and Date: 2015-11-03
  • Int'l Joint Research
• [Presentation] Monopolistic dealer versus broker: Impact of proprietary trading with transaction fees (2015)
  • Author(s): Yuan Tian
  • Organizer: The Third Asian Quantitative Finance Conference
  • Place of Presentation: Hong Kong, China
  • Year and Date: 2015-07-08
  • Int'l Joint Research
• [Presentation] Capital structure, investment, and default decisions under time-inconsistent preferences (2015)
  • Author(s): Yuan Tian
  • Organizer: 2015 Annual Meeting of the Asian Finance Association
  • Place of Presentation: Hunan, China
  • Year and Date: 2015-07-01
  • Int'l Joint Research
• [Presentation] Optimal policy for attracting FDI: Investment cost subsidy versus tax rate reduction (2014)
  • Author(s): Yuan Tian
  • Organizer: INFORMS Annual Meeting San Francisco 2014
  • Place of Presentation: Hilton San Francisco Union Square, USA
  • Year and Date: 2014-11-12
• [Presentation] Debt structure and investment decisions under uncertainty (2014)
  • Author(s): Yuan Tian
  • Organizer: 2014 International Conference on Corporate Finance and Capital Market
  • Place of Presentation: Zhejiang Univercity, China
  • Year and Date: 2014-11-09
• [Presentation] Monopolistic dealer versus broker: Impact of proprietary trading with transaction fees (2014)
  • Author(s): Yuan Tian
  • Organizer: NUS-UTokyo Workshop on Quantitative Finance
  • Place of Presentation: Tokyo Univeristy
  • Year and Date: 2014-09-26
• [Presentation] Optimal policy for attracting FDI: Investment cost subsidy versus tax rate reduction (2014)
  • Author(s): Yuan Tian
  • Organizer: オペレーションズリサーチ学会北海道支部・サマースクール2014
  • Place of Presentation: 夢ホール知床，北海道
  • Year and Date: 2014-08-07
• [Presentation] Monopolistic dealer versus broker: The impact of proprietary trading with transaction fee (2014)
  • Author(s): Yuan Tian
  • Organizer: International Conference on Portfolio Selection and Asset Pricing
  • Place of Presentation: Kyoto University
• [Presentation] Optimal policy for attracting FDI: Investment cost subsidy versus tax rate reduction (2013)
  • Author(s): Yuan Tian
  • Organizer: 26th European Conference on Operational Research
  • Place of Presentation: Sapienza University of Rome
• [Presentation] Why entrepreneurial firms behave differently from large firms?---From a perspective of time-inconsistent preferences (2013)
  • Author(s): Yuan Tian
  • Organizer: The First Asian Quantitative Finance Conference
  • Place of Presentation: National University of Singapore
• [Presentation] Why entrepreneurial firms behave differently from large firms?---From a perspective of time-inconsistent preferences (2012)
  • Author(s): Yuan Tian
  • Organizer: Bachelier Finance Society 7th World Congress
  • Place of Presentation: Australia, Sydney
• [Presentation] Debt structure and investment decisions under uncertainty (2012)
  • Author(s): Yuan Tian
  • Organizer: 横浜国立大学経済学部近経研究会
  • Place of Presentation: 横浜国立大学