Dynamic Models and Structural Estimation in Corporate Finance

ArXiv ID: ssrn-2268569 “View on arXiv”

Authors: Unknown

Abstract

We review the last two decades of research in dynamic corporate finance, focusing on capital structure and the financing of investment. We first cover continuou

Keywords: Dynamic Corporate Finance, Capital Structure, Investment Financing, Continuous Time Models, Stochastic Processes, Corporate Finance

Complexity vs Empirical Score

• Math Complexity: 8.0/10
• Empirical Rigor: 3.0/10
• Quadrant: Lab Rats
• Why: The paper is a literature review focused on structural estimation and dynamic models, which inherently involves advanced mathematics and continuous-time frameworks, but it is a theoretical overview rather than a backtest-ready empirical study.

  flowchart TD
    A["Research Goal"] -->|Investigate dynamic models<br>in corporate finance| B["Methodology: Continuous-Time<br>Stochastic Processes"]
    B --> C["Data: Capital Structure<br>& Investment Data"]
    C --> D["Computational Process:<br>Structural Estimation"]
    D --> E{"Key Findings"}
    E --> F["Optimal Dynamic<br>Capital Structure"]
    E --> G["Financing Constraints<br>& Investment"]