SFI Senior Chair (since January 2010)
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Halil Mete Soner has held an SFI Senior Chair at ETH Zurich since January 2010. Prof. Soner has published extensively in his areas of expertise and is a regular speaker at leading academic conferences worldwide.
His primary research interest lies in mathematical finance and stochastic optimal control. In particular, models for illiquid markets,analysis of markets with transaction costs, robust techniques and applications of optimal control in corporate finance.
In recent research, Prof. Soner and his co-authors study the specific impact of macroeconomic changes on firms’ dividend policies in the extreme case where a firms’ profitability is constant over time, but evolves in a stochastic macroeconomic environment (i.e. interest rates and issuance costs change over time). Results show that firms tend to distribute more dividends when interest rates are high and less when issuing costs are low. The researchers' paper also suggests that firms do not wait until the last moment to issue new equity; it is more effective to raise new equity in good times when additional cash is not immediately needed, than to wait for a recession and risk a forced closure.