Risk Financing for Schools: The Capital Markets Approach.

Science.gov (United States)

Rudolph, Richard G.

1988-01-01

The capital markets approach is an alternative means of risk financing whereby a school system establishes and controls its own insurance company and makes systematic contributions to pay for expected and anticipated losses and their associated costs. (MLF)

Internet finance: Digital currencies and alternative finance liberating the capital markets

Directory of Open Access Journals (Sweden)

Kim Wales

2015-09-01

Full Text Available This article discusses how the sudden shift in policy reform and innovation has the potential to liberate the financial markets. The economic potential of internet finance is beginning to take hold across the capital markets as industries like Peer – to – Peer Lending, Equity and Debt based Crowdfunding and virtual currencies and cryptocurrencies which are types of digital currency are quickly transforming the way businesses are being financed. From borrowing and lending, buying and selling securities, to conducting wire transfers internationally, these innovations are creating a new class and generation of investors will source investments opportunities. Helping institutions and governments assess risks and manage performance in order to determine where to deploy capital; and showing signs of lessening the inequality gap. Following the neolithic agricultural revolution and the industrial revolution, this new revolution will enable more people to access financial services in less traditional ways, especially the unbanked world with its huge potential. These new financial opportunities, such as peer – to - peer (P2P lending, will be discussed and examined, and we will stress how they can allow people to bypass current barriers in the global economy. We conclude by arguing that all these developments, energized by the efforts of innovators and entrepreneurs, have the potential to radically transform the world in which we live, while promoting the core values of industrialized societies including democracy, capital formation, sustainability, and equality without solely relying on tax increases

A Capital-Financing Plan for School Systems and Local Government

Science.gov (United States)

Hodge, Penny

2012-01-01

School business officials are best equipped to lead in funding operating and capital needs because they understand the need for a methodical means of funding ongoing costs over time and the benefits of planning for future financial needs rather than letting emergencies dictate spending priorities. A capital-financing plan makes it possible to…

The National Housing Fund, Mortgage Finance and Capital Formation in Nigeria

Directory of Open Access Journals (Sweden)

ADETILOYE Kehinde Adekunle

2013-07-01

Full Text Available Mortgage financing is one of the ways by which housing stocks are added and capital formation takes place in an economy. This paper examined the impact of the National Housing Fund (NHF, a government agency, in the process of capital formation in Nigeria. The paper adopted some key variables among which are capital formation, lending rate and capital expenditure and the various aspects of mortgage loans in the economy. The paper employed the Two Stage Least Square (2SLS techniques to measure the impact of the various units. It discovers that the mortgage loan generally is significant and insurance companies advances for mortgage is also significant while the National Housing Fund (NHF is not significant. This is however due to many problems bedevilling the Fund. The paper recommends among others, the deepening of the mortgage finance market, further assistance to the help to the National Housing Fund and while the government incentivises the firms involved in lending on mortgage fiscally to improve performance and capital stocks in the economy.

Financing School Capital Projects in New York State.

Science.gov (United States)

Howe, Edward T.

1990-01-01

Financing school capital projects in New York State is a responsibility involving both local school districts and the state government. State building aid is provided through an aid ratio and approved expenditure formula. This formula has an equalizing effect among districts by explicitly providing an aid amount inversely proportional to property…

Putting "Entrepreneurial Finance Education" on the Map: Including Social Capital in the Entrepreneurial Finance Curriculum

Science.gov (United States)

Macht, Stephanie Alexandra

2016-01-01

Purpose: The purpose of this paper is to bring attention to "entrepreneurial finance education", an aspect of entrepreneurship education that is widely taught but neglected by the educational literature. It does so by exploring how social capital, a key resource for entrepreneurs, can be incorporated into entrepreneurial finance…

Carbon Emission Reduction with Capital Constraint under Greening Financing and Cost Sharing Contract.

Science.gov (United States)

Qin, Juanjuan; Zhao, Yuhui; Xia, Liangjie

2018-04-13

Motivated by the industrial practices, this work explores the carbon emission reductions for the manufacturer, while taking into account the capital constraint and the cap-and-trade regulation. To alleviate the capital constraint, two contracts are analyzed: greening financing and cost sharing. We use the Stackelberg game to model four cases as follows: (1) in Case A1, the manufacturer has no greening financing and no cost sharing; (2) in Case A2, the manufacturer has greening financing, but no cost sharing; (3) in Case B1, the manufacturer has no greening financing but has cost sharing; and, (4) in Case B2, the manufacturer has greening financing and cost sharing. Then, using the backward induction method, we derive and compare the equilibrium decisions and profits of the participants in the four cases. We find that the interest rate of green finance does not always negatively affect the carbon emission reduction of the manufacturer. Meanwhile, the cost sharing from the retailer does not always positively affect the carbon emission reduction of the manufacturer. When the cost sharing is low, both of the participants' profits in Case B1 (under no greening finance) are not less than that in Case B2 (under greening finance). When the cost sharing is high, both of the participants' profits in Case B1 (under no greening finance) are less than that in Case B2 (under greening finance).

Carbon Emission Reduction with Capital Constraint under Greening Financing and Cost Sharing Contract

Science.gov (United States)

Qin, Juanjuan; Zhao, Yuhui; Xia, Liangjie

2018-01-01

Motivated by the industrial practices, this work explores the carbon emission reductions for the manufacturer, while taking into account the capital constraint and the cap-and-trade regulation. To alleviate the capital constraint, two contracts are analyzed: greening financing and cost sharing. We use the Stackelberg game to model four cases as follows: (1) in Case A1, the manufacturer has no greening financing and no cost sharing; (2) in Case A2, the manufacturer has greening financing, but no cost sharing; (3) in Case B1, the manufacturer has no greening financing but has cost sharing; and, (4) in Case B2, the manufacturer has greening financing and cost sharing. Then, using the backward induction method, we derive and compare the equilibrium decisions and profits of the participants in the four cases. We find that the interest rate of green finance does not always negatively affect the carbon emission reduction of the manufacturer. Meanwhile, the cost sharing from the retailer does not always positively affect the carbon emission reduction of the manufacturer. When the cost sharing is low, both of the participants’ profits in Case B1 (under no greening finance) are not less than that in Case B2 (under greening finance). When the cost sharing is high, both of the participants’ profits in Case B1 (under no greening finance) are less than that in Case B2 (under greening finance). PMID:29652859

User Cost of Debt-Financed Capital in Irish Manufacturing Industry: 1985 2011

OpenAIRE

KEARNEY, IDE; ZNUDERL, NUSA

2013-01-01

PUBLISHED This paper provides estimates of the cost of debt-financed capital to Irish manufacturing industry over the period 1985 to 2011. The estimates are provided for two types of capital assets, machinery and equipment and industrial buildings. They also incorporate policy interventions aimed at influencing investment behaviour of manufacturing firms in Ireland. The results show that large capital gains recorded during the Celtic Tiger period created a downward distortion in the user c...

Fuel-cycle financing, capital requirements and sources of funds

International Nuclear Information System (INIS)

Manderbach, R.W.

1977-01-01

An issue of global importance today is the economic case fro nuclear power and the conservation of precious fossil resources. An important question is whether sufficient financial resources can be attracted to the nuclear industry in order to develop a complete fuel-cycle industry capable of meeting the requirements of a global nuclear power industry. Future growth of the nuclear power industry will depend largely on the timely development of a private competitive industry covering the total fuel cycle. The report of the Edison Electric Institute on Nuclear Fuels Supply estimates that by 1985 initial capital investmentor in the nuclear fuel cycle will total US$15x10 9 and by the year 2000, US$60x10 9 will be required. Although the amount of funding projected is manageable from a global availability standpoint, there is a hesitancy to commit financial resources to certain segments of the fuel cycle, because of the many unresolved problems in connection with the nuclear industry - uncertainty regarding local and international governmental regulations and legislation, environmental and alternative technological considerations coupled with the substantial long-term capital commitments needed in each of the several segments of the processes. Activities associated with the nuclear fuel cycle have unique investment requirements, which are needed in many diverse unrelated fields such as resource development and high technology process. This paper examines sources of capital on a national scale, such as net earnings, depreciation, capital market and public subsidies; and, in the broader context, capital investments in highly industrialized and developing countries. Possible areas of government guarantees and financing; and the situation on financing fuel-cycle projects in the USA and in other countries is also discussed. Comments are included on the money market and investment climate in developing countries, particularly regarding the development of uranium resources

The optimal financing mode in a three-stage supply chain under capital constraint of retailers

Directory of Open Access Journals (Sweden)

Zhang Yuanyuan

2017-01-01

Full Text Available In real life, there is a problem of capital fracture in some enterprises especially small and medium enterprises in the upstream and downstream of the supply chain. In order to research how retailers choose the optimal financing mode, this paper analyzes the double channel and three- stage supply chain under capital constraint of retailers, uses multi-objective nonlinear programming method, constructs the delayed payment financing model and the loan financing model respectively and gives the optimal decentralized decisions of suppliers, manufacturers and retailers under the two modes. The research shows that under the coexistence of the delayed payment financing model and the loan financing model, when the delayed payment rate is equal to the lending rate, if the retailers choose the delayed payment model, then it can not only increase the profits but also improve the market competitiveness and expand the market. This provides certain theory and numerical reference basis for retailers to choose a financing model.

Assessing Discount Rate for a Project Financed Entirely with Equity Capital

Directory of Open Access Journals (Sweden)

Nicoleta Vintila

2007-09-01

Full Text Available Estimating discount rate for an investment project is one of the most challenging tasks incapital budgeting. In this paper we discuss different kind of models for cost of equity capital proposed infinance literature (static CAPM, conditional CAPM, APT, build-up model, focusing especially on advantagesand disadvantages of using each of them. In the final section, we estimate the discount rate fora certain project financed entirely with equity capital, using a version of build-up model.

The financing and growth of firms in China and India : evidence from capital markets

OpenAIRE

Didier, Tatiana; Schmukler, Sergio L.

2013-01-01

This paper studies the extent to which firms in China and India use capital markets to obtain financing and grow. Using a unique data set on domestic and international capital raising activity and firm performance, it finds that the expansion of financial market activity since the 1990s has been more limited than what the aggregate figures suggest. Relatively few firms raise capital. Even ...

Fuel cycle financing, capital requirements and sources of funds

International Nuclear Information System (INIS)

Manderbach, R.W.

1977-01-01

An issue of global importance today is the economic case for nuclear power and the conservation of precious fossil resources. A question important to all of us is can sufficient financial resources be attracted to the nuclear industry in order to develop a complete fuel cycle industry capable of meeting the requirements of a global nuclear power industry. Future growth of the nuclear power industry will depend to a large extent on the timely development of a private competitive industry covering the total fuel cycle. The report of the Edison Electric Institute on Nuclear Fuels Supply estimates that by 1985 initial capital investment in the nuclear fuel cycle will total $15 billion and by the year 2000, $60 billion will be required. Although undoubtedly the amount of funding projected is manageable from a global availability standpoint, there is a hesitancy to commit financial resources to certain segments of the fuel cycle. This is because of the many unresolved problems in connection with the nuclear industry such as uncertainty regarding local and international governmental regulations and legislation, environmental and alternative technological considerations coupled, of course, with the substantial capital long term commitments needed in each of the several segments of the processes. Activities associated with the nuclear fuel cycle have unique investment requirements. Investments are needed in many diverse unrelated fields such as resource development and high technology process some of which are not yet fully commercialized. Sources of capital will be examined on a national scale, such as net earnings, depreciation, capital market and public subsidies. The paper also examines, in the broader context, capital investments in highly industrialized and developing countries as well as discussing the possible areas of Government guarantees and financing. The intensive capital required in certain segments of the cycle, which are to be developed by private

资本性投资、融资来源与营运资本投资效率研究%Capital Investment,Financing Source and Working Capital Investment Efficiency

Institute of Scientific and Technical Information of China (English)

魏刚

2016-01-01

运用异质性随机边界模型定量测算了资本性投资及融资来源影响下的营运资本投资效率。结果表明：中国上市公司营运资本投资效率低于最优效率10％～26％，在非经济危机影响的年度中，资本性投资规模增长大的企业，其营运资本投资效率较低；内部融资和外部股权融资具有缓解融资约束和降低未来融资不确定性的作用，而债务融资会加剧融资约束程度，但可以降低未来融资不确定性。融资约束程度的改善有助于降低资本性投资对营运资本投资效率的影响。%Using the heteroscedastic stochastic frontier model , this paper measures the working capital investment efficiency under the influence of capital investment and financing sources .Results show that , the efficiency of working capital invest-ment in Chinese listing corporation is lower than the optimal efficiency of 10%~26%.During the years of the non-econom-ic crisis, working capital investment efficiency of enterprises is lower , which possess a large scale of capital investment .In-ternal financing and external equity financing can alleviate the financing constraints and reduce the uncertainty of the future ;debt financing will increase the degree of financing constraints , but can reduce the uncertainty of future financing .The im-provement of financing constraints could help to reduce the impact of capital investment on the efficiency of working capital investment .

Implementation of investment and working capital financing allocated by banks towards the added GDP, labors, and welfare in four regencies in Madura

Directory of Open Access Journals (Sweden)

Didin Fatihudin

2015-06-01

Full Text Available This study investigates the implementation of investment financing absorption and private bank sectors working capital to increase GDP, employment, and welfare of the four counties in Madura island (Bangkalan, Sampang, Pamekasan, Sumenep. This is the development of a previous study. This explanatory study is based on the model devel-opment concept or theory with Path Analysis through the data normality, multicolli-nearity, and heteroscedasticity test as well as causality. The data were taken from Bank Indonesia, Investment Coordinating Board, and the Central Bureau of Statistics. This is a time series data of 2002 to 2006. It shows that the financing of investment to GDP has significant and negative effect, financing of investment to labor absorption has signifi-cant and negative effect; financing working capital to GDP has significant and positive effect; financing of working capital to labor absorption has significant and negative effect; GDP in the labor market has no significant nor positive effect; GDP for the welfare effect, it has positive but not significant effect; employment in the welfare has a significant and positive effect. The direct effect or indirect implementation of financing from banks to finance investments and working capital to the entrepreneurs has increasingly a significant and positive effect. Absorption has dominated world finance working capital financing, following the least consumption and investment. Thus, it was natural that the implementa-tion of the investment credit and working capital has a significant and positive effect on economic growth, absorption of labor, and welfare in all four counties in Madura.

Public policy for start-up entrepreneurship with venture capital and bank finance

DEFF Research Database (Denmark)

Keuschnigg, Christian; Nielsen, Søren Bo

2003-01-01

This paper proposes and analyses a model of start-up investment. Innovative entrepreneursare commercially inexperienced and can benefit from venture capital support. Only part ofthem succeed in matching with a venture capitalist while the rest must resort to standard bankfinance. We consider a nu...... a number of policies to promote entrepreneurship and venture capitalbacked innovation.JEL Classification: D82, G24, G28, H24.Keywords: venture capital bank finance, matching, moral hazard, public policy....

Conic coconuts : the pricing of contingent capital notes using conic finance

NARCIS (Netherlands)

Madan, D.B.; Schoutens, W.

2010-01-01

In this paper we introduce a fundamental model under which we will price contingent capital notes using conic finance techniques. The model is based on more realistic balance-sheet models recognizing the fact that asset and liabilities are both risky and have been treated differently taking into

Financing U.S. Renewable Energy Projects Through Public Capital Vehicles: Qualitative and Quantitative Benefits

Energy Technology Data Exchange (ETDEWEB)

Mendelsohn, M.; Feldman, D.

2013-04-01

This paper explores the possibility of financing renewable energy projects through raising capital in the public markets. It gives an overview of the size, structure, and benefits of public capital markets, as well as showing how renewable energy projects might take advantage of this source of new funds to lower the cost of electricity.

Does Access to Finance Lower Firms’ Cost of Capital? Empirical Evidence from International Manufacturing Data

NARCIS (Netherlands)

Lashitew, Addisu A.

2011-01-01

Lack of access to finance is argued to be one of the most binding constraints for firm growth. There is, however, limited empirical evidence on the relationship between access to finance and the cost of capital. This paper uses international manufacturing data to analyze the effect of access to

[Financing problems of capital goods: part 1: leasing as a solution?].

Science.gov (United States)

Clausen, C C; Bauer, M; Saleh, A; Picker, O

2008-06-01

The provision of financial support of hospitals by States for buying capital goods is becoming increasingly more limited. In order to still make investments, alternative forms of financing such as leasing must be considered in hospitals. However, the change from the classical form of dual financing and the decision to opt for a leasing model involves much more than just a question of costs. Leasing results in easily manageable expenditure, flexibility and adaptability for the choice of model but the leasing installments must be directly financed by the turnover from diagnosis-related groups and so lead to a reduction in the annual profit. In this article the authors try to give the reader an overview of the complex and sometimes counter-productive effect of financial instruments for investments in hospitals using leasing financing as an example. In the follow-up article the decision-making procedure using dynamic investment calculations will be demonstrated using a concrete example.

The Educational Asset Market: A Finance Perspective on Human Capital Investment

DEFF Research Database (Denmark)

Christiansen, Charlotte; Nielsen, Helena Skyt

2002-01-01

on type and level of education enables us to focus on the shared features between human capital and stock investments. An innovative finance-labor approach is applied to study the educational asset market. A risk-return trade-off is revealed which is not directly related to the length of education.......Like the stock market, the human capital market consists of a wide range of assets, i.e. educations. Each young individual chooses the educational asset that matches his preferred combination of risk and return in terms of future income. A unique register-based data set with exact information...

Endettement, accords implicites et capital organisationnel : vers une théorie organisationnelle de la structure financière

OpenAIRE

Christophe Moussu

2000-01-01

L'objectif de cet article est d'appréhender le choix d'une structure financière dans une théorie de la firme reposant sur la formation de capital organisationnel, associé à la relation d'emploi. Après avoir défini la notion de capital organisationnel, une modélisation des liens entre la structure financière et les accords implicites est proposée. La théorie organisationnelle proposée est confrontée aux théories alternatives de la structure financière. Ses implications empiriques sont égalemen...

Financialization revisited: the rise and fall of finance-led capitalism

Directory of Open Access Journals (Sweden)

Robert Guttmann

Full Text Available Abstract Financialization, expressing the growing importance of finance in the modus operandi of our capitalist system, has emerged as a key concept in various heterodox approaches over the last dozen years - be they Post-Keynesians (E. Stockhammer, E. Hein, American Radicals (G. Epstein, G. Krippner, Marxists (J. Bellamy Foster, G. Dumenil or French Régulationists (M. Aglietta, R. Boyer. But until now those various analysts have each looked at this very complex phenomenon from one or the other specific angle. In this article, I am trying to provide a more comprehensive analysis of financialization by tracing its two primary drivers - structural changes making non-financial actors more dependent on debt-financing as well as financial-income sources (“financial centralization” while also giving increased weight to the financial sector in the economy (“financial concentration”. The complex interaction between financial centralization and financial concentration has yielded a financialized growth dynamic fueling consecutive debt-financed asset bubbles in the center, the United States, that spurs export-led growth in the periphery. Framing this financialized growth dynamic in the Régulationist context as a historically conditioned accumulation regime, finance-led capitalism, I analyze its rise (1982 - 2007 in the wake of key changes in finance and its subsequent structural crisis (2007-2012 to provide a more complete approach to the crucial phenomenon of financialization.

企业融资与资本结构特征分析%Analysis of Corporate Finance and Capital Structure

Institute of Scientific and Technical Information of China (English)

张琴; 吕变喜

2011-01-01

Corporate finance and capital construction are inseparable, one of the capital structure is the best way to finance the package and financing affect the order of the most important factor. The capital structure in theory there is the best combination. In this paper, China＇s tourism study listed companies, through the financing of the 2004-2008 data and found that its unique characteristics of financing and capital structure, characterized by the existence of reason, and then optimize the financing of tourism enterprises put forward reasonable proposals.%企业融资与资本结构的关系十分密切，一方面资本结构是决定最佳融资组合方式和融资次序的重要影响因素之一；另一方面资本结构在理论上存在最优组合。本文以中国旅游类上市公司为研究对象，通过对2004—2008年的融资数据研究，发现其特有的融资与资本结构特征，分析其特征存在原因，进而为优化旅游企业融资提出合理化建议。

Hospital financing: calculating inpatient capital costs in Germany with a comparative view on operating costs and the English costing scheme.

Science.gov (United States)

Vogl, Matthias

2014-04-01

The paper analyzes the German inpatient capital costing scheme by assessing its cost module calculation. The costing scheme represents the first separated national calculation of performance-oriented capital cost lump sums per DRG. The three steps in the costing scheme are reviewed and assessed: (1) accrual of capital costs; (2) cost-center and cost category accounting; (3) data processing for capital cost modules. The assessment of each step is based on its level of transparency and efficiency. A comparative view on operating costing and the English costing scheme is given. Advantages of the scheme are low participation hurdles, low calculation effort for G-DRG calculation participants, highly differentiated cost-center/cost category separation, and advanced patient-based resource allocation. The exclusion of relevant capital costs, nontransparent resource allocation, and unclear capital cost modules, limit the managerial relevance and transparency of the capital costing scheme. The scheme generates the technical premises for a change from dual financing by insurances (operating costs) and state (capital costs) to a single financing source. The new capital costing scheme will intensify the discussion on how to solve the current investment backlog in Germany and can assist regulators in other countries with the introduction of accurate capital costing. Copyright © 2014 Elsevier Ireland Ltd. All rights reserved.

The Finance Theory Analysis of Capital System Evolution%资本制度变迁的财务学解析

Institute of Scientific and Technical Information of China (English)

张烜

2012-01-01

本文运用财务理论系统解析了资本制度变迁的决定因素,不仅为深化公司资本制度问题研究拓展了新的视野,也对我国公司完善财务治理结构,建立更加有效的资本市场机制,以及为我国《公司法》的实施和进一步改革提供了更加科学的理论根据。%The thesis uses the finance theory to analyze the main reasons of capital system evolution and the influence on the corporate finance government,the purpose is to extend the field of capital system research,to develop china corporate finance government,to establish effective capital market,and to provide more theory basis on China Company Law reform.

The Bias in Favor of Venture Capital Finance in U.S. Entrepreneurial Education: At the Expense of Trade Credit

Science.gov (United States)

Clement, Thomas; LeMire, Steven; Silvernagel, Craig

2015-01-01

The authors examine whether U.S. college-level entrepreneurship education demonstrates a bias favoring venture capital (VC) financing while marginalizing trade credit financing, and the resulting impact on entrepreneurship students. A sample of U.S. business textbooks and survey data from entrepreneurship students reveals a significant bias toward…

Provision of capital for shutdown, dismantling and disposal. Cost risks and proposals for reform for a responsibility related financing

International Nuclear Information System (INIS)

Kuechler, Swantje; Meyer, Bettina; Wronski, Rupert

2014-01-01

In Germany the latest discussion on the cost of nuclear phase-out, dismantling and waste disposal has shown that the provision of capital by the concerned companies for these challenges and the actual regulations are not sufficient for a long-term financing security. The study presents a reform concept including the need of improved transparency on the provision of capital, a differentiated financial statement, the introduction of a stock under public law for insolvency protection including a financing responsibility for the companies and subsequent payments in case of cost increase, and an increase of protection in case of insolvency.

Financing investment in environmentally sound technologies: Foreign direct investment versus foreign debt finance

International Nuclear Information System (INIS)

Anyangah, Joshua Okeyo

2010-01-01

This paper develops a screening model to examine the relationship between alternative sources of private capital and investment in environmentally sound technologies (ESTs). In the model, a polluter (agent) must secure investment funds from the international financial markets in order to upgrade its production and abatement technology. The requisite capital can be obtained via either market loans (debt finance) or foreign direct investment (FDI). Under debt finance, the foreign financier supplies only capital and the relationship between the two parties is more 'arms-length'. By contrast, under FDI, the investor delivers both capital and managerial skills. We use the model to derive the implications of debt finance for optimal investment decisions and compare them to those obtained under FDI. Investment incentives are more pronounced under debt finance. (author)

Unlocking Land Values to Finance Urban Infrastructure : Land-Based Financing Options for Cities

OpenAIRE

George E. Peterson

2008-01-01

Raising capital to finance urban infrastructure is a challenge. One solution is to 'unlock' urban land values - such as by selling public lands to capture the gains in value created by investment in infrastructure projects. Land-based financing techniques are playing an increasingly important role in financing urban infrastructure in developing countries. They complement other capital fina...

The effect of intellectual capital on organizational commitment: A case study of the ministry of economic affairs and finance of Kermanshah province

Directory of Open Access Journals (Sweden)

Shirzad Zeinoddini

2015-09-01

Full Text Available This study was an attempt to investigate the effect of intellectual capital on organizational commitment of the staff of the Ministry of Economic Affairs and Finance of Kermanshah province, Iran. The statistical population of the Ministry of Economic Affairs and Finance of Kermanshah was 140 people. Using Morgan Table, a sample of 103 personnel was randomly selected from the population. For gathering data, two researcher-made questionnaires of intellectual capital and organizational commitment were used. The validity of the questionnaires was proved by the favorable opinion of the advisor of the research, and the reliability of the questionnaires was tested using Cronbach’s alpha (α. The estimated values of alpha for the questionnaires of intellectual capital and organizational commitment were 0.969 and 0.935, respectively which clearly demonstrated the reliability of the questionnaires. Also the data were analyzed using statistical software of SPSS 15.0 and LISREL. The results of the study demonstrated that there was a significant and positive relationship between intellectual capital and its components (i.e., human capital, structural capital, and customer capital and organizational commitment.

Capital gains

International Nuclear Information System (INIS)

Blishen, C.

1997-01-01

This article examines African and Middle East oil and natural gas project financing. Capital markets financing, Ras Laffan's project bonds, capital market issues in Saudi Arabia, the movement toward gas and away from oil, and Islamic opportunities are discussed, African and Middle East oil and gas projects are listed. (UK)

The Housing Finance Revolution

OpenAIRE

Richard K. Green; Susan M. Wachter

2007-01-01

While other countries dismantled their segmented housing finance systems and linked housing finance to capital markets through deregulated depositories, the US linked housing finance to capital markets through depository deregulation and securitization. Elsewhere securitization has not developed. The US provided the underpinnings for its mortgage security infrastructure with the creation of FNMA in 1938 and in order to create liquidity in the mortgage market required the standardization of mo...

The study of venture capital finance and investment behaviour in small and medium-sized enterprises

Directory of Open Access Journals (Sweden)

Patmond Mbhele

2012-03-01

The tentative factor analysis findings suggest an integrated framework for the venture capital industry from the significant intercorrelations among the variables. The most important focus of this article, however, is its attempt to examine the behavioural traits of SMEs and venture capitalists regarding systematic finance and investment for inclusivity and due diligence.

Financing Distributed Generation

International Nuclear Information System (INIS)

Walker, A.

2001-01-01

This paper introduces the engineer who is undertaking distributed generation projects to a wide range of financing options. Distributed generation systems (such as internal combustion engines, small gas turbines, fuel cells and photovoltaics) all require an initial investment, which is recovered over time through revenues or savings. An understanding of the cost of capital and financing structures helps the engineer develop realistic expectations and not be offended by the common requirements of financing organizations. This paper discusses several mechanisms for financing distributed generation projects: appropriations; debt (commercial bank loan); mortgage; home equity loan; limited partnership; vendor financing; general obligation bond; revenue bond; lease; Energy Savings Performance Contract; utility programs; chauffage (end-use purchase); and grants. The paper also discusses financial strategies for businesses focusing on distributed generation: venture capital; informal investors (''business angels''); bank and debt financing; and the stock market

Financing Distributed Generation

Energy Technology Data Exchange (ETDEWEB)

Walker, A.

2001-06-29

This paper introduces the engineer who is undertaking distributed generation projects to a wide range of financing options. Distributed generation systems (such as internal combustion engines, small gas turbines, fuel cells and photovoltaics) all require an initial investment, which is recovered over time through revenues or savings. An understanding of the cost of capital and financing structures helps the engineer develop realistic expectations and not be offended by the common requirements of financing organizations. This paper discusses several mechanisms for financing distributed generation projects: appropriations; debt (commercial bank loan); mortgage; home equity loan; limited partnership; vendor financing; general obligation bond; revenue bond; lease; Energy Savings Performance Contract; utility programs; chauffage (end-use purchase); and grants. The paper also discusses financial strategies for businesses focusing on distributed generation: venture capital; informal investors (''business angels''); bank and debt financing; and the stock market.

INVESTMENT FINANCING THROUGH THE "PROJECT FINANCE"

OpenAIRE

Molina Arenaza, Hércules; Del Carpio Gallegos, Javier

2014-01-01

This article analizes and compares the various aspects related to the "Project Finance" technique using projects financing in the Capital Market, both in developed countries and in developing countries. Likewise, the application's technique is illustrated by Antamina mining enterprise. El artículo analiza y compara los diferentes aspectos relacionados con la técnica del Project finance usado en el financiamiento de proyectos en el mercado de capitales, tanto en los países desarrollados com...

Squeezing the funding you need from today's capital sources.

Science.gov (United States)

Gordon, Deborah C

2010-04-01

Healthcare providers need to understand traditional and nontraditional financing options and other potential strategies for accessing capital. Common financing options include bonds, commercial lending, acquisition financing, and financing through the Department of Housing and Urban Development's Section 232 program. Alternative strategies for accessing capital include joint ventures, equity, sale of assets, fund-raising, capital leases, internal capital, public grants, and grants from foundations.

12 CFR 1229.5 - Capital distributions for adequately capitalized Banks.

Science.gov (United States)

2010-01-01

... capitalized Banks. 1229.5 Section 1229.5 Banks and Banking FEDERAL HOUSING FINANCE AGENCY ENTITY REGULATIONS CAPITAL CLASSIFICATIONS AND PROMPT CORRECTIVE ACTION Federal Home Loan Banks § 1229.5 Capital... classification of adequately capitalized. A Bank may not make a capital distribution if such distribution would...

A study on the impact of campaign finance, political capital and gender on electoral performance

Directory of Open Access Journals (Sweden)

Bruno Wilhelm Speck

2014-04-01

Full Text Available This article analyzes the association between political finance and electoral performance in the 2010 Brazilian elections for state and federal deputies. It also investigates the interaction effect of incumbency and gender on this association. We conclude: (i there is a positive and statistically significant association between political finance and electoral performance, yet the intensity of this association varies according to the type of candidate; (ii the association is stronger for challengers than for incumbents – thus extending the "Jacobson effect" to the Brazilian case; and (iii the association is stronger for women than for men – which suggests an extension of the idea underlying the "Jacobson effect". The association between finance and electoral performance tends to be stronger for candidates facing electoral disadvantages, whether these stem from limited political capital, gender discrimination, or any other factor not studied here resulting in a similar effect. Political finance works as a tool that, to some extent, may counteract the negative effect of such factors on electoral performance.

Financing Preference Behaviour for Private Finance Initiative (PFI Projects

Directory of Open Access Journals (Sweden)

Yati Md Lasa

2016-01-01

Full Text Available Project Financing Initiative (PFI projects require the private sector to invest an enormous amount of capital for the development of public projects. The private sector has to seek cost-effective financing sources for their survival in the long-term concession. Conventional financing uses widely; however, Islamic financing promises better financing through profit and loss sharing. This paper reviews financing preferences for PFI projects and the factors influencing the choice of funding. The results show that religious perspective, quality of services, financing facilities and reputation are the factors that are expected will influence the financing preference behaviour, either Islamic or conventional finance.

How to choose the right capitalization option.

Science.gov (United States)

Vaughan, J; Wise, J

1996-12-01

Physician group practices and networks must have ready access to capital to finance their working capital needs, capital equipment acquisitions, and real estate purchases, as well as to fund the acquisition of additional practices. At least three options for capitalization are available to group practices and networks: debt financing, equity financing, or a combination of the two. The best option for physician group practices and networks depends on the costs of capital and the impact the strategy will have on decision making and governance.

In the future, toward death: Finance capitalism and security in Don DeLillo’s ‘Cosmopolis’

Directory of Open Access Journals (Sweden)

Johannes Voelz

2018-05-01

Full Text Available This article develops a reading of Don DeLillo’s novel Cosmopolis that differentiates between two thematic and poetological axes running through the text. On the one hand, Cosmopolis explores the future-fixation of the risk regime of finance capitalism; on the other, it stages scenes of insecurity that physically threaten the protagonist and his world. Insecurity, the article argues, is a condition that throughout the text increasingly gains in appeal because it promises to offer an alternative to a world of managed risk. The concern with security emphasizes finitude and mortality, thus enabling a turn to existential matters that the virtual abstractions of finance have seemingly made inaccessible. While proposing an opposition between a logic of risk based on virtuality and a logic of (insecurity based on authenticity, DeLillo’s novel also suggests that it is impossible to break out of the logic of risk management pervading late modernity. The appeal of (insecurity articulated in Cosmopolis rather lies in the promise to existentially revitalize life within the confines of financialized capitalism.

The international Finance Corporation and financing of sustainable energy

International Nuclear Information System (INIS)

Younger, D.R.

1999-01-01

The International Finance Corporation (IFC), a member of the World Bank Group, is the largest multilateral source of loan and equity financing for private sector projects in the developing world. IFC participates in an investment only when it can make a special contribution that complements the role of market operators. Since its founding 40 years ago, IFC has provided more than $18.8 billion in financing for 1,706 companies in developing countries. Its share capital is provided by its 170 member countries, which collectively determine its policies and activities. Strong shareholder support and a substantial paid-in capital base have allowed IFC to raise funds for its lending activities through its triple-A rated bond issues in international financial markets. (orig.)

An average-based accounting approach to capital asset investments: The case of project finance

OpenAIRE

Carlo Alberto Magni

2014-01-01

Literature and textbooks on capital budgeting endorse Net Present Value (NPV) and generally treat accounting rates of return as not being reliable tools. This paper shows that accounting numbers can be reconciled with NPV and fruitfully employed in real-life applications. Focusing on project finance transactions, an Average Return On Investment (AROI) is drawn from the pro forma financial statements, obtained as the ratio of aggregate income to aggregate book value. It is shown that such a me...

Financing energy projects in Africa

International Nuclear Information System (INIS)

Godier, Kevin; Marks, Jon

1999-12-01

Contains Executive Summary and Chapters on: Overview of financing trends in Africa; Multilateral support - Bedrock of Africa's first generation energy projects; ECA insurance and financing; Bilateral development finance; Offshore commercial bank lending; Local commercial bank finance; Capital markets; Legal ramifications ; Risk factors; Conclusions. (Author)

Measuring Social Capital Accumulation in Rural Development

DEFF Research Database (Denmark)

Teilmann, Kasper

2012-01-01

Using a theoretical framework, the study proposes an index that can measure the social capital of local action group (LAG) projects. The index is founded on four indicators: number of ties, bridging social capital, recognition, and diversity, which are aggregated into one social capital index....... The index has been tested in LAG-Djursland, Denmark, and the study further investigates whether the organisational affiliation, project financing, and LAG co-financing can explain the degree of social capital accumulation. Furthermore, the author has tested if there are connections between motivation...... for pursuing development projects similar to those implemented previously and the degree of social capital. The paper concludes that there are indications that projects hosted by municipalities tend to show the most social capital, there is no connection between the amount of project financing and social...

Finance and the nuclear industry

International Nuclear Information System (INIS)

Radtke, G.G.

1983-01-01

The subject is discussed under the headings: the energy situation today; energy investment and capital requirements (finding the necessary funds); further possibilities; future financing (project financing); summary. (U.K.)

Financial constraints and Islamic finance: Lesson learned from external financing perspective

Directory of Open Access Journals (Sweden)

Achmad Tohirin

2016-10-01

Full Text Available This study examines the presence of financial constraints and explores the role of profit-loss sharing (PLS in mitigating the problem of the financial constraints stemmed from the capital market imperfections. Using Malaysian listed companies’ data, this study finds that the financial constraints are present in the capital market. This finding implies the imperfect capital market. In Islamic PLS framework, there are two options of financing contracts that may be enforced in the capital market as financing mechanisms, i.e. al-musharakah and al-mudharabah. These schemes promote sharing of information and mutual trust between financiers and ‘borrowers’. In these contracts, there are strict terms and conditions to be adhered to by both parties so that the contracts pursue to be valid. Besides, PLS mechanism may reduce the cost of capital since the profit and loss are shared rather than be burdened only on one shoulder. In this regard, the imperfect market problems namely asymmetric information, agency problem and transaction cost can be reduced if not be overcome.

Financing mechanisms for capital improvements : interchanges : final report.

Science.gov (United States)

2010-03-01

This report examines the use of alternative local financing mechanisms for interchange and interchange area infrastructure improvements. The financing mechanisms covered include transportation impact fees, tax increment financing, value capture finan...

Proposing changes in legislative and institutional conditions for private equity and venture capital financing in the Czech Republic – a comparative study with Poland

Directory of Open Access Journals (Sweden)

Jaroslava Rajchlová

2011-01-01

Full Text Available This paper discusses the conditions of private equity and venture capital financing in the Czech Republic and Poland. Especially the related legislation, taxes and support of this type of financing are discussed in detail. The purpose of this research is to evaluate the conditions, to find factors that have positive influence and to formulate recommendations that would improve the conditions for both PE/VC investors and firms with new business ideas. Improving the conditions for PE/VC financing helps small businesses get the needed capital that cannot be obtained from banks and other institutions. This form of financing has a proven positive effect on whole economy. Identifying and removing obstacles is therefore important and helps the government to promote economic growth. This form of financing is used frequently in other European countries. In the central and eastern Europe it is not used as frequently but the situation is improving according to (Zinecker & Rajchlová, 2010. According to the study made by EVCA an array of legislative shortcoming were identified in the Czech Republic. Poland and Hungary have better conditions for PE/VC financing. According to EVCA studies made in 2004 and 2006 Poland shows that the conditions improve each year. Therefore Poland was chosen in this research for a comparative study with the Czech Republic.

78 FR 45592 - DeltaPoint Capital IV, LP;

Science.gov (United States)

2013-07-29

..., Suite 160, Pittsford, NY 14534. The financing was contemplated for working capital. The financing is... SMALL BUSINESS ADMINISTRATION [License No. 02/02-0662] DeltaPoint Capital IV, LP; Notice Seeking... given that DeltaPoint Capital IV, L.P., 45 East Avenue, 6th Floor, Rochester, NY 14604, Federal...

Prevailing ship financing methods applied to major dry-bulk companies

OpenAIRE

Χριστοδούλου, Αγγελική

2015-01-01

Shipping finance of 2014 has altered substantially regarding that of last decades and the shipping companies’ traditional capital structure of bank lending along with shareholders equity gives way to sophisticated and innovative financing methods forming a new capital structure which is more complicated but serves better the present-day financial needs. Not only constitutes the scope of this dissertation to exhibit the current ship-financing instruments but also to seek the optimal capital st...

The Determinants of Debt Financing

OpenAIRE

Zhao, Chenkai

2013-01-01

Debt financing is an important part in capital structure. Over the fifty years, most scholars and researchers focus primarily on the balance between debt financing and equity financing. And only few research involve in types of debt financing, as well as the determinant of debt financing. This study is aim to analyse the determinate of debt financing, which examine that the influence by eight different elements. This dissertation examined by quantitative techniques with 591 UK listed comp...

Understanding your capital options.

Science.gov (United States)

Payne, Christopher T

2012-05-01

When planning capital expenditures, hospitals and health systems should understand the following financing considerations: Traditional fixed-rate tax-exempt bonds; Variable-rate financing alternatives; Basel III Accord requirements; Direct tax-exempt bank loans; Total return swaps Taxable financings; Interest-rate swaps and collateral requirements

Using the capital markets in Ras Gas

International Nuclear Information System (INIS)

Voge, B.; Penzer, M.

1997-01-01

In December 1996, Ras Laffan Liquefied Natural Gas Company Ltd (Ras Gas) closed a multi-source financing that included an offering of US$1.2bn of bonds. The sponsors of the Ras Gas project overcame a number of obstacles on the road to closing the capital markets offering. This article provides a general overview of capital markets offerings in international project financings and discusses how Ras Gas was able to successfully integrate a capital markets offering into a financing plan which included a commercial bank facility and several export-credit agency facilities. (Author)

Mudaraba-Venture Capital Closed-end Mutual Funds and Mudaraba-Venture Capital Open-end Mutual Funds

OpenAIRE

Halil Ibrahim Bulut

2008-01-01

The important part of this study attempts to explain that both venture capital and interest-free financing are based on similar ground, if not the same. Two new models called Mudaraba-Venture Capital Closed-End Mutual Funds and Mudaraba-Venture Capital Open-End Mutual Funds, based on both the similarities and the needs of financial innovation in the interest-free financing system, are detailed. It is believed that the development of these two models could make some improvements not only in th...

PFI redux? Assessing a new model for financing hospitals.

Science.gov (United States)

Hellowell, Mark

2013-11-01

There is a growing need for investments in hospital facilities to improve the efficiency and quality of health services. In recent years, publicly financed hospital organisations in many countries have utilised private finance arrangements, variously called private finance initiatives (PFIs), public-private partnerships (PPPs) or P3s, to address their capital requirements. However, such projects have become more difficult to implement since the onset of the global financial crisis, which has led to a reduction in the supply of debt capital and an increase in its price. In December 2012, the government of the United Kingdom outlined a comprehensive set of reforms to the private finance model in order to revive this important source of capital for hospital investments. This article provides a critical assessment of the 'Private Finance 2' reforms, focusing on their likely impact on the supply and cost of capital. It concludes that constraints in supply are likely to continue, in part due to regulatory constraints facing both commercial banks and institutional investors, while the cost of capital is likely to increase, at least in the short term. Copyright © 2013 Elsevier Ireland Ltd. All rights reserved.

Structure of financing investments in the energy sector

OpenAIRE

Kowal Barbara; Ranosz Robert; Sobczyk Wiktoria

2017-01-01

The purpose of this article is to discuss the issues of financing investments in the fuel and energy sector. The manner of financing business activities of every company depends on the decisions made by the management board, which need to take into consideration the effective striving for optimal level of the capital cost. The capital raised by the companies from the aforesaid sector may be in the form of equity or outside capital. This study depicts such sources of capital as bank loans a...

Financing - general considerations

International Nuclear Information System (INIS)

1977-01-01

Various aspects of the problems of financing a multinational regional fuel cycle centre (RFCC) are briefly discussed. Some of the points covered are: financing by participants; floating long-term loans on capital markets outside the countries of the participants; and export credits for the purchase of equipment manufactured outside the countries of the participants

Achieving improved financing for low-income producers in ...

African Journals Online (AJOL)

For the poor with relatively fewer assets, improved access to finance allows them to manage risk and smooth consumption; finance technological and capital improvements and thereby raise productivity; acquire working capital to obtain inputs in a timely way; and take advantage of market opportunities that contribute to ...

Taxes and Venture Capital Support

DEFF Research Database (Denmark)

Keuschnigg, Christian; Nielsen, Søren Bo

2003-01-01

In this paper we set up a model of start-up finance under double moral hazard.Entrepreneurs lack own resources and business experience to develop their ideas.Venture capitalists can provide start-up finance and commercial support. The effortput forth by either agent contributes to the firm......-set may paradoxically contribute to higher quality of venturecapital finance and welfare. Subsidies to physical investment in VC-backed startupsare detrimental in our framework.Keywords: Venture capital, capital gains taxation, double moral hazard.JEL-Classification: D82, G24, H24, H25...

7 CFR 1738.19 - Facilities financed.

Science.gov (United States)

2010-01-01

... AGRICULTURE RURAL BROADBAND ACCESS LOANS AND LOAN GUARANTEES Loan Purposes and Basic Policies § 1738.19 Facilities financed. (a) RUS makes broadband loans to finance the construction, improvement, and acquisition... broadband loans to finance broadband facilities leased under the terms of a capital lease as defined in...

Outside Entrepreneurial Capital

OpenAIRE

Andy Cosh; Douglas Cumming; Alan Hughes

2005-01-01

This paper investigates the internal versus external financing decisions among 1900 early stage privately held UK firms in 1996-1997. We study the factors that affect rejection rates in applications for outside finance among the different types of investors, taking into account the non-randomness in a firm’s decision to seek outside finance. The data support the traditional pecking order theory; firms with greater capital expenditures / profits are more likely to seek finance and apply for mo...

Working Capital Approaches and Firm’s Returns in Pakistan

Directory of Open Access Journals (Sweden)

Dr. Talat Afza

2008-09-01

Full Text Available This study investigates the relationship between the aggressive/conservative working capital policies for seventeen industrial groups of public limited companies listed at Karachi Stock Exchange for a period of 1998-2003. The ordinary least square regression model has been used to investigate into the relationship of working capital approaches and the returns of firms. The study found significant differences among their working capital investment and financing policies across different industries. Moreover, these significant differences are remarkably stable over the period of six years. The aggressive investment working capital policies are accompanied by aggressive working capital financing policies. Finally, we found a negative relationship between the profitability measures of firms and degree of aggressiveness of working capital investment and financing policies. The study would contribute a better understanding of working capital management policies in an emerging market like Pakistan.

Internal Controls and Compliance With Laws and Regulations for the Defense Finance and Accounting Service Working Capital Fund Financial Statements for FY 1998

National Research Council Canada - National Science Library

1999-01-01

.... The Director, Defense Finance and Accounting Service (DFAS), who is the fund manager of the DFAS Working Capital Fund, is responsible for establishing and maintaining adequate internal controls and for complying with applicable laws and regulations...

How to finance energy transition? Elements of analysis for a strategic approach

International Nuclear Information System (INIS)

Ruedinger, Andreas

2015-01-01

If regulatory and economic signals are the first determining factors for the launching of energy transition projects, financing tools are a major stake. But financing these projects is also facing two complementary challenges: the mobilisation of additional capital resources to face the needs, and the re-orientation of a part of this financing towards more efficient projects. In order to asses the consistency of financing tools, this study identifies three determining financing stakes: an inter-mediation with capital markets to mobilise capitals at low cost, a calibration of project financing mechanisms to meet the needs of the different actors and sectors and to limit transaction costs, and a better articulation between financial tools and regulatory tools. The authors thus propose an integrated approach to the stakes of transition financing

THE IMPORTANCE OF CAPITAL MARKET IN ECONOMY

Directory of Open Access Journals (Sweden)

Alin Marius Andrieş

2009-12-01

Full Text Available All participants in capital markets are asking how to finance investments or to invest money available. The answer to these questions depends on the situation you have: deficit or surplus capital. This article addresses issues concerning the place and role of capital market within the financial markets and in financing investments, trying to highlight the growing importance of this subsystem, shown both to economic agents and to all categories of investors.

Capitals Cost and the Investments Actualisation Rate

Directory of Open Access Journals (Sweden)

Ion Stancu

2006-02-01

Full Text Available In this article, the author has assumed himself an assignment somehow ostentatious but useful, we believe, naming the one to illustrate by means of figures, the influence of both leverage and economic growth over the cost of capital, cost which will be used in capital budgeting. This synthesis is meant to be a forthcoming approach to a later investigation of the problems raised by the estimation of the cost of capital in the specific conditions of both the financial market in Romania and the quality of the economic-financial information, information available for this estimation. The discount rate for an investment project (kinv with a risk equal to the risk undertaken by the enterprise and financed within the firm’s capital structure itself (having the same leverage is equal to the (weighted average cost of capital in the respective risk class (k. Under these circumstances, it is interesting to find out this opportunity cost of capital invested in a medium-sized enterprise: a with investments in rebuilding the productive capacity, all equity financed; b with investments in rebuilding the productive capacity, financed both by equity and debt; c with new investments, all equity financed; d with new investments, financed both by equity and debt. Under these conditions, we estimate the effect of both the leverage and economic growth over the cost of capital (kec and kc to be able to determine in the end the discount rate of the analyzed investment (kinv: for enterprises with only maintaining investments (g = 0, unlevered (U and levered (L; for enterprises with growing investments (g > 0, unlevered (U and levered (L.

Capitals Cost and the Investments Actualisation Rate

Directory of Open Access Journals (Sweden)

Ion Stancu

2006-04-01

Full Text Available In this article, the author has assumed himself an assignment somehow ostentatious but useful, we believe, naming the one to illustrate by means of figures, the influence of both leverage and economic growth over the cost of capital, cost which will be used in capital budgeting. This synthesis is meant to be a forthcoming approach to a later investigation of the problems raised by the estimation of the cost of capital in the specific conditions of both the financial market in Romania and the quality of the economic-financial information, information available for this estimation. The discount rate for an investment project (kinv with a risk equal to the risk undertaken by the enterprise and financed within the firm’s capital structure itself (having the same leverage is equal to the (weighted average cost of capital in the respective risk class (k. Under these circumstances, it is interesting to find out this opportunity cost of capital invested in a medium-sized enterprise: a with investments in rebuilding the productive capacity, all equity financed; b with investments in rebuilding the productive capacity, financed both by equity and debt; c with new investments, all equity financed; d with new investments, financed both by equity and debt. Under these conditions, we estimate the effect of both the leverage and economic growth over the cost of capital (kec and kc to be able to determine in the end the discount rate of the analyzed investment (kinv: for enterprises with only maintaining investments (g = 0, unlevered (U and levered (L; for enterprises with growing investments (g > 0, unlevered (U and levered (L.

Micro Finance in Nigeria: Problems and Prospects | Nwanyanwu ...

African Journals Online (AJOL)

finance industry are inadequate finance, high risk, heavy transaction cost, mounting loan ... management of funds meant for credit disbursement, the capital base of micro finance institutions should be strengthened in order to mobilize domestic ...

INSURANCE AND THE CORPORATE COST OF CAPITAL

Directory of Open Access Journals (Sweden)

Monika Wieczorek-Kosmala

2012-04-01

Full Text Available The purpose of the paper is to provide some support to the thesis that insurance may reduce the cost of capital in a company by influencing both the cost of capital components and the need for rising capital. The problem is here perceived from two perspectives – the classical concept related to the weighted average cost of capital (WACC and a novel concept related to the risk-based capital structure model with the total average cost of capital (TACC. The paper explains the idea of insurance as a retrospective (post-loss risk financing tool and the risk transfer mechanism upon it. As the risk financing tool insurance reduces the need for the balance-sheet capital in a company and thus the financial distress costs. Also, insurance may reduce the level of operating risk and thus influences the required returns of the capital providers. These observations allow emphasising the impact of insurance on the WACC. However, according to the novel concept of the risk-based capital structure, insurance (as a risk financing tool represents an off-balance sheet capital component. As a consequence, it extends the volume of total capital. The presented conceptual model, based on the TACC concept, indicates that large volume of insurance (the insurance sum and its relatively low cost (the insurance premium gives the possibility to the significant reduction of the cost of capital on average. The concluding remarks discuss some dilemmas over the utility of the TACC concept.

Rethinking capital markets reform: a reassessment of Olson problem and regulatory dualism in the German capital markets from a varieties of capitalism perspective

Directory of Open Access Journals (Sweden)

André Ziccardi de Carvalho

2015-09-01

Full Text Available Since its proposition by Peter A. Hall and David Soskice the Varieties of Capitalism (VoC approach has been particularly important to explain the relationship between economic agents and sets of institutional arrangements that, even in regulatory scenarios that Law and Finance’s school would consider “less than optimal”, are able to generate sustainable economic growth. In this context the VoC approach has been consistently challenging the traditional “one fits all” approach towards capital markets reform usually endorsed by institutions such as the World Bank and the International Monetary Fund, as well as by many scholars and capital markets regulators associated with La Porta’s Law and Finance School. As any theoretical framework, however, the VoC approach also faces its own challenges and still lacks the scientific maturity achieved by the Law and Finance School. Consequently a conciliation between the relational view of the firm proposed by the VoC approach and the overview of corporate governance practices throughout the world presented by the Law and Finance School would be instrumental to construe a more clear understanding of the competitive advantages generated by certain sets of institutions and, at the same time, more accurately assess impacts of reforms that, even if implemented with the legitimate goal of promoting firms’ transparency and higher corporate governance standards, may counter-intuitively generate unprecedented corporate and capital markets crisis. By analyzing two concepts proposed by Ronald J. Gilson, Henry Hansmann and Mariana Pargendler that have an apparent fundamental link to La Porta’s school of Law and Finance (i.e. Olson Problem and Regulatory Dualism through a varieties of capitalism approach, this study aims at rethinking the traditional “one fits all” approach towards capital markets reform and taking a further step in the direction of conciliating the VoC approach with La Porta’s Law

Toward Effective Policies for Innovation Financing in Asia | Page 2 ...

International Development Research Centre (IDRC) Digital Library (Canada)

Researchers will undertake a comparative study of innovation financing schemes in Malaysia, Singapore, Taiwan and Thailand. The research will focus on venture capital financing schemes, research and development (R&D) tax incentives, loan and grant programs, capital market rules/regulations, etc. The project will ...

Project finance of hydroelectric power plants in Brazil; 'Project finance' de usinas hidroeletricas no Brasil

Energy Technology Data Exchange (ETDEWEB)

Ribeiro Filho, Valfredo de Assis; Ramos, Maria Olivia de Souza [Universidade Salvador (UNIFACS), BA (Brazil)

2008-07-01

The aim of this paper is to discuss the modality of project finance of financing of enterprises, which is the main modality of structuring of hydroelectric projects in Brazil. In the discussion will be highlighted the importance of contracts EPC (Engineering, Search and Construction) in the structuring of project finances. This financing model has particular characteristics related to risk sharing and financial flexibility that enable the financing of projects with long-term capital, however, due to participation of various actors and the nature of the structure of project finance, the negotiation and drafting of contracts are always very complex.

Flight capital and its reversal for development financing

OpenAIRE

Hermes, Niels; Lensink, Robert; Murinde, Victor

2002-01-01

In this paper, we review the theoretical and empirical literature on capital flight. First, we discuss the measurement of capital flight. Next, we provide information on the magnitude as well as the ‘burden’ of capital flight for a selected set of developing countries in four regions of the world (South Asia, East Asia, Sub-Saharan Africa and Latin America). Moreover, we review the literature on the determinants of capital flight and provide an overview of empirical studies that have analysed...

Venture capital and internationalization

NARCIS (Netherlands)

Schertler, A.G.; Tykvova, T.

Cross-border investments represent a substantial share of venture capital activities. We use a comprehensive dataset on investments worldwide to analyze the internationalization of venture capital financing. We postulate that cross-border activity is shaped by macroeconomic factors in the venture

PV Project Finance in the United States, 2016

Energy Technology Data Exchange (ETDEWEB)

Feldman, David; Lowder, Travis; Schwabe, Paul

2016-09-01

This brief is a compilation of data points and market insights that reflect the state of the project finance market for solar photovoltaic (PV) assets in the United States as of the third quarter of 2016. This information can generally be used as a simplified benchmark of the costs associated with securing financing for solar PV as well as the cost of the financing itself (i.e., the cost of capital). Three sources of capital are considered -- tax equity, sponsor equity, and debt -- across three segments of the PV marketplace.

Financing rail capital projects : historical lessons, contemporary cases.

Science.gov (United States)

2012-11-01

Two large questions informed the research for this article: first, how and why did the mid20th century shift from private to public ownership, financing and operation of : passenger railways affect the subsequent financing and development of high ...

Bond financing for renewable energy in Asia

International Nuclear Information System (INIS)

Ng, Thiam Hee; Tao, Jacqueline Yujia

2016-01-01

Addressing the financing gap for renewable energy (RE) projects in Asia is critical to ensure that the rapidly increasing energy needs could be met sustainably. This paper explores the cause of the financing gap in Asia and proposes the use of bond financing to address the financing gap. Specifically, three fixed income instruments, namely local currency denominated (LCY) corporate bonds, asset backed project bonds and financial green bonds, will be assessed. Whilst the potential for these three instruments to mobilize large flows of private sector financing is great, key supportive policies aimed at reducing the capital market bias for conventional power generation technologies and supportive RE policies are required. Another key aspect would be the necessary deepening of local and regional fixed income markets before such capital market instruments are able to play a big role. - Highlights: •This study looks at the current financing gap and RE financing landscape in developing Asia. •LCY corporate bonds, asset backed projects bonds and financial green bonds could help to address the financing gap for RE in the region. •Policy recommendations for building the fixed income market for RE projects are provided.

Sources of finance for power generation: an Asian perspective

International Nuclear Information System (INIS)

Haggard, Melville

1994-01-01

Data are presented which show there is no standard framework for financing independent power projects (IPPs) and that there is a close correlation between the simplicity of the financing solution and the state of development of the local capital market. Some aspects of the optimization of capital structure for IPP financing are considered. In order to increase access to finance, risks need to be minimized. Three principal areas of risk are identified. These are transparency and political risks, cashflow issues and bidding procedures. Strategies for minimizing these risks are outlined. Finally, fuel supply, technology and plant operation are briefly examined as factors influencing electricity price competitiveness. (1 table, 6 figures) (UK)

Private Placement Debt Financing for Public Entities

Science.gov (United States)

Holman, Lance S.

2010-01-01

Private placement financing is a debt or capital lease obligation arranged between a municipality or a 501(c) (3) not-for-profit organization and a single sophisticated institutional investor. The investor can be a bank, insurance company, finance company, hedge fund, or high-net worth individual. Private placement financing is similar to…

Privatization Financing Alternatives: Blending Private Capital and Public Resources for a Successful Project

Energy Technology Data Exchange (ETDEWEB)

BT Oakley; JH Holbrook; L Scully; MR Weimar; PK Kearns; R DiPrinzio

1998-10-19

The U.S. Department of Energy (DOE) launched the Contract Reform Initiative in 1994 in order to improve the effectiveness and effkiency of managing major projects and programs. The intent of this initiative is to help DOE harness both technical and market forces to reduce the overall cost of accomplishing DOE's program goals. The new approach transfers greater risk to private contractors in order to develop incentives that align contractor performance with DOE's objectives. In some cases, this goal can be achieved through public-private partnerships wherein the govermhent and the contractor share risks associated with a project in a way that optimizes its economics. Generally, this requires that project risks are allocated to the party best equipped to manage and/or underwrite them. While the merits of privatization are well documented, the question of how privatized services should be financed is often debated. Given the cost of private sector equity and debt, it is difficult to ignore the lure of the government's "risk free" cost of capital. However, the source of financing for a project is an integral part of its overall risk allocation, and therefore, participation by the government as a financing source could alter the allocation of risks in the project, diminishing the incentive structure. Since the government's participation in the project's financing often can be a requirement for financial feasibility, the dilemma of structuring a role for the government without undermining the success of the project is a common and difficult challenge faced by policymakers around the world. However, before reverting to a traditional procurement approach where the government enters into a cost-plus risk profile, the government should exhaust all options that keep the private entity at risk for important aspects of the project. Government participation in a project can include a broad range of options and can be applied with precision to bridge a

Fordism, Finance-driven Capitalism, and Climate Change

DEFF Research Database (Denmark)

Buch-Hansen, Hubert

2014-01-01

Review of Capitalism and Climate Change: Theoretical Discussion, Historical Development and Policy Responses by Max Koch. New York: Palgrave Macmillan, 2012, pp. 240, ISBN: 9780230272514, £55 (hbk.)......Review of Capitalism and Climate Change: Theoretical Discussion, Historical Development and Policy Responses by Max Koch. New York: Palgrave Macmillan, 2012, pp. 240, ISBN: 9780230272514, £55 (hbk.)...

The Profitability – Risk Relationship and Financing Decision

Directory of Open Access Journals (Sweden)

Nicoleta BARBUTA-MISU

2007-01-01

Full Text Available The enterprise financial decision is a rational process for option to the optimal variant related to financing and investments. For the capital investment to be justified, the profitability of the invested money must be at least equal with the profitability of the alternative investment opportunities with the same risk on market. The choosing of a way for financing is determined on the one side by their cost and on the other side by the existent capital structure. In this paper I tried to analyse the profitability – risk relationship in the financing decision for the “NIKOS” Ltd.

A disciplined approach to capital: today's healthcare imperative.

Science.gov (United States)

Dupuis, Patrick J; Kaufman, Kenneth

2007-07-01

BJC HealthCare's experience exemplifies several basic principles of a finance-based approach to capital. Organizations that adopt this approach look to improve processes first, remove costs second, and spend capital last. Multiyear planning is required to quantitatively identify the profitability and liquidity requirements of strategic initiatives and address essential funding and financing issues.

The Determinants of Venture Capital Portfolio Size: Empirical Evidence

OpenAIRE

Douglas J. Cumming

2006-01-01

This paper explores factors that affect portfolio size among a sample of venture capital financing data from 214 Canadian funds. Four categories of factors affect portfolio size: (1) the venture capital funds' characteristics, including the type of fund, fund duration, fund-raising, and the number of venture capital fund managers; (2) the entrepreneurial firms' characteristics, including stage of development, technology, and geographic location; (3) the nature of the financing transactions, i...

Royalty financing for the oil and gas industry

International Nuclear Information System (INIS)

Read, F. M. D.

1998-01-01

Key concepts in royalty financing for the oil and gas industry are described. The basic significance of royalty financing for a public company is that financing is 'off balance sheet', and can be used to achieve objectives that neither debt, equity, nor outright sale of assets or farm-outs can accomplish. Royalty financing can provide increased available capital or debt reduction while maintaining the full gross share of reserve and production volumes on the books. This paper provides an overview of the field of royalty financing, with an appreciation of the benefits, reviews each of the financial alternatives (debt, equity, farmout and or sale of assets to reduce capital requirements), and provides examples of specific application of royalty financing. It is claimed that this type of financing, which has been available to the mining sector for some time, is a useful alternative to other financing instruments to acquire new oil and gas assets, to develop new areas, to implement enhanced recovery projects or to carry out mergers and acquisitions. Used judiciously, royalty financing can provide significant benefits to both the working interest owner and his shareholders, as well as the royalty company

Project finance of hydroelectric power plants in Brazil; 'Project finance' de usinas hidroeletricas no Brasil

Energy Technology Data Exchange (ETDEWEB)

Ribeiro Filho, Valfredo de Assis; Ramos, Maria Olivia de Souza [Universidade Salvador (UNIFACS), BA (Brazil)

2008-07-01

The aim of this paper is to discuss the modality of project finance of financing of enterprises, which is the main modality of structuring of hydroelectric projects in Brazil. In the discussion will be highlighted the importance of contracts EPC (Engineering, Search and Construction) in the structuring of project finances. This financing model has particular characteristics related to risk sharing and financial flexibility that enable the financing of projects with long-term capital, however, due to participation of various actors and the nature of the structure of project finance, the negotiation and drafting of contracts are always very complex.

THEORETICAL FRAMEWORK ON CAPITAL STRUCTURE AND FIRM'S PERFORMANCE

OpenAIRE

L. Senthil Kumar

2017-01-01

Capital structure is the composition of debt and equity securities that are used to finance company’s assets. Both debt and equity securities are used by most of the companies to raise funds. Having determined its investment policy, a company should plan the sources of finance and their mix. Companies which do not formally plan their capital structures are likely to face difficulties in raising capital on favourable terms in the long-run. Financial experts and authorities differ as to the com...

Financing mechanisms for capital improvements : interchanges, final report, March 2010.

Science.gov (United States)

2010-03-01

This report examines the use of alternative local financing mechanisms for interchange and interchange area infrastructure improvements. The financing mechanisms covered include transportation impact fees, tax increment financing, value capture finan...

12 CFR 932.2 - Total capital requirement.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Total capital requirement. 932.2 Section 932.2 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL REQUIREMENTS § 932.2 Total capital requirement. (a) Each Bank shall...

Financing electricity expansion

International Nuclear Information System (INIS)

Hyman, L.S.

1994-01-01

Expansion of electricity supply is associated with economic development. The installation and enlargement of power systems in developing countries entails a huge financial burden, however. Energy consumers in such countries must pay not only for supplies but for the cost of raising the capital for expansion on the international markets. Estimates are presented for the capital expenditure for electricity supply over the period 1990 to 2020 for the major world regions, using approximations for the cost of plant and capital and for the returns earned. These data lead to the conclusion that the five regions with the lowest per capita incomes are those which will need the major part of the capital expenditure and the highest percentage of external finance. (6 tables) (UK)

42 CFR 412.302 - Introduction to capital costs.

Science.gov (United States)

2010-10-01

... 42 Public Health 2 2010-10-01 2010-10-01 false Introduction to capital costs. 412.302 Section 412... Inpatient Hospital Capital Costs General Provisions § 412.302 Introduction to capital costs. (a) New capital... revision of the debt instrument. (iii) If short-term financing was used to acquire old capital assets and...

Capital finance and ownership conversions in health care.

Science.gov (United States)

Robinson, J C

2000-01-01

This paper analyzes the for-profit transformation of health care, with emphasis on Internet start-ups, physician practice management firms, insurance plans, and hospitals at various stages in the industry life cycle. Venture capital, conglomerate diversification, publicly traded equity, convertible bonds, retained earnings, and taxable corporate debt come with forms of financial accountability that are distinct from those inherent in the capital sources available to nonprofit organizations. The pattern of for-profit conversions varies across health sectors, parallel with the relative advantages and disadvantages of for-profit and nonprofit capital sources in those sectors.

Emerging trends in health care finance.

Science.gov (United States)

Sterns, J B

1994-01-01

Access to capital will become more difficult. Capital access is dependent on ability to repay debt, which, in turn, is dependent on internally generated cash flows. Under any health care reform proposal, revenue inflows will be slowed. The use of corporate finance techniques to limit financial risk and lower cost will be a permanent response to fundamental changes to the health care system. These changes will result in greater balance sheet management, centralized capital allocation, and alternative sources of capital.

13 CFR 108.820 - Financings in the form of guarantees.

Science.gov (United States)

2010-01-01

... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false Financings in the form of... VENTURE CAPITAL (âNMVCâ) PROGRAM Financing of Small Businesses by NMVC Companies Structuring Nmvc Company's Financing of Eligible Small Businesses § 108.820 Financings in the form of guarantees. (a) General...

Does Foreign Direct Investment Provide Desirable Development Finance? The Case of China

Institute of Scientific and Technical Information of China (English)

Yan Liang

2007-01-01

Foreign direct investment (FDI) is often considered as a cost-effective and risk-reducing source for development finance. This paper, however, shows that FDI finance often entails underestimated risks and costs. FDI might react sensitively to business cycles and might not be as "permanent" as conventionally believed. FDI might also accelerate other forms of capital flow in times of financial difficulties and, hence, destabilize financial order. In addition to the risks, compensations to FDI and the high import-dependency of FDI-related trade lead to a considerable drain on the balance of payments. Moreover, the reliance on foreign capital for development finance is equivalent to building a Ponzi financing scheme and,therefore, is unsustainable. Given the fact that FDI financing is risky and costly and China does not lack savings, it is suggested in the present paper that China's efforts in attracting FDI should not aim at external capital provisioning.

Determinants of capital structure: An empirical study on Vietnamese listed firms

Directory of Open Access Journals (Sweden)

Le Trung Thanh

2017-05-01

Full Text Available This paper aims to explore the capital structure of listed Vietnamese companies in an updated context of financial development (the recent situation of domestic equity and debt capital market. By applying Random Effect model for panel data, we analyze 05 firm-specific and 01 country-specific determinants of capital structure based on the data set of 228 firms listed on Ho Chi Minh Stock Exchange during the period 2010 – 2014. The results indicated that The Pecking Order theory better explains the financing behaviors of Vietnamese listed firms. Accordingly, although in recent years, Vietnam’s equity market and corporate debt capital market have evolved considerably, the capital structure of Vietnamese companies are still dominated by the use of short-term financing sources. High-growth firms or large-sized firms still rely heavily on external debt rather than equity issuance while State-owned enterprises (SOE are reported to have positive association with the use of long-term financing sources. This study proposed some recommendations to the policymakers in two dimensions: improving the efficiency and role of capital markets to mitigate the reliance on short-term funds and ensuring that bank finance is allocated on a commercial basis.

Financing energy projects: experience of the International Finance Corporation

International Nuclear Information System (INIS)

Bond, Gary; Carter, Laurence

1995-01-01

This paper provides an overview of the recent trend towards private ownership and financing of power projects in the developing countries, focusing on the role played by both private and public agencies in meeting the large financing challenges. The paper draws upon the operational experience of the International Finance Corporation, which has been involved in the financing of more than 30 private power projects in the developing countries over the past three decades. Among the issues that affect implementation of private power projects is the balancing of risk and reward to equity investors and to commercial lenders. The paper discusses the principal sources of risk and the strategies used to manage them. A related issue is the competition for capital on the international markets, and the techniques that are being devised to bring more finance to the power sector. Finally, the paper considers the role of government in bringing private investors to the power sector, and the approaches being adopted to balance the needs of investors with the needs of the public. (author)

12 CFR 932.3 - Risk-based capital requirement.

Science.gov (United States)

2010-01-01

... credit risk capital requirement, its market risk capital requirement, and its operations risk capital... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Risk-based capital requirement. 932.3 Section 932.3 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND...

Case history of MSW-to-energy financings

International Nuclear Information System (INIS)

Barrett, D.L.

1993-01-01

The development of solid waste treatment facilities is dependent upon the developer having sufficient resources to fund the development of a project and the ability of the project to be financed. The access to capital to develop, construct and operate a facility is the key component of the development process. The author is not diminishing the need for long-term waste agreements, the advantages of a superior technology or the benefit of experience. However, without capital, a project will never be initiated and the other components are immaterial. This paper reviews development financing with a case study of an environmental development company with a new technology and project financing with a comparison of four financings of Waste to Energy (WTE) facilities. Prior to reviewing the financings, the components of a project including the participants, agreements, and cash flows are discussed to establish a foundation for the later discussion. The analysis is not intended to be directly applicable to material recovery and composting facilities, however, many issues are common to all environmental facilities

The financing of new mining ventures

International Nuclear Information System (INIS)

Etheredge, D.A.; Lilja, J.R.

1983-01-01

Various options are presented for tackling the problem in mining today of the high capital costs required for a new mine combined with the front end exposure that the exploiters face. Equity finance from the producers, private investors, oil companies, consumers and governments is discussed as well as loan finance from export credit agencies, international agencies, production-related loans, leasing and commercial bank loans. The future in financing mining is outlined and it is proposed that the future will lie in smaller projects financed primarily with equity. (U.K.)

Universities Venture into Venture Capitalism.

Science.gov (United States)

Desruisseaux, Paul

2000-01-01

Reports that some universities are starting their own venture-capital funds to develop campus companies, or are investing endowment funds with established venture-capital firms inclined to finance potential spinoffs from campus research. Examples cited are from the University of Alabama, Vanderbilt University (Tennessee), University of…

12 CFR 931.6 - Transfer of capital stock.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Transfer of capital stock. 931.6 Section 931.6 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.6 Transfer of capital stock. A Bank in its capital plan...

Provision of capital for shutdown, dismantling and disposal. Cost risks and proposals for reform for a responsibility related financing; Atomrueckstellungen fuer Stilllegung, Rueckbau und Entsorgung. Kostenrisiken und Reformvorschlaege fuer eine verursachergerechte Finanzierung

Energy Technology Data Exchange (ETDEWEB)

Kuechler, Swantje; Meyer, Bettina; Wronski, Rupert

2014-10-10

In Germany the latest discussion on the cost of nuclear phase-out, dismantling and waste disposal has shown that the provision of capital by the concerned companies for these challenges and the actual regulations are not sufficient for a long-term financing security. The study presents a reform concept including the need of improved transparency on the provision of capital, a differentiated financial statement, the introduction of a stock under public law for insolvency protection including a financing responsibility for the companies and subsequent payments in case of cost increase, and an increase of protection in case of insolvency.

Local Currency Financing--The Next Frontier for MDBs?

OpenAIRE

Hoschka, Tobias C.

2005-01-01

This paper surveys the issues involved in local currency financing by multilateral development banks (MDBs). While MDBs have traditionally provided financing in foreign currency to their borrowers, greater sensitivity by borrowers to potential currency mismatches, political decentralization, and the development of local capital markets have recently led MDBs to consider providing financing in local currency. While still small in comparison to MDBs' foreign currency financing, this paper argue...

Capital Unchained

DEFF Research Database (Denmark)

Bryan, Dick; Rafferty, Michael; Wigan, Duncan

2017-01-01

on measuring (by accountants), managing (by corporations) and monitoring (by International Political Economy scholars and regulators), this article explores the longer term implications of accumulation of internationalised capital in intangible and abstract forms, and the prominent role of finance and offshore...

Reducing the cost of health care capital.

Science.gov (United States)

Silberman, R

1984-08-01

Although one may ask four financial experts their opinion on the future of the hospital capital market and receive five answers, the blatant need for financial strategic planning is evident. Clearly, the hospital or system with sound financial management will be better positioned to gain and/or maintain an edge in the competitive environment of the health care sector. The trends of the future include hospitals attempting to: Maximize the efficiency of invested capital. Use the expertise of Board members. Use alternative capital sources. Maximize rate of return on investments. Increase productivity. Adjust to changes in reimbursements. Restructure to use optimal financing for capital needs, i.e., using short-term to build up debt capacity if long-term financing is needed in the future. Take advantage of arbitrage (obtain capital and reinvest it until the funds are needed). Delay actual underwriting until funds are to be used. Better management of accounts receivable and accounts payable to avoid short-term financing for cash flow shortfalls. Use for-profit subsidiaries to obtain venture capital by issuing stock. Use product line management. Use leasing to obtain balance sheet advantages. These trends indicate a need for hospital executives to possess a thorough understanding of the capital formation process. In essence, the bottom line is that the short-term viability and long-term survival of a health care organization will greatly depend on the financial expertise of its decision-makers.

Project Finance for Small and Medium Scale Enterprises (SMEs) in ...

African Journals Online (AJOL)

Project financing is one of the best methods of seeking to acquire capitals Funds and other tools to finance a planned business activity which will yields profit in order to liquidate the procured fund. Financing project for SMES is carried out by Federal, States and some development Institutions. In Nigeria, project financing ...

Risk Analysis of Telecom Enterprise Financing

Institute of Scientific and Technical Information of China (English)

YU Hua; SHU Hua-ying

2005-01-01

The main research objects in this paper are the causes searching and risk estimating method for telecom enterprises' financial risks. The multi-mode financing for telecom enterprises makes it flexible to induce the capital and obtain the profit by corresponding projects. But there are also potential risks going with these financing modes. After making analysis of categories and causes of telecom enterprises' financing risk, a method by Analytic Hierarchy Process (AHP) is put forward to estimating the financing risk. And the author makes her suggestion and opinion by example analysis, in order to provide some ideas and basis for telecom enterprise's financing decision-making.

The International Finance Corporation and financing of sustainable energy

Energy Technology Data Exchange (ETDEWEB)

NONE

1997-12-01

The International Finance Corporation (IFC), a member of the World Bank Group, is the largest multilateral source of loan and equity financing for private sector projects in the developing world. IFC participates in an investment only when it can make a special contribution that complements the role of market operators. Since its founding 40 years ago, IFC has provided more than $18.8 billion in financing for 1,706 companies in developing countries. Its share capital is provided by its 170 member countries, which collectively determine its policies and activities. Strong shareholder support and a substantial paid-in capital base have allowed IFC to raise funds for its lending activities through its triple-A rated bond issues in international financial markets. IFC created an Infrastructure Department in 1992 in response to the growing demand for its services in this area. During fiscal 1996 IFC approved 33 projects for new investments of $715 million of which 27% were in the power sector. In recognition of the continuing demand growth for private power investments an expanded Power Department has been formed to handle IFC`s investments in electric power generation projects using renewable resources such as: run-of-the-river hydro, geothermal, biomass cogeneration, wind energy, and solar (photovoltaic, solar thermal, etc.), as well as conventional thermal generation projects, transmission and distribution projects, and energy efficiency investments.

The Profitability – Risk Relationship and Financing Decision

OpenAIRE

Nityesh BHATT

2007-01-01

The enterprise financial decision is a rational process for option to the optimal variant related to financing and investments. For the capital investment to be justified, the profitability of the invested money must be at least equal with the profitability of the alternative investment opportunities with the same risk on market. The choosing of a way for financing is determined on the one side by their cost and on the other side by the existent capital structure. In this paper I tried to ana...

Health care entrepreneurship: financing innovation.

Science.gov (United States)

Grazier, Kyle L; Metzler, Bridget

2006-01-01

Entrepreneurship is often described as the ability to create new ventures from new or existing concepts, ideas and visions. There has been significant entrepreneurial response to the changes in the scientific and social underpinnings of health care services delivery. However, a growing portion of the economic development driving health care industry expansion is threatened further by longstanding use of financing models that are suboptimal for health care ventures. The delayed pace of entrepreneurial activity in this industry is in part a response to the general economy and markets, but also due to the lack of capital for new health care ventures. The recent dearth of entrepreneurial activities in the health services sector may also due to failure to consider new approaches to partnerships and strategic ventures, despite their mutually beneficial organizational and financing potential. As capital becomes more scarce for innovators, it is imperative that those with new and creative ideas for health and health care improvement consider techniques for capital acquisition that have been successful in other industries and at similar stages of development. The capital and added expertise can allow entrepreneurs to leverage resources, dampen business fluctuations, and strengthen long term prospects.

24 CFR 891.808 - Capital advance funds.

Science.gov (United States)

2010-04-01

... 24 Housing and Urban Development 4 2010-04-01 2010-04-01 false Capital advance funds. 891.808... Partnerships and Mixed-Finance Development for Supportive Housing for the Elderly or Persons with Disabilities § 891.808 Capital advance funds. (a) HUD is authorized to provide capital advance funds to expand the...

Financial and Economic Crisis and Corporate Finance Development

Institute of Scientific and Technical Information of China (English)

LI Xinhe

2015-01-01

Financial and economic crisis has challenged the ideological and methodological basis,the basic assumptions and the universal applicability of the research conclusions of the mainstream corporate finance.In order to construct corporate finance appropriate to the state of financial crisis,it is necessary to adjust the objective function of corporate finance,modify the corporate financing theory,extend corporate investment theory,enrich corporate working capital management theory,and adjust corporate dividend policy theory.

Capital Structure, Strategic Competition, and Governance

NARCIS (Netherlands)

T.T. Nguyen (Thuy Thu)

2008-01-01

textabstractThis thesis consists of four studies on the interactions of capital structure and product market competition, and on several aspects of governance, firm financing and growth. The first study investigates how competitive behavior and market uncertainty affect the capital structure of a

Analyzing Equity Capital Programs of Banks for Cooperatives

OpenAIRE

Ismail Ahmad; Ken D. Duft; Ron C. Mittelhammer

1986-01-01

Characteristics of Banks for Cooperatives term loan and equity capital programs contribute toward complex intermittent exchanges of positive and negative cash flows between the cooperative lender and borrower and complicate the analysis of the net present value and effective interest of the financing project. A multiperiod linear program was developed to analyze the effect of variations in equity capital program components on the present value of the financing project. Furthermore, the concep...

Innovative financing techniques for nuclear power exports

International Nuclear Information System (INIS)

Mercaldo, E.L.

1983-06-01

The author makes general comments regarding the possible conflict between project risks, sponsors' ability to assume these risks, and the requirements and objectives of all project benficiaries: sponsors, lenders, consumers and government. To reconcile these conflicts there is an increasing use of project finance techniques to finance large capital projects

13 CFR 108.800 - Financings in the form of equity interests.

Science.gov (United States)

2010-01-01

... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false Financings in the form of equity... VENTURE CAPITAL (âNMVCâ) PROGRAM Financing of Small Businesses by NMVC Companies Structuring Nmvc Company's Financing of Eligible Small Businesses § 108.800 Financings in the form of equity interests. You...

Entrepreneurial finance: new frontiers of research and practice: Editorial for the special issue Embracing entrepreneurial funding innovations

OpenAIRE

Bellavitis, C.; Filatotchev, I.; Kamuriwo, D. S.; Vanacker, T.

2017-01-01

The proliferation of new sources of entrepreneurial finance potentially makes it easier for ventures to raise capital and grow. To date, entrepreneurial finance literature has developed a rich tradition of research on venture capital and angel finance. However, the emergence of “new” sources of finance, such as crowdfunding and the limited attention paid to “traditional” debt financing and financial bootstrapping, offers opportunities to explore, from different points of view and theoretical ...

Present and future nuclear power financing schemes

International Nuclear Information System (INIS)

Diel, R.

1977-01-01

The financial requirement for nuclear power plants in the Federal Republic of Germany for the period up until 1985 was estimated to run up to some DM 100 billion already in the Nuclear Energy Study published by the Dresdner Bank in 1974. This figure is not changed in any way by the reduction the nuclear power program has suffered in the meantime, because the lower requirement for investment capital is more than offset by the price increases that have occurred meanwhile. A capital requirement in the order of DM 100 billion raises major problems for the power producing industry and the banks which, however, are not going to hamper the further expansion of nuclear power, because new financing schemes have been specially developed for the nuclear field. They include financing by leasing, the use of funds from real estate credit institutions for long term financing, borrowing of long term funds in the Euro market, and financing through subsidiaries of the utilities. The new financing schemes also apply to the large financial requirement associated with the nuclear fuel cycle, waste management in particular. In this sector the utilities agree to bear the economic risk of the companies implementing the respective projects. Accordingly, financing will not entail any major difficulties. Another area of great importance is export financing. The German-Brazilian nuclear agreement is a model of this instrument. (orig.) [de

Aspects of Development Financing After the Financial and Economic Crisis

Directory of Open Access Journals (Sweden)

Bruno Gurtner

2011-05-01

Full Text Available Published by Palgrave MacmillanThe financial and economic crisis saw developing and emerging countries experience more severe setbacks in their growth rates than industrialised countries and they did not all have sufficient funds to finance robust stimulus measures. The major emerging economies have nevertheless recovered quickly and are currently the most important growth engines in the world economy.Private capital flows collapsed, leaving the global South with an overall deficit in financing. Greater official financing flows have not yet been able to compensate for the shortfalls and the slow increase in private capital flows since the end of 2009 has not been able to do so either. Overall, according to the UN, more capital flows from the South to the North than vice versa. The South thus continues to finance the North.Discussions regarding a reform of the global financial and economic order are ongoing but to date have had little impact on developing countries. The international financing institutions do have more funds at their disposal, but developing countries are still under-represented. The IMF and the World Bank have begun to question some of their previous dogmas. Opinions are divided on whether one can already speak of a new policy.The debate on the role of taxation in the mobilisation of local resources for development financing has intensified. Insight favouring comprehensive reforms of the taxation systems in developing countries has sharpened, but technical aid provided by industrialised countries to realise these reforms is still insufficient. Taxation is acquiring growing recognition as an instrument of State-building, democratisation and governance. The campaign to deal with international tax evasion and illicit capital flows is gaining momentum and the exchange of information on tax issues has improved. However, it is difficult to establish newer and more trenchant instruments for improved transparency, given the predominant

Angels and IPOs: Policies for Sustainable Equity Financing of Irish Small Businesses

OpenAIRE

Mulcahy, Diane

2005-01-01

Angels and IPOs: Policies for Sustainable Equity Financing of Irish Small Businesses explores the rationale for the Irish government?s investments of more than 300 million Euro in Irish companies and the domestic venture capital industry. It challenges the conventional wisdom that there is an `equity gap? of early stage risk capital in Ireland. In the context of the equity financing cycle, it discusses the limited supply of angel capital available to Irish firms as well as the `exit gap? resu...

13 CFR 108.710 - Requirement to finance Low-Income Enterprises.

Science.gov (United States)

2010-01-01

... VENTURE CAPITAL (âNMVCâ) PROGRAM Financing of Small Businesses by NMVC Companies Determining the... of your Portfolio Concerns must be Low-Income Enterprises in which you have an Equity Capital... total dollars) in Equity Capital Investments in Low-Income Enterprises. (b) Non-compliance with this...

Financing energy investments world-wide and in the economies in transition

International Nuclear Information System (INIS)

Brendow, K.

1998-01-01

The necessity of mobilizing the finance under given circumstances is pointed out. The energy sector investments needs correspond to only 3-4% of world GDP or 6-7% of world capital formation. In most developing countries mobilizing financing is a issue, where the risk/return ratio of a given energy investment project does not compare favourably with competing projects and if their handicap is not compensating for by public financing or government guarantees. Compared to the other regions, the energy systems of the economies in transition absorb a high proportion of domestic capital. This is due to past and continuing supply-oriented energy policies and inefficiencies and the export orientation of the energy-rich countries, and to limited domestic capital markets. As a result only a estimated 9-13% of long-term investment 'needs' is presently financed. The root of the problem is slow progress in the reform of energy and capital markets at a time government withdraw from financing and guaranteeing energy investments. Recommendations include transition to sustainable energy strategies ; the liberalization of energy prices and tariffs; the phasing out of subsides and cross-subsides; the stabilization of tax and depreciation regimes; neutrality with regard of the various forms of ownership; reliable law enforcement; non-discrimination of foreign investors, shareholders, competitors; the ratification of the Energy Charter Treaty; and generally, institutional and regulatory frameworks that address market imperfections. Regarding domestic capital markets the goal is to increase traded volume, reduce volatility, and avoid discrimination and favour international integration

Small Business Financing: Differences Between Young and Old Firms

OpenAIRE

Alicia M. Robb

2002-01-01

Financial capital is necessary not only for business formation but also for business survival and expansion: its role is well documented in the literature. While venture capital and IPOs often make the popular press, the fact is most firms are unable to tap into this market. Instead, they depend on owner equity, other private equity, and debt financing. Survey data from the Federal Reserve Board allow an in depth look at the patterns of small business financing in the late nineties. Evidence ...

The Study on Stage Financing Model of IT Project Investment

Directory of Open Access Journals (Sweden)

Si-hua Chen

2014-01-01

Full Text Available Stage financing is the basic operation of venture capital investment. In investment, usually venture capitalists use different strategies to obtain the maximum returns. Due to its advantages to reduce the information asymmetry and agency cost, stage financing is widely used by venture capitalists. Although considerable attentions are devoted to stage financing, very little is known about the risk aversion strategies of IT projects. This paper mainly addresses the problem of risk aversion of venture capital investment in IT projects. Based on the analysis of characteristics of venture capital investment of IT projects, this paper introduces a real option pricing model to measure the value brought by the stage financing strategy and design a risk aversion model for IT projects. Because real option pricing method regards investment activity as contingent decision, it helps to make judgment on the management flexibility of IT projects and then make a more reasonable evaluation about the IT programs. Lastly by being applied to a real case, it further illustrates the effectiveness and feasibility of the model.

The Study on Stage Financing Model of IT Project Investment

Science.gov (United States)

Xu, Sheng-hua; Xiong, Neal N.

2014-01-01

Stage financing is the basic operation of venture capital investment. In investment, usually venture capitalists use different strategies to obtain the maximum returns. Due to its advantages to reduce the information asymmetry and agency cost, stage financing is widely used by venture capitalists. Although considerable attentions are devoted to stage financing, very little is known about the risk aversion strategies of IT projects. This paper mainly addresses the problem of risk aversion of venture capital investment in IT projects. Based on the analysis of characteristics of venture capital investment of IT projects, this paper introduces a real option pricing model to measure the value brought by the stage financing strategy and design a risk aversion model for IT projects. Because real option pricing method regards investment activity as contingent decision, it helps to make judgment on the management flexibility of IT projects and then make a more reasonable evaluation about the IT programs. Lastly by being applied to a real case, it further illustrates the effectiveness and feasibility of the model. PMID:25147845

The study on stage financing model of IT project investment.

Science.gov (United States)

Chen, Si-hua; Xu, Sheng-hua; Lee, Changhoon; Xiong, Neal N; He, Wei

2014-01-01

Stage financing is the basic operation of venture capital investment. In investment, usually venture capitalists use different strategies to obtain the maximum returns. Due to its advantages to reduce the information asymmetry and agency cost, stage financing is widely used by venture capitalists. Although considerable attentions are devoted to stage financing, very little is known about the risk aversion strategies of IT projects. This paper mainly addresses the problem of risk aversion of venture capital investment in IT projects. Based on the analysis of characteristics of venture capital investment of IT projects, this paper introduces a real option pricing model to measure the value brought by the stage financing strategy and design a risk aversion model for IT projects. Because real option pricing method regards investment activity as contingent decision, it helps to make judgment on the management flexibility of IT projects and then make a more reasonable evaluation about the IT programs. Lastly by being applied to a real case, it further illustrates the effectiveness and feasibility of the model.

Capital semilla para la financiación de start ups con alto potencial de crecimiento en Colombia = Seed capital for financing the stat ups with a growing high potential in Colombia

Directory of Open Access Journals (Sweden)

Germán Fracica Naranjo

2011-08-01

Les expériences tirées de la création d’entreprises à fort potentiel de croissance des pays à succès montrent que certains des facteurs ayant le plus contribués à la survie de l’entreprise sont le financement du capital-risque et le soutien reçu aux différentes étapes de leur gestation ou lors de traversée du désert. L’investigation a été effectuée par le biais d’un travail documentaire et par différents entretiens approfondis réalisés avec des responsables de fonds de capital-risque existant en Colombie. Cette investigation a pu déterminer l’offre de ces ressources et les enseignements tirés de ces expériences.

Corporate relocation in venture capital finance

NARCIS (Netherlands)

Cumming, D.; Flemming, G.; Schwienbacher, A.

2009-01-01

This paper introduces an analysis of international relocation decisions of venture capital (VC)-backed companies. Relocations to the United States are motivated by economic conditions as well as an improvement in the laws of the country in which the entrepreneurial firm is based. Relocations to the

THE EFFICIENCY OF FOREIGN INVESTMENTS IN THE FINANCING OF AUDITED ENTITIES

Directory of Open Access Journals (Sweden)

Berinde Sorin

2013-07-01

Full Text Available The auditing of the financial statements is a certification service intended to offer the users more credibility regarding the quality of accounting information. This is the reason why the present study selected all the Cluj county entities that, according to the public information, between 2005-2012 were subject to financial audit in order to estimate, at this level, the influence of foreign investments in the financing structure. The information provided by the financial statements of these audited entities (with or without foreign participation in share capital was analyzed for the calculation of the relevant indicators to determine the evolution of the equity financing, the recourse to external financing funds, the ratio of external funds and equity funds used for financing and the assessment of the efficiency of foreign capital invested at the level of these entities. In order to meet this objective, we considered the information from the financial statements of the concerned entities, published between 2008-2011. For the relevance of the study, we eliminated the audited entities that did not have financial statements published in all of the four financial years for various reasons (dissolution, liquidation, merger, or temporary suspension of activity or had negative working capital. The financial statement information was analyzed in view of the calculation for each audited entity of the rate of financial autonomy, the debt ratio, the debt to equity ratio and of the rotation speed of equity. The audited entities were classified into 2 major categories: audited entities with a foreign participation in share capital and audited entities with the whole share capital financed by equity funds. We applied the simple average method at the level of the both audited entities categories for each of the four analyzed indicators. Furthermore, we performed an analysis from the static and dynamic point of view of the results. The conclusions that we

International energy financing

International Nuclear Information System (INIS)

Vedavalli, Rangaswamy

1994-01-01

Some of the innovative financing options being considered by developing countries and economies in transition as ways of mobilizing international energy financing are discussed. Build-Own-Operate (BOO) and Transfer (BOOT) is the most commonly adopted approach. This involves limited resource financing of a project on the basis of the associated cash flow and risks and not on the credit of the project owners. The World Bank has set up the Multilateral Investment Guarantee Agency to provide, on a fee basis, guarantees against certain non-commercial forms of risk in order to promote international capital flow to developing countries. In 1989, the World Bank introduced the Expanded Co-financing Operations (ECO) programme as an instrument to catalyze the flow of private finance into developing countries and to improve their access to international financial markets. Other financial instruments currently being established include: leasing of equipment or whole plants by foreign investors; private ownership or operation of generation and distribution facilities; exchange of specific export goods for energy imports; developing instruments to finance local costs; revenue bonds; tax-exempt bonds; sale of electricity futures to those seeking more stable, longer term electricity price contracts. (UK)

Project Finance Model for Small Contractors in USA

Directory of Open Access Journals (Sweden)

Jawahar Nesan

2012-11-01

Full Text Available Construction projects do not require a large capital outlay but a large working capital to start up the project. Unfortunately, for small contractors there are very limited options available from the banks or other lending institutions to cover this large working capital requirement in the absence of sufficient collateral. The “Project Finance” method presented in this paper is recommended as the most effective method for small contractors in the United States. The problems of small and start up contractors in funding their projects have been little addressed in the literature. The current financing practices were observed through both the literature review and interviews with contractors and bankers in the western Michigan area and subsequently a system has been proposed which could help a small start-up company seeking higher growth. The growth rates that can be achieved using the project finance system in contrast to the traditional “line of credit” arrangements as illustrated in this paper show that the project finance model is beneficial.

Financing gas plants using off balance sheet structures

International Nuclear Information System (INIS)

Best, R.J.; Malcolm, V.

1999-01-01

A means by which to finance oil and gas facilities using off balance sheet structures was presented. Off balance sheet facility financing means the sale by an oil and gas producer of a processing and/or transportation facility to a financial intermediary, who under a Management Agreement, appoints the producer as the operator of the facility. The financial intermediary charges a fixed processing fee to the producer and all the benefits and upside of ownership are retained by the producer. This paper deals specifically with a flexible off balance sheet facility financing structure that can be used to make effective use of discretionary capital which is committed to gas processing and to the construction of new gas processing facilities. Off balance sheet financing is an attractive alternative method of ownership that frees up capital that is locked into the facilities while allowing the producer to retain strategic control of the processing facility

Financing Human Development for Sectorial Growth: A Time Series Analysis

Directory of Open Access Journals (Sweden)

Shobande Abdul Olatunji

2017-06-01

Full Text Available The role which financing human development plays in fostering the sectorial growth of an economy cannot be undermined. It is a key instrument which can be utilized to alleviate poverty, create employment and ensure the sustenance of economic growth and development. Thus financing human development for sectorial growth has taken the center stage of economic growth and development strategies in most countries. In a constructive effort to examine the in-depth relationship between the variables in the Nigerian space, this paper provides evidence on the impact of financing human development and sectorial growth in Nigeria between 1982 and 2016, using the Johansen co-integration techniques to test for co-integration among the variables and the Vector Error Correction Model (VECM to ascertain the speed of adjustment of the variables to their long run equilibrium position. The analysis shows that a long and short run relationship exists between financing human capital development and sectorial growth during the period reviewed. Therefore, the paper argues that for an active foundation for sustainable sectorial growth and development, financing human capital development across each unit is urgently required through increased budgetary allocation for both health and educational sectors since they are key components of human capital development in a nation.

Based on the Capital Cost of the Supply Chain Financing Framework Structure Theory%基于资本成本的供应链融资框架性结构理论研究

Institute of Scientific and Technical Information of China (English)

袁荃; 龙子泉

2012-01-01

融资成本是现代企业融资中必须面对的课题。先分析企业根据融资结构和资本结构进行优化产生的作用，并对资本成本进行了详尽阐述与剖析；然后在此基础上，设计了一个供应链金融方面的结构性框架，从而有效控制供应链融资过程中的风险与不稳定性，以获得多方共赢。%The cost of financing is something that must be examined in the modern corporate financing. This paper outlines the results of optimizing the financing structure and capital structure, analyzes the cost of capital for elaborate and profiling. Given the analysis result, a design of the structural framework for supply chain financing is proposed. It aims to effectively control the risks and instability in the process of supply chain financing and archive win - win situation.

Increasing the Capital Income Tax Leads to Faster Growth

NARCIS (Netherlands)

Uhlig, H.F.H.V.S.; Yanagawa, N.

1994-01-01

This paper shows that under rather mild conditions, higher capital income taxes lead to faster growth in an overlapping generations economy with endogenous growth. Government expenditures are financed with labor income taxes as well as capital income taxes. Since capital income accrues to the old,

Very early stage financing in the petroleum industry

International Nuclear Information System (INIS)

Armstrong, D. R.

1998-01-01

A primer on early financing for oil and natural gas plays was provided. Basic elements of the Alberta Securities Act, the steps involved in raising money for exploration, development or purchase of an oil play, the various forms of structuring an enterprise (proprietorship, limited partnership, joint venture, farm-in, publicly traded corporation) were explained. The types of financing, ranging from 'love money' (money raised from relatives, friends, business associates, or from 'angel investors') through formal venture capital markets and public equity markets were outlined with the characteristic features, advantages and pitfalls of each. The subtle differences between Alberta's 'junior capital pool', 'initial capital offering' and 'exchange offering prospectus' were explained, along with a brief review of which one is the most appropriate under a given set of circumstances

Current status and trends, organizational methods accounting and analysis of innovative enterprises’ venture financing

Directory of Open Access Journals (Sweden)

S.V. Rudeychuk

2016-09-01

Full Text Available The article examines the specific features and tendencies of development of venture financing in Ukraine. It shows the role of venture capital in the further development of Ukraine economy, this role is in financing and development of innovation, distribution of new technologies and increase of employment of highly professional staff in the territory of Ukraine. The authors determine the influence of characteristics of such financing on the formation of organization and methods of accounting and economic analysis of operations with venture capital investments. The paper grounds the necessity of accounting development and analytical support of innovative enterprises’ venture financing management; the state is caused by the need to attract additional funding from venture investors to finance the production and release of innovative products and businesses. The authors determine the directions of solving problems in accounting organization and methods and economic analysis of innovative enterprises’ venture financing, respectively, for the needs of all entities doing business venture and taking into account the peculiarities of this type of investment capital.

Participatory financing for green growth

International Nuclear Information System (INIS)

Laville, Dorine; Phantharangsi, Maryvonne; Monnoyer-Smith, Laurence; Demeulenaere, Laurence; Lequeux, Typhaine; Cuny, Alicia

2017-01-01

As for the French Ministry of the Environment, participatory financing can be an innovating and mobilising tool to finance projects related to the energy and ecological transition, and as such a financing is promoted by the law on energy transition for a green growth, this publication presents this type of financing. It evokes its legal framework, its different forms (loan to companies, loan to individuals, gift, capital investment), its safe legal framework (definition of different types of status). It outlines how it can be a lever for energy and ecological transition even if green projects are difficult to quantify. It evokes the future introduction of a label, and the introduction of legal and regulatory measures to develop the renewable energy sector

Capital Structure of Internet Companies: Case Study

OpenAIRE

Miglo, Anton; Liang, Shuting; Lee, Zhenting

2014-01-01

We analyze the financing decisions and capital structure of internet companies and relate observed findings to the common capital structure theories. Large internet companies usually have low debt and small internet companies have high debt. We find that the trade-off theory of capital structure, pecking order theory, market timing theory and other theories cannot individually explain a firm’s capital structure. However, they can compliment each other in describing some patterns of observed b...

LONG TERM FINANCING DECISION AT THE LEVEL OF COMPANIES

Directory of Open Access Journals (Sweden)

DOBROTĂ GABRIELA

2009-05-01

Full Text Available Debates on the financing needs registered a firm levels were a constant concern of specialists but especially managers. Majority opinion is that the financing of investment must be made by sources having character of permanence. However, a problem whose answer is not easily determined is the degree to which it may use its own sources, borrowed or rented, to record the lowest financing cost. Since the shareholders require a higher remuneration of capital investments superior to those on the financial market, managers must seek to reduce the cost of borrowed capital and the growth rate of financial return. In this paper are presented issues relating to the structure and potential sources and funding the decision on cost related to each funding opportunities.

Financing a nuclear programme

International Nuclear Information System (INIS)

Cameron, R.

2010-10-01

Nuclear power plant construction projects have many characteristics in common with other types of large infrastructure investment, both within the power generation sector and elsewhere. However, nuclear power itself has special features that can make nuclear financing particularly challenging. These features include the high capital cost, the relatively long period required to recoup investments, the often controversial nature of nuclear projects. The need for clear solutions and financing schemes for radioactive waste management and decommissioning and the need for nuclear power plants to operate at high capacity factors, preferably under base load conditions. During the previous major expansion of nuclear power in the 1970 and 1980, many nuclear projects suffered very large construction delays and cost overruns. The legacy of such problems increases the risks perceived by potential investors. A recent study undertaken jointly by the Iea and the Nea showed that the competitiveness of nuclear power strongly depends on the cost of financing due to the high share of fixed capital costs in the total lifetime costs of nuclear power. A key issue in this context is the long-term predictability of carbon pricing arrangements, which, for the time being and despite positive evolutions in this respect, most notably in Europe, does not yet exist. This paper will consider how the risks can be mitigated and examine in detail various models for corporate finance and the role of government assistance in providing a suitable financial basis. (Author)

Financing the energy sector in developing countries: context and overview

International Nuclear Information System (INIS)

Dunkerley, Joy.

1995-01-01

Traditional 'business as usual' financing methods will no longer be adequate to meet the unprecedented demands for capital to finance energy sector expansion in the developing countries. In recognition, many countries are opening up their power sectors to private investment, initially through the establishment of independent power projects, but in some cases through sector privatization. Project financing has many advantages, but further sectoral reorganization, including tariff reform, will be needed to attract resources on the scale required, especially from domestic investors. In oil and gas, in contrast to power, private capital from the international oil companies has always played a major role in the developing countries. However, sharply increasing investment requirements require a growing role for external finance. There should, in principle, be no shortage of investible funds to finance energy sector expansion in developing countries so long as host countries establish conditions which are attractive to private investors. The augmented role of private finance requires a continuing, if different, role for the public sector in both host countries and official aid agencies. (author)

24 CFR 891.809 - Limitations on capital advance funds.

Science.gov (United States)

2010-04-01

... 24 Housing and Urban Development 4 2010-04-01 2010-04-01 false Limitations on capital advance...-Profit Limited Partnerships and Mixed-Finance Development for Supportive Housing for the Elderly or Persons with Disabilities § 891.809 Limitations on capital advance funds. Capital advances are not...

French strategy for green finance. Executive summary

International Nuclear Information System (INIS)

Lemmet, Sylvie; Ducret, Pierre; Berthaud, Cecilia; Evain, Julie; Scolan, Maria

2017-12-01

The authors present their report on the French Strategy for Green Finance. Green finance has expanded rapidly since 2015 but much remains to be done to make capital flows consistent with the goals of the Paris Agreement. France can continue to play a pioneering role to promote the energy and ecological transition, and to support Paris's role as a financial centre. The task force is putting forward recommendations along four axes for a French strategy to foster green finance

Guidebook to Geothermal Finance

Energy Technology Data Exchange (ETDEWEB)

Salmon, J. P.; Meurice, J.; Wobus, N.; Stern, F.; Duaime, M.

2011-03-01

This guidebook is intended to facilitate further investment in conventional geothermal projects in the United States. It includes a brief primer on geothermal technology and the most relevant policies related to geothermal project development. The trends in geothermal project finance are the focus of this tool, relying heavily on interviews with leaders in the field of geothermal project finance. Using the information provided, developers and investors may innovate in new ways, developing partnerships that match investors' risk tolerance with the capital requirements of geothermal projects in this dynamic and evolving marketplace.

Army Working Capital Fund: Army Industrial Operations Could Improve Budgeting and Management of Carryover

Science.gov (United States)

2016-06-01

typically operation and maintenance or procurement appropriations) to finance orders placed with Industrial Operations. When an Industrial Operations...River, Texas; and 6The basic ...organizations. Working capital fund activities finance inventories of common supplies and provide working capital for industrial and commercial

How to finance new energy-conservation equipment: investment in saving

Energy Technology Data Exchange (ETDEWEB)

Lipscombe, G

1977-11-01

A London banker outlines how companies can finance the new equipment needed to lower fuel consumption and reduce fuel bills. He notes that internal financing is the custom, but that the new urgency placed on efficient plant operation has broadened the options for financing capital projects. Financial considerations involve simple payback periods or a more sophisticated appraisal of an energy project's life-time effect on cash flow. Financiers will take into account whether there is a government grant, fuel cost savings, project costs, and tax allowances, although there are disadvantages in the discount approach. Outside sources of capital include bank drafts, term loans, leasing facilities, hire-purchase, and government loans. Each company must determine the best type of financing for its needs, but the opportunities improve when the energy manager, company accountant, and bank manager understand each other.

Credit Risk Analysis of Local Government Financing Platform – An empirical study based on KMV model

Directory of Open Access Journals (Sweden)

Zhou Tingting

2015-01-01

Full Text Available The local government financing platform is set up by local government through state-owned assets, real estate and equity capital. The functions of these companies are financing, construction, operation, the repaying debts. The local government financing platform can broaden the financing channels of local government in a great extent; alleviate the pressure of capital requirement. But at the same time, with the gradual expansion of the scale of debt, a series of problems has arisen: the amount of financing platform companies is huge, debt repayment depends too much on real estate price, the integration of government administration with enterprise, capital injection, and accounts of these companies are not well exposed. Once these problems outbreak, it may cause a series of financial crises, thereby threaten the entire banking industry even the healthy development of the national economy.

Can we Finance the Energy Transition?

Directory of Open Access Journals (Sweden)

Ian Johnson

2015-05-01

Full Text Available The energy sector is pivotal to our aspirations for a sustainable planet and yet two major challenges face policymakers worldwide. The first is to decide what set of technical choices provide the best solution to meet social, economic and environmental agendas; and the second is to decide how these choices can be financed. The bulk of new energy demand will come from the emerging economies where energy demand is expected to increase by 40% over the coming three decades and to have doubled by the middle of the century. However for a number of reasons the investment needs of the energy sector are likely to rise even faster than overall energy demand. This is due to a number of factors over and above the increase in demand and described in the paper, including, inter alia, subsidized prices; the substitution of traditional energy for modern energy; the growth in peak demand in the electricity sector; the rising costs of securing primary energy resources; and the urgent need to replace vintage capital stock (including the decommissioning of nuclear power plants, especially in the developed countries. Clean energy investment will also incur high upfront investment costs in order to reduce long-term recurrent costs (fuel and maintenance. High priority must be given to energy demand management (both to reduce energy use and to reduce energy capital and investment in upgrading of existing capital stock can provide strong and quick returns. However, the net result of the long-term demand on the energy sector is that investment needs will grow dramatically, from around US $1.6 trillion per annum to over US $2 trillion per annum. The financial challenge is considerable. A level playing field is required that encourages greater competition of technology choice on the basis of correct pricing signals. It will require changes in subsidy policies in order to release finance and to encourage efficient investment; adherence to least-cost planning and investment

Financing options for small hydro projects

International Nuclear Information System (INIS)

Shepherd, J.C.

1993-01-01

Examples and techniques used to enhance the ability to finance small hydro projects, or to finance them in non-standard ways, were discussed. It was suggested that factors that motivate investors, namely the maximization of the rate of return on capital, and minimization of risk, should be the primary concern for any would-be developer. A responsible, conservative approach to financial projections was recommended as the best to impress potential investors

POST BEHAVIORAL FINANCE ADOLESCENCE

Directory of Open Access Journals (Sweden)

ADRIAN MITROI

2016-12-01

Full Text Available The study of behavioral finance combines the investigation and expertise from research and practice into smart portfolios of individual investors’ portfolios. Understanding cognitive errors and misleading emotions drive investors to their long-term goals of financial prosperity and capital preservation. 10 years ago, Behavioral Finance was still considered an incipient, adolescent science. First Nobel Prize in Economics awarded to the study of Behavioral Economics in 2002 established the field as a new, respected study of economics. 2013 Nobel Prize was awarded to three economists, one of them considered the one of the founders of the Behavioral Finance. As such, by now we are entering the coming of age of behavioral finance. It is now recognized as a science of understanding investors behaviors and their biased patterns. It applies quantitative finance and provides practical models grounded on robust understanding of investors behavior toward financial risk. Financial Personality influences investment decisions. Behavioral portfolio construction methods combine classic finance with rigorously quantified psychological metrics and improves models for financial advice to enhance investors chances in reaching their lifetime financial goals. Behavioral finance helps understanding psychological profile dissimilarities of individuals and how these differences manifest in investment decision process. This new science has become now a must topic in modern finance.

APPROACHES FOR EVALUATING AND FINANCING INVESTMENT PROJECTS

Directory of Open Access Journals (Sweden)

MARIA-LOREDANA POPESCU

2011-04-01

Full Text Available This article presents the financial investment approach and the investment evaluation methods, which are criteria for assessing both investment projects and their funding sources. An important role in the analysis carried out is played by the investment decision and financing decision quality. Making an investment decision implies computing the related investment efficiency indicators. They allow the comparison of several variants of the same investment project as well as their comparison with other projects in the same industry or in other industries. The financing decision concerns the selection between their own sources (share capital, depreciation fund, profits, reserve funds, additional capital, revenues from investments, attracted sources (domestic resource mobilization and borrowed sources (credits.

An alternative approach to financing development in Africa | Adeolu ...

African Journals Online (AJOL)

To make adequate capital available to finance development projects in Africa, several important and innovative ideas became popular in the early and later post-independent years. Much of these ideas included a proposal for International Finance Facility (IFF) to increase development aid substantially for the millennium ...

Raising venture capital in the biopharma industry.

Science.gov (United States)

Leytes, Lev J

2002-11-15

Raising venture capital (VC) is both an art and a science. Future entrepreneurs should carefully consider the various issues of VC financing that have a strong impact on the success of their business. In addition to attracting the best venture capital firms, these issues include such subtle but important points as the timing of financing (especially of the first round), external support sources, desirable qualities of a VC firm, amount to be raised, establishing a productive interface between the founders and the venture capitalists, and most importantly the effects of well-executed VC funding on hiring senior executives and scientific leaders.

7 CFR 4290.700 - Requirements concerning types of Enterprises to receive Financing.

Science.gov (United States)

2010-01-01

... BUSINESS INVESTMENT COMPANY (âRBICâ) PROGRAM Financing of Enterprises by RBICs Determining Eligibility of... Financing. (a) Rural Business Concern Investments. At the close of each of your fiscal years— (1) At least...) in Financings in the form of Equity Capital in such Enterprises. (c) Small Business Concern...

Multistage Selection and the Financing of New Ventures

OpenAIRE

Jonathan T. Eckhardt; Scott Shane; Frédéric Delmar

2006-01-01

Using a random sample of 221 new Swedish ventures initiated in 1998, we examine why some new ventures are more likely than others to successfully be awarded capital from external sources. We examine venture financing as a staged selection process in which two sequential selection events systematically winnow the population of ventures and influence which ventures receive financing. For a venture to receive external financing its founders must first select it as a candidate for external fundin...

Financing drug discovery for orphan diseases.

Science.gov (United States)

Fagnan, David E; Gromatzky, Austin A; Stein, Roger M; Fernandez, Jose-Maria; Lo, Andrew W

2014-05-01

Recently proposed 'megafund' financing methods for funding translational medicine and drug development require billions of dollars in capital per megafund to de-risk the drug discovery process enough to issue long-term bonds. Here, we demonstrate that the same financing methods can be applied to orphan drug development but, because of the unique nature of orphan diseases and therapeutics (lower development costs, faster FDA approval times, lower failure rates and lower correlation of failures among disease targets) the amount of capital needed to de-risk such portfolios is much lower in this field. Numerical simulations suggest that an orphan disease megafund of only US$575 million can yield double-digit expected rates of return with only 10-20 projects in the portfolio. Copyright © 2013 The Authors. Published by Elsevier Ltd.. All rights reserved.

Debt and Taxes: Evidence from bank-financed unlisted firms

DEFF Research Database (Denmark)

Bartholdy, Jan; Mateus, Cesário

This paper analyzes the capital structure decision of non-listed bank-financed firms using a rich and unique new data set of Portuguese firms. These firms are rarely studied in capital structure contexts and differ from large listed firms in terms of agency and asymmetric information problems...

Bayelsa, in search of a sustainable health financing scheme ...

African Journals Online (AJOL)

Journal Home > Vol 23, No 1 (2017) > ... Background: A sustainable health care financing scheme has been difficult to ... These meagre allocations were because the same source that funds patient care services also funds health research, capital ... a sustainable health financing scheme will depend on a health system that ...

New directions in electric power financing

International Nuclear Information System (INIS)

Jechoutek, K.G.; Lamech, Ranjit

1995-01-01

This paper argues that it is necessary to raise the eyes from the current focus on independent power projects, buttressed by guarantees, to the longer horizon of electric power financing in open markets. Transitional strategies will need to move beyond the commonly seen IPP activity that occurs without fundamental sector reform, and demand-side incentives that introduce further market distortions. These efforts will have to focus on macroeconomic stabilization, removal of price distortions, as well as sector and corporate reform. Mobilization of domestic capital will be essential for sustainable sector financing. Although guarantees to encourage power sector investment can be designed to selectively cover risks, their elimination through fundamental sector reform should be the ultimate goal. Over the longer-term traditional corporate finance should become a more common financing strategy than project finance. Innovations in performance risk management and consumer credit will be crucial to the financing of energy efficiency. (author)

Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice

OpenAIRE

Reiner Eichenberger; David Stadelmann

2009-01-01

Public debts capitalize into property prices. Therefore, property owners tend to favor tax over debt financing for government spending. In contrast, tenants do not suffer from debt capitalization. Thus, they tend to favor debt over tax financing. Our model of the resulting democratic fight between property owners and tenants over public debts and taxes predicts that the property ownership rate in a jurisdiction negatively effects the debt level. We provide empirical support for this hypothesi...

Financing drug discovery for orphan diseases

OpenAIRE

Fagnan, David Erik; Gromatzky, Austin A.; Stein, Roger Mark; Fernandez, Jose-Maria; Lo, Andrew W.

2014-01-01

Recently proposed ‘megafund’ financing methods for funding translational medicine and drug development require billions of dollars in capital per megafund to de-risk the drug discovery process enough to issue long-term bonds. Here, we demonstrate that the same financing methods can be applied to orphan drug development but, because of the unique nature of orphan diseases and therapeutics (lower development costs, faster FDA approval times, lower failure rates and lower correlation of failures...

75 FR 79065 - Emergence Capital Partners SBIC, L.P. License No. 09/79-0454; Notice Seeking Exemption Under...

Science.gov (United States)

2010-12-17

... 95113. The financing is contemplated for working capital and general operating purposes. The financing... SMALL BUSINESS ADMINISTRATION Emergence Capital Partners SBIC, L.P. License No. 09/79-0454; Notice... hereby given that Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo, CA 94402...

76 FR 1491 - Emergence Capital Partners SBIC, L.P. License No. 09/79-0454; Notice Seeking Exemption Under...

Science.gov (United States)

2011-01-10

... financing is contemplated for working capital and general operating purposes. The financing is brought... SMALL BUSINESS ADMINISTRATION Emergence Capital Partners SBIC, L.P. License No. 09/79-0454; Notice... hereby given that Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo, CA 94402...

76 FR 28843 - Emergence Capital Partners SBIC, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2011-05-18

... 94404. The financing is contemplated for working capital and general operating purposes. The financing... SMALL BUSINESS ADMINISTRATION [License No. 09/79-0454] Emergence Capital Partners SBIC, L.P... Notice is hereby given that Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo...

31 CFR 223.7 - Investment of capital and assets.

Science.gov (United States)

2010-07-01

... 31 Money and Finance: Treasury 2 2010-07-01 2010-07-01 false Investment of capital and assets. 223... WITH THE UNITED STATES § 223.7 Investment of capital and assets. The cash capital and other funds of... periodically issue instructions for the guidance of companies with respect to investments and other matters...

Financing Renewable Energy in the European Energy Market

Energy Technology Data Exchange (ETDEWEB)

De Jager, D.; Klessmann, C.; Stricker, E.; Winkel, T.; De Visser, E.; Koper, M. [Ecofys, Utrecht (Netherlands); Ragwitz, M.; Held, A. [Fraunhofer ISI, Karlsruhe (Germany); Resch, G.; Busch, S.; Panzer, C. [Energy Economics Group EEG, Vienna University of Technology, Vienna (Austria); Gazzo, A.; Roulleau, T.; Gousseland, P.; Henriet, M.; Bouille, A. [Ernst and Young, London (United Kingdom)

2011-01-15

The Directive 2009/28/EC on the promotion of the use of energy from renewable sources (RES) sets the overall target to reach 20% renewable energy in gross final energy consumption in 2020. This target is broken down into binding individual Member State targets. Reaching these targets will require a huge mobilization of investments in renewable energies in the coming decade. In order to improve financing and coordination with a view to the achievement of the 20 % target, Article 23 (7) of the Directive requires the Commission to present an analysis and action plan with a view to: (a) The better use of structural funds and framework programmes; (b) The better and increased use of funds from the European Investment Bank and other public finance institutions; (c) Better access to risk capital; (d) The better coordination of Community and national funding and other forms of support; (e) The better coordination in support of renewable energy initiatives whose success depends on action by actors in several Member States. This report presents the results of the title project. The study provides an up to date and thorough assessment of the costs of renewable energy and the support and financing instruments available for renewable energy R and D, demonstration projects and large-scale deployment. This includes details of each Member State's expenditure (via grants, support schemes, loans etc.) and use of Community funds, including loans of the EIB (European Investment Bank) and the EBRD (European Bank for Reconstruction and Development). It also explores the possible instruments for use in the future and constraints in the capital market, which hinder the development of renewable energy. Finally, it develops recommendations for improving financing and support instruments, improving the sector's access to capital, and closing the financing gap for reaching the 2020 targets. The chapters of the report represent separate tasks: (1) Costs of renewable energy

Alternative sources of financing entrepreneurial undertakings in agriculture

Directory of Open Access Journals (Sweden)

Njegomir Vladimir

2017-01-01

Full Text Available Insufficiency of internal financial resources and limited access to external sources of capital, as one of the key problems, local agricultural producers - entrepreneurs usualy describe with high cost of capital, complicated procedures, lack of transparency in regard to the settlement of credit requests and problems with security of loans. The aim of this study is to analyze the possibilities of facilitating access to increased volume of capital for domestic entrepreneurs in agriculture by using funding sources that are applied in developed economies for financing entrepreneurs. In order to achieve the stated aim, the subject of investigation in this paper is the analysis of alternative sources of financing, which use or increased adoption in Serbia would provide greater availability of capital for agricultural producers and others across the chain of agrobusiness complex and thus the promotion of entrepreneurial activity, and consequently, greater competitiveness and greater income of domestic agricultural producers and others across the chain of agrbusiness indirectly leading to increased economic growth and improvement of the welfare.

12 CFR 1229.2 - Determination of a Bank's capital classification.

Science.gov (United States)

2010-01-01

... classification. 1229.2 Section 1229.2 Banks and Banking FEDERAL HOUSING FINANCE AGENCY ENTITY REGULATIONS CAPITAL CLASSIFICATIONS AND PROMPT CORRECTIVE ACTION Federal Home Loan Banks § 1229.2 Determination of a Bank's capital classification. (a) Quarterly determination. The Director shall determine the capital classification for each...

Potential of Securitization in Solar PV Finance

Energy Technology Data Exchange (ETDEWEB)

Lowder, Travis [National Renewable Energy Lab. (NREL), Golden, CO (United States); Mendelsohn, Michael [National Renewable Energy Lab. (NREL), Golden, CO (United States)

2013-12-01

This report aims to demonstrate, hypothetically and at a high level, what volumes of solar deployment could be supported given solar industry access to the capital markets in the form of security issuance. Securitization is not anticipated to replace tax equity in the near- to mid-term, but it could provide an additional source of funds that would be comparatively inexpensive and could reduce the weighted average cost of capital for a given solar project or portfolio. Thus, the potential to securitize solar assets and seek financing in the capital markets could help to sustain the solar industry when the investment tax credit (ITC) -- one of the federal incentives that has leveraged billions of dollars of private capital in the solar industry -- drops from 30% to 10% at the close of 2016. The report offers analysis on the size of the U.S. third-party financed solar market, as well as on the volumes (in MW) of solar asset origination possible through a $100 million securitization fund (assuming no overcollateralization). It also provides data on the size of the relevant securities markets and how the solar asset class may fit into these markets.

Investment Timing When External Financing Is Costly

DEFF Research Database (Denmark)

Hirth, Stefan; Uhrig-Homburg, Marliese

2010-01-01

This paper analyzes the investment timing of firms facing two dimensions of financing constraints: Liquidity constraints and capital market frictions inducing financing costs. We show that liquidity constraints are not sufficient to explain voluntary investment delay. However, when additionally...... considering financing costs, we can explain both voluntary delay and acceleration of investment. More precisely, we find that investment thresholds are U-shaped in liquid funds. For high-liquidity firms, investment thresholds are decreasing (i.e. accelerated investment takes place) in either dimension...... of financing constraint. In contrast, investment thresholds are increasing (i.e. investment is further delayed) in either form of financing constraint for low-liquidity firms. For intermediate levels of liquidity, investment thresholds are U-shaped in market frictions....

Structure of financing investments in the energy sector

Directory of Open Access Journals (Sweden)

Kowal Barbara

2017-01-01

The article shows how the financing structure of the companies from the fuel and energy sector, listed on the Warsaw Stock Exchange, has evolved over the years. The authors also estimated the cost of equity. The results were compared with the chosen mining companies in Poland. Companies from the energy sector have lower investment risk than companies from the fuel sector. Looking at the profitability of investments it should be emphasized that the financing by outside capital is more advantageous than equity financing.

Dutch Corporate Finance, 1602-1850

NARCIS (Netherlands)

A. de Jong (Abe); J. Jonker (Joost); A. Roëll (Ailsa)

2013-01-01

textabstractEarly Modern Dutch corporate finance had two notable features, a remarkable ease of raising large amounts of capital and a flexible legal framework. Having pioneered new corporate forms with two intercontinental trading companies, Dutch business adopted such forms on a wider scale only

Financing Mode and Enterprise Innovation: from the Respective of the Secondary Financing in a Start-up Enterprise

Directory of Open Access Journals (Sweden)

Yunxia Ning

2014-02-01

Full Text Available The enterprise nature has a close connection with its financing mode. An entrepreneur must distinguish between products and mainstream markets in order to make a positive profit in the competitive market, and he shall be in adequate control of the enterprise assets to execute this differentiation strategy. However, the start-up enterprise usually shall be invested with high capital, which makes the entrepreneur perform the secondary transformation to realize the standardization. Meanwhile the standardization may make the entrepreneur himself replaced by either external managers or internal staff. The paper shows that it generally makes equity financing more profitable than bond financing, and that the financing mode of an enterprise shall finally have an influence on its innovation ability.

Impacts of relationship banking and capital market concentration on small business finance.

OpenAIRE

Zhang, Song

2016-01-01

Small business is important to U.S. economy. However, they are difficult to obtain external finance. Since 1990s, deregulations happened in the U.S. banking market and affected small business finance greatly. Relationship banking is an effective lending technology for small business finance. Therefore, this thesis aims to investigate the nature of relationship banking and its impacts by using the data from U.S. Survey of Small Business Finances 1993, 1998 and 2003. The survey is led by U.S. F...

Taxation and venture capital-backed entrepreneurship

DEFF Research Database (Denmark)

Keuschnigg, Christian; Nielsen, Søren Bo

2003-01-01

In recent years, venture capital has increasingly become a factor in thefinancing of new firms. We examine how the value of mature firms determinesthe incentives of entrepreneurs to start up new firms and of venture capitaliststo finance and advise them. We examine how capital gains taxes as well...... assubsidies to start-up costs of new firms affect venture capital-backedentrepreneurship. We also argue that dividend and capital gains taxes onmature firms have important consequences for start-up firms as well.JEL Classification: D82, G24, H24 and H25Keywords: double moral hazard, entrepreneurship, taxes...

IMPLICATIONS OF THE FINANCIAL SYSTEM ON THE CAPITAL STRUCTURE OF THE ENTERPRISE

Directory of Open Access Journals (Sweden)

Toderascu (Sandu Carmen

2013-07-01

Full Text Available This paper aims to identify the types of financing structures of the economy that exist in European Union countries highlighting the features of each structure. For each type of financing system of the economy identified we observe the financial resources available to companies. Depending on these we identify how there are financed the companies in each market, more exactly what capital structure do they have, and moreover what is the optimal capital structure in each case. So, by this analysis, we want to see if the financing system of an economy influences the optimal structure of the companies operating in the capital market from that country. In various stages of development of the financial system, the company financing depends on the general characteristics of the environment in which the enterprise operates. The financing system existing in a country plays an important role on the capital structure of an enterprise because according to the specific of each country the enterprises have access to more or fewer financial resources. We also analyze the supply of financial resources within each system, exactly the actual money that businesses can have on those markets and key management decisions on enterprises financing. In this paper we combine the theoretical analysis with the empirical results obtained by the studies realized by European Commission. It is important to keep in mind that the results obtained by the analysis realized in the last years may be influenced by the manifestation of the global financial crisis. An important result of this analyze is that the external environment and the disturbances in the external environment have a significant influence on the financing of businesses operating in a country. This was proved again by the impact of the current financial crisis on the activities of the enterprises on each market from European Union.

Venture capital and private equity investment preferences in selected countries

Directory of Open Access Journals (Sweden)

Krzysztof Dziekoński

2016-01-01

Full Text Available Sources of capital to finance companies in the SME sector is one of the basic conditions for the functioning and development of enterprises, especially in the early phase of their development. Increasingly popular is the use of capital market instruments, Private Equity, Venture Capital, Business Angels or Mezzanine. Funding of this kind can finance risky investments in return for a higher expected rate of return on capital. Access to financial resources and the conditions under which entrepreneurs can use them can determine the introduction of new technology, new products and services, expand distribution channels, implement changes that may lead to the growth in competitiveness and above all, innovation, thus the growth of the company. The paper presents results of statistical analysis of the venture capital and private equity funds investment strategies in selected countries. As a result investment profiles are created.

Topics in Finance. Part V--Capital Structure

Science.gov (United States)

Laux, Judy

2011-01-01

Continuing this series on the theory of financial management, the current article investigates capital structure, offering insight into the roles of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts. Much literature addresses this topic, and some of the most recent literature challenges certain theoretical…

An Exploration into the Municipal Capacity to Finance Capital Infrastructure

Directory of Open Access Journals (Sweden)

Almos T. Tassony

2015-11-01

Full Text Available Municipal governments own and maintain two-thirds of Canada’s stock of public infrastructure. This burden is met by municipalities within the parameters afforded to them by their respective provinces. As a result, municipalities throughout the country rely on three primary revenue streams: issuing debt, financing from dedicated revenue and transfers from higher levels of government. At the same time, strict rules on borrowing, sometimes self-imposed, have left municipalities with considerable unrealized borrowing capacity. Importantly, a shift towards increased borrowing, away from a reliance on intergovernmental grants, would reinforce the linkage between local government spending and accountability and keep spending priorities in order. This paper focuses on infrastructure spending in Alberta and Ontario to illuminate how municipalities in both provinces cope with demands to provide capital- and labour-intensive programs and services. In both provinces, transportation, environmental services and recreation and culture comprise the bulk of infrastructure expenditure. In Ontario, as of 2013, 18 of the largest municipalities held assets valued at $111.8 billion. After accumulated depreciation, those assets are now estimated to be worth $73.8 billion, having lost $38 billion in value since their acquisition — although municipalities’ diligence varies. Mississauga has preserved 82.6 per cent of its assets’ original cost; Thunder Bay has only managed 45.6 per cent. In Alberta, 21 of the largest municipalities held assets valued at $51.7 billion in 2013, although thanks to depreciation, their value is now estimated at $37.8 billion. Again, there is significant variability between municipalities, with Wood Buffalo having preserved 98.6 per cent of its assets’ original value, and Crowsnest Pass with 43.9 per cent. In both provinces, the older the municipality and the weaker its fiscal capacity, the lower the net book value of its capital

Ask and Ye Shall Receive? Automated Text Mining of Michigan Capital Facility Finance Bond Election Proposals to Identify Which Topics Are Associated with Bond Passage and Voter Turnout

Science.gov (United States)

Bowers, Alex J.; Chen, Jingjing

2015-01-01

The purpose of this study is to bring together recent innovations in the research literature around school district capital facility finance, municipal bond elections, statistical models of conditional time-varying outcomes, and data mining algorithms for automated text mining of election ballot proposals to examine the factors that influence the…

Empirical Analysis of the Impact of Capital Market on Economic ...

African Journals Online (AJOL)

The Nigerian capital market had not been performing effectively in terms of providing long term capital needed by firms to finance capital projects. This cast doubts on its ability to meaningfully enhance the growth of the economy against the apriori expectations amidst different reforms that were introduced by the government ...

12 CFR 1229.3 - Criteria for a Bank's capital classification.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Criteria for a Bank's capital classification. 1229.3 Section 1229.3 Banks and Banking FEDERAL HOUSING FINANCE AGENCY ENTITY REGULATIONS CAPITAL CLASSIFICATIONS AND PROMPT CORRECTIVE ACTION Federal Home Loan Banks § 1229.3 Criteria for a Bank's capital...

Dynamic Capital Structure: Dynamics, Determinants and Speed of Adjustment

NARCIS (Netherlands)

Tamirat, A.S.; Trujillo Barrera, A.A.; Pennings, J.M.E.

2017-01-01

The corporate finance literature has focused on explaining the determinants of firms target capital structure and speed of adjustment using the well-established theories such as pecking order, signaling and trade-off theories. However, less attention has been paid to understanding the financing

75 FR 65197 - Use of Public Housing Capital Funds for Financing Activities

Science.gov (United States)

2010-10-21

..., lenders cannot view PHAs or their stand-alone projects as market-rate financing, but rather that private.... Response: This CFFP final rule permits PHAs to size their financing either on the project level, or on an... Funds for Financing Activities; Final Rule #0;#0;Federal Register / Vol. 75 , No. 203 / Thursday...

Capital investment requirements in the West German energy economy and its financing

Energy Technology Data Exchange (ETDEWEB)

Diel, R; Radtke, G; Stoessel, R

1980-01-01

An analysis of the order of magnitude of capital investment required in the West German energy sector in the next two decades is based on reserve, production, and consumption statistics of the 10th World Energy Conference, the Chase Manhattan Bank and a 4% inflation rate, and shows requirements of DM22 billion for 1980-85, DM52 billion for 1980-90, and DM150 billion for 1980-2000 for exploration, production, and gasification of bituminous coal; DM21.7 billion or DM33.8 billion for 1980-2000 for lignite, depending on the use of the lignite for direct electricity generation or for gasification with nuclear process heat; DM2.8 billion and DM3.0 billion for expansion and conversion of petroleum-refining capacity for 1980-90 and 1991-2000, respectively; DM75-DM90 billion for exploration and production to maintain the present oil and natural gas production level in 1980-2000; DM70 billion for the transport and distribution of natural gas in 1980-2000; DM88.4 billion for coal and nuclear power-generation plants and DM59 billion for the distribution network to 1990; and DM48 billion for regenerative energy sources to 2000. The financing structure is also discussed.

Neural Network Models of Regulating Natural Capital Funds for Renewable Energy

OpenAIRE

Alsayyed, Nidal; Zhu, Weihang

2016-01-01

Natural Capital (NC) is the limited form of capital assets or service (tangible or intangible) that satisfies basic and social conditions for human existence and protection The aim of this paper is twofold; First we examine and test empirically the conventional financing models and discuss their performance in regulating the financing structure of NC funds using a parametric estimating approach Generalized Moments Method (GMM). Second we estimate the NC dynamics using a nonparametric approach...

Venture Capital Financing, Moral Hazard and Learning

NARCIS (Netherlands)

Bergemann, D.; Hege, U.

1997-01-01

We consider the provision of venture capital in a dynamic agency model. The value of the venture project is initially uncertain and more information arrives by developing the project. The allocation of the funds and the learning process are subject to moral hazard. The optimal contract is a

South African Capital Structure Decisions: A Survey of Listed Companies

CSIR Research Space (South Africa)

De Wet, Lambert H

2015-12-01

Full Text Available , which states that firms seek the most convenient form of finance available (Myers, 1984); the Market Timing Theory, which states that managements effort to time their entry to market shapes the capital structure decision (Baker and Wurgler (2002...) and the Agency theory of Jensen and Meckling (1976), Myers (1984) proposes a ‘Pecking Order theory’, which advocates a freer capital structure whereby management does not aim for a specific leverage ratio, but instead uses the cheapest source of finance...

Game theory and applications in finance

NARCIS (Netherlands)

van Gulick, G.

2010-01-01

In finance, situations exist that give rise to allocation problems. Individuals combining their capital typically have more investment opportunities, and thus higher revenues. The proceeds of their investments have to be divided among those individuals. Also, banks and insurance companies face

78 FR 32294 - Escalate Capital Partners SBIC I, L.P., License No. 06/06-0335; Notice Seeking Exemption Under...

Science.gov (United States)

2013-05-29

..., Suite 309, Austin, TX 78730. The financing is contemplated to provide working capital. The financing is... SMALL BUSINESS ADMINISTRATION Escalate Capital Partners SBIC I, L.P., License No. 06/06-0335... Notice is hereby given that Escalate Capital Partners, SBIC I, L.P., 300 W. 6th Street, Suite 2250...

Access to capital and capital structure of the firm

Czech Academy of Sciences Publication Activity Database

Shamshur, Anastasiya

-, č. 429 (2010), s. 1-36 ISSN 1211-3298 R&D Projects: GA ČR GA402/09/1595; GA MŠk LC542 Grant - others:MŠk(CZ) SVV-2010-261801 Institutional research plan: CEZ:MSM0021620846 Keywords : capital structure * financing decisions * credit constraints * Eastern Europe Subject RIV: AH - Economics http://www.cerge-ei.cz/pdf/wp/Wp429.pdf

Venture Capital Investment in the Life Sciences in Switzerland.

Science.gov (United States)

Hosang, Markus

2014-12-01

Innovation is one of the main driving factors for continuous and healthy economic growth and welfare. Switzerland as a resource-poor country is particularly dependent on innovation, and the life sciences, which comprise biotechnologies, (bio)pharmaceuticals, medical technologies and diagnostics, are one of the key areas of innovative strength of Switzerland. Venture capital financing and venture capitalists (frequently called 'VCs') and investors in public equities have played and still play a pivotal role in financing the Swiss biotechnology industry. In the following some general features of venture capital investment in life sciences as well as some opportunities and challenges which venture capital investors in Switzerland are facing are highlighted. In addition certain means to counteract these challenges including the 'Zukunftsfonds Schweiz' are discussed.

Capital Investments Plan for 288 Streets from Cluj-Napoca

Directory of Open Access Journals (Sweden)

Paul ZAI

2006-02-01

Full Text Available This study critically analyzes how the theoretical concept of Capital Investments Plan (CIP can be employed in order to better understand the financing decisions regarding various investment project undertaken by the Cluj-Napoca City Hall. Different financing scenarios are then analyzed.

Funding Continuum for Private Business Owners: Evidence from the Pepperdine Private Capital Markets Project Survey

OpenAIRE

Maretno A. Harjoto; John K. Paglia

2011-01-01

The Pepperdine Private Capital Markets Project survey for business owners, administered during the spring of 2010, reveals an increasingly important role of friends and family (Friends/Family) to provide capital for privately-held businesses. Examining business owners’ perceptions of their sources of capital reveals that, overall, business owners prefer Friends/Family and angel financing as well as asset-based lenders and banks (ABL/Bank). Business owners consider Friends/Family financing to ...

Islamic Banking Capital Challenges to Increase Business Expansion (Indonesia Cases

Directory of Open Access Journals (Sweden)

Lucky Nugroho

2017-11-01

Full Text Available In the case of Indonesia regarding capital sources in Islamic Banks, all Islamic Banks are subsidiaries of Conventional Banks (except Bank Muamalat. Bank Syariah Mandiri which is the only Islamic Bank that meets capital ownership with Business Category Bank Level III (BUKU III is also a subsidiary of Bank Mandiri (conventional bank. In the same way, conventional banks become essential to meet the capital requirement to improve the business of Islamic Bank. This article aims to determine the role of capital and operating profit for business expansion (financing in Bank Syariah Mandiri. The method used is the quantitative method by using statistical tool STATA version 13. The result of regression test is known that capital and profit have a significant influence in increasing financing expansion in Islamic Bank. Also, the price of the number of bad debts causes the lack of public confidence in the Islamic bank. The alternative to increasing the capital and public trust is government policies to support Islamic bank become independent.

Financing renewable energy: Obstacles and solutions

Energy Technology Data Exchange (ETDEWEB)

Brown, M.H.

1994-06-01

The majority of renewable energy technology projects now being developed use long term project financing to raise capital. The financial community scrutinizes renewables more closely than some conventionally fueled electric generation facilities because it perceives renewables as risky and expensive. Renewables pay for this perceived risk through higher interest charges and other more restrictive loan covenants. Risks that are not eliminated in the power sales agreement or through some other means generally result in higher project costs during financing. In part, this situation is a product of the private placement market and project finance process in which renewable energy facilities must function. The project finance process attracts banks and institutional lenders as well as equity investors (often pension funds) who do not want to place their capital at great risk. Energy project finance exists on the basis of a secure revenue stream and a thorough understanding of electric generation technology. Renewables, like all energy projects, operating in uncertain regulatory environments are often difficult to finance. In the uncertain regulatory environment in which renewables now operate, investors and lenders are nervous about challenges to existing contracts between independent power producers and utilities. Challenges to existing contracts could foretell challenges to contracts in the future. Investors and lenders now look to state regulatory environments as an indicator of project risk. Renewable energy technology evolves quickly. Yet, often the information about technological evolution is not available to those who invest in the energy projects. Or, those who have invested in new renewable energy technology in the past have lost money and are nervous about doing so in the future - even though technology may have improved. Inadequate or unfavorable information is a barrier to the development of renewables.

Financing Strategies for Nuclear Fuel Cycle Facility

International Nuclear Information System (INIS)

David Shropshire; Sharon Chandler

2005-01-01

To help meet our nation's energy needs, reprocessing of spent nuclear fuel is being considered more and more as a necessary step in a future nuclear fuel cycle, but incorporating this step into the fuel cycle will require considerable investment. This report presents an evaluation of financing scenarios for reprocessing facilities integrated into the nuclear fuel cycle. A range of options, from fully government owned to fully private owned, was evaluated using a DPL (Dynamic Programming Language) 6.0 model, which can systematically optimize outcomes based on user-defined criteria (e.g., lowest life-cycle cost, lowest unit cost). Though all business decisions follow similar logic with regard to financing, reprocessing facilities are an exception due to the range of financing options available. The evaluation concludes that lowest unit costs and lifetime costs follow a fully government-owned financing strategy, due to government forgiveness of debt as sunk costs. Other financing arrangements, however, including regulated utility ownership and a hybrid ownership scheme, led to acceptable costs, below the Nuclear Energy Agency published estimates. Overwhelmingly, uncertainty in annual capacity led to the greatest fluctuations in unit costs necessary for recovery of operating and capital expenditures; the ability to determine annual capacity will be a driving factor in setting unit costs. For private ventures, the costs of capital, especially equity interest rates, dominate the balance sheet; the annual operating costs dominate the government case. It is concluded that to finance the construction and operation of such a facility without government ownership could be feasible with measures taken to mitigate risk, and that factors besides unit costs should be considered (e.g., legal issues, social effects, proliferation concerns) before making a decision on financing strategy

Working Capital Efficiency and Firm Profitability – Nigeria and Kenya

OpenAIRE

Lucian J. Pitt

2014-01-01

The primary purpose of this study is to understand the differences in the relationship between working capital management efficiency, working capital investment decisions and working capital finance decisions and the profitability of firms within the context of two African developing economies, Kenya and Nigeria. The study finds that there is a significant difference in the relationship between the firm’s profitability and the working capital variables which suggests different challenges for ...

12 CFR 931.2 - Issuance of capital stock.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Issuance of capital stock. 931.2 Section 931.2 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL... transaction, a Bank may distribute any portion of its then-existing unrestricted retained earnings as shares...

12 CFR 931.1 - Classes of capital stock.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Classes of capital stock. 931.1 Section 931.1 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL... written notice to the Bank; and (4) Confer an ownership interest in the retained earnings, surplus...

Determinant of Mudharabah Financing: A Study at Indonesian Islamic Rural Banking

Directory of Open Access Journals (Sweden)

Erika Amelia

2017-03-01

Full Text Available This study aims to determine the variables that affect the financing in the Islamic rural banking in Indonesia. The data used in this study is a monthly time series data that is from June 2009 until June 2015 in the monthly financial statements Islamic Banking Statistics published by Bank Indonesia. The analytical method used in this research is multiple linear regressions. The results of data analysis showed that the variables simultaneously deposit fund, capital adequacy ratio, inflation, exchange rate and the level of revenue sharing significantly influence the composition of financing. Partially deposit funds and the exchange rate significant positive effect, while capital adequacy ratio had a negative effect. Variable inflation and the level of revenue sharing do not significantly influence the composition of financing. This result implies that Islamic rural banking should increase the deposit funds to increase the mudaraba financing.DOI: 10.15408/etk.v16i1.4638 

A venture capital view of challenges, opportunities, and innovation in biomedical research.

Science.gov (United States)

Ratcliffe, L T

2011-02-01

Small biotech companies have been an important source of innovation, pipelines, and new products for the pharmaceutical industry, and are primarily financed by venture capital (VC). The significant changes happening within the VC industry have broad implications for these small companies. This includes a shift to financing later-stage programs with increasing interest in orphan or specialty indications. Nontraditional sources of capital and innovative risk-sharing structures can enable early-stage companies.

Farm Target Capital Structure: Dynamics, Determinants and Speed of Adjustment

NARCIS (Netherlands)

Tamirat, A.S.; Trujillo Barrera, A.A.; Pennings, J.M.E.

2017-01-01

The corporate finance literature has focused on explaining the determinants of firms target capital structure and speed of adjustment using the well-established theories such as pecking order, signaling and trade-off theories. However, less attention has been paid to understanding the financing

Expansion And International Expansion Of Small-To Medium Sized Firms: The Role Of Finance

OpenAIRE

Jan Smolarski; Can Kut; Neil Wilner

2011-01-01

Small- to medium-sized firms are expected to show international growth at an early stage. Several factors may affect the outcome of initial efforts to expand and internationalize. Our research examines how equity based venture funding affects SME expansion and internationalization. We divide venture capital financing into two categories: incremental financing where firms receive their venture capital funding in portions and lump-sum venture funding where firms receive their funding in one lum...

GOVERNMENT INTERVENTIONS IN THE VENTURE CAPITAL MARKET HOW JEREMIE AFFECTS THE HUNGARIAN VENTURE CAPITAL MARKET?

OpenAIRE

Fazekas Balazs

2014-01-01

JEREMIE (Joint European Resources for Micro to Medium Enterprises) program was implemented as a part of the EU cohesion policy in the framework of 2007-2013 programming period. The primary objective of the program was to enhance the financing prospects of SME’s through structural funds that provide financial engineering instruments like loan, guarantee and venture capital. This paper focuses on the effects of JEREMIE on Hungary’s venture capital market. Since 2010, 28 JEREMIE backed venture c...

Capitalist contexts for Darwinian theory: land, finance, industry and empire.

Science.gov (United States)

Hodge, M J S

2009-01-01

When socio-economic contexts are sought for Darwin's science, it is customary to turn to the Industrial Revolution. However, important issues about the long run of England's capitalisms can only be recognised by taking a wider view than Industrial Revolution historiographies tend to engage. The role of land and finance capitalisms in the development of the empire is one such issue. If we historians of Darwin's science allow ourselves a distinction between land and finance capitalisms on the one hand and industrial capitalism on the other; and if we ask with which side of this divide were Darwin and his theory of branching descent by natural selection aligned, then reflection on leading features of that theory, including its Malthusian elements, suggests that the answer is often and largely, though not exclusively: on the land side. The case of Wallace, socialist opponent of land capitalism, may not be as anomalous for this suggestion as one might at first think. Social and economic historians have reached no settled consensuses on the long-run of England's capitalisms. We historians of Darwin's science would do well to import some of these unsettled states of discussion into our own work over the years to come.

Financing of Competing Projects with Venture Capital

OpenAIRE

Goldfain, Ekaterina; Kovac, Eugen

2005-01-01

We analyze innovation race in a moral hazard setting. We develop a model in which two competing entrepreneurs work independently on the same project. The entrepreneurs do not possess any wealth of their own and their research is financed by a venture capitalist. The project, if successful, generates a prize, which is to be shared between the winning entrepreneur and the venture capitalist. The venture capitalist cannot observe the allocation of funds he provides, which creates a moral hazard ...

Financial times: Competing temporalities in the age of finance capitalism

Directory of Open Access Journals (Sweden)

Christian Kloeckner

2018-05-01

Full Text Available This special issue explores how finance deploys time, structures the future, and interacts with actors and institutions that sometimes function according to very different temporal regimes. Finance capitalism’s logic of recurrence, repetitive cycles, and successive ruptures has long been with us, but the essays in this special issue are particularly interested in how recent decades of intensified financialization have restructured temporal experience. They interrogate the production and dissemination of agency in an age of acceleration, risk, and uncertainty, asking how the temporality inscribed in financial transactions emerges from and simultaneously shapes individual and social practice. Topics covered range from the logic of finance and foundational concepts of financial theory to the intersection between objective structures and social practice, the role of literature, and finally questions of social insecurity, political action, and the possibility of resistance within a context of competing temporalities. In this introduction, the editors delineate some fundamental concepts and questions for our financial times.

Net Operating Working Capital, Capital Budgeting, and Cash Budgets: A Teaching Example

Science.gov (United States)

Tuner, James A.

2016-01-01

Many introductory finance texts present information on the capital budgeting process, including estimation of project cash flows. Typically, estimation of project cash flows begins with a calculation of net income. Getting from net income to cash flows requires accounting for non-cash items such as depreciation. Also important is the effect of…

Capital structure in LNG infrastructures and gas pipelines projects: Empirical evidences and methodological issues

International Nuclear Information System (INIS)

Pierru, Axel; Roussanaly, Simon; Sabathier, Jérôme

2013-01-01

This paper provides new empirical insights on the capital structure of project-financed LNG infrastructures and gas pipeline projects, by using data relating to projects whose financial close occurred between June 2004 and March 2011. Most results are consistent with the basic view of risk-averse funds suppliers. Especially, the projects located in risky countries and larger projects tend to exhibit lower debt ratios and less-concentrated equity ownerships. In addition, regasification projects appear to have a more diluted equity ownership. Methodological issues raised by the financing of these projects are also examined from a capital-budgeting perspective. In particular, the equity residual method, usually used by industrial practitioners to value these projects, should be adjusted. - Highlights: • This paper provides new empirical insights on the capital structure of project-financed LNG and gas pipeline infrastructures. • Most of our results are consistent with the basic view of risk-averse funds suppliers. • Projects located in risky countries exhibit lower debt ratios and less-concentrated equity ownerships. • Larger projects and regasification projects also have less concentrated equity ownerships. • From a capital-budgeting viewpoint, we examine methodological issues raised by the financing of these projects

The Effect of Intellectual Capital on Cost of Finance and Firm Value

OpenAIRE

Mohsen Iranmahd; Mahmoud Moeinaddin; Nasim Shahmoradi; Forough Heyrani

2014-01-01

In today's knowledge-based industry, the role of intellectual capitals in creating value for the business units is more effective than financial capitals. The accounting system plays a crucial role in finding appropriate strategies for achieving suitable methods of evaluating intellectual capitals. One of the most significant shortcomings of traditional accounting systems is that it doesn't reflect the intellectual capital value in financial reports of business units. Collecting the data from...

Capital Finance Decisions for project managers - A reflection on current methods

Directory of Open Access Journals (Sweden)

C. Scheepers

2003-12-01

Full Text Available This paper evaluates some of current financial investment selection methodologies for capital projects. The proc ess (and criteria of capital investment decisions is reviewed. The capital budget for most organisations is prepared annually by a committee of senior managers who then present it for approval by the board of directors. Investment proposals are usually subjected to two financial tests, "payback" and "internal rate of return (IRR". The management committee usually decides on the tests and acceptance criteria vary according to the type of project. Some shortcomings of these most frequently used current tests (Payback & IRR are identified and it is recommended that the Net Present Value (NPV should be used as the primary method for analysing, comparing and selecting capital projects.

Practice financing strategies should match investors' objectives.

Science.gov (United States)

Messinger, S F; Stevenson, P B

1999-05-01

To successfully obtain capital financing, a group practice should develop a business plan that is tailored to the needs and objectives of the targeted investors. When evaluating possible funding sources, healthcare financial managers need to consider the group practice's growth objectives, geographic scope, intended use of the funding, and cash-flow potential and/or assets. Potential capital sources include internal funding; investments by healthcare organizations, health plans, private investors, and venture capitalists; borrowing from lenders; and public offerings.

The source of productivity growth in Dutch agriculture: a perspective from finance

NARCIS (Netherlands)

Zhengfei, G.; Oude Lansink, A.G.J.M.

2006-01-01

In corporate finance, the impact of capital structure on firm performance has been widely studied. This article extends the capital structure study to the situation in agriculture, explicitly addressing the difference between family farms and corporate firms. We use the Malmquist productivity growth

Financing wind energy projects

International Nuclear Information System (INIS)

Blom, P.

1996-01-01

Triodos Bank has more than 10 years of experience with developing and financing wind projects in the Netherlands. Over 50 Megawatt has been installed with direct involvement of the bank. The experience is both as a bank and as a venture capital fund. In this contribution the perspective will be more from a venture capital point of view than as a bank. The bank's activities in the wind energy sector started in 1986 by forming a joint venture with an engineering bureau, experienced i wind energy but not yet in developing wind projects. From 1989 onwards the joint venture started to build wind farms, both as a private company and in a joint venture with utilities. The European Investment Bank became involved with a long-term debt finance facility (15 years, fixed interest loan). The main difficulties were long-term commitments from landowners (Dike authorities) and utilities with regard to power contracts. The development got really stuck when utilities refused to pay a fair price anymore. Also, site development became more and more difficult. Even the poor technical performance improved drastically and did not frighten developers and banks too much. (author)

Concept of Capital and Profit in Economy, Finance and Accounting

Directory of Open Access Journals (Sweden)

Teresa Szot -Gabryś

2009-04-01

Full Text Available The paper analyzes economic, financial and accountancy theories, concepts and models of capital and profit. The aim of the article is to present different meaning of this economic category in economic knowledge. The results of research in this paper is providing to conclusion that the knowledge debate of nature and measurement method of capital and profit is still continuing.

The Role of Corporate Zakat on Optimal Capital Structure Policy: Evidence from Malaysian Firms

Directory of Open Access Journals (Sweden)

Abrapuspa Ghani Talattov

2016-02-01

Full Text Available In the finance literature, the relationship between capital structure and firm value has been extensively investigated, both theoretically and empirically. The main issue on corporate finance is how firms dealing with the important decision of capital structure. In this study, a model of capital structure is formulated in which corporate tax and zakat payment exist by firms into the consideration of combination of debt and equity. The theoretical model as shown by comparative statics prove the implication which is negatively relationship between leverage of the firm and the corporate zakat payment. Meanwhile, the empirical evidence reveals several implication as follows, (1 tax deduction reduces the current liability item relative to the firms that prefer equity financing, (2 the significant of zakat is consistent with the theoretical model that zakat would encourage firm to issue more equity than debt, (3 the strong significant relationship between return on assets with the leverage are the leading indicator of capital structure in all models.

Working Capital Approaches and Firm’s Returns in Pakistan

OpenAIRE

Dr. Talat Afza; Mian Sajid Nazir

2008-01-01

This study investigates the relationship between the aggressive/conservative working capital policies for seventeen industrial groups of public limited companies listed at Karachi Stock Exchange for a period of 1998-2003. The ordinary least square regression model has been used to investigate into the relationship of working capital approaches and the returns of firms. The study found significant differences among their working capital investment and financing policies across different indust...

Financing the health care Internet.

Science.gov (United States)

Robinson, J C

2000-01-01

Internet-related health care firms have accelerated through the life cycle of capital finance and organizational destiny, including venture capital funding, public stock offerings, and consolidation, in the wake of heightened competition and earnings disappointments. Venture capital flooded into the e-health sector, rising from $3 million in the first quarter of 1998 to $335 million two years later. Twenty-six e-health firms went public in eighteen months, raising $1.53 billion at initial public offering (IPO) and with post-IPO share price appreciation greater than 100 percent for eighteen firms. The technology-sector crash hit the e-health sector especially hard, driving share prices down by more than 80 percent for twenty-one firms. The industry now faces an extended period of consolidation between e-health and conventional firms.

Development of Optimization method about Capital Structure and Senior-Sub Structure by considering Project-Risk

Science.gov (United States)

Kawamoto, Shigeru; Ikeda, Yuichi; Fukui, Chihiro; Tateshita, Fumihiko

Private finance initiative is a business scheme that materializes social infrastructure and public services by utilizing private-sector resources. In this paper we propose a new method to optimize capital structure, which is the ratio of capital to debt, and senior-sub structure, which is the ratio of senior loan to subordinated loan, for private finance initiative. We make the quantitative analysis of a private finance initiative's project using the proposed method. We analyze trade-off structure between risk and return in the project, and optimize capital structure and senior-sub structure. The method we propose helps to improve financial stability of the project, and to make a fund raising plan that is expected to be reasonable for project sponsor and moneylender.

Liquidity coinsurance and bank capital

NARCIS (Netherlands)

Castiglionesi, F.; Feriozzi, F.; Lóránth, G.; Pelizzon, L.

Banks can deal with their liquidity risk by holding liquid assets (self-insurance), by participating in interbank markets (coinsurance), or by using flexible financing instruments, such as bank capital (risk sharing). We use a simple model to show that undiversifiable liquidity risk, that is, the

Leaseback: An alternative source to raise company working capital

Directory of Open Access Journals (Sweden)

Laušević Ljubica

2014-01-01

Full Text Available This paper offers a description, regulatory framework and the manner of implementation of the leaseback as an alternative manner of raising working capital for companies with a large number and type of users. Leaseback has experienced an explosive growth in Europe, in the first decade of this century, especially during the years of economic prosperity. The value of leaseback in Europe has grown from 6.9 billion EUR in 2004, up to 46 billion EUR in 2007, i.e. during the four years the value was increased for 567%. Leaseback has shown itself to be, according to the analyses made, an 'ideal' manner of financing based on sale-and-leaseback of real estate. Capital that is 'immobilised' on long-term basis, through the leaseback regains its quality of capital ready to be engaged in current activities, i.e. projects and programmes of companies that are making high earnings. The objective of this work is to draw the attention, on the basis of a comprehensive theoretical presentation, empirical analyses and positive world practices, to this, in our business circumstances, a completely novel manner of financing, in the context of raising additional working capital through the inflow of both the domestic and of the foreign capital in Serbia. In order to achieve full implementation of this type of financing, it is necessary to overcome a number of constraints and provide regulatory framework, developed investment funds for investment in real estate, and a properly set in place cadastre register.

An empirical analysis of capital structure decisions in Dutch firms

NARCIS (Netherlands)

de Jong, A.

1999-01-01

This Ph.D. thesis investigates capital structure decisions in Dutch firms. Firms are faced with the choice from a variety of sources of financing for the funding of their activities. These choices determine the firms' capital structures. Building on the well known theorems of Modigliani and Miller,

Financing and insurance problems

International Nuclear Information System (INIS)

Laurenge, M.-T.

1975-01-01

The author analyses the papers presented at the Paris Conference on the maturity of nuclear energy. It is evident that financing possibilities will be a determinant factor in the rate of development of nuclear power during the years to come. After having evaluated the capital requirements necessitated for the development of nuclear programmes, the parties intervening have examined the means at the disposal of electricity manufacturers to meet these needs (self-financing, recourse to external financing, regrouping, on an international scale of the electricity manufacturers of the setting up of high capacity plants). As concerns the insurance problems, they are becoming more and more involved as nuclear applications, are further diversified and intensified. The parties intervening have discussed new tarification techniques likely to be applied and pointed out the possibilities offered by regrouping or pooling of insurers (Market Pool) which allow for a maximum of risks to be covered without exceeding the means proper to each company concerned [fr

Project financing in Latin America: The search for greener pastures

International Nuclear Information System (INIS)

Stark, R.D.

1993-01-01

This paper addresses the basic requisites for inducing private capital to engage in infrastructure project financing. Part 1 of this paper provides an overview of project financing considerations, such as how pricing of project outputs and the credit history of output purchasers can affect the availability of project financing, and explores the use of ''Revolving Funds'' as a stimulus for private investment. Part 2 discusses several areas in which governments can become pro-active participants in establishing a sound framework for project financing of infrastructure. Part 3 briefly addresses project structuring and the contractual risk allocation process which is central to project financing, and highlights some of the key legal arrangements found in project contracts

HOW DO ENTREPRENEURIAL TECHNOLOGY FIRMS REALLY GET FINANCED, AND WHAT DIFFERENCE DOES IT MAKE?

OpenAIRE

KELVIN W. WILLOUGHBY

2008-01-01

This paper discusses an emerging heterodoxy in the academic literature on entre- preneurial technology finance that is based on the idea of "bootstrapping." Bootstrap finance is a third approach (emphasizing funding technology ventures through revenue and other non-traditional sources), alongside the orthodoxies of traditional business finance (emphasizing debt) and contemporary venture finance (emphasizing venture capital and public equity). The paper also reports the results of an original ...

GE will finance 614-MW cogeneration plant

International Nuclear Information System (INIS)

Anon.

1990-01-01

The General Electric Power Funding Corporation, a unit of GE Capital, will provide up to $870 million in construction and permanent financing, and letters of credit to Cogen Technologies of Houston, Texas. The agreement will fund the construction of a 614-megawatt (MW), combined-cycle cogeneration plant to be built in Linden, New Jersey, and for the purchase of gas properties. The plant will be owned by Cogen Technologies. The financing is one of the largest packages ever for a cogeneration plant, GE said

[Project financing in public hospital trusts].

Science.gov (United States)

Contarino, F; Grosso, G; Mistretta, A

2009-01-01

The growing debate in recent years over how to finance public works through private capital has progressively highlighted the role of project finance (PF) and publicprivate partnerships (PPP) in general. More and more European countries are turning to PF to finance their public infrastructure development. The UK, which pioneered the adoption of project finance in this field, has been followed by Italy, Spain, France, Portugal and Germany and more recently by Greece, Czech Republic and Poland. Beginning in the late 1990's, Italy has steadily amplified its use of PF and PPPs in key sectors such as healthcare as an alternative way of funding the modernisation of its health facilities and hospitals. The trend reveal an average annual growth of 10.9% since 2002 with peaks of varying intensity over the five year period. Project finance and PPPs represent an effective response to the country's infrastructure gap and support the competitiveness of local systems and the quality of public services. None of this will transpire, however without energetic new planning efforts and adequate policy at the centre.

Financing of the investments made by the electricity industry in particular - a bottleneck

International Nuclear Information System (INIS)

Radtke, G.

1977-01-01

Several basic problems concerning capital investment in the energy sector are discussed and the financing regulations of the Federal Insurance Board are explained. Finally, the author goes briefly into detail as far as a modern form of financing is concerned namely 'leasing'. (UA) [de

Financing nuclear programmes in developing countries

International Nuclear Information System (INIS)

McKenzie, N.C.

1977-01-01

The paper discusses the following topics: The implications for a developing nation's economy of acquiring nuclear plants with the attendant high capital cost but low operating cost; political factors and safeguards provisions; turnkey versus non-turnkey contracts; spreading exchange and other risks through multi-national consortia; maximizing local content; cash flow considerations; availability of aid or other direct government to government loans; packaging of export finance from different countries; downpayments and local costs; Eurodollar markets, bank syndications and bond issues, domestic markets; available security, central bank or government guarantees; special considerations, barter deals, leasing; and finance for the fuel cycle. (author)

Financing nuclear programmes in developing countries

International Nuclear Information System (INIS)

McKenzie, N.C.

1977-01-01

The following topics are discussed: the implications for a developing nation's economy of acquiring nuclear plants with the attendant high capital cost but low operating cost; political factors and safeguards provisions; turnkey versus non-turnkey contracts; spreading exchange and other risks through multi-national consortia; maximising local content; cash flow considerations; availability of aid or other direct government to government loans; packaging of export finance from different countries; downpayments and local costs; eurodollar markets, bank syndications and bond issues, and domestic markets; available security, central bank or government guarantees; special considerations, barter deals, leasing, and finance for the fuel cycle

The place of finance in visual arts education in Nigeria | Odey ...

African Journals Online (AJOL)

This paper is of the opinion that inadequate finance is detrimental to the development of visual arts education in Nigeria. It opines that since it is a capital intensive programme, there is the need for concerted efforts to ensure that finance does not decimate the programme. The paper gave suggestions on how to reduce the ...

Financing Opportunities for Renewable Energy Development in Alaska

Energy Technology Data Exchange (ETDEWEB)

Ardani, K.; Hillman, D.; Busche, S.

2013-04-01

This technical report provides an overview of existing and potential financing structures for renewable energy project development in Alaska with a focus on four primary sources of project funding: government financed or supported (the most commonly used structure in Alaska today), developer equity capital, commercial debt, and third-party tax-equity investment. While privately funded options currently have limited application in Alaska, their implementation is theoretically possible based on successful execution in similar circumstances elsewhere. This report concludes that while tax status is a key consideration in determining appropriate financing structure, there are opportunities for both taxable and tax-exempt entities to participate in renewable energy project development.

Ripple effects of reform on capital financing.

Science.gov (United States)

Arduino, Kelly

2014-05-01

Healthcare leaders should inventory and quantify the capital initiatives deemed critical for success under changing business models. Key considerations in planning such initiatives are opportunity costs and potential impact on productivity. Senior leaders also should create rolling five-year estimates of expenditures in addition to a one-year budget. Approaches to paying for such initiatives include borrowing from cash reserves, partnering to share cash and other resources, and developing new revenue sources derived from the initiatives themselves.

Innovative M and A financing structures

International Nuclear Information System (INIS)

Korpach, A. N.; Carle, M. de la

1998-01-01

The structuring and financing of mergers and acquisitions (M and A) is one of the most critical elements of a takeover process, given that Canadian securities law requires that any takeover must be 'fully financed'. It follows therefore, that in order to comply with securities laws, the financing for a takeover must be arranged in advance of making such a bid. This paper describes the structuring of an offer, outlines the sources of M and A financing, including a review of the 'full capital solution', reviews the key forces influencing the financial structuring of takeover bids, and provides examples of recent M and A transactions in the oil and gas resources sectors. Case histories of two recent mergers and acquisitions, one involving Sun Media Corporation and Rogers Communication Inc., the other John Labatt Limited and the Onex Corporation, were reviewed in detail. The importance of proper structuring of the offer for the specific target's shareholders, as well as for future business operations was stressed

Five Large Generation Groups:Competing in Capital Operation

Institute of Scientific and Technical Information of China (English)

无

2008-01-01

@@ Since the reform of electric power industry in 2002,the newly established five large generation groups have been persisting in the development strategy of "taking electricity as the core and extending to up-and-downstream businesses." Stringent measures were taken in capital operation and their potential has been shown through electric power assets acquiring,coal and financial resources investing,capital market financing as well as power utility restructuring.The five groups are playing more and more important roles in merger and acquisition (M&A) and capital markets.

Monetary policy as a source of risk in international business financings and investments

Directory of Open Access Journals (Sweden)

Paun Cristian

2017-07-01

Full Text Available This paper aims at explaining the volatility of two main macroeconomic variables (interest rate and exchange rate that impact the cost of international capital and, consequently, the international financing decision. Firstly, the main economic theories are called to illustrate the relevant determinants of these variables from the perspective of demand and supply of capital sides. The state intervention through monetary policy is introduced to emphasize the alteration of these prices (the price of capital, the price of foreign currencies. The paper is presenting the role of these prices in international financing decision (based on the theoretical model used to estimate cost of international capital, their impact on the foreign direct investment decision and on the international portfolio investment decision. Finally, the paper describe the economic consequences of the monetary public intervention on the financing and investment decision in direct connection with the business cycle theory. The paper associates the monetary policy to the business cycles. The paper comments the unsound solutions proposed against the economic crises and that continued to harm negatively these prices generating the seeds for next international economic recession. The paper is a theoretical one, containing some very interesting research hypothesis and opening the paths for presumable further empirical researches.

78 FR 32294 - DeltaPoint Capital IV, L.P., DeltaPoint Capital IV (New York), L.P., License No. 02/02-0662,02/02...

Science.gov (United States)

2013-05-29

... Small Business Investment Act of 1958, as amended (``the Act''), in connection with the financing of a... SMALL BUSINESS ADMINISTRATION DeltaPoint Capital IV, L.P., DeltaPoint Capital IV (New York), L.P., License No. 02/02-0662,02/02-0661; Notice Seeking Exemption Under Section 312 of the Small Business...

Coping with Capital Inflows; Experiences of Selected European Countries

OpenAIRE

David Vávra; Inci Ötker; Barry Topf; Zbigniew Polanski

2007-01-01

This paper reviews the experiences of a number of European countries in coping with capital inflows. It describes the nature of the inflows, their implications for macroeconomic and financial stability, and the policy responses used to cope with them. The experiences suggest that as countries become more integrated with international financial markets, there is little room to regulate capital flows effectively. The most effective ways to deal with capital inflows would be to deepen the financ...

Venture Capital Investments for Life Sciences Start-ups in Switzerland.

Science.gov (United States)

Gantenbein, Pascal; Herold, Nils

2014-12-01

Despite its economic and technological importance, the Swiss life sciences sector faces severe challenges in attracting enough venture capital for its own development. Although biotechnology and medical technology have been the most important areas of venture financing from 1999 through 2012 according to our own data, average investment volumes nevertheless remain on a low level of only 0.05 percent of Swiss GDP. After 2008, there was a pronounced shift away from early-stage financing. While business angels still play an important role at the early stage, venture capitalists are the most important investor type by volumes having their main focus on expansion financing. The industry faces predominant challenges in securing capital availability for entrepreneurs, in transforming the highly skewed and back-loaded payoff profile of investments into a more stable return stream, and in defining appropriate business and collaboration models.

Investment requirements in the energy sector and their financing

Energy Technology Data Exchange (ETDEWEB)

Diehl, R; Radtke, G; Stoessel, R [Dresdner Bank A.G., Duesseldorf (Germany, F.R.)

1980-01-01

The authors investigate the investment requirements of the energy economy, especially for the Federal Republic Germany, but also for parts of the world. Possibilities for financing are shown which can be considered as assured, under certain conditions. Included are the investments and the capital requirements for the fossil energy-carriers (coal, brown coal, oil, natural gas), for the electricity economy and for the regenerativ energy sources (e.g. tidal energy, wind, solar radiation). The last chapter deals with financing the necessary investments in the energy sector, considering the financing structure, financial problems of individual branches and the development of the credit volume.

Impact of Federal Tax Policy on Utility-Scale Solar Deployment Given Financing Interactions

Energy Technology Data Exchange (ETDEWEB)

Mai, Trieu; Cole, Wesley; Krishnan, Venkat; Bolinger, Mark

2015-09-28

In this study, the authors conducted a literature review of approaches and assumptions used by other modeling teams and consultants with respect to solar project financing; developed and incorporated an ability to model the likely financing shift away from more expensive sources of capital and toward cheaper sources as the investment tax credit declines in the ReEDS model; and used the 'before and after' versions of the ReEDS model to isolate and analyze the deployment impact of the financing shift under a range of conditions. Using ReEDS scenarios with this improved capability, we find that this 'financing' shift would soften the blow of the ITC reversion; however, the overall impacts of such a shift in capital structure are estimated to be small and near-term utility-scale PV deployment is found to be much more sensitive to other factors that might drive down utility-scale PV prices.

The Potential Role of Social Innovation Financing in Career and Technical Education

Science.gov (United States)

Overholster, George; Klein, Steven

2015-01-01

A new class of financial tools is being developed to promote human capital investments that benefit society. Social innovation financing (SIF) entails raising private capital to support promising social interventions, with the expectation that those providing the funding will eventually be repaid. Funds are allocated based on service providers'…

Credit Constraints, Political Instability, and Capital Accumulation

OpenAIRE

Risto Herrala; Rima Turk-Ariss

2013-01-01

We investigate the complex interactions between credit constraints, political instability, and capital accumulation using a novel approach based on Kiyotaki and Moore’s (1997) theoretical framework. Drawing on a unique firm-level data set from Middle-East and North Africa (MENA), empirical findings point to a large and significant effect of credit conditions on capital accumulation and suggest that continued political unrest worsens credit constraints. The results support the view that financ...

WHAT DETERMINES THE CAPITAL STRUCTURE OF LISTED FIRMS IN ROMANIA

Directory of Open Access Journals (Sweden)

Floriniţa Duca

2012-10-01

Full Text Available This paper examines the relative importance of four factors in the capital structure decisions of Romanian listed firms. The existing empirical research on capital structure has been largely confined to developed countries. The Romanian Financial Market has been developing at an exponential rate and dedicated research in the field is required. We used 100 firms listed in 2010 at the Bucharest Stock Exchange. The objective of this paper is to build on previous studies model all the important factors affecting capital structure decisions. We find that factors such as tangibility of assets, firm size, liquidity, and profitability have significant influences on the leverage structure chosen by firms.These results are believed to have significant implications for the theory of finance and to be of importance to the corporate treasure in choice of new financing and to the financial analyst.

Topics in Finance Part IX--Working Capital Management

Science.gov (United States)

Laux, Judy

2012-01-01

The final topic in a series looking at financial management from a theoretical perspective, working capital management provides the focus of the current article. We investigate how three key axioms--the risk-return tradeoff, agency conflicts, and stockholder wealth maximization--relate to this activity that occupies much of the financial manager's…

Mudaraba as a Model of Islamic Finance

Directory of Open Access Journals (Sweden)

M Nidaussalam

2016-04-01

Full Text Available Sharia bank has mostly been determined by its absent of rate transaction which is officially decided in agreement between the bank and its customer (akad. Mudharaba, one of the akad variants, offers equity finance requiring profit and loss sharing (PLS. This paper aims to critically discuss the principles of mudharaba commitment, mainly focusing on the process of funding and financing. To argue, mudharaba is an cooperating commitment between two economic agencies for which the first agency expected to provide financial capital while the other takes a part in managerial work-progress. In this process, the more profit for mudharib the more profit for the investor.        Keywords: mudharaba, islamic finance, profit and loss sharing

Borrowed Capital as Risk Factor for Large Construction Companies in Russia

Science.gov (United States)

Guzikova, L.; Plotnikova, E.; Zubareva, M.

2017-11-01

The paper investigates the features of the formation of the capital structure of large construction companies from the standpoint of the financial risks and opportunities for companies’ development. The authors compare the opportunities and risks linked with the use of the own and borrowed capital, analyze the capital structure of large Russian construction companies, identify factors affecting the capital structure and determining the ratio of own and borrowed sources of financing. In the paper the hypothesis is considered that companies use larger volumes of borrowed capital by means of their assets increase.

Equity gap? - Which equity gap? On the financing structure of Germany's Mittelstand

OpenAIRE

Bannier, Christina E.; Grote, Michael H.

2008-01-01

This paper examines the financing structure of small and medium-sized enterprises (SMEs) in Germany and questions whether an equity gap - or, more generally, a financing gap -exists. Reviewing the literature and available data sources, we find that financing constraints seem to affect, if at all, only a very small subgroup among highly growth-oriented firms. We do not detect any structural problems in average SME's capital structure. Rather, German Mittelstand firms appear to be non-growth or...

12 CFR 931.7 - Redemption and repurchase of capital stock.

Science.gov (United States)

2010-01-01

....7 Section 931.7 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.7 Redemption and repurchase of... indicate the number of shares of Bank stock that are to be redeemed, and a member shall not have more than...

Elevating the role of finance at Mary Lanning Healthcare.

Science.gov (United States)

Hoffman, Amanda; Spence, Jay

2013-11-01

To effectively partner with hospital operations leaders, healthcare finance leaders should: Streamline and align financial planning and budgeting functions across the organization; Ensure capital planning is regarded as a strategic process; Optimize performance monitoring across management levels.

77 FR 20871 - Praesidian Capital Opportunity Fund III, LP; License No. 02/02-0647; Notice Seeking Exemption...

Science.gov (United States)

2012-04-06

... contemplated to fund working capital and capital expenditures. The financing is brought within the purview of... SMALL BUSINESS ADMINISTRATION Praesidian Capital Opportunity Fund III, LP; License No. 02/02- 0647... given that Praesidian Capital Opportunity Fund III, LP, 419 Park Avenue South, New York, NY 10016, a...

The Life Cycle of the Firm with Debt and Capital Income Taxes

NARCIS (Netherlands)

Brys, B.; Bovenberg, A.L.

2006-01-01

This paper analyses the impact of capital income taxes on financial and investment decisions of corporations.Extending Sinn's (1991) nucleus theory of the firm with debt finance, the model determines the optimal sources of finance (debt, newly issued equity or retained earnings), the optimal use of

Tax Policy, Venture Capital, and Entrepreneurship

DEFF Research Database (Denmark)

Keuschnigg, Christian; Nielsen, Søren Bo

The paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high risk project each but have no own resources. Financiers provide equity finance. They must structure the entrepreneur's profit share and base salary to assure their incentives for full effort...

Capital investment strategies in health care systems.

Science.gov (United States)

Reiter, K L; Smith, D G; Wheeler, J R; Rivenson, H L

2000-01-01

Capital investment decisions are among the most important decisions made by firms. They determine the firm's capacity for providing services and commit the firm's cash for an extended period of time. Interviews with chief financial officers of leading health care systems reveal capital investment strategies that generally follow the recommendations of modern finance theory. Still, there is substantial variation in capital budgeting techniques, methods of risk adjustment, and the importance of qualitative considerations in investment decision making. There is also variation in delegation of investment decision making to operating units and methods of performance evaluation. Health care systems face the same challenges as other organizations in developing and implementing capital investment strategies that use consistent methods for evaluation of projects that have inconsistent aims and outcomes.

Investment requirements in the energy sector and their financing

International Nuclear Information System (INIS)

Diehl, R.; Radtke, G.; Stoessel, R.

1980-01-01

The authors investigate the investment requirements of the energy economy, especially for the Federal Republic Germany, but also for parts of the world. Possibilities for financing are shown which can be considered as assured, under certain conditions. Included are the investments and the capital requirements for the fossil energy-carriers (coal, brown coal, oil, natural gas), for the electricity economy and for the regenerativ energy sources (e.g. tidal energy, wind, solar radiation). The last chapter deals with financing the necessary investments in the energy sector, considering the financing structure, financial problems of individual branches and the development of the credit volume. (orig.) [de

Financing U.S. exploration

International Nuclear Information System (INIS)

Dell'Osso, L. Jr.

1990-01-01

This paper discusses the challenges of financing U.S. exploration from the perspective of an independent oil and gas producer. When Burlington Resources was split into a separate company from the Burlington Northern Railroad three years ago, the company owned extensive resources but had little production capability, and had to resolve the problem of raising development capital. According to the author of this paper, three key elements in the company's perception of the business environment drove its strategy: that the role of independent producers would be crucial in new onshore oil and gas development as the majors moved offshore; that energy prices would remain weak; and that financial market sentiment would not favor a move to leverage the company more highly than its starting-point of 19 percent debt-to-total capital ratio

FINANCIAL INTERMEDIARIES’ ACTIVITY ON ROMANIAN CAPITAL MARKET

Directory of Open Access Journals (Sweden)

Dumitru-Cristian OANEA

2014-11-01

Full Text Available The financial shifts encountered in the last decade, increase the importance of capital markets in emerging countries, which is also Romania’s case. The banking system was for a long period of time the main source of liquidity for the economy. Meanwhile, the situation is changing due to the importance that capital market has in financing the economy. Through this paper we analyze the transactions’ evolution made by financial intermediaries on Romanian capital market, by highlighting the Societies for Financial Services and Investments (SSIF. Based on this evolution, we identified the main significant differences and similarities between the SSIFs existing on the market.

An examination of contemporary financing practices and the global financial crisis on nonprofit multi-hospital health systems.

Science.gov (United States)

Stewart, Louis J; Smith, Pamela C

2011-01-01

This study examines the impact of the 2008 global financial crisis on large US nonprofit health systems. We proceed from an analysis of the contemporary capital financing practices of 25 of the nation's largest nonprofit hospitals and health systems. We find that these institutions relied on operating cash flows, public issues of insured variable rate debt, and accumulated investment to meet their capital financing needs. The combined use of these three financial instruments provided these organizations with $22.4 billion of long-term capital at favorable terms and the lowest interest rates. Our analysis further indicates that the extensive utilization of bond insurance, auction rate debt, and interest rate derivatives created significant risk exposures for these health systems. These risks were realized by the broader global financial crisis of 2008. Findings indicate these health systems incurred large losses from the early retirement of their variable rate debt. In addition, many organizations were forced to post nearly $1 billion of liquid collateral due to the falling values of their interest rate derivatives. Finally, the investment portfolios of these large nonprofit health systems suffered millions of dollars of unrealized capital losses, which may minimize their ability to finance future capital investment requirements.

12 CFR 614.4540 - Other financing institution access to Farm Credit Banks and agricultural credit banks for funding...

Science.gov (United States)

2010-01-01

... maintain established or projected capital levels; or (ii) Raise funds in the money markets; or (2... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Other financing institution access to Farm... POLICIES AND OPERATIONS Farm Credit Bank and Agricultural Credit Bank Financing of Other Financing...

SELF HELP GROUPS (SHGS): MICRO FINANCE IN INDIA

OpenAIRE

Shivam SAKSHI; Pető KÁROLY

2018-01-01

Micro finance in India has developed in decades from an idea to implementation to many success stories to an overall success. The early dawn of the idea of micro financing was to provide the capital to the population which was considered the bottom of socio economic pyramid so as to carry out the small household business and this idea has gradually grown up to become the way to help improve the socio standards of the poor people. India is the country of villages, more than 70% of the nation’s...

Does National Culture Impact Capital Budgeting Systems?

Directory of Open Access Journals (Sweden)

Peter J. Graham

2017-06-01

Full Text Available We examine how national culture impacts organisational selection of capital budgeting systems to develop our understanding of what influence a holistic formulation of national culture has on capital budgeting systems. Such an understanding is important as it would not only provide a clearer link between national culture and capital budgeting systems and advance extant literature but would also help multinational firms that have business relationships with Indonesian firms in suitably designing strategies. We conducted semi-structured interviews of selected finance managers of listed firms in Indonesia and Australia. Consistent with the contingency theory, we found that economic, political, legal and social uncertainty impact on the use of capital budgeting systems. The levels of uncertainty were higher in Indonesia than Australia and need to be reckoned in the selection of capital budgeting systems used by firms. We also found that firms are influenced by project size and complexity, when selecting capital budgeting systems.

Human Capital and Cross-Country Comparison of Inequality

OpenAIRE

Jean-Marie Viaene; Itzhak Zilcha

2002-01-01

textabstractThe paper studies the effects of cross-country differences in the production process of human capital on income distribution and growth. Our overlapping gen- erations economy has the following features: (1) consumers are heterogenous with respect to parental human capital and wealth; (2) intergenerational transfers take place via parental education and, public investments in education financed by taxes (possibly, with a level determined by majority voting); (3) due to investment i...

Accessing Secondary Markets as a Capital Source for Energy Efficiency Finance Programs: Program Design Considerations for Policymakers and Administrators

Energy Technology Data Exchange (ETDEWEB)

Kramer, C. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Martin, E. Fadrhonc [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Thompson, P. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States); Goldman, C. [Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)

2015-02-01

Estimates of the total opportunity for investment in cost-effective energy efficiency in the United States are typically in the range of several hundred billion dollars (Choi Granade, et al., 2009 and Fulton & Brandenburg, 2012).1,2 To access this potential, many state policymakers and utility regulators have established aggressive energy efficiency savings targets. Current levels of taxpayer and utility bill-payer funding for energy efficiency is only a small fraction of the total investment needed to meet these targets (SEE Action Financing Solutions Working Group, 2013). Given this challenge, some energy efficiency program administrators are working to access private capital sources with the aim of amplifying the funds available for investment. In this context, efficient access to secondary market capital has been advanced as one important enabler of the energy efficiency industry “at scale.”3 The question of what role secondary markets can play in bringing energy efficiency to scale is largely untested despite extensive attention from media, technical publications, advocates, and others. Only a handful of transactions of energy efficiency loan products have been executed to date, and it is too soon to draw robust conclusions from these deals. At the same time, energy efficiency program administrators and policymakers face very real decisions regarding whether and how to access secondary markets as part of their energy efficiency deployment strategy.

La constitution du capital social. Comment les entreprises innovantes françaises financent-elles leur création ? Gathering Social Capital. How do Innovative French Companies finance their Creation ?

Directory of Open Access Journals (Sweden)

Régis Moreau

2011-03-01

Full Text Available Les entreprises innovantes, plus que les autres entreprises, ont besoin d’importantes sommes d’argent pour se développer. C’est pourquoi la constitution de leur capital social est une opération essentielle puisque ce dernier représente leur première source de financement. D’ailleurs, il est avéré que son montant influence les chances de survie de l’entreprise. Pourtant, peu d’études ont interrogé les processus concrets d’association entre les entrepreneurs et leurs actionnaires initiaux. Comment les créateurs forment-ils leur actionnariat initial ? Quels sont les mécanismes sociologiques qui interviennent ? Pour répondre à ces questions, nous avons rencontré les créateurs de 45 entreprises innovantes ainsi que leurs actionnaires. Au fil d’un travail empirique, une hypothèse a émergé : la circulation de l’argent apporté par les actionnaires initiaux est assujettie à la confrontation des logiques de chacune des parties. C’est donc une analyse plus qualitative que quantitative qui décide de la diffusion et de la recevabilité des fonds pour la création de ce type d’entreprises.Innovative companies, more than any others, need large sums of money to start-up. That is why the constitution of their social capital is an essential operation since it represents their first source of funds. Moreover, it has been shown that its amount influences the company's chances of survival. However, few studies have looked into the concrete processes of association between the initial entrepreneurs and their shareholders. How do the creators form their initial shareholding ? What are the sociological mechanisms intervening ? To answer these questions, we met with the creators of 45 innovative companies as well as their shareholders. As the conclusion of research work, a hypothesis has emerged : the circulation of funds provided by the initial shareholders is subject to a confrontation of the logics of each of the

Financial Globalisation and Sectoral Reallocation of Capital in South Africa

OpenAIRE

Ziv Chinzara; Radhika Lahiri; En Te chen

2012-01-01

The study examines the impact of financial globalisation on intra-sector and inter-sector firm level reallocation of capital in South Africa using panel data for the period 1991-2008. The measure of efficient reallocation of capital is based on the variation of firm's marginal returns to capital around the optimal level, while the measure of financial globalisation is constructed by tracing the financial reforms/restrictions that took place in South Africa since the 1970s. We find that financ...

12 CFR 1229.12 - Procedures related to capital classification and other actions.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Procedures related to capital classification and other actions. 1229.12 Section 1229.12 Banks and Banking FEDERAL HOUSING FINANCE AGENCY ENTITY REGULATIONS CAPITAL CLASSIFICATIONS AND PROMPT CORRECTIVE ACTION Federal Home Loan Banks § 1229.12 Procedures...

Patterns of financing for the largest hospital systems in the United States.

Science.gov (United States)

Cleverley, William O; Baserman, Sarah Jane

2005-01-01

The ten large systems reviewed in this column have greater degrees of financial leverage than do most freestanding hospitals. Larger firms typically have both greater capital access and lower costs of financing. Both voluntary and IO systems make extensive use of variable rate financing, but the percentage of variable rate financing is slightly higher for voluntary systems. This difference may be attributable to larger yield curve spreads for tax-exempt versus taxable securities. Interest rate swaps were used by 70 percent of the systems, but the actual amount swapped was relatively minor. This may change in the future as financial officers become more comfortable and familiar with interest rate swap arrangements. When compared to IO systems, voluntary systems have extensive levels of cash relative to their debt positions. Cash balances are more critical in the bond-rating process for voluntary hospitals, and the ability to raise new equity is much more limited in the voluntary sector. Very little capital leasing was used in any of the systems.

Financing energy efficiency investments. Third party financing: practical problems and possible solutions

International Nuclear Information System (INIS)

Warren, A.

1992-01-01

Third Party Financing means the packaging together of both technical aid and the necessary funding for energy cost saving investments by an outside company (outside to the energy user that is), using the energy cost savings themselves to pay for that investment. There are two key factors which differentiate Third Party Financing and conventional approaches to the implementation of energy conservation projects, the first of which is the provision of all the necessary technical services - both initial and detailed energy audits, engineering design and implementation - from one source. The second difference involves viewing the energy cost savings as a ''stream oincome'' which will repay the cost of the investment. This approach has a number of attractions to energy users: the outside company brings both its technical expertise and the necessary up-front capital to fund the energy saving investment. In addition, because the payments to the outside company are contingent, either wholly or in part, upon the level and timing of the energy cost savings the technical and financial risk for the investment is transferred from the energy user to the outside company. However, although simple in concept, third party financing is complex in practice. How does an energy user judge one third party financing proposal against another? If an agreement is made, how are energy savings measured or what happens if there is a dispute between the two parties? These are examples of the practical questions addressed in this paper which must be resolved if third party financing is to be used to assist energy saving. (Author)

The challenge of venture capital financing of nuclear innovations: an American example?

International Nuclear Information System (INIS)

Hurel, T.

2017-01-01

The financing of innovations in nuclear industry has been a public sector concern till recently, now in the last years about 50 start-ups operating in nuclear activities have been created in the US. A broad part of these new enterprises are financed by business angels or venture capitalists and generally they propose new kinds of reactors which is not surprising as public funding has the tendency to go to projects based on technologies already approved by the NRC. Breakthrough Energy Ventures (BEV) was launched in 2016 by Bill Gates with the purpose of financing clean energy projects. TerraPower promotes a new kind of reactor while Mission Innovation aims at doubling investment in clean technologies. Other start-ups like ALPHA (Accelerating Low-cost Plasma Heating and Assembly) or LPP Fusion or General Fusion are working on thermonuclear fusion. (A.C.)

Determinants of Funds Demand and Supply; Deepening Finance Access of Real Estate Investment in China

Directory of Open Access Journals (Sweden)

Lkhagvasuren Togtokhbuyan

2012-11-01

Full Text Available This huge gap between financing needs and the available financing capacity represents major constraints to growth opportunities in business financing, and accords with one of requirements strategy of stimulating real sector financing by mobilizing cheap long term saving. Real estate investment is a capital intensive venture and this implies that firms venturing into this sector need to have a strong capital structure to sustain development. There is high competition amongst the real developers in quest for funds from formal and informal sources to meet their financial needs. Many real Estate firms are experiencing a credit fix. In the recent move by the Peoples Bank of China to clamp down lending in the real estate sector; the People’s bank of China tightened monetary policy by raising interest rates which in effect lead to increased cost of capital. The central government has also encouraged banks to adopt slow lending to real estate projects. According to the People's Bank of China (PBOC, the increase in cumulative loans related to housing projects totaled ¥1.3 trillion ($198 billion in 2011, down 38 percent from 2010, and new loans to the property sector comprised 17.5 percent of total loans in 2011, down from 27 percent in 2010.The remaining prudent alternative is innovation for exploitation of other means of acquiring funds for real estate venture. Real estate investors need to deepen and broaden their options of financing their activities to avoid credit squeeze.

Interest rates and coupon bonds in quantum finance

CERN Document Server

Baaquie, Belal E

2009-01-01

The economic crisis of 2008 has shown that the capital markets need new theoretical and mathematical concepts to describe and price financial instruments. Focusing almost exclusively on interest rates and coupon bonds, this book does not employ stochastic calculus - the bedrock of the present day mathematical finance - for any of the derivations. Instead, it analyzes interest rates and coupon bonds using quantum finance. The Heath-Jarrow-Morton and the Libor Market Model are generalized by realizing the forward and Libor interest rates as an imperfectly correlated quantum field. Theoretical models have been calibrated and tested using bond and interest rates market data. Building on the principles formulated in the author's previous book (Quantum Finance, Cambridge University Press, 2004) this ground-breaking book brings together a diverse collection of theoretical and mathematical interest rate models. It will interest physicists and mathematicians researching in finance, and professionals working in the fin...

Fatores determinantes da estrutura de capital das maiores empresas que atuam no Brasil Determinant factors of capital structure for the largest companies active in Brazil

Directory of Open Access Journals (Sweden)

Giovani Antonio Silva Brito

2007-04-01

Full Text Available Estrutura de capital é um tema ainda controverso em teoria de finanças. Desde a discussão entre a teoria tradicional, que defende a existência de uma estrutura de capital ótima que leva à maximização do valor da empresa, e a proposta por Modigliani e Miller (1958, que considera que o valor da empresa não é afetado pela forma como ela é financiada, diversos estudos empíricos têm sido realizados com o objetivo de identificar os fatores que explicam a forma como as empresas se financiam. Esta pesquisa analisa a estrutura de capital das maiores empresas que atuam no Brasil, investigando a relação entre o nível de endividamento e os fatores apontados pela teoria como seu determinante. O estudo é baseado em dados contábeis extraídos das demonstrações financeiras de empresas de capital aberto e de empresas de capital fechado. A técnica estatística utilizada no estudo é a regressão linear múltipla. Os resultados indicam que os fatores risco, tamanho, composição dos ativos e crescimento são determinantes da estrutura de capital das empresas, enquanto que o fator rentabilidade não é determinante. Os resultados, também, mostram que o nível de endividamento da empresa não é afetado pelo fato de ela ser de capital aberto ou de capital fechado.Capital structure is still a still controversial issue in finance theory. Since the discussion between traditional theory, which asserts the existence of an optimal capital structure that maximizes the firm’s value, and Modigliani and Miller’s theory (1958, which considers that the value of a firm is unaffected by how it is financed, many empirical studies have been carried out to identify the factors that explain how a firm finances itself. This research analyses the capital structure of the largest firms in Brazil and investigates the relationship between the leverage ratio and the factors indicated by theory as determinant. The study is based on accounting data extracted from

Assessment of effectiveness of Chinese aid in competence building and financing development in Sudan

OpenAIRE

Nour S.

2014-01-01

Assessment of effectiveness of Chinese aid in competence building and financing development in Sudan by S. Nour [abstract] This paper discusses the effectiveness of Chinese aid for competence building and financing development in Sudan using new primary data at the micro level. We find that Chinese aid and loans to Sudan caused mixed positive-negative impacts. The positive impact is competence building and providing alternative complementary sources of finance to complement domestic capital a...

Terms, Trends, and Insights: PV Project Finance in the United States, 2017

Energy Technology Data Exchange (ETDEWEB)

Feldman, David J [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Schwabe, Paul D [National Renewable Energy Laboratory (NREL), Golden, CO (United States)

2017-10-23

This brief is a compilation of data points and market insights that reflect the state of the project finance market for solar photovoltaic (PV) assets in the United States as of the third quarter of 2017. This information can generally be used as a simplified benchmark of the costs associated with securing financing for solar PV as well as the cost of the financing itself (i.e., the cost of capital). This work represents the second DOE sponsored effort to benchmark financing costs across the residential, commercial, and utility-scale PV markets, as part of its larger effort to benchmark the components of PV system costs.

Physical Investment Financing: The Cases of Poland and Latvia

Directory of Open Access Journals (Sweden)

Żak Katarzyna

2017-06-01

Full Text Available The aim of the article is to present and compare the major sources of financing of physical investments in Poland and Latvia and to attempt to identify their determinants. The subject of the diagnosis is the corporate sector in Poland and i Latvia in the years 2005-2015.The article uses methodology, developed by C. Mayer, J. Corbett and T. Jenkinson, that is based on the net sources of finance. The financial data analysed in the article come from the capital and financial accounts, constituting the element of the integrated system of national accounts. Assuming that in a given period of time, the sources of finance (revenue are equal to their use (expenditure, it is possible to estimate the structure of financing of physical investments in the corporate sector. The practical dimension of the analysis should be viewed as an indication for identifying changes in the area of financing of physical investments in enterprises in the two countries.

A Survey of the Relation Between Capital Structure and Corporate Strategy

Directory of Open Access Journals (Sweden)

M. La Rocca

2008-06-01

Full Text Available This paper responds to the general call for integration between finance and strategy researchby examining how financial decisions are related to corporate strategy. In particular, the paperfocuses on the link between capital structure and strategy. Corporate strategies complementtraditional finance paradigms and extend our insight into a firm’s decisions regarding capitalstructure. Equity and debt must be considered as financial instruments as well as strategicinstruments of corporate governance (Williamson 1988. Debt subordinates governanceactivities to stricter management, while equity allows for greater flexibility and decisionmakingpower.The literature on finance and strategy analyzes how the strategic actions of key players(managers, shareholders, debtholders, competitors, workers, suppliers, etc affect firm valueand the allocation of value between claimholders. Specifically, financing decisions canconcern value creation process (1 influencing efficient investments decisions according to theexistence of conflict of interest between managers and firm’s financial stakeholders(shareholders and debtholders and (2 affecting the relationship with non-financialstakeholders, as suppliers, competitors, customers.To summarize, the potential interaction between managers, financial stakeholders, and nonfinancialstakeholders influences capital structure, corporate governance activities, and valuecreation processes. These in turn, may give rise to inefficient managerial decisions or theymay shape the industry’s competitive dynamics to achieve a competitive advantage. A goodintegration between strategy and finance dimensions can be tantamount to a competitiveweapon.

The Coordination of Capital Income and Profit Taxation with Cross-Ownership of Firms

NARCIS (Netherlands)

Huizinga, H.P.; Nielsen, S.B.

1996-01-01

This paper investigates the scope for international coordination of capital income and profit taxation.The paper considers a world of many symmetric countries where public goods are financed by taxes on capital income and on profits.In the open economy, the authorities have at their disposal a

Ciemat Relational Capital: Institutional Presence; Capital Relacional del Ciemat: Presencia Institucional

Energy Technology Data Exchange (ETDEWEB)

Vaquero Ortiz, E. M.; González Pineda, L. M.; Cascante Díaz, E.

2015-07-01

The resources in any organization for its activity development can be divided into two main groups: tangible assets and intangible assets. In recent decades there has been a recognition of the importance of the intangible assets as value generators for the development and growth of organizations. And the so called Relational Capital is among them Relational Capital arises from the relationship processes that an organization maintains with external agents. Thus, in the case of a public research institution, such as CIEMAT, it includes the relations with projects financing organizations, with partners and with customers (both public and private entities which are serviced), as well as the institutional presence understood as the participation in discussion and coordination forums (foundations, associations, committees…). This report presents a study of CIEMAT institutional presence in the year 2015.

Multiple finances, margins of foreign direct investment and aggregate industry productivity

Directory of Open Access Journals (Sweden)

Jiarui Zhang

2012-03-01

Full Text Available Based on a heterogeneous firm set-up, we model firms’ access to the internal capital market, bank finance as well as bond finance and investigate how firms’ adjustment among multiple sources of finance affects their performance in foreign direct investment and aggregate industry productivity. We find that when facing a bank credit shock (e.g. tighter bank lending, firms with different productivities react differently. Less productive firms exit from the foreign market due to a lack of funds while the more productive resort to bond finance to sustain their multinational status. The increased demand for bond finance as compensation for decreased bank finance by the surviving multinationals exacerbates the competition in the bond market and bids up the bond return rate, which triggers a Melitz-type selection effect through the bond market and brings aggregate industry gains.However, the divestment of those failing FDI firms and the consequently reduced bond financing demand mitigate this effect.

The competitive environment for oil and gas financing

International Nuclear Information System (INIS)

Humphries, M.E.

1995-01-01

The international oil and gas industry has always required access to external capital - debt and equity -in order to finance growth and the development of oil and gas projects. Today the industry faces an unprecedented number of investment opportunities and demands at a time when internally generated cash flows, historically the primary source of capital for most companies, is depressed. The underlying premise of this paper is that while the capital requirements of the industry in the next decade are likely to be in excess of the US$1 trillion spent during the last decade, capital, both internally generated and from external sources, will be available. However, restrictions on the allocation and the cost of capital will be crucial in determining which projects and companies are successful. The capital requirements of the next decade to maintain current oil production levels, replace reserves, fund exploration and development in the frontier areas and meet the environmental challenges of the downstream sector, call upon both the industry and the financial community to create innovative financial structures which ensure that capital is made available on terms which meet the requirements of both borrowers and lenders. (author)

Toward Effective Policies for Innovation Financing in Asia | CRDI ...

International Development Research Centre (IDRC) Digital Library (Canada)

The question of how to support innovations and innovative businesses in the ... policies that promote the long-term viability and competitiveness of small and ... of innovation financing schemes in Malaysia, Singapore, Taiwan and Thailand. ... tax incentives, loan and grant programs, capital market rules/regulations, etc.

Financing of nuclear projects

International Nuclear Information System (INIS)

Diel, R.

1983-01-01

Delays in the completion of nuclear power plants aggravate the financing of such ventures because the contractual sums to be paid for interest and amortization are not generated. Moreover, economic feasibility analyses by the banks are rendered ineffective by changes in the underlying data, such as the structure of electricity rates and the supply monopoly held by utilities. The German nuclear power plants at present in operation or under construction were financed mainly through subsidiares of the participating utilities outside the balance sheets of the parent companies. The banks have developed a number of financing concepts to adapt funding to the specific needs of practice. Future nuclear power plants make-up one third of the present capacity of the participating utilities. However, they will require three to four times the previous volume of capital investments. Yet it is certain that the expansion of nuclear power in the Federal Republic of Germany will not be hampered by financial problems. The funding models developed for nuclear power plants have already proved their qualities. However, the problems of nuclear power have not become less. Attention must also be drawn to some weak spots in the financial sector. (orig.) [de

Corporate Finance and Restructuring: Evidence from Central and Eastern Europe

OpenAIRE

Köke, F. Jens; Salem, Tanja

2000-01-01

After the end of communism enterprises in Central and Eastern Europe (CEE) were marked by low levels of labor productivity, mainly because of too high employment levels. According to economic theory, the corporate capital structure can be an important element in the restructuring process. But both, empirical evidence on corporate finance in CEE countries and its relation to employment is still sparse. This study describes the patterns of the corporate capital structure for ten CEE countries o...

Capital Income Tax Coordination and the Income Tax Mix

DEFF Research Database (Denmark)

Huizinga, Harry; Nielsen, Søren Bo

2005-01-01

in the mix of capital and labor taxes brought on by capital income tax coordination can potentially be welfare reducing. This reflects that in a non-cooperative equilibrium capital income taxes may be more distorting from an international perspective than are labor income taxes. Simulations with a simple...... model calibrated to EU public finance data suggest that countries indeed lower their labor taxes in response to higher coordinated capital income taxes. The overall welfare effects of capital income tax coordination, however, are estimated to remain positive.JEL Classification: F20, H87......Europe has seen several proposals for tax coordination only in the area of capital income taxation, leaving countries free to adjust their labor taxes. The expectation is that highercapital income tax revenues would cause countries to reduce their labor taxes. This paper shows that such changes...

42 CFR 413.149 - Depreciation: Allowance for depreciation on assets financed with Federal or public funds.

Science.gov (United States)

2010-10-01

... 42 Public Health 2 2010-10-01 2010-10-01 false Depreciation: Allowance for depreciation on assets... SKILLED NURSING FACILITIES Capital-Related Costs § 413.149 Depreciation: Allowance for depreciation on assets financed with Federal or public funds. (a) Principle. Depreciation is allowed on assets financed...

Tax Implication of Structuring and Financing Mergers and Acquisitions

Directory of Open Access Journals (Sweden)

Cristian Ianca

2008-09-01

Full Text Available The structuring and financing of mergers and acquisitions has substantial tax consequences. The decision to acquire the assets or the shares of the target company should take into consideration, on one hand, the capital gains taxation at the transaction time and, on the other hand, the tax planning opportunities for the future. The tax burden can also be minimized by an optimum selection of the acquisition vehicle. The choice of a financing alternative should take into account the interest deductibility and the specific tax regulations of each jurisdiction concerned.

The capital barrier to innovation in the small and medium-sized enterprises

OpenAIRE

Lewandowska, Lucyna

2009-01-01

The article discusses SMEs' situation with reference to the process of creating an innovative economy. The presented discussion covers both non-material and financial barriers impeding the development of innovations. The examined range of new solutions designed to finance innovation includes types of capital support such as leasing, franchising, venture capital, Business Angels, NewConnect.

Energy storage financing :

Energy Technology Data Exchange (ETDEWEB)

Baxter, Richard

2016-08-01

Project financing is emerging as the linchpin for the future health, direction, and momentum of the energy storage industry. Market leaders have so far relied on selffunding or captive lending arrangements to fund projects. New lenders are proceeding hesitantly as they lack a full understanding of the technology, business, and credit risks involved in this rapidly changing market. The U.S. Department of Energy is poised to play a critical role in expanding access to capital by reducing the barriers to entry for new lenders, and providing trusted analytical benchmarks to better judge and price the risk in systematic ways.

Project financing knits parts of costly LNG supply chain

International Nuclear Information System (INIS)

Minyard, R.J.; Strode, M.O.

1997-01-01

The supply and distribution infrastructure of an LNG project requires project sponsors and LNG buyers to make large, interdependent capital investments. For a grassroots project, substantial investments may be necessary for each link in the supply chain: field development; liquefaction plant and storage; ports and utilities; ships; receiving terminal and related facilities; and end-user facilities such as power stations or a gas distribution network. The huge sums required for these projects make their finance ability critical to implementation. Lenders have become increasingly comfortable with LNG as a business and now have achieved a better understanding of the risks associated with it. Raising debt financing for many future LNG projects, however, will present new and increasingly difficult challenges. The challenge of financing these projects will be formidable: political instability, economic uncertainty, and local currency volatility will have to be recognized and mitigated. Described here is the evolution of financing LNG projects, including the Rasgas LNG project financing which broke new ground in this area. The challenges that lie ahead for sponsors seeking to finance future projects selling LNG to emerging markets are also discussed. And the views of leading experts from the field of project finance, specifically solicited for this article, address major issues that must be resolved for successful financing of these projects

26 CFR 1.147(b)-1 - Bond maturity limitation-treatment of working capital.

Science.gov (United States)

2010-04-01

... and Local Bonds § 1.147(b)-1 Bond maturity limitation-treatment of working capital. Section 147(b) does not apply to proceeds of a private activity bond issue used to finance working capital... 26 Internal Revenue 2 2010-04-01 2010-04-01 false Bond maturity limitation-treatment of working...

Family Ownership, Firm’s Financial Characteristics and Capital Structure: Evidence from Public Listed Companies in Malaysia

Directory of Open Access Journals (Sweden)

Punitharaja NADARAJA

2011-06-01

Full Text Available Capital structure is identified as one of focal facet in corporate finance branch of learning. It provides comprehension on how firms choose to finance their operations and expansion. The objective of this study is to explore the determinants of capital structure of Malaysian public listed companies. The period of 2001-2006 was selected in this study, which reflected the post Asian financial crisis period. Firm’s financial characteristics consist of size, growth, profitability, liquidity and ability to service debt. Family ownership which was identified as a unique feature in the Malaysian corporate sector was used to measure the effect of corporate governance in capital structure decision. Using panel data approach, this study infers that the role of ownership structure in the form of family ownership though is not significantly related to capital structure, its inclusion in the empirical equation changes the significance of other variables. Except for growth, all other financial characteristics have significant relationships with capital structure.

The Mersey Barrage - finance and promotion: the way forward

International Nuclear Information System (INIS)

Elliott, C.J.; McCormack, J.J.

1992-01-01

The Mersey Tidal Power Barrage in the United Kingdom, the feasibility of which is currently being studied, would generate energy at a very low marginal cost for at least 120 years. However, the capital cost, and therefore the debt service requirement, is very high compared with other generating systems. Capital repayment would be required over a maximum of 25 years. A significant level of subsidy would be needed during this initial period before the full benefits of the very low operating costs could be enjoyed. Against this background a financial structure has been developed with the following major objectives: to promote certainty that the funds could be raised to meet the requirements of the UK Electricity Act for acceptance within the Non-Fossil Fuel Obligation; to ensure that the average cost of capital enabled the sale of energy at the most realistic levels and at a level supported by the Non-Fossil Purchasing Agency; to provide comfort for lenders and investors that the risks inherent in the project were adequately covered and that the probability of the returns reflects the risks taken; to maximise the private sector contributions to the financing of the barrage. Details of the 5 phases of the finance plan are presented. (UK)

75 FR 39588 - Emergence Capital Partners SBIC, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2010-07-09

..., San Jose, California 95113. The financing is contemplated for working capital and general operating... SMALL BUSINESS ADMINISTRATION [License No. 09/79-0454] Emergence Capital Partners SBIC, L.P... Notice is hereby given that Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo...

76 FR 76474 - Emergence Capital Partners SBIC, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2011-12-07

..., Emeryville, CA 94608 (``Lithium''). The financing is contemplated for working capital and general operating... SMALL BUSINESS ADMINISTRATION [License No. 09/79-0454] Emergence Capital Partners SBIC, L.P... Notice is hereby given that Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo...

75 FR 32230 - Emergence Capital Partners SBIC, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2010-06-07

... is contemplated for working capital and general operating purposes. The financing is brought within... SMALL BUSINESS ADMINISTRATION [License No. 09/79-0454] Emergence Capital Partners SBIC, L.P... Notice is hereby given that Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo...

CANDU 9 - reducing capital costs through advanced construction

International Nuclear Information System (INIS)

Hedges, K.; Yu, S.; Hopwood, J.

1996-01-01

Reducing costs is a clear priority in nuclear markets where capital reaches billions and financing is hard-won. To address that priority, AECL introduced the use of advanced construction techniques. This has been one of the key thrusts behind its development of CANDU 9. (author)

Crowdfunding and the Expansion of Access to Startup Capital

OpenAIRE

Kurt Stanberry; Forrest Aven

2014-01-01

This paper analyzes recent developments in crowdfunding, a new financing technique to improve access to capital. The United States Congress and President Obama, in a rare show of bipartisan action, passed the JOBS Act in 2012 (the Jumpstart Our Business Startups Act). The law is designed to stimulate economic growth and expand job creation by improving access to public capital markets for emerging growth companies. Furthermore, the US is not the only nation attempting to expand access to capi...

Beyond venture capital : an exploratory study of the finance-innovation-policy nexus in cleantech

NARCIS (Netherlands)

Migendt, Michael; Polzin, Friedemann|info:eu-repo/dai/nl/413317404; Schock, Florian; Täube, Florian A.; von Flotow, Paschen

2017-01-01

In recent years, scholarly interest in financing for innovation has grown, particularly for mitigating cli-mate change. However, extant literature has neglected the interaction of actors along the equity financing value chain, and the indirect effects of innovation and financial policy on the supply

Supply chain finance and its accounting treatment : reclassification of trade payables and it's implications for the professional field

NARCIS (Netherlands)

Bauke Feenstra; Anne Rikst Engbers; Michiel Steeman

2017-01-01

In the modern Supply Chain Finance landscape, Reverse Factoring is one of the most consolidated business model for working capital financing. However, accounting treatment of Reverse Factoring might affect the balance sheet of large corporate, with disruptive consequences for the programme as a

KNOWLEDGE CAPITAL, INTANGIBLE ASSETS, AND LEVERAGE: EVIDENCE FROM U.S. AGRICULTURAL BIOTECHNOLOGY FIRMS

OpenAIRE

Sporleder, Thomas L.; Moss, Leeann E.; Nickels, Lori A.

2002-01-01

Firms in general, and high technology firms such as biotechnology firms in particular, are both a set of assets in place and growth opportunities. This has important implications for managerial decision-making. Knowledge capital motivates exploitation of growth options, which affects firm cash flow. In turn, the level and volatility of firm cash flow influences firm financing decisions. Previous studies suggest that knowledge capital can influence both the location and capital structure of fi...

Financing the development of renewable energy projects of territorial interest

International Nuclear Information System (INIS)

Regnier, Yannick; Bailleul, Esther; Claustre, Raphael; Bessiere, Patrick; Boumard, Erwan; Peulemeulle, Justine; Causse, Laurent; Coton, Patrice; Djemouai, Nadia; Dubus, Jean-Michel; Duffes, Thomas; Gauduchon, Marie-Veronique; Raguet, Alex; Ghewy, Etienne; Heitz, Philippe; Jedliczka, Marc; Jourdain, Pierre; Julien, Emmanuel; Marcenac, Guillaume; Marillier, Frederic; Massias, Louis; Picot, Roland; Poize, Noemie; Quantin, Jacques; Rabian, Jean; Rocaboy, Dominique; Rumolino, Claudio; Sabin, Patrick; Saultier, Patrick; Tincelin-Salomon, Claire; Trillaud, Nicolas; Vachette, Philippe; Verhaeghe, Laure

2016-11-01

This report highlights the relationship between a territorial project (its autonomous strategy) and projects of renewable energy which could and should be developed. It focuses on large projects of electric power production, notably those based on solar and wind energy for which such a territorial anchoring is not as obvious as for the production of heat or gas (heat networks are necessarily local, and biomass production and supply as well). Thus, its outlines how these projects can be a benefit for a territory, the stakes of participation for the different local actors, and discusses how such a participation is to be organised. It describes different aspects of the way a project development phase is to be financed: stakes (financing needs, risks, peculiarities of local financing, project management and governance), financing typologies, development ease and safety, support of development financing (capital-risk tools, intervention of local public companies, advance payments, subsidies). The last part addresses how to locally finance the other project phases (stakes during construction and exploitation, intervention modes by participation, financial tools or loans)

13 CFR 108.730 - Financings which constitute conflicts of interest.

Science.gov (United States)

2010-01-01

... any understanding, agreement, or cross dealing, reciprocal or circular arrangement). (3) Borrow money... NEW MARKETS VENTURE CAPITAL (âNMVCâ) PROGRAM Financing of Small Businesses by NMVC Companies... Associates must not, directly or indirectly: (1) Borrow money from any Person described in paragraph (a)(3...

75 FR 32230 - Solutions Capital I, L.P.; Notice Seeking Exemption Under Section 312 of the Small Business...

Science.gov (United States)

2010-06-07

... working capital and general corporate purposes. The financing is brought within the purview of Sec. 107... SMALL BUSINESS ADMINISTRATION [License No. 03/03-0247] Solutions Capital I, L.P.; Notice Seeking... given that Solutions Capital I, L.P., 1100 Wilson Blvd., Suite 3000, Arlington, VA 22209, a Federal...

Real world financing opportunities for energy conservation projects

Energy Technology Data Exchange (ETDEWEB)

Tramonte, D.J.

1988-01-01

Do you have the resources, dollars, people expertise and general know-how to do all the energy conservation measures. If you have the funds, do it yourself. Historically you would save more if you hired a private concern because that is the only job the contractor does for you. You have other hats to wear and fires to put out. Using third-party financing can be a good decision based on your specific needs. Procrastination is not the answer - the cost of delay is extensive. Financing energy conservation measures is no different from financing your automobile or home. If the benefits outweigh the negatives, the answer is obvious. Remember, in any case of using private sector financing, your are joining a partnership arrangement. The only way to succeed is to be honest with each other on the front end. There need not be any surprises. Any reputable company will gladly have your attorney evaluate all agreements, amortization schedules, and attachments. Real world financing alternatives will continue to change as the market matures. It's not too good to be true. It is no more than a vehicle to make the efforts of capital improvements streamlined. The money or financing is the catalyst to the project and makes the other areas meld.

Is Bank Finance the Achilles' Heel of Irish SMEs?

Science.gov (United States)

Carey, Dermot; Flynn, Antoinette

2005-01-01

Purpose: The purpose of this research paper is to examine the implications of new banking regulations (Basel II) for the Irish SME sector. Training gaps are identified and recommendations to advance social capital networks are provided. Design/methodology/approach: The Irish SME dependence on external (bank) finance and their susceptibility to…

Financing Target and Resale Pricing in Reward-Based Crowdfunding

Directory of Open Access Journals (Sweden)

Lei Xu

2018-04-01

Full Text Available Resale is an effective tool for reward-based crowdfunding creators to make more profit after crowdfunding successfully. On the one hand, funds raised during the crowdfunding affect the resale pricing as a capital constraint; on the other hand, backers’ strategic purchasing behavior in the resale stage can also disturb the creator’s financing target decision-making through affecting resale pricing. In view of this, this paper builds a two-stage crowdfunding model to examine the interaction between the financing target and resale pricing in the presence of strategic backers. The results show that a lower financing amount leads to higher prices in the resale stage due to the rationing effect, and suppresses price volatility due to strategic purchasing behavior. In contrast, a higher financing amount enables the creator to build a large capacity, which does not restrict the resale prices and profit. Besides, in the context of high unit production cost or high backer patience level, there is no need for the creator to set a high financing target at the risk of crowdfunding failure.

Musharakah Tijarah Cross-Border Financing: Concept, Structure and Salient Features

Directory of Open Access Journals (Sweden)

Sharullizuannizam Salehuddin

2016-12-01

Full Text Available Musharakah Tijarah Cross-Border Financing (“Product” is the product to enable the Bank to undertake project and contract cross-border financing activities or other identified business ventures on “pure” Joint Venture basis, using the underlying Islamic financing contract of Musharakah. Musharakah concept has a low market share of less than 2.5% in the overall existing Islamic financing products in Malaysia. This product encourages mobilization of idle capital / cash entities and thus provides a basis for economic cooperation between these organizations in the society. The product also is expected to inject greater prosper to the Bank’s overall performance and ultimately able to assist small time landowners in a big way through business risk sharing. Musharakah provides an alternative investment, which will cater for Islamic investors and partners, especially from GCC, who may have been reluctant to invest in conventional or current debt-based financing scheme. With Musharakah concept, the most preferred and globally accepted Islamic financing, this can attract these investors to participate on similar risk-sharing arrangements through the creation of Specific Investment Account (SIA or Islamic Syndication to back financing made into the Joint Venture.

Access to finance and venture capital for industrial SMEs

OpenAIRE

Heimer, Thomas; Hölscher, Luise; Werner, Matthias Ralf

2008-01-01

SMEs play a crucial role for European economies. The numbers show the high importance of SMEs for national economies. Accordingly, it is no surprise that the regulatory framework SMEs are imbedded in is the subject of an important political discussion. In the discussion it is frequently mentioned by representatives of SMEs as well as associations of SMEs, that the access to finance for SMEs is still inferior. Based on the importance of SMEs for national economies and the discussion on the acc...

Managing Small Business Enterprise: Social Capital and Financial Approach at Regency Probolinggo

OpenAIRE

Harmono, Harmono

2009-01-01

This study attempted to analyze management model of small business enterprise inProbolinggo regency. Conceptual framework was based on social capital and financial approach.Terms of finance would be analyzed with financial audit, and social capital consisting ofindividual behavior, organization behavior in groups, relationship with others and governmentinstitution which followed local social norms enhancing goals congruence. Research designintegrated both exploratory and confirmatory research...

Capital market financing, firm growth, and firm size distribution

OpenAIRE

Didier Brandao,Tatiana; Levine,Ross Eric; Schmukler,Sergio L.

2015-01-01

How many and which firms issue equity and bonds in domestic and international markets, how do these firms grow relative to non-issuing firms, and how does firm performance vary along the firm size distribution? To evaluate these questions, a new data set is constructed by matching data on firm-level capital raising activity with balance sheet data for 45,527 listed firms in 51 countries. T...

Cost of Capital Estimation for Highway Concessionaires in Chile

Directory of Open Access Journals (Sweden)

Cristian Vergara-Novoa

2018-01-01

Full Text Available In this paper, we present the cost of capital estimation for highway concessionaires in Chile. We estimated the cost of equity and the cost of debt and determined the capital structure for each one of twenty-four concessionaires that operate highways. We based our estimations on the developments of Sharpe (1964, Modigliani and Miller (1958, and Maquieira (2009, which were also compared with the Brusov et al. (2015 developments. We collected stock prices for different highway concessionaires around the world from Google Finance and Reuters’ websites in order to determine the Beta of equity using a representative company. After that, we estimated the cost of equity considering Hamada (1969 and a Capital Asset Pricing Model. Then, we estimated the cost of capital using the cost of debt and the capital structure of Chile’s highway concessionaires. With all above, we were able to determine the Weighted Average Cost of Capital (WACC for highway concessions which ranges from 5.49 to 6.62%.

Capital Structure Determinants and Governance Structure Variety in Franchising

NARCIS (Netherlands)

T. Jiang (Tao)

2009-01-01

textabstractThis thesis investigates two questions: the determinants of capital structure in franchising and its subsequent impact on the franchise financing decisions; and the efficient governance structure choice in franchising. We posit that firms franchise in order to benefit from the reduced

Alternatives of financing for new nuclear reactors in Mexico

International Nuclear Information System (INIS)

Alonso, A.; Palacios, J.C.; Ramirez, J.R.; Longoria, L.C.; Valle, E. del

2009-01-01

Financing plays a very important role for the deployment of new nuclear reactors units in any country. Two financing alternatives can be used to support such project: the first one is that the utility provide from its own resources the capital for the investment; and the second one through international and national credits to support the nuclear project. To be a loan candidate the viability of the nuclear project must be demonstrated, it implies among other things to have a qualified national infrastructure. Also, the utility must have an international credit record in good status by the international qualifying companies. Both things are met by the Mexican Utility 'Comision Federal de Electricidad', therefore exist the possibility to build new nuclear reactors in Mexico. Here we assess both alternatives financing and own resources projects

The Opportunity Cost of Capital

Directory of Open Access Journals (Sweden)

Ayman Chit PhD

2015-04-01

Full Text Available The opportunity cost of the capital invested in pharmaceutical research and development (R&D to bring a new drug to market makes up as much as half the total cost. However, the literature on the cost of pharmaceutical R&D is mixed on how, exactly, one should calculate this “hidden” cost. Some authors attempt to adopt models from the field of finance, whereas other prominent authors dismiss this practice as biased, arguing that it artificially inflates the R&D cost to justify higher prices for pharmaceuticals. In this article, we examine the arguments made by both sides of the debate and then explain the cost of capital concept and describe in detail how this value is calculated. Given the significant contribution of the cost of capital to the overall cost of new drug R&D, a clear understanding of the concept is critical for policy makers, investors, and those involved directly in the R&D.

The Opportunity Cost of Capital

Science.gov (United States)

Chit, Ayman; Chit, Ahmad; Papadimitropoulos, Manny; Krahn, Murray; Parker, Jayson; Grootendorst, Paul

2015-01-01

The opportunity cost of the capital invested in pharmaceutical research and development (R&D) to bring a new drug to market makes up as much as half the total cost. However, the literature on the cost of pharmaceutical R&D is mixed on how, exactly, one should calculate this “hidden” cost. Some authors attempt to adopt models from the field of finance, whereas other prominent authors dismiss this practice as biased, arguing that it artificially inflates the R&D cost to justify higher prices for pharmaceuticals. In this article, we examine the arguments made by both sides of the debate and then explain the cost of capital concept and describe in detail how this value is calculated. Given the significant contribution of the cost of capital to the overall cost of new drug R&D, a clear understanding of the concept is critical for policy makers, investors, and those involved directly in the R&D. PMID:25933615

The financing of nuclear power plants

International Nuclear Information System (INIS)

2009-01-01

Many countries have recognised that greater use of nuclear power could play a valuable role in reducing carbon dioxide emissions. However, given the high capital cost and complexity of nuclear power plants, financing their construction often remains a challenge. This is especially true where such financing is left to the private sector in the context of competitive electricity markets. This study examines the financial risks involved in investing in a new nuclear power plant, how these can be mitigated, and how projects can be structured so that residual risks are taken by those best able to manage them. Given that expansion of nuclear power programmes will require strong and sustained government support, the study highlights the role of governments in facilitating and encouraging investment in new nuclear generating capacity

Financing drug discovery via dynamic leverage.

Science.gov (United States)

Montazerhodjat, Vahid; Frishkopf, John J; Lo, Andrew W

2016-03-01

We extend the megafund concept for funding drug discovery to enable dynamic leverage in which the portfolio of candidate therapeutic assets is predominantly financed initially by equity, and debt is introduced gradually as assets mature and begin generating cash flows. Leverage is adjusted so as to maintain an approximately constant level of default risk throughout the life of the fund. Numerical simulations show that applying dynamic leverage to a small portfolio of orphan drug candidates can boost the return on equity almost twofold compared with securitization with a static capital structure. Dynamic leverage can also add significant value to comparable all-equity-financed portfolios, enhancing the return on equity without jeopardizing debt performance or increasing risk to equity investors. Copyright © 2015 The Authors. Published by Elsevier Ltd.. All rights reserved.

Impact of Debt Capital on Outreach and Efficiency Of Microfinance ...

African Journals Online (AJOL)

Impact of Debt Capital on Outreach and Efficiency Of Microfinance ... donation or government grants should be sustained in a long term to enable MFIs reach the poor who cannot afford high interest rates charged by debt financed MFIs.

Capital structure in the global shipping industry

Directory of Open Access Journals (Sweden)

Paun Cristian

2016-01-01

Full Text Available The current economic crisis emerged from a particular financial crisis that started in the United States and being rapidly propagated all over the world. It did not affect a limited region or a limited economic sector. This crisis induced significant changes in all management areas, including financial management. This study is focused on financing strategies adopted by shipping companies during the crisis, analyzing relevant factors for a specific issue - the capital structure. The research methodology proposed for this analysis on relevant factors that could explain the capital structure of shipping is OLS regression applied on selected variables derived from the financial statements of the major shipping companies. The dependent variables reflecting capital structure are book value to total liabilities ratio and book value to total debt ratio. The explanatory variables are derived from the theory of capital structure. This study empirically illustrates the relevance of the capital structure theory for the studied economic sector and is a useful tool for the shipping companies, providing relevant information about the optimal capital structure adopted by shipping companies and about factors that influence this decision during a crisis period.

Debt financing structure within the state-owned corporations in Kenya

Directory of Open Access Journals (Sweden)

Micah Odhiambo Nyamita

2015-05-01

Full Text Available The current public sector financial management reforms agenda within the state-owned corporations in Kenya aimed at integrating and aligning their performance to vision 2030, has not yet achieved the traction required. This study, therefore, examined the different types of debt financing strategies applied by the various state-owned corporations in Kenya, in comparison to those applied by state-owned corporations from developed and developing economies. The study specifically revealed that private debt financing, through bank loans and payables is commonly used amongst Kenyan state-owned corporations. While, most state-owned corporations from developed and developing economies, such as in America, Europe, Asia and South Africa, use public debt financing, through financial securities, traded in both domestic and international capital markets.

Financing of power supply systems and pollution control equipment. Models, dimensions, developments

Energy Technology Data Exchange (ETDEWEB)

Radtke, G; Raabe, G

1988-11-01

The authors explain the bankers' point of view of the financial and economic aspects of developments in the energy sector, discussing the financing of natural gas pipelines (Muro, Megal, etc.), of nuclear power plant construction, of projects in the oil supply sector, and of pollution abatement measures and equipment for the power industry and other industries. The different financial situations of small firms or large firms supplying pollution control equipment are discussed referring to the financing schemes to be set up, explaining among other things the profitability assessment taking into account long-term development or delays in return on capital investment from borrowed funds as induced, e.g., by delays in the licensing procedure. Future demand for borrowed capital for pollution control or nuclear power plant development is difficult to assess by the banking circles. (orig./RST).

Financing maneuvers. Two opportunities to boost a hospital's working capital.

Science.gov (United States)

Ferconio, S; Lane, M R

1991-10-01

Two receivables financing approaches, factoring and asset-backed securitization, offer an initial cash flow boost and a predictable source for continual cash flow. In a typical receivables factoring program, a healthcare organization receives advance funding from its receivables and reduces collection and follow-up efforts required of its staff. In exchange, the organization: Sells receivables at a discount between 5 percent and 10 percent off face value; and Pays a factoring fee of up to 20 percent of sold receivables. In a typical asset-backed securitization: Proceeds generated from the sale of A1-rated commercial paper are used to purchase receivables from a hospital; Accounts receivable eligible for sale are advance-funded at a level between 80 and 90 percent, with the unfunded portion remaining an asset of the hospital; The hospital is responsible for collection and follow-up activities; and An asset manager maintains cash collections to retire commercial paper notes and pay administrative costs. A healthcare organization interested in receivables financing should review each option's structure and benefits to assess advance funding provided, costs, a seller's level of control, and program eligibility requirements.

Dynamic capital structure and political patronage: the case of Malaysia

OpenAIRE

Ebrahim, M. Shahid; Girma, Sourafel; Shah, M. Eskandar; Williams, Jonathan

2014-01-01

This paper investigates the effect of political patronage on firms' capital structure. The evidence is from Malaysia, a country characterised by relationship-capitalism, and covers 1988 to 2009. Using a system GMM estimator we find firms set leverage targets and adjust towards them following deviations at the rate of 28% per annum. Next, we construct a natural experiment and use a difference-in-differences model to investigate if the strategic financing decisions of politically patronised fir...

Shifting the Climate Finance Paradigm: Nine Key Challenges for Developed Countries

Energy Technology Data Exchange (ETDEWEB)

Curtin, Joseph

2013-03-13

In 2009, developed countries committed to part-funding the cost of adapting to the impacts of climate change and of low carbon development in developing countries. From 2010 to 2012, fast start finance began to flow from developed country exchequers. However, the climate finance paradigm is now shifting. A transition from loans and grants provided from scarce exchequer resources to innovative instruments for leveraging private capital and mitigating investment risk is required in the coming period. But what are the implications for developed countries? This policy brief explores the policy context defining the current climate finance debate; examines the extent to which commitments have been met; and identifies nine key challenges for developed countries as they enter the new climate finance paradigm, drawing on the lessons of the fast start finance period. This is the second in a series of Environment Nexus policy briefs by leading experts in the fields of agriculture, energy, climate change and water.

76 FR 68803 - Escalate Capital Partners SBIC I, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2011-11-07

... Courtyard Drive, Suite 309, Austin, TX 78730. The financing is contemplated to provide working capital and... SMALL BUSINESS ADMINISTRATION [License No. 06/06-0335] Escalate Capital Partners SBIC I, L.P... Notice is hereby given that Escalate Capital Partners, SBIC I, L.P., 300 W. 6th Street, Suite 2250...

Financing options to develop non-conventional reserves

International Nuclear Information System (INIS)

Tricoli, C.

1997-01-01

The economics of non-conventional natural gas reserves such as coalbed methane, gas shales and tight gas were discussed, with special reference to financing options to develop such reserves. Before 1992, tax credits were used to stimulate the development of non-conventional gas. The requirements for section 29 tax credits, the objectives of investors and producers, and the methods used to monetize section 29 tax credits, such as public royalty trusts, partnership structures, and up-front payment mechanisms were described. The capital gains implications of gas sales were also reviewed. It was noted that in the absence of tax credits, financing the development of non-conventional reserves must undergo the same economic scrutiny as any other oil and gas project

GOVERNMENT INTERVENTIONS IN THE VENTURE CAPITAL MARKET HOW JEREMIE AFFECTS THE HUNGARIAN VENTURE CAPITAL MARKET?

Directory of Open Access Journals (Sweden)

Fazekas Balazs

2014-07-01

Full Text Available JEREMIE (Joint European Resources for Micro to Medium Enterprises program was implemented as a part of the EU cohesion policy in the framework of 2007-2013 programming period. The primary objective of the program was to enhance the financing prospects of SME’s through structural funds that provide financial engineering instruments like loan, guarantee and venture capital. This paper focuses on the effects of JEREMIE on Hungary’s venture capital market. Since 2010, 28 JEREMIE backed venture capital funds were founded in four rounds and 130 billion HUF capital was allocated into these funds with the contribution of Hungarian government. A well-established venture capital market can boost entrepreneurship and innovation, therefore economic growth which is the foundation of government involvement. On the other hand, there is an extensive literature highlighting the limits and possible drawbacks of the active role of public sector in the venture capital market. There is a consensus in the literature that in the long run the extensive role of government in venture capital industry is counterproductive. Substituting market participants by government agencies will hardly result in a competitive and efficient market. However, temporarily as a catalyst public sector can contribute to the development of venture capital market. Direct government intervention supportable temporarily only in the infancy of the industry. The primary objective of every program must be to develop the market to the level where it becomes self-sustaining. This way the success of these programs must not be measured only by the amount of invested capital, financial performance of venture capital funds and venture capital backed companies. Raising private sector awareness and the progress of necessary institutions are also the criteria of a successful program. During the design and implementation of venture capital agendas these aspects must be taken into consideration. This

75 FR 16072 - Fisheries Finance Program; Final Program Notice and Announcement of Availability of Federal...

Science.gov (United States)

2010-03-31

...NMFS announces the availability of long-term direct loans made underthe Fisheries Finance Program (FFP). The FFP provides financing for the purchase of used vessels or the reconstruction of vessels (limited to reconstructions that do not add to fishing capacity); refinancing for existing debt obligations; financing or refinancing fisheries shoreside facilities or aquacultural facilities; and the purchase or refinancing of Individual Fishing Quota (IFQ) in the North Pacific. FFP loans are not issued for purposes which could contribute to over capitalization of the fishing industry.

Structural financing and management of investment projects in the Nigerian mineral industry

International Nuclear Information System (INIS)

Akingbola, E. B. O.

1997-01-01

The mineral industry is attractive because of the diversity and abundance of the deposits. The economic and financial implications of exploiting these are considered. The issues discussed include capital requirement, international outlook, investment opportunities in the mineral industry, oil and gas, solid minerals, attracting investment into the mineral industry,structural financing, macro economic stability. The paper concludes that the ability of the industry to continue attracting foreign capital is crucial to its survival, growth and development

Towards an integrated theory of value, capital and money

OpenAIRE

Cavalieri, Duccio

2014-01-01

This is an analysis of the present state of the theory of capital. The paper contains a proposal to reformulate this theory in an ‘late-Marxian’ up-to-dated perspective. The central problem discussed is the integration of the theories of value and capital with those of money and finance. An augmented cost-of-production theory of value is advocated. Special attention is focused on the role of Marx’s ‘monetary expression of labour value’ (MEV), rediscovered and unduly modified by neo-Marxist...

Research on the Renewable Energy Industry Financing Efficiency Assessment and Mode Selection

Directory of Open Access Journals (Sweden)

Xiaohuan Lyu

2018-01-01

Full Text Available In recent years, environmental issues are attracting widespread attention by various countries around the world. In this context, the renewable energy industry has become a stimulus point for economic development and has great potential for development. Renewable energy industry financing is difficult due to its characteristics of high risk and long-term investment returns, and relying on existing financing channels make it present a glut of excess capacity. It is key to realize resource optimal allocation, solve overcapacity phenomenon and select the valid financing mode. This paper used Bloomberg New Energy Finance (BNEF data and the data envelopment analysis (DEA method to analyze the financing efficiency different parts of the global renewable energy industry and different ways of financing. It could be found that although the financing efficiency showed a trend of increasing year by year, the financing efficiency of each industry presented generally weak DEA efficiency, the comprehensive financing efficiency of wind power industry was higher. The article also found that the financing efficiency of project financing and Research and Development (R&D were relatively high, and the equity market and venture capital and private equity were less efficient. The results of this paper play an important role in the overall financing status cognizance of the renewable energy industry and give suggestions about valid financing mode choice.

Indeterminacy and Business Fluctuations under Partial Capital Mobility

Directory of Open Access Journals (Sweden)

Jongkyou Jeon

2008-12-01

Full Text Available The paper examines a modified real business cycle model of a small open economy such as the Korean economy. The model economy is assumed to produce output with two types of capital: traded capital and non¡ⓒtraded capital. Domestic individuals can borrow from the world capital market only by using traded capital as collateral, and investment in non¡ⓒtraded capital must be financed by domestic savings. It implies that the capital mobility is partial rather than perfect although domestic residents have free access to the world capital market. By incorporating externalities into the production technology, the model economy is able to generate dynamic path of equilibrium time series solely driven by non¡ⓒfundamental shocks such as animal spirits of investors or self¡ⓒfulfilling expectations if the ratio of traded capital to total capital is sufficiently high. The paper shows that the second moment properties of the Korean aggregate data could be reproduced in a modified real business cycle framework where fluctuations are driven only by non¡ⓒfundamental shocks, not by the disturbances to economic fundamentals such as technology. This requires a high value of traded capital relative to total capital, which means that the domestic capital market must be highly integrated with the world capital market. It implies that there exists some critical level of capital mobility beyond which the business cycles of an open economy becomes highly vulnerable to non¡ⓒfundamental shocks such as self¡ⓒfulfilling expectations.

Havsnaes wind farm - The project financing of a Swedish wind farm

Energy Technology Data Exchange (ETDEWEB)

NONE

2012-07-01

In March 2008 the ground breaking project financing of the 95 MW Havsnaes wind farm was completed. Havsnaes represents one of the cornerstones in portfolio of Venus Vind, controlled by HgCapital, where sustainable Scandinavian strength is build through industrial scale wind farms with local presence. At the time, Havsnaes represented the largest energy project financing in the market, it is also the first true project financing of a major Swedish wind farm. The aim of this study is to highlight the process of project financing and additional lessons learnt from the Havsnaes transaction. Investment in renewable energy projects often includes international investors. We welcome the growing Swedish wind market, banks and other financial institutions, politicians and other relevant decision makers to take part of our findings. Sponsorship provided by the Swedish Energy Agency has enabled the completion of this study.

Tax Arbitrage in the Netherlands : evaluation of the capital income tax reform of January 1, 2001

NARCIS (Netherlands)

B.J. Brys

2005-01-01

textabstractThis thesis evaluates the Dutch reform of capital income taxation of January 1, 2001. The Dutch capital-income-tax system before the reform distorted the choice between the investment’s sources of finance and uses of earnings, the businesses’ legal form, and the households’ (either

La importancia del ciclo de caja y cálculo del capital de trabajo en la gerencia PYME

Directory of Open Access Journals (Sweden)

Jorge Iván Jiménez Sánchez

2014-01-01

Full Text Available  El artículo aborda las finanzas en la pyme moderna, la cual necesita de un gerente dinámico y hábil en la gestión administrativa, la información contable y las finanzas, con conocimiento de los días necesarios para cubrir el ciclo de caja y el capital que se requiere para operar a corto plazo, calculo necesario para determinar si va a alcanzar el dinero o si va a necesitar financiación y su valor exacto. Las cifras de fracaso de las pymes en América Latina son abrumadoras, ochenta por ciento de ellas quiebran en menos de cinco años gran parte debido a la mala gestión, se requiere una administración que incluso piense en cómo fortalecer la empresa, con sistemas como el Leasing, el factoring o la triangulación, en Colombia se habla incluso de crear un mercado de capitales y de un mercado alternativo bursátil para la pyme.Palabras Clave: Gerencia pyme; ciclo de caja; capital de trabajo; Mecanismos de financiación; mercados de capitales.AbstractThe importance of cash cycle and calculation of working capital management in smesThe article discusses the modern SME finance, which needsa dynamic and skilled manager in administrative management, the accounting and finance, with knowledge of the days needed to cover the cash cycle and the capital required to operate in the short term, calculation necessary to determine if you have enough money or if you will need financing and its exact value, failure figures of SMEs in Latin America are overwhelming, eighty percent of them go bankrupt in less than five years largely due to poor management, management is required to even think about how to strengthen the company with systems such as leasing, factoring or triangulation, in Colombia there is even talk of creating a capital market and an alternative stock market for SMEs.Keywords: Management SME cash cycle; working capital; financing mechanisms; capital markets. 

SELF HELP GROUPS (SHGS: MICRO FINANCE IN INDIA

Directory of Open Access Journals (Sweden)

Shivam SAKSHI

2018-05-01

Full Text Available Micro finance in India has developed in decades from an idea to implementation to many success stories to an overall success. The early dawn of the idea of micro financing was to provide the capital to the population which was considered the bottom of socio economic pyramid so as to carry out the small household business and this idea has gradually grown up to become the way to help improve the socio standards of the poor people. India is the country of villages, more than 70% of the nation’s population resides in the rural areas of the country and 60% of this rural population depends on agriculture for living. In such situation the micro financing can play a vital role in making the rural people’s life easy. In a developing country like India with a lot of people residing in rural areas, micro finance is undoubtedly the best implementation. Self Help Groups of India has emerged as the world’s largest and most successful network of Community Based Organisations. The main goal of an SHG is to elevate the living conditions of the rural poor with a maximum emphasize on women. The present paper’s objective is to explain the situation of micro finance in India and to explain the main channel of micro finance in India which is SHGs and the details of the SHGs.

Effects of capital markets development on economic growth of Western Balkan countries

Directory of Open Access Journals (Sweden)

MSc. Artor Nuhiu

2011-12-01

Full Text Available Through this research paper we have tried to elaborate the issue whether capital market development is an alternative towards economic growth and economic prosperity of developing countries in general, the Western Balkan countries in particular. The focus of the paper is to study the effects of proper functioning of capital markets and their im-pact on increasing the level of savings, capital investments and in locating relevant resources for long-term financing of the economy. The research paper presents positive and negative arguments, linking the establishment and development of a capital market and its impact on economic development of developing countries, particularly Western Balkan countries.

Mobilizing Public Markets to Finance Renewable Energy Projects: Insights from Expert Stakeholders

Energy Technology Data Exchange (ETDEWEB)

Schwabe, P.; Mendelsohn, M.; Mormann, F.; Arent, D. J.

2012-06-01

Financing renewable energy projects in the United States can be a complex process. Most equity investment in new renewable power production facilities is supported by tax credits and accelerated depreciation benefits, and is constrained by the pool of potential investors that can fully use these tax benefits and are willing to engage in complex financial structures. For debt financing, non-government lending has largely been provided by foreign banks that may be under future lending constraints due to economic and regulatory conditions. To discuss renewable energy financing challenges and to identify new sources of capital to the U.S. market, two roundtable discussions were held with renewable energy and financing experts in April 2012. This report summarizes the key messages of those discussions and is designed to provide insights to the U.S. market and inform the international conversation on renewable energy financing innovations.

Exuberance in China's renewable energy investment: Rationality, capital structure and implications with firm level evidence

International Nuclear Information System (INIS)

Zhang, Dayong; Cao, Hong; Zou, Peijiang

2016-01-01

The new century has witnessed phenomenal worldwide growth in renewable energy investments. China has been especially remarkable, surpassing both the US and the EU in 2013. Some recent facts, however, have raised the question of whether exuberant investment in China’s renewable energy sector is rational. This paper aims to contribute to the literature and to the debate in two ways. First, it tests the over-investment hypothesis based on the main stream finance methodology; second, it analyzes the role of capital structure in the performance of China's renewable energy firms. Empirical results show that overinvestment in the renewable energy sector exists. The problem is more significant in the biomass and wind sector. Capital structure is found to be more important to downstream firms, indicating that policy makers may provide support that enables these firms to finance their investments through corporate bonds, commercial credit, or long-terms debts. - Highlights: •We test the over-investment hypothesis of renewable energy firms in China. •The role of capital structure is also empirically investigated. •We find irrational investment and confirm the role of financing structure. •The results are sensitive to the main business sectors and industrial line.

76 FR 27563 - Margin and Capital Requirements for Covered Swap Entities

Science.gov (United States)

2011-05-11

... Comptroller of the Currency 12 CFR Part 45 Board of Governors of the Federal Reserve System 12 CFR Part 237... Housing Finance Agency 12 CFR Part 1221 Margin and Capital Requirements for Covered Swap Entities...; [[Page 27564

Financing Trans-European Energy Infrastructures - Past, Present and Perspectives

International Nuclear Information System (INIS)

Hirschhausen, Christian von

2011-01-01

The transformation of the European energy system towards a low carbon industry requires substantial investment and financing. According to the Energy Infrastructure Package (EIP), around one trillion euros must be invested in the European energy system until 2020. Out of the euro 200 billion required investment for transmission networks, only half of the capital will be provided by markets. This leaves a financial gap of ca. euro 100 bn. and poses a question on the EU role in financing European energy infrastructures. This policy paper by Christian Von Hirschhausen focuses on the future financing of trans-European energy infrastructures. After providing an overview of the long-term infrastructure needs and of the various instruments that currently exist to finance these infrastructures, the author discusses various aspects related with the planning and financing of cross border energy infrastructures with the help of a case study: the North Sea Grid Project. On the basis of the North Sea example, he highlights the importance of adopting a regulatory approach balancing European and Member States' interests as well as of streamlining and expanding the EU financial support to sustainable energy infrastructures

Finance and Oil. Is There a Resource Curse in Financial Development?

NARCIS (Netherlands)

Beck, T.H.L.

2011-01-01

This paper shows that the finance and growth relationship is as important in resource-based economies as in other economies. This paper also documents less developed financial systems in resource-based economies and banks that are more liquid, better capitalized and more profitable, but give fewer

Finance and Oil. Is there a Resource Curse in Financial Development?

NARCIS (Netherlands)

Beck, T.H.L.

2011-01-01

This paper shows that the finance and growth relationship is as important in resource-based economies as in other economies. This paper also documents less developed financial systems in resource-based economies and banks that are more liquid, better capitalized and more profitable, but give fewer

The uranium producing industry - its capital structure

International Nuclear Information System (INIS)

Duncan, I.J.

1989-01-01

The uranium mining industry has undergone a substantial change over the past decade. A few rather informal statistics relevant to this change have been gathered together, with particular emphasis on the corporate and capital structures which existed in the industry in the 1970s and 1980s. These data offer interesting insights on the availability of capital for new uranium mining ventures, and lead to a sketch of the finances of a hypothetical new venture. The results of this work suggest that there may be few producers likely to start work on a greenfield site in the next few years, even if the market recovers from its present doldrums. (author)

Interaction between Dynamic Financing and Investments

DEFF Research Database (Denmark)

Dockner, Engelbert J.; Mæland, Jøril; Miltersen, Kristian R.

Debt priority rules, i.e., the rules determining how different classes of debt split the firm's assets after bankruptcy, influence the firm's investment decisions. Existing debt benefits from an investment either because the investment is equity financed or because new debt issued to (partly......) finance the investment has lower priority in the event of bankruptcy as is the case for the commonly used absolute priority rule (APR). This incentivizes equity holders to under invest. If debt priority rules are specified in such a way that existing debt can be exploited by issuing new debt, do equity...... holders have the incentive to over invest. We formulate a dynamic structural model to study the interaction of initial capital structure choice, investment policy, subsequent debt issues, and debt priority rules. We find that priority rules have a substantial impact on investment timing as well...

Política, agricultura e a reconversão do capital do tráfico transatlântico de escravos para as finanças brasileiras na década de 1850 Politics, agriculture and the reconversion of the transatlantic slave trade capital to Brazilian finances in 1850'

Directory of Open Access Journals (Sweden)

Artur Vitorino

2008-12-01

Full Text Available O artigo enfoca como, após 1850, com a cessação do tráfico transatlântico de africanos escravos, o capital, antes engatado nesse negócio, passou a irrigar o meio circulante (a moeda e o crédito, reforçando, assim, a economia de mercado já existente na Corte Imperial, mas, a partir de então, com força para configurar nesta cidade uma economia urbana de profundas conseqüências para os agricultores escravistas do Vale do Paraíba ligados ao comércio exterior, e dependentes do crédito e da moeda ali alocados. O assentamento urbano do capital dos mercadores negreiros foi deliberado pelo Partido Conservador.The article emphasizes how, after 1850, with the cessation of the transatlantic African slave trade, the capital, rather linked in this business, passed to irrigate the finance capital (the coin and the credit, reinforcing, then, the trade economy also extant in the Imperial Court but, hereafter, stronger enough to build in this city a urban economy with profoundest consequences to the farms of the Vale do Paraíba who used slaves, were linked in the foreign trade, and were dependent of the credit and of the coin allocated there. The urban settlement of the black slave trade capital was deliberate by the Conservative Party.

Reform of the global financial architecture: a new social contract between society and finance.

OpenAIRE

Banziger, H.

2009-01-01

The current global crisis poses significant challenges for our fi nancial system, our economies, and our societies. Overcoming these will require a new “social contract” between society and finance. This must include improvements to corporate governance, a reform of capital requirements, a more transparent and less procyclical accounting framework, banking laws to reflect modern financial markets, better infrastructure, and stronger supervision. Given the global nature of today’s capital mark...

Overconfidence, Managerial Optimism, and the Determinants of Capital Structure

Directory of Open Access Journals (Sweden)

Alexandre di Miceli da Silveira

2008-12-01

Full Text Available This research examines the determinants of the capital structure of firms introducing a behavioral perspective that has received little attention in corporate finance literature. The following central hypothesis emerges from a set of recently developed theories: firms managed by optimistic and/or overconfident people will choose more levered financing structures than others, ceteris paribus. We propose different proxies for optimism/overconfidence, based on the manager’s status as an entrepreneur or non-entrepreneur, an idea that is supported by theories and solid empirical evidence, as well as on the pattern of ownership of the firm’s shares by its manager. The study also includes potential determinants of capital structure used in earlier research. We use a sample of Brazilian firms listed in the Sao Paulo Stock Exchange (Bovespa in the years 1998 to 2003. The empirical analysis suggests that the proxies for the referred cognitive biases are important determinants of capital structure. We also found as relevant explanatory variables: profitability, size, dividend payment and tangibility, as well as some indicators that capture the firms’ corporate governance standards. These results suggest that behavioral approaches based on human psychology research can offer relevant contributions to the understanding of corporate decision making.

Financing energy investments in the economies in transition

International Nuclear Information System (INIS)

Brendow, C.

1997-01-01

This report is the part concerning Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) of the World Energy Council (WEC) Programme - a global study of the financing requirements of future energy developments. The investment needs are determined to reach the standards of developed energy market economies in terms of quality of service, efficiency, profitability, environmental protection and safety. Considering the macro-economic and general energy development scenarios done by IIASA and WEC the cumulative investment requirements 1990-2020 would be to range from $281bill. to $509 bill. in CEE; annual investment requirements would amount to $15-28 bill. depending on the scenarios; specific investment requirements per ton energy would range from 77 (ecologically driven scenario) to $101 (high growth, coal based scenario). In 1994 international finance for CEE/CIS energy sector was only $5 bill. (or 5% of the needs) due to the small size of the projects, low energy prices and the lack of incentives. CEE/CIS countries have not done enough to attract foreign loans. Western energy corporations acquired shares of Russian oil and gas companies. Reasons for the slow start include currency risk, legal uncertainty, uncertain demand prospects, low electricity tariffs, required rate of returns - above 18% in CEE, 25% in CIS, compared to 10% in US and UK. About 9% of total world foreign direct investments have been entered in energy sector. Multilateral organizations have invested yearly average $0.8-1 bill. grants and credits in CEE/CIS energy activities. From 1991 to 1995 135 mill. ECU have been spent for supporting national energy sector in CEE countries under PHARE activities. Difficulties are due to the lack of developed capital markets in these countries. In the future CEE capital markets could support a substantial proportion of the national investment requirements. By 2020 capital requirements for energy supply investments would be 3.4-4.7% of

Sighten Final Technical Report DEEE0006690 Deploying an integrated and comprehensive solar financing software platform

Energy Technology Data Exchange (ETDEWEB)

O' Leary, Conlan [Sighten, Inc., San Francisco, CA (United States)

2017-10-15

Over the project, Sighten built a comprehensive software-as-a-service (Saas) platform to automate and streamline the residential solar financing workflow. Before the project period, significant time and money was spent by companies on front-end tools related to system design and proposal creation, but comparatively few resources were available to support the many back-end calculations and data management processes that underpin third party financing. Without a tool like Sighten, the solar financing processes involved passing information from the homeowner prospect into separate tools for system design, financing, and then later to reporting tools including Microsoft Excel, CRM software, in-house software, outside software, and offline, manual processes. Passing data between tools and attempting to connect disparate systems results in inefficiency and inaccuracy for the industry. Sighten was built to consolidate all financial and solar-related calculations in a single software platform. It significantly improves upon the accuracy of these calculations and exposes sophisticated new analysis tools resulting in a rigorous, efficient and cost-effective toolset for scaling residential solar. Widely deploying a platform like Sighten’s significantly and immediately impacts the residential solar space in several important ways: 1) standardizing and improving the quality of all quantitative calculations involved in the residential financing process, most notably project finance, system production and reporting calculations; 2) representing a true step change in terms of reporting and analysis capabilities by maintaining more accurate data and exposing sophisticated tools around simulation, tranching, and financial reporting, among others, to all stakeholders in the space; 3) allowing a broader group of developers/installers/finance companies to access the capital markets by providing an out-of-the-box toolset that handles the execution of running investor capital through a

Modern Finance, Methodology and the Global Crisis

OpenAIRE

Esteban Pérez Caldentey; Matías Vernengo

2010-01-01

Modern finance has a conceptually unified theoretical core that includes the efficient market hypothesis (EMH), the relationship between risk and return based on the Capital Asset Pricing Model (CAPM), the Modigliani-Miller theorems (M&M) and the Black-Scholes-Merton approach to option pricing. The core has been instrumental to the growth of the financial services industry, financial innovation, globalization, and deregulation. The significant impact of the core is explained by their success ...

MAPPING EUROPEAN CAPITAL MARKETS TENDENCIES

Directory of Open Access Journals (Sweden)

Andreea Avadanei

2011-01-01

Full Text Available The scope of this paper is to analyze the main tendencies influencing European capitalmarkets development. In order to point out their implications, we structured our study onfour chapters. The first one illustrates the consolidation of stock exchanges at the Europeanlevel; the seconds presents some considerations about the deregulation/re-regulation of EUcapital markets; the third section highlights the globalization implications on their evolutionand the fourth one indicates the effects of financial innovation. The progressive integrationof European capital markets over the past decade contributed to the lowering of capital costas a result of increased risk diversification opportunities and reduced transaction costs dueto the specialization of financial system provisions. Moreover, the expansion of thesemarkets improved firms financing decisions, leading to an increased share of non-bankfunding sources.

Ciemat Relational Capital: Institutional Presence

International Nuclear Information System (INIS)

Vaquero Ortiz, E. M.; González Pineda, L. M.; Cascante Díaz, E.

2015-01-01

The resources in any organization for its activity development can be divided into two main groups: tangible assets and intangible assets. In recent decades there has been a recognition of the importance of the intangible assets as value generators for the development and growth of organizations. And the so called Relational Capital is among them Relational Capital arises from the relationship processes that an organization maintains with external agents. Thus, in the case of a public research institution, such as CIEMAT, it includes the relations with projects financing organizations, with partners and with customers (both public and private entities which are serviced), as well as the institutional presence understood as the participation in discussion and coordination forums (foundations, associations, committees…). This report presents a study of CIEMAT institutional presence in the year 2015.

Impact of Research and Development, Analysis, and Standardization on PV Project Financing Costs

Energy Technology Data Exchange (ETDEWEB)

Feldman, David J [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Margolis, Robert M [National Renewable Energy Laboratory (NREL), Golden, CO (United States); Jones-Albertus, Rebecca [U.S. Department of Energy

2018-04-02

The technical report discusses how R and D efforts focused on removing perceived risk from cash flows to investors have the potential to lower the cost of capital and increase the amount of leverage in a solar project. It also discusses how creating business efficiencies that allow financing transactions to occur more quickly with less effort can reduce the upfront costs associated with arranging financing for a solar project or group of projects. The paper then assesses the impact that these R and D activities might have on the volatility of PV asset cash flows and asset value, as well as the upfront costs of arranging a financial transaction. Finally, we insert these assumptions into financial models to analyze their impacts on the cost of capital for equity and debt investors, project leverage, and upfront financial transaction costs.

Government Performance and Results Act Reporting on Defense Working Capital Funds Net Operating Results

National Research Council Canada - National Science Library

2001-01-01

...". The Defense Working Capital Fund provides support services to the Military Departments. The support services include supply management, depot maintenance, finance and accounting, information services, and commissary...

Beyond capital? The challenge for sociology in Britain.

Science.gov (United States)

Holmwood, John

2014-12-01

This article offers a 'local', British, reading of Piketty's landmark book, Capital in the Twenty-First Century, suggesting that the challenge it offers to sociological approaches to inequality is more fundamental than hitherto recognized. The variations in 'national trajectories' exposed by Piketty reveal Britain to be anomalous in terms of standard approaches to the path dependencies embedded in different welfare regimes. Using the recent work of Monica Prasad on 'settler capitalism' in the USA and the tax and debt-finance regime associated with it, the article suggests that colonialism and empire and its postwar unravelling has had deep consequences for British social stratification, albeit largely neglected by British sociologists. Finally, it points to the fact that the form of tax and debt-finance regime that has become reinforced in Britain is at the heart of recent radical reforms to higher education. These are the currently unexplicated conditions of our future practice as sociologists and, therefore, an obstacle to building a critical sociology on the foundations laid out by Piketty. © London School of Economics and Political Science 2014.

Capital budgeting and cost reimbursement in investor-owned and not-for-profit hospitals.

Science.gov (United States)

Hubbard, C M

1983-01-01

Net present value estimates cannot be made in health care finance without the appropriate cost reimbursement adjustments. The results of new regulations could radically alter the effects of reimbursement on capital budgeting. Debates on the effects of cost reimbursement on decision making in hospitals will continue as long as reimbursement exists in a manner that affects operating cash flows or the cost of capital.

Simulation-based valuation of project finance investments. Crucial aspects of power plant projects

Energy Technology Data Exchange (ETDEWEB)

Pietz, Matthaeus

2010-12-15

The liberalization of electricity markets transformed a regulated and stable market to a market with former unknown price volatility. This results in a high uncertainty which is mainly due to the, from an economic point of view, lack of storability of the commodity electricity. Thus investments in power plants are highly risky. This dissertation analyzes crucial aspects within the valuation of a power plant financed via project finance, a popular financing method for projects with high capital requirements. Starting with the development of a valuation model based on stochastic modelling of the future cash flows the focus of the analysis is on the impact of model complexity and electricity prices. (orig.)

THE EFFECT OF FUNDING AND RISK ON FINANCING DECISION Empirical Study of Islamic Banks in Indonesia

Directory of Open Access Journals (Sweden)

Sutrisno Sutrisno

2016-07-01

Full Text Available The purpose of this study was to analyze the effect of funding decisions and risk to financing decisions on Islamic banking in Indonesia. Funding decisions consists of variable wadia demand deposits (GWD, mudaraba saving deposit (TAB, and mudaraba time deposits (DEP. Risk is proxied by capital risk (CAR, liquidity risk (RR and FDR, and financing risk (NPF. While the financing decisions consists of murabaha financing, mudaraba financing, and Musharaka financing. Samples were taken from all Islamic banks operating in Indonesia by 11 Islamic banks, and quarterly data using multiple regression analysis. The results showed that DEP and TAB significant and positive impact on all of financing, while GWD significant and positive impact on murabahafinancing is however negatively affect to mudaraba and musharaka financing. CAR and RR a significant and negative effect on all of financing. NPF non significant effect on all financing decisions, while FDR significant and negative effect on mudaraba and musharaka financing, but no significant effect on murabaha financing

Pamplin College receives $1 million gift for program on capitalism and freedom

OpenAIRE

Ho, Sookhan

2007-01-01

Virginia Tech's Pamplin College of Business has received a $1 million gift from BBandT Charitable Foundation to establish a teaching program in the college's finance department that explores the foundations of capitalism and freedom.

U.S. financing for international independent power production projects: Legal and business issues

International Nuclear Information System (INIS)

Buehler, J.E. Jr.

1990-01-01

Fundamental changes are occurring in the capital and project development markets both domestically and internationally. In the United States, the capital market has undergone dramatic changes recently, characterized by clubbed debt structures, uncertain pricing spreads, and declining leverage ratios. In response, project sponsors and their investment bankers have created innovative debt and equity structures to attract investors while at the same time minimizing project risk and preserving the flexibility for the project to operate optimally. The structure of a project financing, either U.S. or international, will vary depending on (1) the differing project management/control concerns, financial goals and risk profiles of the developer, equipment and fuel suppliers, bank lenders and equity sources, (2) regulatory issues, such as compliance with the Public Utility Holding Company Act (PUHCA) in the U.S. and similar national utility legislation in the host foreign country, and (3) the tax implications of a given structure to the project owner, lender, and equity supplier. In response to these investor-specific goals and/or constraints, various forms of project structures have been developed. The focus of this paper is on legal and business issues which arise in international project finance, using U.S.project finance as a model that expresses the risk profile that U.S. financial institutions are accustomed to and overlaying the unique risks that are added to project financing which are international in nature

Female-owned businesses and access to finance: evidence from the ...

African Journals Online (AJOL)

Thus, they do not have the same access to sources of information and capital. Female-owned businesses tend to rely on informal finance sources because of the unwillingness of the formal sector to lend to them. Female-owned clients are also effectively shut out from the formal market due to high collateral requirements ...

Financing Strategies of New Technology-Based Firms: A Comparison by Gender

Directory of Open Access Journals (Sweden)

Alicia Robb

2010-03-01

Full Text Available Technology-based firms have been and will continue to be important contributors to the U.S. economy. For the past two decades, technology firms have been a major source of innovation, business development and growth, and new jobs. Securing funding for new technology-based firms is particularly problematic, however, whether they are owned by women or men. Many such firms are built upon intellectual capital rather than on physical assets, so it is difficult to determine the value and prospects of the firm. The problem of asymmetric or incomplete information is especially acute (Brierley, 2001, often resulting in a shortage of capital or capital that can only be obtained under unfavorable terms and conditions. A number of researchers contend that one of the primary reasons women-owned firms tend to be smaller than firms owned by men is that women tend to concentrate in low-growth retail and service lines of business (Rosa et al., 1996; Du Rietz & Henrekson, 2000. These businesses have a higher risk of failure (Robb, 2002; Fairlie & Robb, 2008; Watson, 2003 combined with a higher level of difficulty in attracting sources of capital due to their limited prospects for growth and profitability (Menzies et al., 2004; Sabarwal & Terrell, 2008. More recently, however, some researchers have begun to attack the “myth” that women do not want high-growth businesses (Brush et al., 2001. They contend that a new generation of women entrepreneurs is willing to “go boldly where no one has gone before” by starting firms in the fields of technology and bioscience, where there are opportunities for significant growth and profits. In this paper we will examine the financing sources and strategies, by gender, for new technology-based firms using the Kauffman Firm Survey data. We identify not only sources of financing, but also financing gaps which may impede the ability of women to launch and grow technology-based firms.

Directory of financing sources for foreign energy projects

Energy Technology Data Exchange (ETDEWEB)

La Ferla, L. [La Ferla Associates, Washington, DC (United States)

1995-09-01

The Office of National Security Policy has produced this Directory of Financing Sources for Foreign Energy Projects. The Directory reviews programs that offer financing from US government agencies, multilateral organizations, public, private, and quasi-private investment funds, and local commercial and state development banks. The main US government agencies covered are the US Agency for International Development (USAID), the Export-Import Bank of the US (EXIM Bank), Overseas Private Investment Corporation (OPIC), US Department of Energy, US Department of Defense, and the US Trade and Development Agency (TDA). Other US Government Sources includes market funds that have been in part capitalized using US government agency funds. Multilateral organizations include the World Bank, International Finance Corporation (IFC), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and various organizations of the United Nations. The Directory lists available public, private, and quasi-private sources of financing in key emerging markets in the Newly Independent States and other developing countries of strategic interest to the US Department of Energy. The sources of financing listed in this directory should be considered indicative rather than inclusive of all potential sources of financing. Initial focus is on the Russian Federation, Ukraine, india, China, and Pakistan. Separate self-contained sections have been developed for each of the countries to enable the user to readily access market-specific information and to support country-specific Departmental initiatives. For each country, the directory is organized to follow the project life cycle--from prefeasibility, feasibility, project finance, cofinancing, and trade finance, through to technical assistance and training. Programs on investment and export insurance are excluded.

Overcoming barriers to wind project finance in Australia

International Nuclear Information System (INIS)

Kann, Shayle

2009-01-01

The wind power industry in Australia is expected to grow rapidly over the next decade, primarily due to a forthcoming expanded national renewable energy target (RET) which will mandate that renewable sources provide approximately 20% of Australia's electricity production by 2020. However, development of new wind generation in Australia has stalled as a result of several barriers to project finance, the mechanism through which most wind farms have been developed historically. This paper provides an overview of wind power financing in Australia in light of recent political and financial trends. Drawing upon existing literature and a series of stakeholder interviews, it identifies three primary barriers to project finance: regulatory risk surrounding legislation of the RET, semi-privatization of electricity retailers in New South Wales, and limited capital availability resulting from the recent global credit crisis. The paper concludes that the confluence of these barriers limits the availability of long-term contracts that provide revenue certainty for pre-construction wind projects, while simultaneously making these contracts a necessity in order to obtain project finance. In an attempt to mitigate these effects, this paper identifies four alternative development strategies that can be pursued.

The economic and financing viability of the OPR-1000 construction at Muria Peninsula

International Nuclear Information System (INIS)

Moch Djoko Birmano; Mochamad Nasrullah

2005-01-01

The study of the economic and financing viability of the OPR-1000 construction at Muria Peninsula have been done. This study is carried out with steps as follows: updating of newest OPR-1000 technical and economic data; survey of financing sources; the calculation of electricity generation cost, electricity tariff, construction cost of OPR-1000; and calculation of OPR-1000 financing viability by using feasibility criteria such as Net Present Value (NPV), Internal Rate of Return (IRR) and capital payback period. The calculation of generation cost, electricity tariff, construction cost and financing viability criteria (IRR, NPV, Payback Period)by using KEPCO Spread Sheet. From the results of calculations how that the electricity generation cost is 4.0866 cent/kWh, while the electricity tariff is 6.6399 cent/kWh(after Value Added Tax). The total construction cost of OPR-1000 is US $4,092.09 million (included interest and financial fee, excluded initial nuclear fuel). The calculation of financing viability in base case obtained that value of IRR, NPV and Payback Period for total investment is 10.37%. US$90.52 million and 12.11 years respectively. From these results can be concluded that with the electricity tariff of 6.640 cent/kWh or 0.0664 US$/kWh, basically this project of OPR-1000 construction is very feasible and beneficial. From investment side, this project can attract investor because the rate of capital return is high enough, profit in the end of economic life is big enough and payback period is short. (author)

Contratos de capital humano

OpenAIRE

Oscar Alejandro Goyes Viteri

2005-01-01

Este documento busca dar a conocer el tema de la inversión en capital humano a través de la celebración de contratos atípicos y utilizando la fiducia mercantil y la titularización como vehículos financieros. Por medio de estos contratos un estudiante obtiene los recursos que requiere para financiar su educación superior, a cambio de entregar un porcentaje de sus ingresos después de su graduación a quien financió la operación.

Financing innovative small and medium-sized enterprises in times of crisis

Directory of Open Access Journals (Sweden)

Dejan ERIC

2011-12-01

Full Text Available Small and Medium-sized Enterprises (SME in general and particularly innovative ones are becoming an increasingly important factor on the road to achieving smart, sustainable and comprehensive development. Because of their propensity to innovative undertaking and risk, SMEs contribute significantly to economic growth but are generally less productive and pay the cost of high rates of death and lower rates of profitability. Financing SMEs is risky and uncertain and for innovative SMEs it is even more difficult to access financing. When financing innovative activities, investors perceive high risks and it is even more emphasized in times of crisis when there is an increase in the cost of capital. Institutional support and governmental programmes have an important role in closing financial gap that innovative SMEs are faced with. Because the survival and development of SMEs is to a great extant determined by their ability to access favorable financing, the main objective of this paper is to provide policy recommendations for promoting availability of financing to innovative SMEs in order to foster economic recovery and more dynamic development of Serbia. The recommendations are to emerge from analyzes and evaluation of currently available sources of finance for innovative SMEs.

THE IMPACT OF BEHAVIORAL FINANCE ON STOCK MARKETS

Directory of Open Access Journals (Sweden)

FELICIA RAMONA BIRĂU

2012-09-01

Full Text Available This article presents a new approach in the analysis of capital markets, namely behavioral finance. Behavioralfinance is the study of the influence of the psychological factors on financial markets evolution. Financial investors arepeople with a very varied number of deviations from rational behaviour, which is the reason why there is a variety ofeffects, which explain market anomalies. Classical finance assumes that investors are rational and they are focused toselect an efficient portfolio, which means including a combination of asset classes chosen in such a manner as toachieve the greatest possible returns over the long term, under the terms of a tolerable level of risk. Behavioral financeparadigm suggests that investment decision is influenced in a large proportion by psychological and emotional factors.

"Reconceiving Change in the Age of Parasitic Capitalism: Writing Down Debt, Returning to Democratic Governance, and Setting Up Alternative Financial Systems-Now"

OpenAIRE

C. J. Polychroniou

2012-01-01

The five-year-long crisis of Western finance capitalism is pushing advanced liberal societies to a breaking point. If governments continue to be proxies of finance capital and aspiring political leaders cheerleaders for their financial backers, a catastrophic economic scenario is not really as far-fetched as some might like to think. Governments, industries, and households are under debt bondage, with the result that revenues from every sector of the economy are being diverted toward interest...

75 FR 45178 - Escalate Capital Partners SBIC I, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2010-08-02

..., Financings which Constitute Conflicts of Interest of the Small Business Administration (``SBA'') Rules and... contemplated to fund the ongoing operating needs of the business. The financing is brought within the purview... SMALL BUSINESS ADMINISTRATION Escalate Capital Partners SBIC I, L.P.; Notice Seeking Exemption...

Rekonsiliasi Perseteruan antara Efficient Market Hypothesis dan Behavioral Finance melalui Perspektif Neuroeconomics

Directory of Open Access Journals (Sweden)

Satia Nur Maharani

2014-08-01

Full Text Available Behavioral finance evaluation on Efficient Market Hypothesis causes debates among scientists supporting both theories. This article describes a comprehensive debate between rational behavior perspective on the Efficient Market Hypothesis with irrational behavior on behavioral finance, and how neuroeconomics shed some light on these two perspectives. This article gives a wider range of colors to represent investors behavior that is very complex, and encourage the growth of new generations of related theory of capital markets through interdisciplinary collaboration. Findings indicated that neuroeconomics perspective identified economic behavior through psychological functions.

Knowledge Capital, Intangible Assets, and Leverage: Evidence from U.S. Agricultural Biotechnology Firms

OpenAIRE

Sporleder, Thomas L.; Moss, Leeann E.

2004-01-01

Agricultural biotechnology firms are high technology companies. Firms in general, and high technology firms in particular, are a set of both assets in place and growth opportunities. This has important implications for managerial decision-making. Knowledge capital motivates exploitation of growth options, which affects firm cash flow. In turn, the level and volatility of firm cash flow influences firm financing decisions. Previous studies suggest that knowledge capital can influence both the ...

Basic criteria for the legal regulation of capital in cooperative societies

Directory of Open Access Journals (Sweden)

Adrián Celaya Ullíbarri

2005-12-01

Full Text Available The legislation virtually makes impossible the uptake and accumulation of capital resources in the long term. There have been numerous proposals for updating the legal regime aimed at creating new tools that enable the long-term financing of cooperatives.

Venture capital performance: the disparity between Europe and the United States

NARCIS (Netherlands)

Schwienbacher, A.; Hege, U.; Palomino, F.

2009-01-01

Abstract: This paper compares the success of venture capital investments in the United States and in Europe by analyzing individual venture-backed companies and the value generated within the stage financing process. We document that US venture capitalists generate significantly more value with

Analysis of Risks and Factors of Formation of the Structure of Financial Capital of Subject of Entrepreneurship

Directory of Open Access Journals (Sweden)

Rubaha Mariya V.

2013-11-01

Full Text Available The article is devoted to analysis of the structure of sources of financing economic subjects, study of commercial and financial risks of formation of the structure of financial capital of subjects of entrepreneurship. The article pays significant attention to calculation of the weighted average cost of capital, degrees of financial and operational leverages and also to assessment of their mutual influence upon results of financial and economic activity of an enterprise. It studies impact of factors of external environment on the structure of sources of financing subjects of entrepreneurship, these factors include specific features of operational activity, quality and liquidity of assets, concentration of own capital, stages of the life cycle, level of profitability of operational activity, credit history of a borrower and a necessity to ensure the prospective repayment capacity, and financial mentality of owners and managers of an enterprise. The article also analyses factors of external environment of an enterprise (cost of attraction of financing from different sources, commodity and financial markets situations, state regulation and control over business processes, level of taxation of profit of enterprises and also income of physical persons and legal entities – investors from owning securities that influence the possibilities to attract financial capital and, consequently, prospects of efficient functioning of a subject of entrepreneurship in a long-term prospect.

The Experience of Risk-Adjusted Capitation Payment for Family Physicians in Iran: A Qualitative Study.

Science.gov (United States)

Esmaeili, Reza; Hadian, Mohammad; Rashidian, Arash; Shariati, Mohammad; Ghaderi, Hossien

2016-04-01

When a country's health system is faced with fundamental flaws that require the redesign of financing and service delivery, primary healthcare payment systems are often reformed. This study was conducted with the purpose of exploring the experiences of risk-adjusted capitation payment of urban family physicians in Iran when it comes to providing primary health care (PHC). This is a qualitative study using the framework method. Data were collected via digitally audio-recorded semi-structured interviews with 24 family physicians and 5 executive directors in two provinces of Iran running the urban family physician pilot program. The participants were selected using purposive and snowball sampling. The codes were extracted using inductive and deductive methods. Regarding the effects of risk-adjusted capitation on the primary healthcare setting, five themes with 11 subthemes emerged, including service delivery, institutional structure, financing, people's behavior, and the challenges ahead. Our findings indicated that the health system is enjoying some major changes in the primary healthcare setting through the implementation of risk-adjusted capitation payment. With regard to the current challenges in Iran's health system, using risk-adjusted capitation as a primary healthcare payment system can lead to useful changes in the health system's features. However, future research should focus on the development of the risk-adjusted capitation model.

78 FR 73915 - Solutions Capital I, L.P., License No. 03/03-0247; Notice Seeking Exemption Under Section 312 of...

Science.gov (United States)

2013-12-09

..., Financings which Constitute Conflicts of Interest of the Small Business Administration (``SBA'') Rules and... Business Holdings, Inc., 30775 Barrington, Suite 100, Madison Heights, MI 48071 (``Dorsey''). The financing... SMALL BUSINESS ADMINISTRATION Solutions Capital I, L.P., License No. 03/03-0247; Notice Seeking...

Financing of LNG projects in developing countries and the role of the World Bank

International Nuclear Information System (INIS)

Levitsky, M.; Nore, P.

1992-01-01

The future quantities of capital required by the LNG industry will be very large. However, the continued rapid development of the industry is justified by the economic and environmental benefits of increased natural gas use. It is likely that the World Bank will continue to play a modest absolute role in supplying capital to the industry. The Bank can, however, play a crucial role in assisting governments in formulating appropriate energy policies and project development strategies and thereby creating the right policy and financial climate. The Bank can also provide a relatively modest amount of financial backing to projects, which nonetheless can help to generate larger volumes of finance from other sources. In the long run, LNG projects which are well structured and which operate within an appropriate policy environment should succeed in attracting financing even in today's more competitive environment

Bond Insurance Can Help Lower the Cost of Financing Your Facilities.

Science.gov (United States)

Sockwell, Oliver R.

1993-01-01

For many colleges, universities, and teaching hospitals, the need to expand, renovate, or replace aging structures and equipment is crucial. Institutions need not be large and well known to tap nationwide capital pools. By using municipal bond insurance when issuing tax-exempt bonds for financing, they improve their credit rating and increase…

Improving the Pedagogy of Capital Structure Theory: An Excel Application

Science.gov (United States)

Baltazar, Ramon; Maybee, Bryan; Santos, Michael R.

2012-01-01

This paper uses Excel to enhance the pedagogy of capital structure theory for corporate finance instructors and students. We provide a lesson plan that utilizes Excel spreadsheets and graphs to develop understanding of the theory. The theory is introduced in three scenarios that utilize Modigliani & Miller's Propositions and…

The Capital Structure of the Companies Quoted on the Warsaw Stock Exchange

Directory of Open Access Journals (Sweden)

Paweł Wnuczak

2010-12-01

Full Text Available This paper presents the results of the research on the influence of capital structure on financial results of the companies quoted on the Warsaw Stock Exchange. The research shows a relation between a capital structure and a potential to increase firm value, return on equity and return on sales. The results of the research indicate how the companies quoted on the Warsaw Stock Exchange finances its assets and how it influences its financial standing.

定向增发企业的营运资金管理研究——来自中国上市公司的证据%A Study on Working Capital Management When Financing by PPE --Based on Evidences from China＇ s Listed Companies

Institute of Scientific and Technical Information of China (English)

曹玉珊

2012-01-01

Working capital management is one of big three financial management activities along with longterm investment decision and long-term financing management. Current researches are mainly focus on operating activities to discuss management efficiency of operating working capital and few pay attention to strategic working capital management. It can be said that working capital management involves strategic management requirement. Based on such requirement, working capital management can be divided into three correlated subsidiary problems. The first is to use suitable ratios, such as the current ratio, acid-test ratio and liquidity ratio to judge whether the working capital policy is conservative or not; The second is to manage the channel of working capital financing, including short-term resource （ current liability）, long-term source （ long-term liability plus owner＇ s equity） and savings from long-term investment; The third is to apply strategic performance assessment, which contains profit margin （ROS）, return on asset （ROA） and return on equity （ROE） to assess the efficiency of working capital management. As a behavior of strategic management, the Private Placement of Equity （PPE） would affect working capital management deeply. On the other hand, the outbreak and spread of financial crisis in 2006 has a great influence on enviromnent for working capital management. As a result, Chinese corporations regard the private placement of equity （PPE） as the first choice to solve cash reflow problems. On account of theoretical relation and current background, this paper probes evidences based on data from China＇ s listed companies which used PPE for financing in 2007. Hypotheses relate to those three subsidiary problems of working capital management： Hl is about whether the working capital policy in firms which finance by PPE is conservative or not; H2 is about whether PPE will affect other sources of working capital or not and how it

On the Relative Importance of Corporate Working Capital Determinants: Findings from the EU Countries

OpenAIRE

Julia Koralun-Bereźnicka

2014-01-01

The corporate finance literature traditionally abounds in both theoretical discussion and empirical research concerning financing and long-term investment decisions. Managing short-term resources appears to be a much less remarkable issue, despite this resource's significant share of a firm's balance sheet and the time and effort required to manage the current assets and liabilities. This article provides insights into the relative importance of the selected working capital determinants from ...

Financing of the nuclear fuel cycle

International Nuclear Information System (INIS)

Wyart, P.

1975-01-01

Fuels account for only a modest share of the cost of nuclear energy: approximatively one-fourth whereas the capital financing charges exceed one-half. But it is necessary to take account of the combined effect of the magnitude of the needs in coming years and of the resulting acceleration due to the coming on stream of increasingly numerous nuclear power plants and to take account of the characteristics of the fuel cycle which is especially long because of technical requirements and the necessity to establish safety stocks [fr

Integrasi Intellectual Capital dan Knowledge Management serta Dampaknya pada Kinerja Bisnis Perusahaan Farmasi

Directory of Open Access Journals (Sweden)

Sigit Hermawan

2015-12-01

Full Text Available The purpose of this study was to examine the effect of the integration of Intellectual Capital (IC and Knowledge Management (KM on the performance of the pharmaceutical company’s business in East Java. This study included an explanatory research using finance and accounting manager 44 pharmaceutical companies in East Java as the respondent. The variables used in this study is human capital (HC, structural capital (SC, relational capital (RC, knowledge management (KM enablers, knowledge management (KM process and business performance (BP. The results stated that integration of IC and KM can be done either partially or simultaneously and proven effect on the business performance of pharmaceutical companies in East Java .

Off-balance-sheet financing to the refining industry

International Nuclear Information System (INIS)

Jenkins, J.H.

1995-01-01

Off-balance-sheet lending, or project finance, is becoming an increasingly popular means of capital formation in the refining and petrochemical industries. However, these transactions are substantially different from traditional corporate lending, and the demands placed on the borrower to examine, substantiate, and support the project are far greater. The following paper examines ways in which international banks and other lenders evaluate off-balance-sheet refinery projects and suggests ways to better structure financial representations

The Effects of Foreign Capital Inflows

Directory of Open Access Journals (Sweden)

Sangyong Joo

1998-03-01

Full Text Available This thesis analyzes the pre-1996 foreign capital inflows to Korea and the major impact of macroeconomic variables, discussed the background of South Korean foreign exchange crisis. VAR model using the analysis results reflect the impact of capital inflows and the increase in the volume of overseas department of communication makes the current account deteriorated, and no increase in revenue. It is well known that the positive effects of free capital flows can lower interest rates, but after 1980 the results of analysis of data showed that, despite the freedom of capital inflows, but interest rates did not decline. In contrast, the increase in domestic credit makes incomes increase, although in the short term, but it makes interest rates decline. Under the circumstance than the inflow of overseas capital did not bring positive effects to economic circumstances, although the private sector (private enterprises and the number of financial institutions has worsened the financial structure, but the government finances and private consumption has been showing a strong and stable trend, deflation does not exist. One particularly striking is the sudden increase of the phenomenon of short-term debt, although a higher proportion of short-term debt, but the basic conditions for economic point of view, the inevitability and certainty of the foreign exchange crisis, there is still room for debate.

The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations

Directory of Open Access Journals (Sweden)

Stropnik Neca

2017-12-01

Full Text Available The existing empirical research into the association between intellectual capital disclosures by organisations and the cost of debt is scarce or is based solely on the samples of the (large listed organisations. Since agency issues between management/owners and lenders exist also in (large private organisations whose financing is greatly dependent on loans and whose audited annual reports can be a source of additional information for external users, we performed an empirical research to find the answer to the question whether the level of intellectual capital disclosure (as a whole and of its sub-categories of organisations is associated with the cost of their debt capital. Our study was performed on a sample of private Slovenian organisations with audited annual reports. The results of our research did not reveal that lenders would take into account intellectual capital disclosures by Slovenian private audited organisations as the information about the potential for their future cash flows when deciding on the cost of debt issued to these organisations.

Optimal Priority Structure, Capital Structure, and Investment

OpenAIRE

Dirk Hackbarth; David C. Mauer

2012-01-01

We study the interaction between financing and investment decisions in a dynamic model, where the firm has multiple debt issues and equityholders choose the timing of investment. Jointly optimal capital and priority structures can virtually eliminate investment distortions because debt priority serves as a dynamically optimal contract. Examining the relative efficiency of priority rules observed in practice, we develop several predictions about how firms adjust their priority structure in res...

THE FORMATION OF A CAPITAL INVESTMENT PROJECT INDUSTRIAL ENTERPRISES

Directory of Open Access Journals (Sweden)

Y. S. Potashnik

2015-01-01

Full Text Available The article specifies the main sources of financing of investment projects of industrial enterprises, among which are proposed to distinguish between belonging to the participants (shareholders of the company and others. Shows the sequence and content of the steps in building the industrial enterprises of a specific capital investment project. The main requirements for the capital structure of the investment project. As such invited to consider the requirements for the financial feasibility of the project, minimize the cost of capital of the project, the need for additional investments and changes of property shares members of the company, and not exceeding the maximum level of the probability of occurrence of insolvency of the enterprise. The approach allowing to assess the adequacy of the probability of occurrence of insolvency of the enterprise in one way or another the capital structure of the project the maximum allowable (limit level. The methodical examples of basic calculations.

Cooperativismo agropecuário: os desafios do financiamento das necessidades líquidas de capital de giro

Directory of Open Access Journals (Sweden)

Régio Márcio Toesca Gimenes

2006-08-01

Full Text Available O cooperativismo possui grande relevância para a economia brasileira, na medida em que atua apoiando o desenvolvimento econômico e social, principalmente das pequenas propriedades rurais. As cooperativas agropecuárias atuam no fomento e na comercialização dos produtos agrícolas, inclusive implantando novos cultivos e agregando valor aos produtos por meio de complexos agroindustriais. O crescimento dessas organizações, sobretudo pela verticalização de suas operações, tem exigido a busca de fontes de capital para financiar as necessidades líquidas de capital de giro dos seus negócios. Decisões sobre financiamento afetam diretamente a saúde financeira das organizações, à medida que produzem um risco financeiro maior. Portanto é relevante uma investigação sobre as fontes de financiamento das necessidades líquidas de capital de giro para as cooperativas agropecuárias, sendo este o objetivo primordial do artigo.The cooperativism has great relevance to Brazilian economics, as it supports the social and economical development, mainly in the small agricultural properties. The farming cooperatives work on the processing and commercialization of agricultural products, including implanting new kinds of crops and aggregating value to the products through agroindustrial complexes. The growth of these organizations, mainly through verticalization of its operations, has required the quest for capital founts to finance the needs for fluent capital in their business. Decisions concerning financing affect directly the financial health of the organizations, as they produce a bigger financial danger. Therefore it is relevant an investigation on the financing founts for the needs of fluid capital to the agricultural cooperatives, and this is the main goal of this article.

Prof. Wu Xiaoqiu:China Is Striving for the World's Most Developed Capital Market

Institute of Scientific and Technical Information of China (English)

Sun Yongjian; Zhang Yue

2007-01-01

@@ China's capital market is a hot issue in the new year. The best strategy to develop the Chinese capital market in the coming 15 to 20 years was discussed in the China Capital Market Forum, which was held in China at Renmin University on January 13. Government officials, scholars, and entrepreneurs commented that by 2020, the Chinese capital market will develop into one of the best capital markets in the world,not only in terms of size, but also asset quality, liquidity and dynamic trade. Is this a realistic goal? What steps should we take to pursue this target? With these questions in mind, after the forum, China's Foreign Trade interviewed Prof. Wu Xiaoqiu, Vice President of Renmin University of China,and the Director of the Finance & Securities Institute of Renmin University.

What Determines the Financing Decision in Corporate Takeovers : Cost of Capital, Agency Problems, or the Means of Payment?

NARCIS (Netherlands)

Martynova, M.; Renneboog, L.D.R.

2008-01-01

Abstract: How is a takeover bid financed and what is its impact on the expected value creation of the takeover? An analysis of the sources of transaction financing has been largely ignored in the takeover literature. Using a unique dataset, we show that external sources of financing (debt and

A New Regime of SME Finance in Emerging Asia: Enhancing Access to Growth Capital and Policy Implications

OpenAIRE

Shigehiro Shinozaki

2014-01-01

While finance is critical for small and medium-sized enterprises (SMEs) to survive and grow, most SMEs suffer from poor access to finance. Given the pronounced global financial uncertainty, stable access to appropriate funding sources has become even more difficult for SMEs to attain. Lessons from the global financial crisis have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their domestic financial systems. This paper uses empiric...

Low-wealth Entrepreneurs and Access to External Financing

DEFF Research Database (Denmark)

Frid, Casey J.; Wyman, David M.; Gartner, Bill

2016-01-01

Purpose: -The purpose of this paper is to explore the relationship between low-wealth business founders in the USA and external startup funding. Specifically, the authors test whether a founders’ low personal net worth is correlated with a lower probability of acquiring funding from outside sources...... demonstrates the importance of personal wealth as a factor in acquiring external startup financing compared to human capital, industry, or personal characteristics. Social implications: -If the ability to acquire external funding is significantly constrained, the quality of the opportunity and the skill...... endowments at the outset. Originality/value: -Unlike prior studies, the data used are not subject to survivor bias or an underrepresentation of self-employment. The statistical model jointly estimates acquisition of financing and the amount received. This resolves selection and censoring problems. Finally...

What determines the financing decision in corporate takeovers : Cost of capital, agency problems, or the means of payment?

NARCIS (Netherlands)

Martynova, M.; Renneboog, L.D.R.

2009-01-01

How is a takeover bid financed and what is its impact on the expected value creation of the takeover? An analysis of the sources of transaction financing has been largely ignored in the takeover literature. Using a unique dataset, we show that external sources of financing (debt and equity) are

78 FR 2313 - CapitalSpring SBIC, L.P., License No. 09/79-0454, Notice Seeking Exemption Under the Small...

Science.gov (United States)

2013-01-10

... Business Investment Act of 1958, as amended (``the Act''), in connection with the financing of a small... SMALL BUSINESS ADMINISTRATION CapitalSpring SBIC, L.P., License No. 09/79-0454, Notice Seeking Exemption Under the Small Business Investment Act, Conflicts of Interest Notice is hereby given that Capital...

77 FR 42353 - Escalate Capital Partners SBIC I, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

Science.gov (United States)

2012-07-18

... Regulations because Escalate Capital Partners SBIC I, L.P. proposes to Finance a small business in which its... SMALL BUSINESS ADMINISTRATION [License No. 06/06-0335] Escalate Capital Partners SBIC I, L.P.; Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest...

The role of the hierarchical theory in explaining the capital structure of the firms based on enterprise life cycle model

Directory of Open Access Journals (Sweden)

Jamal Bahiri Saleth

2016-01-01

Full Text Available Capital structure is a controversial issue in the field of corporate finance. There are several studies to find a way to determine the optimal capital structure to minimize the cost of capital and maximize the corporate value. In fact, capital structure is a combination of firms’ liabilities and capital to meet long term assets. This paper investigates the role of the hierarchical theory in explaining the capital structure of the firms based on enterprise life cycle model on selected firms listed on Tehran Stock Exchange (TSE using three methods of net equities, net liabilities and retained earnings. The study uses Park and Chen’s (2006 method [Park, Y., & Chen, K. H. (2006. The effect of accounting conservatism and life-cycle stages on firm valuation. Journal of Applied Business Research (JABR, 22(3, 75-92.] to categorize the life cycle of 81 randomly selected firms from TSE over the period 2007-2012. The results indicate that the hierarchical theory represents the growing firms better than the matured firms do. The results also show that firms were more willing to reduce their dividend per share for financing their projects.

Arrangement of financing for highway infrastructure projects under the conditions of Public–Private Partnership

Directory of Open Access Journals (Sweden)

Vialeta Khmel

2016-03-01

Full Text Available This study focused on the mechanism of attracting funds to finance projects in the field of highway infrastructure construction through Public–Private Partnership (PPP. The basis and principles for development of the financial strategy of a project company were defined in this paper. The proposed financial strategy was developed on the basis of diversification of sources of funds and financing instruments with regard to the stages of the project life cycle. The parameters for development of the financial strategy were defined to improve the mechanisms of attraction of the capital for the project and increase the capacity of the project company to pay debts. The proposed financial strategy can be taken as a basis for development of the financial strategy for any project implemented through PPP. The capital market is not stable; therefore, in addition, an algorithm was proposed for more precise selection of sources of financial resources.

Testing static tradeoff theiry against pecking order models of capital ...

African Journals Online (AJOL)

We test two models with the purpose of finding the best empirical explanation for corporate financing choice of a cross section of 27 Nigerian quoted companies. The models were developed to represent the Static tradeoff Theory and the Pecking order Theory of capital structure with a view to make comparison between ...

School Facilities Funding and Capital-Outlay Distribution in the States

Science.gov (United States)

Duncombe, William; Wang, Wen

2009-01-01

Traditionally, financing the construction of school facilities has been a local responsibility. In the past several decades, states have increased their support for school facilities. Using data collected from various sources, this study first classifies the design of capital aid programs in all 50 states into various categories based on the scope…

The Effect of Social Capital on Customer’s Repayment Rate at Islamic Microfinance Institution

Directory of Open Access Journals (Sweden)

Jaenal Effendi

2016-07-01

Full Text Available The potency of Micro and Small Enterprises (MSEs in Indonesia which is great, is not directly proportional to the ease of getting capital from formal financial institutions such as banks because it is not bankable. Meanwhile, microfinance institutions (MFIs that provide financing to the MSEs are currently thriving. This condition exposes the existence of factors that cause the MFIs continuesly providing financing to MSEs which are not bankable. This research aims to analyze the effect of social capital toward the repayment rate of Islamic MFIs’ customers. The methods used in this research was the logistic regression. The results showed variable relationship with BMT employees, relations with other customers, and Islamic recitation had positive and significant effect toward the repayment rate of the customer. While recommendations, membership status, and travel time from home to the BMT had negative and significant effect.  Variable outside the social capital indicator which is income rate had no significant effect.DOI: 10.15408/aiq.v8i2.2631

Financial resources for development. Capital markets in developing countries: a study on borrowing by developing countries in the emerging capital markets of the Middle East

Energy Technology Data Exchange (ETDEWEB)

Nashashibi, H S

1980-10-01

Private transfers of capital from the Organization of Petroleum Exporting Countries (OPEC) to developing countries are intended to complement private transfers from the Organization of Economic Cooperation and Development (OECD) by tapping the emerging capital markets in the Middle East. Developing countries will be able to diversify their borrowing and gain additional financing. The long-term investment of oil-producing countries will benefit and the pressures on the banking institutions to recycle funds will lessen. Middle East capital markets include international loans and international bonds. The history of the Kuwaiti dinar (KD) bond market, with its advantages for both investors and borrowers, illustrates the successful development of a capital market. Financial intermediation needs to be improved, however, if the Middle East is to become efficient enough to compete with the Euromarkets. Efficiency will require different measures and should reflect strengthening relationships among Middle East nations. (DCK)

UK PhD Assessment in Accounting and Finance: Social Capital in Action

Science.gov (United States)

Smith, Sarah Jane; Urquhart, Vivien

2018-01-01

Assessment lies at the centre of PhD degree quality standards, with quality assurance relying on independent external examiners. This study investigates the role of the viva and the selection of external examiners from within the accounting and finance discipline across UK institutions. A questionnaire survey and follow-up interviews with…

Environmental policies and risk finance in the green sector: Cross-country evidence

International Nuclear Information System (INIS)

Criscuolo, Chiara; Menon, Carlo

2015-01-01

This paper provides a detailed description of venture capital investment in the green sector across 29 countries over the period 2005–2010, and identifies the role that policies might play in explaining observed cross-country differences. The analysis is based on a deal-level database of businesses seeking financing, combined with indicators of renewable policies and government R&D expenditures. The econometric analysis relates the number of deals and their volumes in a country to deployment and supply policies using count data and limited dependent variable (Tobit) models. The results suggest that both supply side policies and environmental deployment policies, designed with a long-term perspective of creating a market for environmental technologies, are associated with higher levels of venture capital relative to more short-term fiscal policies. When focusing on policies related to renewable energy generation, the results confirm the positive association of generous feed-in tariffs (FITs) with venture capital investment. However, in the solar sector excessively generous FITs tend to discourage investment, perhaps reflecting a lack of credibility over the longer term. Thus, both sets of results point to long-term policy stability, sustainability and credibility as important policy features to ensure Venture capital backing of innovative and risky ventures in a country's green sector. -- Highlights: •Risk-finance in the green sector is likely to face more challenges than in other hi-tech sectors. •Supply and deployment policies are associated with more investments relative to fiscal policies. •FITs have a positive effect, but in the solar sector very generous FITs discourage investments

Probing into petroleum chemistry enterprise bonding and financing%石油化工企业债券融资探讨

Institute of Scientific and Technical Information of China (English)

李雯雯; 徐春骐

2012-01-01

作为资本密集型的国民经济基础行业,石化行业的资金约束是制约其经营发展和战略升级的主要因素之一。随着我国市场经济的发展和资本市场的不断完善,企业债券融资作为一种重要的直接融资方式,正以其广泛的资金来源、较低的融资成本等优势愈来愈受到各方重视。本文以1996～2011年间发债石化企业数据为基础,对石化企业融资结构和债券发行情况进行分析,对石化企业通过债券融资的优势进行阐述,同时结合现有法律法规及市场条件对石化企业债券发行及定价问题进行探讨。%Capital shortage is one of the main constraints on the business and strategic develpment of the national petrochemical industry which is capital-intensive.With the develpment of China＇s market economy and continuous improvement of capital markets,as an importan part of direct financing,corporate bond financing has received more and more attention for its wide range of funding sources,lower financing costs and other advantages.The number of petrochemical companies issuing bonds and size of bond financing has significantly improved in recent years with government policy support and high demand for broadening the financing channels.The status of petrochemical industry corporate bond financing,the advantages of bond financing,the practising of bond issuance will be discussed in this paper.

Working Capital Management Policies and Returns of Listed Manufacturing Firms in Ghana

Directory of Open Access Journals (Sweden)

Adam Anokye M.

2017-06-01

Full Text Available This study sought to determine the effects aggressive/conservative current asset investment and financing policies have on firms′ return for six manufacturing firms listed at Ghana Stock Exchange for a period of 2000-2013. Data were obtained from the annual reports of the firms and the Ghana Stock Exchange. The study adopted longitudinal explanatory non-experimental research design applied to dynamic panel ARDL framework in analyzing the data. The results revealed that the current asset investment and financing policies have highly significant positive effects on returns to equity holders in the long-run. The empirical evidence suggests that conservative current asset investment policies increase firms return while conservative financing policies yields negative returns. The study therefore would enable finance managers to be able to fashion out the appropriate working capital management policies. A firm pursuing conservative current asset investment policy should balance it with aggressive current asset financing policy in order to enhance profitability and create value for their investors.

Off-balance-sheet financing can generate capital for strategic development.

Science.gov (United States)

Campobasso, F D

2000-06-01

To manage their real estate portfolios effectively and obtain funding for strategic development, IDSs should consider adopting off-balance-sheet financing strategies, such as sale-and-leaseback transactions, synthetic leases, and joint-venture arrangements. Under these approaches, real estate assets are moved off of the organization's balance sheet via a partial or complete transfer of ownership to a third-party entity. The organization typically retains a satisfactory degree of control over the assets as lessee in sale-and-leaseback and synthetic-lease arrangements, or limited or minority partner in a joint venture, while freeing up cash to use for other strategic purposes.

Analysis of Bonds as an Instrument for Financing Mining Investments

Science.gov (United States)

Ranosz, Robert

2017-06-01

The purpose of this article is to examine the structure of financing for mining enterprises in the years 2007-2013, with particular emphasis on bonds. The document pays special attention to Polish mining enterprises. The financing structure analysis was based on data collected from financial statements (cash flows) of the largest mining companies in Poland, and their comparison with the results of global mining enterprises pursuant to reports prepared by international advisory firms. The article takes into account capital sources such as: corporate bonds, bank loans and issue of shares. As indicated by the performed analysis, mining enterprises both around the world and in Poland are increasingly eager to take advantage of obtaining business financing from issue of corporate bonds. It should also be recognized that in the analyzed period, both global and Polish mining enterprises deviate from forms of financing such as issue of shares. This may be caused by the fact that the bonds market in Poland is becoming increasingly popular, mainly due to interest rate on bonds being lower in comparison with bank loans. Another reason may be that banks and potential buyers of shares are less eager to finance this type of investment due to a relatively substantial risk acceptable to bondholders.

Corporate governance in banks operating in Serbia with the majority foreign capital

Directory of Open Access Journals (Sweden)

Obradović Zoran

2014-01-01

Full Text Available The importance attached to successful corporate governance in banks derives primarily from the importance that the banks have in the financial and economic system of the country. Namely, banks are the only legally authorized depositing institutions and as such are the main generators of savings and financing for the needs of economy by supplying it with the working capital, in view of a relatively small share that the capital market has in the economic system. During many years of sanctions, isolation and bombardment, our companies have remained without working capital. In addition, the advent of foreign investments often does not imply that the parent companies are providing sufficient working capital, but this capital must be provided from the domestic banks. What derives from such a role of banks is their immediate responsibility for proper allocation of free funds to the economy and their best deployment.

THE PSYCHOLOGY OF FINANCE: ONE DECADE, TWO NOBEL’S

Directory of Open Access Journals (Sweden)

ADRIAN MITROI

2014-05-01

Full Text Available The study of behavioral finance combines the investigation and expertise from research and practice into smart portfolios of individual investors’ portfolios that can overcome cognitive errors and misleading emotions and drive investors to their long term goals of financial prosperity and capital preservation. If 10 years ago, Behavioral Finance was still considered and incipient science, the first Noble Prize in Economics awarded to the study of Behavioral Economics establish the field as a new, respected study of economics. 2013 Nobel Prize was awarded to three economists, one of them considered the one of the founders of the Behavioral Finance. As such, by now we are entering the coming of age of behavioral finance. It is now establish as a science of understanding investors behaviors and distill these patterns with quantitative finance to provide practical models grounded on robust understanding of investors as well as investments. The practical application of BiFi can help us discover how individual and group herd behaviors can lead to biased investment decisions, understand the resorts behind their decision making processes and develop practical tools to improve portfolio and risk management processes, so in the end to be better serve the client-owner of the funds managed an finally to help for the better good of society at large

Impact of Financing Instruments and Strategies on the Wind Power Production Costs: A Case of Lithuania

Science.gov (United States)

Bobinaite, V.; Konstantinaviciute, I.

2018-04-01

The paper aims at demonstrating the relevance of financing instruments, their terms and financing strategies in relation to the cost of wind power production and the ability of wind power plant (PP) to participate in the electricity market in Lithuania. The extended approach to the Levelized Cost of Energy (LCOE) is applied. The feature of the extended approach lies in considering the lifetime cost and revenue received from the support measures. The research results have substantiated the relevance of financing instruments, their terms and strategies in relation to their impact on the LCOE and competitiveness of wind PP. It has been found that financing of wind PP through the traditional financing instruments (simple shares and bank loans) makes use of venture capital and bonds coming even in the absence of any support. It has been estimated that strategies consisting of different proportions of hard and soft loans, bonds, own and venture capital result in the average LCOE of 5.1-5.7 EURct/kWh (2000 kW), when the expected electricity selling price is 5.4 EURct/kWh. The financing strategies with higher shares of equity could impact by around 6 % higher LCOE compared to the strategies encompassing higher shares of debt. However, seeking to motivate venture capitalists, bond holders or other new financiers entering the wind power sector, support measures (feed-in tariff or investment subsidy) are relevant in case of 250 kW wind PP. It has been estimated that under the unsupported financing strategies, the average LCOE of 250 kW wind PP will be 7.8-8.8 EURct/kWh, but it will reduce by around 50 % if feed-in tariff or 50 % investment subsidy is applied.

Development of Capital Markets in Turkey and Analysis of Financial Structure of the Intermediary Institutions

Directory of Open Access Journals (Sweden)

Fikret Kartal

2013-08-01

Full Text Available Capital markets, where demand and supply for medium to long term finance meet, are more active and efficient in higher income countries. Capital markets are insufficiently developed in emerging countries such as Turkey that have the structural and institutional obstacles and lack of capital. The first market with securities was established in 19th century in the Ottoman Empire; the Turkish capital markets have gone through the reform programmes as a part of liberalization started in 1980; but the banking sector constitutes the biggest part of the financial sector. The paper presents the development of capital markets in Turkey and analyzes the intermediary institutions by using the financial statements and ratios for the period December 2007-December 2011.

Estrutura de capital, dividendos e juros sobre o capital próprio: testes no Brasil Capital structure, dividends and interests on equity: tests in Brazil

Directory of Open Access Journals (Sweden)

Mariano Seikitsi Futema

2009-04-01

Full Text Available A estrutura de capital e os dividendos são dois dos temas mais estudados em finanças corporativas. Em 2002, Fama e French estudaram esses dois temas simultaneamente dentro do contexto das teorias de tradeoff estática e pecking order. A análise conjunta significa reconhecer que o dividendo afeta a estrutura de capital e vice-versa, o que gera um problema de endogeneidade. Estendendo o estudo de Fama e French e adaptando a análise para a realidade brasileira com a inclusão de mais uma variável dependente, os juros sobre o capital próprio, o objetivo deste artigo é analisar as relações conjuntas da estrutura de capital, dividendos e juros sobre o capital próprio das empresas brasileiras para o período de 1995 a 2004. Em linhas gerais, os resultados confirmam boa parte das previsões das teorias, embora a distribuição de lucros no Brasil ainda seja muito baixa, comparada com a americana. A lucratividade demonstrou ser a variável explicativa de maior peso e influência tanto para a distribuição de lucros como para a alavancagem.Capital structure and dividends have been frequently studied in corporate finance. In 2002, Fama and French simultaneously analyzed these two subjects in the context of tradeoff and pecking order theories. The simultaneous analysis means acknowledging that dividend influences capital structure and vice versa, leading to an endogeneity problem. Extending and adapting Fama and French's study to the Brazilian environment and including yet another dependent variable, i.e. interest on equity, this article aims to analyze the relationship among capital structure, dividends and interest on equity in the context of Brazilian companies. The analysis comprises the period from 1995 to 2004. Results corroborate many of the predictions of tradeoff and pecking order theories, despite the fact that dividend payout in Brazil is low when compared to the United States. Profitability was the most significant variable in

Strengthening the Referral System through Social Capital: A Qualitative Inquiry in Ghana.

Science.gov (United States)

Amoah, Padmore Adusei; Phillips, David R

2017-10-25

The referral system in health care has been noted as very influential in determining which services are accessed and when. Nonetheless, existing studies have relied on specific measurable factors relating to health personnel, transportation and communication infrastructure, and finance to explain the challenges facing the referral policy in developing countries. While this is understandable, the role of social capital remains mostly uncharted even though it is implicit in the well-known lay referral system. Using various facets of the social capital concept, this paper empirically examines how the resources embedded in both structural and cognitive aspects of social relationships influence knowledge of, and adherence to, referral policy. This study is based on semi-structured in-depth interviews conducted with 79 adults in the Ashanti Region of Ghana in 2015. Of the 79 participants, 28 lived in urban areas and 51 in rural localities. Eight health personnel and eight community leaders also contributed to the study. Additionally, six focus group discussions were held. The findings indicated that both cognitive and structural forms of social capital considerably underpinned the ability and willingness of people to adhere to the referral process. Moreover, the role of social capital was double-barrelled. It contributed in a significant way to encouraging or dissuading potential patients from rightly embracing the policy. In addition, precepts of social capital reinforced both positive and adverse effects of the other determinants of the policy such as finance and transportation. However, the magnitude of such impact was linked to how 'resourceful' and 'trustworthy' one's available social acquaintances were. The paper suggests that a cautious engagement with social capital will make it a potentially powerful tool for understanding the gaps in and improving the effectiveness of referral policy.

Using commodity-indexed financing to fund OPEC/Alaska's development projects

International Nuclear Information System (INIS)

Essayyad, Musa

1992-01-01

An impediment to the process of economic diversification in OPEC and Alaska is the lack of favourable access to local and international capital markets to finance development projects, particularly mineral resource development. This paper highlights the importance of commodity-indexed bonds, including oil- and gold- indexed bonds, as a financing alternative to supplement the supply shortage of loanable funds from conventional, local and international commercial banks. The indexation concept is discussed, features of different bonds issued to date are contrasted and the benefits and risks for borrowers and investors are highlighted. An analysis is made of the experience of OPEC and Alaska in using commodity-indexed bonds and the feasibility of Alaska and some OPEC countries entering into commodity-linked-financed joint ventures is examined. Future prospects for commodity-linked bonds are explored. Not withstanding the fact that the immediate market timing is unfavourable, the long-term benefits of commodity-indexed securities are recognized. (U.K.)

The Effect of Financial Reporting Quality on Financing and Investment

Directory of Open Access Journals (Sweden)

Windy Angela

2017-03-01

Full Text Available This paper analysis the effect of reporting quality on financing and investment. It is important for us to understand the relation among them in order to prepare Indonesian companies for ASEAN Economic Community in 2015. The study examines the effect of financial reporting quality on financing and investment of 15 Indonesian companies with large market capitalization based on the Standard and Poor’s Rating Services in its first survey of the major corporate credit trends in the Association of Southeast Asian Nations (ASEAN. Those companies may still be under-investing in relation to its regional peers. The results suggest that (1 financial reporting quality has negative effect on financing. (2 financial reporting quality has positive effect on investment among companies with higher likelihood of over-investing and negative effect on investment among those with higher likelihood of under-investing.DOI: 10.15408/etk.v16i1.4600 

保障性住房融资创新的路径选择%Analysis on the Innovation Route Choice of Affordable Housing Financing

Institute of Scientific and Technical Information of China (English)

谭禹

2015-01-01

The development of affordable housing is facing the bottleneck of capital bottleneck. This paper analyzes the main problems of the affordable housing financing, the finance of housing funding sources, instability, investment and financing system of rigid, the policy of housing finance development lags behind, capital market financing channels impeded and so on. This paper puts forward the path choice of innovative affordable housing financing channels. Firstly, we should put the financial investment into the public financial system, and exert the leverage effect of financial funds. Secondly, we should vigorously develop policy housing financial institutions, to make up for the shortage of commercial credit. Finally, we should promote the innovation of financial instruments in the capital market, to attract the social capital into the affordable housing field.%保障性住房发展面临着资金瓶颈障碍。本文分析了保障性住房融资面临的主要问题，即财政性住房资金来源不稳定、投融资体制僵化，政策性住房金融发展滞后，资本市场融资渠道不畅等。本文提出了创新保障性住房融资渠道的路径选择：一是要将财政资金投入纳入公共财政体系，发挥财政资金杠杆效应；二是要大力发展政策性住房金融机构，弥补商业信贷的不足；三是要推动资本市场金融工具创新，吸引民间社会资本进入保障性住房领域。

GROWTH AND VENTURE CAPITAL INVESTMENT IN TECHNOLOGY-BASED SMALL FIRMS THE CASE OF HUNGARY

Directory of Open Access Journals (Sweden)

Becsky Nagy Patricia

2014-07-01

Full Text Available Venture capital backed enterprises represent a low proportion of companies, even of innovative ones. The research question was, whether these companies have an important role in innovation and economic growth in Hungary compared to other countries. In the first part of the article I present the theoretical background of technology-based small firms, highlighting the most important models and theories of the economic impact and the special development of innovative technology-oriented small firms. In the second part of the article I present the status of the most important indicators of innovation in connection with entrepreneurship, than I elaborate on the measures of start-ups, mainly the high-tech ones with high-growth potential. I describe the current position of venture capital industry, detailing the venture capital investments, with particular emphasis on classical venture capital investments that points out the number and the amount of venture capital investments financing early stage firms with high-growth potential. At the end I summarize the status of Hungarian technology-based small firms and their possibilities to get financial sources form venture capital investors, with regards to the status and the prospects of the JEREMIE program. In Hungary the number of internationally competitive firms, ready and willing to obtain venture capital, is much lower than in the US or Western European countries. Hungary could take advantage of its competitive edges in some special fields of innovation. The efficiency of information flow would reduce the information gap between the demand and the supply side of the venture capital market and more Hungarian firms could be internationally successful through venture capital financing. The recent years’ policy and special programs like JEREMIE generated more transactions, that helped to inform the entrepreneurs about venture capital and helped to co-invest public resources with private equity more

Integrated Assessment of the Policy of Working Capital Management in Housing and Utilities Enterprises

Directory of Open Access Journals (Sweden)

Vladimir Petrovich Poluyanov

2017-06-01

Full Text Available The article describes the approaches to the management of current assets in the enterprises of various industries in economic literature. We discuss theoretical, methodological and applied issues concerning the formation and improvement of the working capital management policy in utility companies, which require further study. The authors propose to assess the policy of working capital management in these enterprises by means of the integrated approach based on the system of reasoned indicators defining the type of working capital management policy. It includes indicators characterizing the policy of working capital management, management of the liquidity of working capital and the policy of financing sources management. The indicators which define the type of the policy of working capital management have been chosen as the most influential for each vector of the improvement of management policy. The range of values is set taking into account the current market conditions for the housing and utilities companies based on theoretical standard values adapted to modern situation. The paper proposes to use an integrated indicator for the evaluation of the policy of working capital management in housing and utilities enterprises. We have substantiated the technique of the integrated assessment of the policy of working capital management in housing and utilities companies. As an example of the application of this indicator, we defined the type of the policy of working capital management in Rostovvodokanal Company. The initial data for the calculation of integrated indicators are the official data on the structure of the balance and financial results of Rostovvodokanal Company during the period from 2012 to 2016. At the Rostovvodokanal Company, it is necessary to bring the type of the policy of working capital management and sources of its financing closer to moderate or conservative type. The authors have substantiated the optimal type of policy of

Behavioral finance: Finance with normal people

Directory of Open Access Journals (Sweden)

Meir Statman

2014-06-01

Behavioral finance substitutes normal people for the rational people in standard finance. It substitutes behavioral portfolio theory for mean-variance portfolio theory, and behavioral asset pricing model for the CAPM and other models where expected returns are determined only by risk. Behavioral finance also distinguishes rational markets from hard-to-beat markets in the discussion of efficient markets, a distinction that is often blurred in standard finance, and it examines why so many investors believe that it is easy to beat the market. Moreover, behavioral finance expands the domain of finance beyond portfolios, asset pricing, and market efficiency and is set to continue that expansion while adhering to the scientific rigor introduced by standard finance.

规范民间融资视角下的民间融资服务中心构建%Regulating the Construction of Private Financing Service Center under the Perspective of Private Financing

Institute of Scientific and Technical Information of China (English)

蔡洋萍

2014-01-01

The financing sources of small and medium-sized enterprises (SMEs) come from different channels in China apart from the banks. Especially emergency funding demand in SMEs is solved by private financing channel at high cost. To further standarize private financing, the government can take the lead in establishing financing service center, which makes private financing transparent and normalized. This paper analyzes the meaning of financing ser-vice center from such aspects as the government, capital demander and capital supplier, and on this basis, explores its mode, operation and risk control mechanisms.%在我国，中小企业的融资来源不仅是银行，中小企业还有很大一部分的资金尤其是应急性资金需求是通过民间融资的渠道解决的，而中小企业通过寻找民间融资的渠道五花八门、成本高昂。为进一步规范民间融资，政府可牵头成立民间融资服务中心来使我国民间融资阳光化、正规化。本文从政府、资金需求方、资金供给方等方面分析了成立民间融资服务中心的意义，并在此基础上对民间融资服务中心的模式、业务、风控机制进行了探讨。

Developing and financing merchant power plants in the U.S

International Nuclear Information System (INIS)

Ryan, M.J.

1998-01-01

Limited recourse financing for merchant plants in some areas of the world such as Latin America has become almost commonplace in the recent past. Limited recourse project financing for merchant plants in the US, once almost unthinkable, has already been achieved with the frontier-breaking Calpine Pasadena project. While long-term power purchase agreements have historically provided comfort to lenders and developers alike, they are increasingly becoming a thing of the past as utilities are reluctant to lock themselves into a fixed price, which may turn out to exceed the prices available in the open market. So, it seems that the trends toward merchant plants in Latin America will soon take hold in the domestic market. With the market for limited recourse project financing still in the embryonic stage, and the strong likelihood that long-term power purchase agreements will not be available, it is clear that successful domestic projects will have to be well conceived, properly structured and capitalized to secure debt and equity funding commitments. This paper will focus on opportunities for developing merchant plants, the major risks present to developers and investors and the most appropriate strategies for structuring finance for a project

For a post-disciplinary study of finance and society

Directory of Open Access Journals (Sweden)

Amin Samman

2015-07-01

Full Text Available The financial crisis of 2007-8 sparked a variety of responses from elites and popular movements across the world. Its legacy also continues to shape capitalist societies through ongoing processes of regulatory reform, state restructuring, and financial innovation. While these processes are open-ended, they are increasingly subject to critical attention from a range of commentators. The usual suspects are out in force – academics, politicians, and pundits – but they are now joined by a wider array of theorists and activists, playwrights, novelists and artists. The financialisation of capitalism, it seems, has finally been met with a blooming of the financial imagination. Finance and Society will provide a space for the further development of this imagination, generating new insights into how money and finance organise social life.

The role of Project Finance in the viability of infrastructure projects: case of the petroleum and natural gas sector

International Nuclear Information System (INIS)

Faria, Viviana Cardoso de Sa e; Rodrigues, Adriano Pires

2000-01-01

Project finance represents neither recent news nor a panacea in the fields of long term financing. It is not able to solve the chronicle scarcity of resources applied in big projects financing in developing countries. In fact, underdeveloped markets as the Brazilian one offer, at the beginning, almost no chances to the project finance solution. In this case a path full of barriers overcome the solutions that project finance may offer. The process to adapt this instrument to the Brazilian reality presents the following hindrances: a different law framework, capital market underdevelopment; economical instability; political and regulating risks; incapability of the national insurance companies to insure big projects; cultural differences and lack of know-how in this area, and lastly, the out of date tax system. (author)

Marketable Incentive Contracts and Capital Structure Relevance.

OpenAIRE

Garvey, Gerald T

1997-01-01

This article investigates the claim that debt finance can increase firm value by curtailing managers' access to 'free cash flow.' The author first shows that incentive contracts that tie the managers' pay to stockholder wealth are often a superior solution to the free cash flow problem. He then considers the possibility that the manager can trade on secondary capital markets. Liquid secondary markets are shown to undermine management incentive schemes and, in many cases, to restore the value ...

Private equity y venture capital: Diferenciación y principales características

Directory of Open Access Journals (Sweden)

Leonel Arango Vásquez

2015-03-01

Full Text Available El propósito de este artículo es explicar, desde la teoría, dos posibles opciones de financiación que tienen las empresas cuando éstas no pueden acceder a las fuentes tradicionales. La industria del Capital Riesgo surge así como una fuente alternativa de financiación. Esta industria opera a través de vehículos especiales de inversión llamados fondos Private Equity y fondos Venture Capital. En general, los primeros invierten en compañías maduras y desarrolladas, mientras que los segundos lo hacen en empresas nacientes y pequeñas. El ciclo de financiación que proveen estos fondos se estructura en tres etapas principales: captación de recursos, inversión y desinversión. En este artículo se explica la diferencia entre los términos Private Equity y Venture Capital, así como las principales características de las etapas mencionadas.Palabras clave: desinversión; Capital Riesgo; captación de fondos; inversión alternativa; pymes. Private equity and venture capital: Differentiation and main characteristicsAbstractThe purpose of this article with a qualitative approach aims to determine, from the theory the business environment, when companies are not capable to obtain financing through traditional sources, the Private Equity industry is viewed as an alternative source of finance for those companies. This industry operates through special investment vehicles named Private Equity Funds and Venture Capital Funds. In general, the former invest in develop and mature firms, the latter focus on infant and small companies. The financial cycle that these funds supply is structured in three main phases: fundraising phase, investment phase, and divestment phase or exit. This paper explains the difference between Private Equity and Venture Capital, as well as the main characteristics of the mentioned phases; through the methodology of content analysis, which aims to continue the research project of Venture Capital Industry in Colombia

Approaches for the financing of renewable energy in Europe

International Nuclear Information System (INIS)

Schwer, P.; Kornmann-Wimmer, K.

2007-06-01

This report for the Swiss Federal Office of Energy (SFOE) examines financing instruments that are already available in selected European countries and which could also be adapted for use in Switzerland, too. The study is limited to European countries that are comparable with Switzerland in terms of size, geography and gross national product. Further limitations are investment volumes of under 20 million Euro/project and the consideration of only those technologies concerned with the production of electrical power. Thus, the report considers biogas, solar, geothermal and small-hydro technologies in France, Austria, Denmark, Germany, Italy, Norway, Belgium and Switzerland. External and internal financing is considered as well as mezzanine capital. Varying taxation in the various countries is looked at as is the contracting/leasing situation and subsidies available for renewable energy projects. Risk management is discussed. Finally, the transferability of the various financing instruments to Switzerland is examined. Suggestions are made on how small and medium-sized enterprises can be supported in an active and growing Swiss market

More reliable financing of future nuclear waste costs

International Nuclear Information System (INIS)

1994-01-01

A commission of inquiry was established by Government in 1993 to review the management of capital funds according to the existing Act of the Financing of Future Expenses for Spent Nuclear Fuel etc. The commission proposes that: The funds which have been paid to the Swedish state to finance the costs arising in connection with the handling and final disposal of spent nuclear fuel etc, from the year 1995, should be invested in accordance with guidelines which aim at attaining a higher return than is currently possible; That an independent government body, called the Nuclear Waste Fund, should be assigned the task of managing the funds, in accordance with these guidelines; That the Swedish Nuclear Power Inspectorate should continue to examine and evaluate issues relating to the application of the funds and recommend the level of the fee to be paid; and That a system including additional measures for guaranteeing the availability of funds should be implemented from the year 1995, in order to improve the reliability of the financing system. Our proposal involves extensive amendments to the Financing Act. On the other hand, the basic stipulations concerning responsibilities under the Act on Nuclear Activities, are not affected. (Seven work documents produced by consulting firms are published in a separate volume; SOU 1994:108) 5 figs., 16 tabs

Managing Public Finance and Procurement in Fragile and Conflicted Settings

OpenAIRE

Porter, Doug; Andrews, Matt; Turkewitz, Joel; Wescotttz, Clay

2011-01-01

Discusses ways to enhance the incentives for elites to invest political capital in achieving (1) functional results through the formal public finance management (PFM) system; (2) the effectiveness of agencies responsible for services and regulating activities; and (3) better performance of civil service officials. Using the Public Expenditure and Financial Accountability (PEFA) Performance Measurement Framework, countries affected by conflict and fragility can be compared with non-fragile poo...

START-UP FINANCING SOURCES: DOES GENDER MATTER? SOME EVIDENCE FOR EU AND ROMANIA

Directory of Open Access Journals (Sweden)

Badulescu Alina

2011-07-01

Full Text Available Although financial resources are very important in SMEs in general, and for start-ups in particular, many entrepreneurs face numerous restrictions in finding sources for start-up financing. The present article aims to investigate the similarities or differences in start-up financing sources due to gender issues, otherwise to investigate if female entrepreneurs use (or have access different financial sources in the early stage of their business. As reported by the literature, access to finance is one of the most important issues for SMEs and nascent entrepreneurs. Moreover, among the main financial issues, the first one is the access to start-up finance (Schwartz, 1976; Carter and Cannon, 1992; Johnson and Storey, 1993; Koper, 1993; Van Auken et al, 1993; Carter and Rosa, 1998, FOBS survey 2005. In all sectors, women use for starting up businesses substantially less capital then men. Women encounter, more then men, credibility problems when dealing with bankers. This problem causes important effects concerning the performance, survival and growth of women-run businesses. The present research focuses on revealing how male and female entrepreneurs face and solve the problem of start-up financing sources. The methodology is based on using the dataset "Enterprises managed by the founder - broken down by gender of the entrepreneur", available in EUROSTAT database. The data selected refers to the start-up financing sources available for European Union and Romania, regarding activities included in NACE: Industry and services excluding public administration and management activities of holding companies and 2005 as time of reference. The data were used to make some comparison between: male versus female entrepreneurs in EU; male versus female entrepreneurs in Romania; EU entrepreneurs versus Romanian entrepreneurs. The main findings reveal that there are no significant differences between men and women concerning the start-up financing sources. The main

Fiscal Policy Impact on the State of Circulating Capital in the Corporate Sector

Directory of Open Access Journals (Sweden)

Paranchuk Stepan V.

2014-02-01

Full Text Available The goal of the article lies in identification of impact of the fiscal policy on the state of circulating capital in the corporate sector in Ukraine and in other countries. The article underlines conceptual approaches to improvement of the state tax policy with consideration of a necessity of formation of own financial resources for formation of circulating capital by subjects of the corporate sector. It justifies scientific and practical measures on reduction of the tax load on the production capital, that is, on that part of the fixed and circulating capital, which regularly and directly participates in creation of the added value. It offers a list of tax privileges for subjects of the corporate sector that direct profit into accumulation of the own capital base, including in the part of increase of the circulating capital. Realisation of the proposed recommendations should facilitate fast accumulation of financial resources for further formation of the circulating capital in the corporate sector, since this is an indispensable condition of high efficiency of corporate finance and economic activity in general.