WorldWideScience

Sample records for capital financing

  1. Financing working capital

    OpenAIRE

    Vasile Popengă; Mirela Popescu

    2002-01-01

    The paper presents some particularities regarding the following aspects: what is working capital; shows alternative net working capital financing strategies, ranging from the most to least risky; also some sources of short-term finance

  2. From Finance Capitalism to Financialization

    DEFF Research Database (Denmark)

    Hansen, Per H.

    2014-01-01

    In this article I interpret 150 years of financial history with a focus on shifts in the role of finance in society. I argue that over time the role of finance has shifted twice from that of servant to that of master of society, and that this process has been driven by sense making through...... narratives that legitimized and shaped these changes. When finance became a master rent seeking, cultural capture and out-of control financial innovation resulted in financial and social instability. Finance as a master was the characteristic of finance capitalism from around 1900......–1931 and of financialization from around 1980 to today. Finance capitalism and financialization were enabled by a dominant narrative that legitimized the power of finance. The shifts in the role of finance happened when crises undermined the meaning of the existing narrative and created for a new narrative able to make sense...

  3. Capital Financing for Independent Private Schools.

    Science.gov (United States)

    Quinn, Kevin G.; Doherty, Robert F.; Wienk, Christopher O.

    This document contains summary materials from a presentation by Wye River Capital, Inc. of Annapolis, Maryland, on capital financing for independent private schools. The main sections of the presentation address: (1) overview of the capital financing process; (2) tax law considerations for tax-exempt financings by private schools; and (3) key…

  4. FINANCING TECHNOLOGY TRANSFER THROUGHT VENTURE CAPITAL

    OpenAIRE

    Gabriel Năstase; Dan Badea; Dragoş Ionuţ Năstase

    2009-01-01

    Venture capital is considered in the literature the resource for financing research-development-innovation. Therefore, addressing the concept of venture capital is primarily the definition and its classification according to national and international experience.

  5. Staged Financing in Venture capital market.

    OpenAIRE

    Damania, Priti

    2009-01-01

    The report shows the venture capital decision making in staged financing from a real option perspective. The report also describes entrepreneur-venture capital relationship from a prisoner's dilemma approach.

  6. VENTURE CAPITAL FINANCING IN EMERGING ECONOMIES

    OpenAIRE

    Valentina Diana RUSU; Carmen TODERASCU

    2016-01-01

    The problem of how financing through venture capital functions in environments that significantly differ from mature and developed markets, begins to be an important issue for researchers. In this article we aim to analyze the venture capital practice in the emerging markets. Obtaining venture capital is different from applying for a loan, because venture capitalists are usually very selective in deciding where to invest. We analyze the venture capital financing process, and what the conditio...

  7. Optimal capital stock and financing constraints

    OpenAIRE

    Saltari, Enrico; Giuseppe, Travaglini

    2011-01-01

    In this paper we show that financing constraints affect the optimal level of capital stock even when the financing constraint is ineffective. This happens when the firm rationally anticipates that access to external financing resources may be rationed in the future. We will show that with these expectations, the optimal investment policy is to invest less in any given period, thereby lowering the desired optimal capital stock in the long run.

  8. Multiplying financing choices through capital markets

    OpenAIRE

    Carmen CORDUNEANU; Iovu, Laura Raisa

    2008-01-01

    Considerable evidence shows that countries with the most developed financial sectors and capital markets enjoy the strongest economic growth over the long run. The non-financial sector, small and medium sized entities can access a wider availability of more innovative and lower cost finance to aid their growth, while larger companies profit from an overall reduction in the cost of capital and a wider range of financial products. These economical agents in search of alternatives for financing ...

  9. Local financing through capital markets

    OpenAIRE

    Alexandru, Ciprian Antoniade

    2007-01-01

    In this paper are presented results of research conducted to identify sources of financing alternatives for local community. The study includes an analysis of the present situation on the financing of investments by local municipal bonds. The paper ends with the presentation of the benefits of municipal bonds and proposals on the development of this market.

  10. Capital, finance, and trade collapse

    OpenAIRE

    Yang Jiao; Yi Wen

    2012-01-01

    This paper proposes a model of international trade with capital accumulation and financial intermediation. This is achieved by embedding the Melitz (2003) model into an incomplete-markets neoclassical framework with an endogenous credit market. The model preserves the analytical tractability of the original Melitz model despite non-trivial distribution of firms’ net worth and capital stocks. We use the model to examine the differential effects of financial and non-financial shocks on aggregat...

  11. Capital Control, Debt Financing and Innovative Activity

    OpenAIRE

    Czarnitzki, Dirk; Kraft, Kornelius

    2009-01-01

    "The present paper discusses the effects of dispersed versus concentrated capital ownership on investment into innovative activity. While the market for equity capital might exert insufficient control on top managements’ behavior, this weakness may be mitigated by a suitable degree of debt financing. We report the results of an empirical study on the determinants of innovative activity measured by patent applications. Using a large sample of German manufacturing firms, we find that companies ...

  12. Incremental impact of venture capital financing

    OpenAIRE

    Alperovych, Yan; Hübner, Georges

    2013-01-01

    This paper investigates the differences in the return generating process of venture capital (VC)-backed firms and their peers that operate without VC financing. Using a unique hand-picked database of 990 VC-backed Belgian firms and a complete population of Belgian small and medium-sized enterprises (SMEs), we focus on the extent to which the presence of a VC investor affects the sensitivity of a firm’s returns to the changes in the capital structure, in the operating cycle, and in the industr...

  13. Capital Market-Driven Corporate Finance

    OpenAIRE

    Malcolm Baker

    2009-01-01

    Much of empirical corporate finance focuses on sources of the demand for various forms of capital, not the supply. Recently, this has changed. Supply effects of equity and credit markets can arise from a combination of three ingredients: investor tastes, limited intermediation, and corporate opportunism. Investor tastes when combined with imperfectly competitive intermediaries lead prices and interest rates to deviate from fundamental values. Opportunistic firms respond by issuing securities ...

  14. Capital market financing of family enterprises

    Directory of Open Access Journals (Sweden)

    Jerzy Weclawski

    2014-12-01

    Full Text Available The objective of this study is to identify funding opportunities for family businesses with the capital market instruments, and the risks associated with the implementation of common strategies. A family enterprise activity is guided not only by typical economic objectives, but also by striving for maintaining continuity and ensuring succession of the next generation. Therefore, the preservation of economic independence is of particular importance. Its significant determinant is that the funding to a large extent is based on the equity. A bank loan is traditionally perceived as the primary source of external financing. Bank loans access restrictions, as a result of new prudential regulations, force the family businesses to take into consideration alternative ways of funding. Capital market offers a wide range of financial instruments from debt securities through hybrid instruments to external equity. Each of these instruments, to varying degrees, protects the economic independence of an enterprise. For strategic purposes of family business, particularly well adjusted is funding using the mezzanine capital. It provides funds which features that are similar to the ones of equity, and at the same time reducing the influence of investors on the functioning of an enterprise. Venture capital financing, however, poses the risk of loss of control over the enterprise.

  15. The Effect of Deficit Finance on Human Capital

    OpenAIRE

    Philip A. Trostel

    1995-01-01

    A study that measures the effects of human capital investment on the deficit financing costs of government spending finds that the lower current and higher future tax rates of deficit financing increases opportunity costs and reduces the benefits of investments.

  16. Bank Lending in Project Finance: The New Regulatory Capital Framework

    OpenAIRE

    Enzo Scannella

    2012-01-01

    The paper aims to examine the new regulatory framework of project finance in the economics of banking firms. In particular, the paper investigates the uniqueness of the project finance, the significant importance of the project finance in bank activity, and the role of the new bank capital requirements to promote the innovative financial scheme. In the project finance business loans terms and characteristics are primarily based on the assets and quality of the project to be financed. It means...

  17. Debt Financing and Thin-Capitalization: Case Study in Slovenia

    Directory of Open Access Journals (Sweden)

    Lidija Hauptman

    2014-03-01

    Full Text Available Since each form of financing provides a different level of security and risk, companies are often faced with a dilemma, which equity to debt ratio to choose in financial structure. In order to avoid overexploitation of certain types of debt financing, tax legislation defines a thin capitalization rule. In this paper we present, how the relationship between equity and debt financing has changed in the period 1997–2012 and how the thin capitalization rules affected this relationship in the selected parent companies in Slovenia. The analysis reveals that the proportion of debt financing increased before and after the introduction of thin capitalization rules throughout the period.

  18. 78 FR 18445 - Historically Black College and University (HBCU) Capital Financing Program; Modification of Terms...

    Science.gov (United States)

    2013-03-26

    ... Black College and University Capital Financing Program Cost Estimates for Modified Gulf Hurricane... Budget Historically Black College and University (HBCU) Capital Financing Program; Modification of Terms... MANAGEMENT AND BUDGET Historically Black College and University (HBCU) Capital Financing...

  19. Debt Financing and Thin-Capitalization: Case Study in Slovenia

    OpenAIRE

    Lidija Hauptman; Saso Tic

    2014-01-01

    Since each form of financing provides a different level of security and risk, companies are often faced with a dilemma, which equity to debt ratio to choose in financial structure. In order to avoid overexploitation of certain types of debt financing, tax legislation defines a thin capitalization rule. In this paper we present, how the relationship between equity and debt financing has changed in the period 1997–2012 and how the thin capitalization rules affected this relationship in the sele...

  20. Financing strategic healthcare facilities: the growing attraction of alternative capital.

    Science.gov (United States)

    Zismer, Daniel K; Fox, James; Torgerson, Paul

    2013-05-01

    Community health system leaders often dismiss use of alternative capital to finance strategic facilities as being too expensive and less strategically useful, preferring to follow historical precedent and use tax-exempt bonding to finance such facilities. Proposed changes in accounting rules should cause third-party-financed facility lease arrangements to be treated similarly to tax-exempt debt financings with respect to the income statement and balance sheet, increasing their appeal to community health systems. An in-depth comparison of the total costs associated with each financing approach can help inform the choice of financing approaches by illuminating their respective advantages and disadvantages. PMID:23678696

  1. Exposing the true risks of capitation financed healthcare.

    Science.gov (United States)

    Cox, Thomas

    2011-01-01

    Many healthcare finance mechanisms involve transferring uncertain costs to healthcare providers in lieu of fixed payments or global capitation. Global capitation violates basic principles of risk management through insurance. Risk-theoretic analysis of capitation shows that risk disaggregation forces efficient providers to become inefficient insurers. Risk-assuming providers face lower profitability and increased exposure to operating losses, and must reduce patient benefits. Global capitation causes inefficiency, increases healthcare costs, and threatens patient-provider relationships. PMID:21506200

  2. Le financement des entreprises par capital-risque

    OpenAIRE

    Catherine Rigo

    2001-01-01

    This article aims at setting forth the development of venture capital in Belgium. To that end, the situation is compared with the one prevailing in the whole of Europe and particularly in some neighbouring countries: Germany, France, the Netherlands and the United Kingdom. In a first part the general financing mechanism through venture capital is examined. Next, a second part provides a quantified analysis of venture capital and its main characteristics (raising capital, the types of investor...

  3. The impact of thin capitalization rules on shareholder financing

    OpenAIRE

    Maßbaum, Alexandra; Sureth, Caren

    2008-01-01

    From a tax planner's point of view, it is often attractive to choose debt over equity financing. As this has led to an increase of debt financing of corporations, many countries have introduced thin capitalization rules to secure their tax revenues. We analyze the influence of section 8a of the German Corporate Tax Code on corporate capital structure decisions. Furthermore, the impact of the new interest barrier is taken into consideration. The existence of the Miller equilibrium as well as d...

  4. Capital Tax Reform, Corporate Finance, and Economic Growth and Welfare

    OpenAIRE

    Holger Strulik

    1999-01-01

    Recent empirical studies have revealed a strong impact of tax changes on corporate finance. Yet, models of economic growth usually neglect financial structure of the representative firm. In order to investigate whether the consideration of firm finance modifies the estimated outcome of capital tax reforms, a corporate sector is introduced in three popular popular models of economic growth. The paper explores analytically the impact of taxation on structures of finance and production and gives...

  5. The Importance of Venture Capital Financing System in Financing Entrepreneurship: Applications in Turkey

    Directory of Open Access Journals (Sweden)

    Erkan Poyraz

    2016-06-01

    Full Text Available The prominent concept of venture capital is examined as a financing model to the financing of entrepreneurship according to related literature. Venture capital is used with success in developed countries for a long time. Venture capital is a modern financing model that allows entrepreneurs to perform dynamic, creative, and innovative investment ideas as well as management, marketing and business support without requesting financial strength from those entrepreneurs. However, venture capital has found the limited number of application and has not yet fully known in Turkey due to the lack of incentives. In line with the scope of the study, venture capital financing practices in Turkey is compared, and the impact of these practices on the economy is investigated. This study is highlighted how venture capital financing model triggers initiatives. The study is also focused on the impact of venture capital in terms of sustainability. At last, some recommendations are given on improving the processes in terms of venture capital parties and legislators.

  6. A Primer on Finance-Led Capitalism and Its Crisis

    Directory of Open Access Journals (Sweden)

    Robert Guttmann

    2008-11-01

    Full Text Available Cette contribution au débat sur le capitalisme financiarisé cherche à identifier les changements structurels principaux dans la nature de la finance depuis les années 80. Après avoir analysé la dynamique d’innovation financière, l’accent est mis sur le processus de titrisation comme moteur d’une nouvelle forme du capital financier, le capital fictif, qui nourrit les bulles spéculatives. L’éclatement de la dernière bulle, centré sur le marché immobilier américain, a déclenché la crise financière la plus sérieuse depuis des décennies. L’article se conclut sur une discussion des implications possibles de cette crise systémique.This contribution to the debate on finance-led capitalism seeks to identify the principal structural changes in the nature of finance over the last couple of decades. After analyzing the dynamic of financial innovation, emphasis is put on the process of securitization as the engine of a new form of financial capital, fictitious capital, which encourages asset bubbles. The burst of the latest bubble, centered on the U.S. housing market, has triggered the most serious financial crisis in decades and a serious global downturn. The article ends with a discussion of likely implications of this systemic crisis.

  7. Contracts and Exits in Venture Capital Finance

    OpenAIRE

    Cumming, Douglas J.

    2004-01-01

    Contracts and exits from a sample of 179 investment rounds in 132 entrepreneurial firms by 17 European venture capital (VC) funds are analyzed. The data indicate the financial contracts are quite heterogeneous in terms of both the cash flow and control rights. The use of different securities by European VC funds does not depend on the definition of venture capital, and the securities used are not functional equivalents. A normative empirical analysis of exit shows the likelihoo...

  8. Entrepreneurial Overconfidence, Self-Financing and Capital Market Efficiency

    OpenAIRE

    Michele Dell'Era; Luis Santos-Pinto

    2011-01-01

    We study the impact of entrepreneurial optimism on self- nancing and capital market efficiency in a setting where entrepreneurs are better informed about the quality of their projects than investors. Projects have either low- or high-quality. Entrepreneurs use self-finance to signal the perceived quality of their projects. Investors observe self-financing decisions and know the fractions of high-quality projects, realistic and optimistic entrepreneurs. We show that entrepreneurial optimism im...

  9. Entrepreneurial financing decisions, venture capital ownership and bargaining power

    OpenAIRE

    Heughebaert, Andy

    2013-01-01

    It is widely acknowledged that entrepreneurial companies play a key role in shaping a local economy. Entrepreneurial companies are a source of growth and innovation for an industry and provide jobs for the local population. However, entrepreneurs of high growth oriented companies rarely have the capital to finance their innovative ideas themselves and therefore also have to accept the risks associated with assessing and acquiring the necessary finance resources from other investors. The goal ...

  10. Analysis of capital spending and capital financing among large US nonprofit health systems.

    Science.gov (United States)

    Stewart, Louis J

    2012-01-01

    This article examines the recent trends (2006 to 2009) in capital spending among 25 of the largest nonprofit health systems in the United States and analyzes the financing sources that these large nonprofit health care systems used to fund their capital spending. Total capital spending for these 25 nonprofit health entities exceeded $41 billion for the four-year period of this study. Less than 3 percent of total capital spending resulted in mergers and acquisition activities. Total annual capital spending grew at an average annual rate of 17.6 percent during the first three year of this study's period of analysis. Annual capital spending for 2009 fell by more than 22 percent over prior year's level due to the impact of widespread disruption in US tax-exempt variable rate debt markets. While cash inflow from long-term debt issues was a significant source of capital financing, this study's primary finding was that operating cash flow was the predominant source of capital spending funding. Key words: nonprofit, mergers and acquisitions (M&A), capital spending, capital financing. PMID:22515040

  11. Environmental Capital, Negative Externality and Carbon Finance Innovation%Environmental Capital, Negative Externality and Carbon Finance Innovation

    Institute of Scientific and Technical Information of China (English)

    Tang Yuejun; Li Defu

    2011-01-01

    In the context of global climate change, the internalization of negative externality, which is brought about by the traditional mode of economic growth, has become an inevitable choice. In order to achieve the internalization, it is necessary to make innovations on the market mechanism and system, find the value of environmental capital, establish a new mode of economic growth based on environmental capital, and then transform the environ- mental capital, an exogenous factor of economic growth, into an endogenous factor. Of this, the key of market mechanism and sys- tem innovation is the financial innovation that is based on environmental capital and negative externality; the government defines the initial property right of environmental resources and establishes environment energy trading market, so as to guide enterprises to trade environmental resources (represented by carbon emission permit trading) based on the Clean Development Mechanism, and to vigorously develop environmental finance and carbon finance.

  12. Finance, Labour, Capital, and International Integration

    OpenAIRE

    Bertola, Giuseppe

    2016-01-01

    Labour incomes depend on structural as well as politico-economic factors, because labour market policies partially remedy the financial market imperfections that make labour income shocks difficult to insure, and have different implications for labour and capital income. This paper illustrates such theoretical insights with a simple model, and reviews evidence of their empirical relevance generated by international economic, monetary, and financial integration.

  13. HOUSING FINANCE AND EQUITY CAPITAL MARKETS

    OpenAIRE

    M. Anikeeff; P. Chinloy; I. Megbolugbe

    2006-01-01

    The bulk of the literature on analysis of the potential of the US housing finance markets to serve underserved population and areas has been based almost exclusively on mortgage lending business models. Some authors even examined how far the industry could go in expanding homeownership opportunities if income or credit constraints were totally relaxed in mortgage loan underwriting. There is no doubt that the 1990s saw record homeownership rates and major strides in closing the gap between maj...

  14. Financing Innovations and Capital Structure Choices

    OpenAIRE

    Aswath Damodaran

    1999-01-01

    The last two decades have seen a stream of innovation in financial markets, especially in the corporate bond arena. Some of these innovations were designed to give firms more flexibility in designing cash flows on borrowings, allowing them to match up cash flows on financing more closely to cash flows on assets, thus increasing their debt capacity. These changes have been for the most part good news for corporate treasurers, but the relentless torrent of innovation has also resulted in some f...

  15. Topics in Finance Part VI--Capital Budgeting

    Science.gov (United States)

    Laux, Judy

    2011-01-01

    This series on the theory of financial management offers insight into the roles of stockholder wealth maximization, the risk-return tradeoff, and agency conflicts as they apply to major topics in finance. The current article investigates capital budgeting. Much literature addresses this topic, with a number of articles challenging mainstream…

  16. Efficient venture capital financing combining debt and equity

    OpenAIRE

    Leslie M. Marx

    1998-01-01

    I present a model of venture capital contracting in which contracts that involve a mixture of both debt and equity are efficient and dominate pure-equity and pure-debt financing. The optimal contract balances the venture capitalist's incentive to intervene in the project and the entrepreneur's desire for control.

  17. 77 FR 1471 - The Historically Black College and University Capital Financing Advisory Board

    Science.gov (United States)

    2012-01-10

    ... Historically Black College and University Capital Financing Advisory Board AGENCY: U.S. Department of Education, The Historically Black College and University Capital Financing Advisory Board. ACTION: Notice of an... meeting of the Historically Black College and University Capital Financing Advisory Board (Board)....

  18. 75 FR 42081 - The Historically Black College and University Capital Financing Advisory Board

    Science.gov (United States)

    2010-07-20

    ... Historically Black College and University Capital Financing Advisory Board AGENCY: Department of Education. The Historically Black College and University Capital Financing Advisory Board. ACTION: Notice of an open meeting... Historically Black College and University Capital Financing Advisory Board (Board). The notice also...

  19. 75 FR 70582 - Use of Public Housing Capital Funds for Financing Activities

    Science.gov (United States)

    2010-11-18

    ... the financing. This final rule followed a proposed rule published on July 18, 2007 (72 FR 39546), that... Capital Funds for Financing Activities (FR-4843-F-02), published in the Federal Register on October 21..., 2010 (75 FR 65198), HUD published a final rule that implements the Capital Fund Finance Program...

  20. 77 FR 56635 - The Historically Black College and University Capital Financing Advisory Board

    Science.gov (United States)

    2012-09-13

    ... Historically Black College and University Capital Financing Advisory Board AGENCY: U.S. Department of Education, Office of Postsecondary Education, The Historically Black College and University Capital Financing... agenda of an upcoming open meeting of the Historically Black College and University Capital...

  1. Fuel-cycle financing, capital requirements and sources of funds

    International Nuclear Information System (INIS)

    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$15x109 and by the year 2000, US$60x109 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

  2. System Dynamics Modeling and Simulation for Capital-constrained Supply Chain Based on Inventory Financing

    OpenAIRE

    Ni-na Yan; Bao-wen Sun

    2013-01-01

    In this study, we design a Capital-constrained Supply Chain (CCSC) system with a manufacturer and a capital-constrained retailer who can obtain short-term finance from the commercial bank through inventory financing according to the value of the pledged warehouse receipt. Using the system dynamics methodology, we model the stock and flow diagrams and simulate the system characteristics for non-financing scheme and inventory financing scheme, respectively. Through...

  3. Fuel cycle financing, capital requirements and sources of funds

    International Nuclear Information System (INIS)

    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

  4. System Dynamics Modeling and Simulation for Capital-constrained Supply Chain Based on Inventory Financing

    Directory of Open Access Journals (Sweden)

    Ni-na Yan

    2013-01-01

    Full Text Available In this study, we design a Capital-constrained Supply Chain (CCSC system with a manufacturer and a capital-constrained retailer who can obtain short-term finance from the commercial bank through inventory financing according to the value of the pledged warehouse receipt. Using the system dynamics methodology, we model the stock and flow diagrams and simulate the system characteristics for non-financing scheme and inventory financing scheme, respectively. Through simulation experiments, we make a comparative analysis of the operational and financial decisions in the CCSC system with and without the financing scheme. Finally, combined with various loan-to-value ratios and capital-constraint degrees, we conduct sensitivity analyses to discuss the impact of different financing conditions on supply chain operations. The rationality and effectiveness of inventory financing scheme is validated. It concluded that the all-win effect of the inventory financing could be realized in the CCSC system.

  5. The composition of capital flows when emerging market firms face financing constraints

    OpenAIRE

    Katherine Smith; Diego Valderrama

    2007-01-01

    Using a small open economy framework, we model the composition of capital inflows as the equilibrium outcome of emerging market firms' financing decisions. We show that debt limits, equity issuing costs, and foreign direct investment search costs generate a financing premium and that the ``cheapest'' source of financing depends on the phase of the business cycle and past financing decisions. The model delivers several results that are consistent with stylized facts observed in emerging market...

  6. Quel mode de financement pour les jeunes entreprises innovantes. Financement interne, prêt bancaire, ou capital-risque ?

    OpenAIRE

    Frédérique Savignac

    2007-01-01

    This article aims at determining the optimal external financing for young innovative firms. In our model, the firm may use banking loan or venture capital’s investments. We assume that there is an adverse selection problem between the firm and the bank whereas the venture capitalist has an expertise which allows to identify the risk of the innovative project. Depending on the firm’s characteristics, the optimal financing source is: i) equity funding from venture capital, ii) banking loans, or...

  7. SME financing in Iceland: an empirical study of capital structure and the financing environment of SME's in Iceland

    OpenAIRE

    Vala Hrönn Guðmundsdóttir 1989

    2015-01-01

    The thesis analyses the capital structure decisions of Icelandic SME‘s and how market participants perceive the Icelandic finaning environment by surveying CEO‘s and interviewing market participants. The research finds that capital structure decisions conform most to the financial growth cycle and pecking order theories. Firms prefer internal financing,then debt and finally equity. It is difficult to determine whether they make these choices out of preference and assymetric information(POT) o...

  8. Finance-dominated capitalism, re-distribution and the financial and economic crises - a European perspective

    OpenAIRE

    Hein, Eckhard

    2012-01-01

    In this paper the euro crisis is viewed as the most recent episode of the crisis of finance-dominated capitalism. Therefore, two major features of finance-dominated capitalism, the increasing inequality of income distribution and the rising imbalances of current accounts, are analysed for a set of major Euro area countries. Against this background the euro crisis is examined, and it is shown that the economic policy reactions of European governments and institutions, narrowly interpreting the...

  9. Empirical Evidence on Governance Mechanisms, Syndication Activities, and Partner Selection Strategies in Venture Capital Financing

    OpenAIRE

    Hopp, Christian

    2008-01-01

    This dissertation comprises five different stand-alone research papers that were written as part of the doctoral program in Quantitative Economics and Finance at the University of Konstanz within the period of January 2004 and January 2008. All of the papers deal with an empirical analysis of Venture Capital (VC) financing in Germany and Switzerland, with a special focus on the emerging trend of VC syndication (the provision of capital to high-growth firms by more then a single venture capi...

  10. Working capital management and financing decision: Synergetic effect on corporate profitability

    OpenAIRE

    Ajibolade, Solabomi O.; Sankay, Oboh Collins

    2013-01-01

    Persuaded by the pecking order assumptions, where internal fund is preferred over debt and equity when financing investment projects, this study provided empirical evidence on the interaction between working capital management and corporate debt structure, and the effect of this on corporate profitability. The assumption on which the study was based is that, if internal funds become the preferred source of finance for investment projects, then working capital composition is interfered, making...

  11. Default Rate and Price of Capital in a Costly External Finance Model

    Directory of Open Access Journals (Sweden)

    Juan Pablo Medina

    2006-03-01

    Full Text Available Financial frictions have been used to enrich mechanisms transmission in macroeconomics. However, the predictions of real business cycle models of costly external finance imply a procyclical default rate, external premium and relative price of capital which seems at odds with the data. In this article, we include technology shocks that affect the average productivity and idiosyncratic risk of capital producers in a standard costly external finance model. These elements enhance the model to deliver a countercyclical default rate, external finance and relative price of capital premium which are more consistent with the data and contrary to the results obtained with a sector-neutral productivity shock. Intuitively, if the entrepreneurs’ investment projects become more productive in average, the relative price of capital and the default rate fall while investment and output increase. Using data on the relative price of capital, we perform a calibration of this type of shocks which highlights its business-cycle relevance.

  12. Islamic Finance and the Theory of Capital Structure

    OpenAIRE

    Nagano, Mamoru

    2010-01-01

    This paper empirically investigates firms using Islamic finance in Malaysia and Middle East countries. The comparative analysis of Islamic finance and non-Islamic finance users resulted in three major implications. First, Islamic bond issuers preferentially choose the Islamic bond issuance prior to bank borrowing and other external financing tools. Second, Islamic bond issuance is not related to the issuer’s internal funds, while Islamic bank borrowing is significantly influenced by the magni...

  13. 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 fina

  14. Capital Market Financing for SMEs: A Growing Need in Emerging Asia

    OpenAIRE

    Shinozaki, Shigehiro

    2014-01-01

    Asia’s bank-centered financial systems require the reduced supply-demand gap in lending as a core policy pillar to improve small and medium-sized enterprise (SME) access to finance. Meanwhile, the diversification of financing modalities beyond conventional bank lending is another key policy pillar to better serve various financing needs of SMEs and expand their financial accessibility. The rapid growth of emerging Asia is generating SMEs’ long-term funding needs and requires robust capital ma...

  15. Working Capital Financing Preferences: The Case of Mauritian Manufacturing Small and Medium Sized Enterprises (SMEs)

    OpenAIRE

    Kesseven Padachi; Carole Howorth; Narasimhan, M.S.

    2012-01-01

    This paper investigates the approach of small- to medium-sized Mauritian manufacturing firms to working capital finance using a survey-based approach and case studies. Financing has been cited as one of the most common problems faced by SMEs and is often viewed as one of their main barriers to growth. Using parametric and non-parametric techniques, the important variables that affect the demand for financing are examined. Interestingly, it is observed that the sample firms adopted more inform...

  16. Firm's optimal capital accumulation path with asymmetric informations and debt instead of equity finance

    OpenAIRE

    Gallegati, Marco

    1996-01-01

    Two Euler equations are obtained from a firm's investment intertemporal dvnamic model where debt finance is the onlv external source of funds and firms face borrowing constraints in the form of a limit to the maximum amount of outstanding debt. As suggested by the hierarchy of finance model they represent the optimal capital accumulation path for firms belonging to different financing regimes. The Euler equations differ for a discount factor function of the nominal interest rate on debt for l...

  17. Venture Capital Contracting and Syndication: An Experiment in Computational Corporate Finance

    OpenAIRE

    Zsuzsanna Fluck; Kedran Garrison; Stewart C. Myers

    2005-01-01

    This paper develops a model to study how entrepreneurs and venture-capital investors deal with moral hazard, effort provision, asymmetric information and hold-up problems. We explore several financing scenarios, including first-best, monopolistic, syndicated and fully competitive financing. We solve numerically for the entrepreneur's effort, the terms of financing, the venture capitalist's investment decision and NPV. We find significant value losses due to holdup problems and under-provision...

  18. 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.

  19. 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…

  20. Study Of the Pattern And Trend Of Venture Capital Financing In India Since Liberalization

    OpenAIRE

    Somani, Samridhi

    2008-01-01

    It basically refers to the study of venture capital financing in India,its pattern since 1986 till present in the thesis data has been collected till present.Detailed study has been conducted in order to observe the changes in venture capital regulation,pattern and comparision between private and public sector firms etc.

  1. Selecting start-up businesses in a public Venture capital financing using Fuzzy PROMETHEE

    OpenAIRE

    Afful-Dadzie, Eric; Oplatková Komínková, Zuzana; Nabareseh, Stephen

    2015-01-01

    Public Venture Capital financing often fail rigorous scrutiny in their selection of high-potential start-ups as compared to Private Venture capital. In some developing countries, decision making on final selection for financial support of early stage but high potential Small and Medium sized Enterprises (SMEs) are often 'clouded' by several factors including consideration of political party affiliations. This results in low capital recovery rate and a mischance in choosing deserving start-ups...

  2. Tax Financed Government Health Expenditure and Growth with Capital Deepening Externality

    OpenAIRE

    Kei Hosoya

    2003-01-01

    This paper develops a two-sector endogenous growth model with health capital and examines the impact tax financed health expenditure has on long-run growth. In this model, health capital is accumulated through government spending as a flow channel and a capital deepening externality as a stock channel. When arguing about the problem of growth maximizing flat tax, the latter channel plays a significant role for determining tax rate.

  3. The Impact of Thin-Capitalization Rules on Multinationals’ Financing and Investment Decisions

    OpenAIRE

    Büttner, Thiess; Overesch, Michael; Schreiber, Ulrich; Wamser, Georg

    2006-01-01

    This paper analyzes the effectiveness of thin-capitalization rules in preventing debt finance by intercompany loans and explores their consequences for corporate decisions. A theoretical discussion emphasizes that limitations of the deduction of interest owed to foreign affiliates would not only affect multinationals' capital structure choice but also investment. An empirical investigation exploits a large firm-level panel dataset of multinationals in order to analyze the impact of thin-capit...

  4. Capital Market-Oriented Financing Prospects for Austrian SMEs

    OpenAIRE

    Michael Halling; Josef Zechner

    2005-01-01

    The performance and growth of the Austrian economy largely depend on small and medium-sized enterprises (SMEs). Despite their diminutive size, SMEs offer attractive investment opportunities that are, however, financed primarily by debt for a variety of reasons. The financing concept presented in this study adopts an innovative approach to provide access to quasi-equity forms of financing to Austrian SMEs, which have successfully and responsibly generated business in recent years and which cur...

  5. Finance Sector Wage Growth and the role of Human Capital

    OpenAIRE

    Lindley, J.; McIntosh, M.

    2014-01-01

    Given the UK finance sector is one of the largest in the world, it provides the perfect setting for a study into the nature of the finance sector wage premium. We reveal the pervasiveness of this premium, across all sub-sectors of finance, and across all occupations within finance, and with the very highest rewards going to 40-49 year old men working in London. Moreover, the UK premium has continued to rise despite the recent financial crisis. Consequently, this study uses rich data from the ...

  6. 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.)...

  7. Concept of Capital and Profit in Economy, Finance and Accounting

    OpenAIRE

    Teresa Szot -Gabryś

    2009-01-01

    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.

  8. 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.

  9. Wage Growth and Human Capital in the UK Finance Sector

    OpenAIRE

    Joanne Lindley

    2013-01-01

    Despite the recent financial crisis the UK financial pay premium has continued to rise. To some extent this is a consequence of increased skill intensity in the finance sector, but this paper shows that finance workers have higher cognitive skills, on average, and this partly explains their higher wages. These are significant across all post-secondary education groups and not just those at the top. However, after controlling for unobserved heterogeneity we still find unexplainable rents to fi...

  10. Capital structure and financing decisions of agricultural cooperatives: Spanish evidence

    OpenAIRE

    Mateos-Ronco, Alicia; Lajara-Camilleri, Natalia

    2014-01-01

    The study of the financial structure is a complex and recurrent line of research in the field of corporate finance. Increasing the understanding of the financial structure and its implications on corporate governance is the starting point for improving the access to external financing and reduce transaction costs as to optimize internal funding policies. There is no universal theory of financial structure although partial theories have arisen from empirical studies, attempting to relate struc...

  11. 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. PMID:10645073

  12. The Attitude of Small and Medium Industrialists to Venture Capital Financing in Nigeria

    OpenAIRE

    Isaac Oluwajoba Abereijo; Abimbola Oluwagbenga Fayomi

    2007-01-01

    The principal objective of this paper is to ascertain the extent to which Myers’ Pecking Order Theory (POT) of business financing explains the financial structure of Small and Medium Manufacturing Enterprises (SMEs) in Nigeria. The goal is to examine their attitude with regard to the venture capital financing known as Small and Medium Enterprises Equity Investment Scheme (SMEEIS) introduced by the government in 1999. The data employed were from the database of the survey of manufacturing SM...

  13. Financing strategies under combined capital structure theories: a farm-level simulation analysis

    OpenAIRE

    Jianmei Zhao; Barry, Peter J.; Schnitkey, Gary D.

    2008-01-01

    A stochastic, multi-period simulation model is developed based on the prevalent capital structure theories, in searching for and identifying an optimal combination of related financing strategies. The model reflects both conceptual and empirical implications of the pecking order, trade-off and signalling theories on farm business financing, investment, and expansion process. The comparisons of simulation output indicate that farm businesses could expand at a moderate speed accompanied by fina...

  14. THE ROLE OF DEBT CAPITAL IN CORPORATE FINANCING – OVERVIEW OF SELECTED SURVEYS

    OpenAIRE

    Katarzyna Czapiñska

    2014-01-01

    The ability to create a company’s own capital structure with a simultaneous lack of universal solutions makes this issue a favorable subject of considerations. The aim of this article is to summarize selected surveys on the role of debt and financial leverage in corporate financing observed in the case of Polish companies. Based on the conclusions of the presented surveys, certain regularities were noticed. In most of the companies, equity was the main source of financing, whereas debt was us...

  15. Capital Market Failure, Adverse Selection and Equity Financing of Higher Education

    OpenAIRE

    Jacobs, Bas; Sweder J.G. van Wijnbergen

    2005-01-01

    We apply theories of capital market failure to ana1yzeoptima1 financing of risky higher education. In the market solution,students can only finance their education through debt. There isunderinvestment in human capita1, because some students with socia1lyprofitable investments in human capita1 will not invest in educationdue to adverse selection problems in debt markets and becauseinsurance markets for human capita1 related risk are absent. Lega1limitations on the use of human capita1 in fina...

  16. Financing structural change, venture capital, and unemployment: What is the role of investor protection?

    OpenAIRE

    Fehn, Rainer

    2000-01-01

    This paper analyzes the real effects of differences in structures on financial markets, especially concerning quasi-equilibrium unemployment. It argues that a vibrant venture capital market is an important prerequisite for financing structural change and thus for keeping unemployment low in the ongoing transition to the “new economy”. It furthermore points out the crucial importance of extensive investor protection in this respect. A thriving venture capital market is therefore at odds with t...

  17. 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.

  18. 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…

  19. 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…

  20. 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...

  1. Self-Selection and Advise in Venture Capital Finance

    OpenAIRE

    Keuschnigg, Christian; Bo Nielsen, Søren

    2008-01-01

    In financing start-up firms, venture capitalists carefully select among alternative projects, design incentive compatible financial contracts and support portfolio companies with value enhancing managerial advice. This paper considers how venture capitalists can induce self-selection among entrepreneurial firms with different qualities by designing appropriate contracts and offering commercial support. We study the efficiency of the competitive market equilibrium with respect to the level and...

  2. Support Strategies in Venture Capital Financing: Nurturing or Selection.

    OpenAIRE

    Carola Jungwirth; Petra Moog

    2003-01-01

    Venture capitalist are intermediaries with strong advantages in financing risky investments (Leland/Pyle 1977, Chan 1983, Diamond 1984; Bygrave 1988). Being specialized in one industry, venture capitalists can control risk at lower cost compared to other players in the market (e.g. banking houses) because they have accumulated specific know-how, experience, as well as ac-cess to networks and information. Norton and Tenenbaum (1993a) found evi-dence that controlling portfolio risk through spec...

  3. Self-Selection and Advice in Venture Capital Finance

    OpenAIRE

    Keuschnigg, Christian; Nielsen, Søren Bo

    2007-01-01

    In financing start-up firms, venture capitalists carefully select among alternative projects, design incentive compatible financial contracts and support portfolio companies with value enhancing managerial advice. This paper considers how venture capitalists can induce self-selection among entrepreneurial firms with different qualities by designing appropriate contracts and offering commercial support. We study the efficiency of the competitive market equilibrium with respect to the level and...

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

    DEFF Research Database (Denmark)

    Christiansen, Charlotte; Nielsen, Helena Skyt

    2002-01-01

    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....

  5. Performance of Structured Finance: Capital Market Perception of Structured Finance in the Financial Crisis

    OpenAIRE

    Deb, Anit

    2012-01-01

    Structured finance and securitization have become an established investment opportunity. However, the financial crisis revealed that high quality products are essential in order to restore investor confidence. This book presents the interactions of investment decisions, quality indicators like rating grades and the pricing of structured finance products in a critical market environment. As a consequence, stricter regulation is only recommendable after carefully regarding the complex interacti...

  6. The private finance initiative (PFI) and finance capital: A note on gaps in the "accountability" debate

    OpenAIRE

    D Asenova; Beck, M.

    2007-01-01

    During recent years, a wide spectrum of research has questioned whether public services/infrastructure procurement through private finance, as exemplified by the UK Private Finance Initiative (PFI), meets minimum standard of democratic accountability. While broadly agreeing with some of these arguments, this paper suggests that this debate is flawed on two grounds. Firstly, PFI is not about effective procurement, or even about a pragmatic choice of procurement mechanisms which can potentially...

  7. The entrepreneur's choice: Venture capital debt financing with adverse selection

    OpenAIRE

    Booth, G. Geoffrey; Dalgic, Orkunt; Young, Allan,

    2004-01-01

    This paper studies the consequences of using a debt contract to raise venture capital for an entrepreneurial project in an adverse selection setting with different quality venture capitalists. The paper considers not only the likelihood of success of a one-time project being dependent on the quality of the venture capitalist, but also the problem of a reduced ownership value of future rents from the venture if the venture capitalist takes it over as the result of default of the entrepreneur. ...

  8. 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. PMID:10145512

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

    OpenAIRE

    Christiansen, Charlotte; Nielsen, Helena Skyt

    2002-01-01

    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 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 marke...

  10. Health Care Capital Financing Agencies: The Intergovernmental Roles of Quasi-Government Authorities and the Impact on the Cost of Capital

    OpenAIRE

    Alec Ian Gershberg; Michael Grossman; Fred Goldman

    1999-01-01

    During the decade 1983-1992, approximately 1.4 trillion dollars of municipal bonds were sold in 87 thousand separate issues, primarily to finance capital projects for education, electric power, transportation, health care, housing and other public and private purpose activities. Approximately two-thirds of these financings were originated by financing authorities, quasi-government agencies which are the creation of state legislatures. Despite the growing role played by quasi-public authoritie...

  11. Estimated capital requirements for electricity generation in developing countries and a discussion of financing options

    International Nuclear Information System (INIS)

    If developing economies are to realize or even come near their growth targets, they must continue to invest in the expansion of energy capacity. Serious estimates of capital requirements for the expansion of electric power supply in them are of the order of US$60 - US$100 billion per year of which about US$25 billion would be in foreign exchange. Prospects for increased capital flows in the 1990's are slim because of emerging capital need for reconstruction of the economies in Eastern Europe and the Soviet Union, and sharply reduced commercial banks' lending to developing countries. Also domestic public resources have been and continue to be limited because of competing claims for social and economic needs. The effects of a shrinking capital pool have exacerbated the risk perception of potential investors of large, capital intensive, energy projects with long gestation periods. Nuclear projects have been doubly vulnerable, because of their uncertain gestation periods and the additional perceived safety risk. Recognizing the growing financing constraints, this paper discusses that capital mobilization efforts, especially for nuclear power, will have to extend beyond traditional boundaries, that resources mobilization for nuclear power from hitherto not available multilateral sources would be most helpful and finally, that domestic capital markets will need to be tapped. (author)

  12. 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...

  13. 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…

  14. Pengaruh Capital Adequacy Ratio, Non Performing Financing dan Financing to Deposit Ratio terhadap Return on Asset pada Bank Umum Syariah di Indonesia

    OpenAIRE

    Lubis, Andri Aulia

    2016-01-01

    The purpose of this study was conducted to examine the effect of Capital Adequacy Ratio, Non Performing Financing and Financing to Deposit Ratio to the Return on Asset. This research samples using a data sample of 55 sharia bank in Indonesia. The data used are secondary data. The researchers used data on the annual financial statements of the general body of the sharia banks the period 2010-2014. The method of data collection using the documentation. Data analysis technique used is multip...

  15. FINANCING OF CAPITAL INFRASTRUCTURE THROUGH ISSUE OF MUNICIPAL BONDS - PRACTICES OF THE MUNICIPALITY OF BIJELJINA

    Directory of Open Access Journals (Sweden)

    Zorica Golić

    2012-01-01

    Full Text Available For all those local communities inBosnia and Herzegovina who are willing to make astep forward from the classical and routinefinancing (budget, loans, grants towards new andinventive combinations, there are really many waysof financing of development. Plans and instrumentsof local development open up new and endlesspossibilities, and all modes of financing and theircombinations cannot be pre-anticipated andexhausted. The need to create new models offinancing depends more on the real commitment oflocal actors to implementing their developmentideas than on the legal framework.Despite the limitations that issuers have andthe risks borne by the investor - the buyer, theborrowing of municipalities and cities throughbond issues turned out better and more efficientsource of funding in relation to other forms ofborrowing.The essence of this paper is to show, after abrief theoretical elaboration, the best practices infinancing of capital infrastructure through issue ofthe municipal bonds, taking the example of themunicipality of Bijeljina .

  16. The Consequences of Hybrid Finance in Thin Capitalization Situations. An Analysis of the Substantive Scope of National Thin Capitalization Rules with special Emphasis on Hybrid Financial Instruments.

    OpenAIRE

    Klostermann, Margret

    2007-01-01

    The choice of corporate finance is an important source of tax planning opportunities for multinational companies. Investing companies have to be aware of inconsistent tax classification of equity and debt between countries in particular. Additionally, thin capitalization rules have to be taken into account. In response to changing corporate needs the present paper focuses on the tax consequences of hybrid financial instruments. Only some literature exists on cross-border hybrid finance. Espec...

  17. Utility investment in on-site solar: risk and return analysis for capitalization and financing

    Energy Technology Data Exchange (ETDEWEB)

    Kahn, E.; Schutz, S.

    1978-09-01

    A set of financial strategies designed to accelerate the penetration of on-site solar heating and cooling systems are studied. The approach of portfolio theory or the capital asset pricing model (CAPM) is used. The major features of the CAPM is summarized including a survey of those applications which are most relevant to the analysis. These include utility return on equity calculations and project evaluation techniques. How to apply empirical results is discussed based on CAPM methods. In particular, applications to the capitalization variant of the utility investment strategy and the financing variant are distinguished. Subsidization rationales are also discussed. Empirical results to date are summarized, including estimation problems for the various risk measures. The general problem of financial risk assessment for energy technologies is reviewed. (MHR)

  18. Risk sharing with Multilateral Financial Institutions in infrastructure and energy project financing : effect on capital relief for commercial banks

    OpenAIRE

    Rosales Araque, Raúl C.

    2012-01-01

    (Matsukawa and Habeck, 2007) analyse the main instruments for risk mitigation in infrastructure financing with Multilateral Financial Institutions (MFIs). Their review coincided with the global financial crisis of 2007-08, and is highly relevant in current times considering the sovereign debt crisis, the lack of available capital and the increases in bank regulation in Western economies. The current macroeconomic environment has seen a slowdown in the level of finance for infrastructure proje...

  19. Follow-on financing of venture capital backed companies: The choice between debt, equity, existing and new investors

    OpenAIRE

    K. BAEYENS; S. MANIGART

    2006-01-01

    We study the financing strategies of 191 start-ups after they have received venture capital (VC) and thereby contribute to the staging literature. The VC backed start-ups have raised financing on 345 occasions over a five-year period after the initial VC investment. Surprisingly, bank debt is the most important source of funding for these young and growthoriented companies, supporting the view that VC investors have a certifying role in their portfolio companies. Bank debt is available to fir...

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

    International Nuclear Information System (INIS)

    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.

  1. 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

  2. La structure financière du capital:tests empiriques sur le marché français

    OpenAIRE

    Eric Molay

    2005-01-01

    (VF)Cette étude s’intéresse à deux théories alternatives expliquant la structure financière du capital : la théorie du financement hiérarchisé et la théorie du ratio d’endettement optimal. Les analyses empiriques sur un échantillon d’entreprises françaises cotées à la bourse de Paris montrent que leur choix de financement semble reposer sur la théorie du financement hiérarchisé aux dépens de la théorie du ratio d’endettement optimal. Les entreprises analysées privilégient le financement inter...

  3. Does Finance Bolster Superstar Companies? Banks, Venture Capital, and Firm Size in Local U.S. Markets

    OpenAIRE

    Popov, Alexander

    2009-01-01

    We study the relative effect of venture capital and bank finance on large manufacturing firms in local U.S. markets. Theory predicts that with venture capital, the firm size distribution should become more stretched-out to the right, but it’s ambiguous on the effect of banks on large firms. The empirical evidence suggests that while the average size of firms in the top bin of the firm size distribution has remained unaffected by banking sector developments, it has increased with venture capit...

  4. What do we know about the capital structure of privately held firms? Evidence from the Surveys of Small Business Finance

    OpenAIRE

    Cole, Rebel

    2008-01-01

    The capital-structure decision is one of the most fundamental issues in corporate finance. Numerous studies have been conducted to test the two major competing theories of capital structure (Trade-Off Theory and Pecking-Order Theory), yet none of these studies has analyzed the capital-structure decisions of small, privately held U.S. firms, which constitute the vast majority of all U.S. business enterprises. In this study, we provide the first evidence on this important issue, utilizing data ...

  5. The Impact Of Intellectual Capital On Investors’ Capital Gain On Shares: An Empirical Investigation In Thai Banking, Finance & Insurance Sector

    Directory of Open Access Journals (Sweden)

    B.A Ranjith Appuhami

    2007-04-01

    Full Text Available The purpose of this article is to investigate the impact of the value creation efficiency on investors’ capital gain on shares. The author used the data collected from listed companies in Thailand stock market and Pulic’s (1998 Value Added Intellectual Coefficient (VAIC TM as the measure of intellectual capital and developed multiple regression model to investigate the impact of corporate value creation efficiencyon investors’ capital gain. The empirical research found that firms’ intellectual capital has a significant positive relationship with its investors’ capital gain on shares. The findings enhance knowledge base of intellectual capital and develop a concept of intellectual capital in acadvantages in emerging economies such as Thailand.

  6. The Impact Of Intellectual Capital On Investors’ Capital Gain On Shares: An Empirical Investigation In Thai Banking, Finance & Insurance Sector

    OpenAIRE

    B.A Ranjith Appuhami

    2007-01-01

    The purpose of this article is to investigate the impact of the value creation efficiency on investors’ capital gain on shares. The author used the data collected from listed companies in Thailand stock market and Pulic’s (1998) Value Added Intellectual Coefficient (VAIC TM) as the measure of intellectual capital and developed multiple regression model to investigate the impact of corporate value creation efficiencyon investors’ capital gain. The empirical research found that firms’ intellect...

  7. Is the power station financed by debt or by equity capital?; Er kraftverket finansiert med gjeld eller egenkapital?

    Energy Technology Data Exchange (ETDEWEB)

    Fjermeros, Morten; Backer-Groendahl, Finn

    2005-07-01

    In Norway, the rule about limitation of the interest on debt for publicly owned power stations was abolished from 2004. This brings into focus the question of how power enterprises are financed. Public owners do not pay tax on interest income. But loan expenditures are tax deductible for the company. This lack of symmetry is an incentive to finance power enterprises with large debt and large interest payments. The alternative is to finance the enterprise by equity capital, with a corresponding distribution of dividend. However, dividend is treated symmetrically with respect to the taxation rules as the dividend received by the municipalities and county council districts is free of tax at the same time as dividends paid are not deductible for the company that pays out the dividends.

  8. "The Crisis of Finance-dominated Capitalism in the Euro Area: Deficiencies in the Economic Policy Architecture and Deflationary Stagnation Policies"

    OpenAIRE

    Hein, Eckhard

    2012-01-01

    In this paper the euro crisis is interpreted as the latest episode in the crisis of finance-dominated capitalism. For 11 initial Euro area countries, the major features of finance-dominated capitalism are analyzed; specifically, the increasing inequality of income distribution and the rising imbalances of current accounts. Against this background, the euro crisis and the economic policy reactions of European governments and institutions are examined. It is shown that deflationary stagnation p...

  9. SHARĪ AH POSITION ON ENSURING PRESENCE OF CAPITAL IN JOINT EQUITY BASED FINANCING

    OpenAIRE

    SADIQUE, MUHAMMAD ABDURRAHMAN

    2009-01-01

    Islamic legal texts indicate that a joint venture involving monetary capital could be set in motion on the basis of capital that is existent and present, with clear agreement regarding the share of each partner. While gradual release of capital is admissible, prior existence of capital is necessary. Due to credit supplementing real money in a substantial manner, the identity of money in the current fiscal environment appears to have undergone significant change, the nature and influence of wh...

  10. 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...

  11. Finance.

    Science.gov (United States)

    Alexander, Kern

    Patterns that emerged from reviewing syllabi for 12 courses on higher education finance are discussed. The prevailing purpose of the course appeared to be to provide an introduction to fiscal problems and issues in higher education. Some courses did, however, go beyond the introductory stages to analyze the economics of higher education. Most…

  12. 75 FR 65197 - Use of Public Housing Capital Funds for Financing Activities

    Science.gov (United States)

    2010-10-21

    ... of the proposed rule published on July 18, 2007, at 72 FR 39546-39547. II. This Final Rule As noted... information that may be required. Financing schedules, including debt service and sources and uses, are...)(3) to reflect the required financing schedules that must be submitted. These include the...

  13. Finance-dominated capitalism, re-distribution, household debt and financial fragility in a Kaleckian distribution and growth model

    Directory of Open Access Journals (Sweden)

    Eckhard Hein

    2012-03-01

    Full Text Available In a Kaleckian distribution and growth model with workers’ debt we examine the short and long run effects of three stylized facts of “finance-dominated capitalism”: a fall in animal spirits of the firm sector with respect to real investment in capital stock, re-distribution of income at the expense of the wage share, and increasing lending of rentiers to workers for consumption purposes. In particular, we specify the conditions for long-run stability of the workers’ debt-capital ratio. We thus identify the threshold for this ratio to turn unstable causing increasing financial fragility and finally financial crisis due to systemic stock-flow or stock-stock dynamics.

  14. Alternative corporate governance paradigm and corporate financing: Capital structure decisions in employee-governed firms

    OpenAIRE

    Matjaž Črnigoj; Dušan Mramor

    2015-01-01

    Assuming an alternative corporate governance paradigm that puts employees in the firm’s governance structures, as well as understanding their objective functions, we investigate capital structure decisions in employee-governed firms. Examining corporate capital structure decisions in 12 European countries, we provide strong empirical evidence of employees’ conservatism in capital structure choice. We find that employee-governed firms operate with significantly lower leverage and that employee...

  15. Effects of the cost of capital for companies financing decisions%资金成本对企业筹资决策的影响研究

    Institute of Scientific and Technical Information of China (English)

    薛冰峰

    2015-01-01

    决定企业发展的根本因素就是企业的资金成本,而且资金成本对企业筹资决策还起到了非常重要的作用,筹资是企业扩大规模的一种方式,怎样在筹资决策中调整资本结构受到了业界的普遍重视。本文将对资金成本在筹资决策中的作用进行分析阐述,并分析选择适合的筹资方式来降低资金成本的方法。%The fundamental factors that determine the development of enterprises is the company's cost of capital, and the cost of capital for corporate financing decisions also played a very important role in corporate financing is a way to expand the scale and how to adjust the capital structure of the financing decisions by the industry universal attention. This paper will effect the cost of capital in the financing decisions were analyzed and discussed and analyzed to choose the financing method to reduce the cost of capital.

  16. Methodical approach to profitability evaluation of logistic chain of enterprise’s trading capital financing

    Directory of Open Access Journals (Sweden)

    S.O. Kolodizieva

    2014-06-01

    . Authors offer the formula of calculation of logistic chain profitability index which represents the relation of cumulative profit of bank and client on providing / using the crediting service to cumulative expenses of bank and client connected with providing/using such service. Further mathematical transformations of the specified formula show dependence of cumulative profit primary on increase of client’s sales, caused by client’s usage of the crediting service corrected on cost of sales of deal’s participants. Cost of sales includes increases client’s cost of sales connected with usage of crediting by the client, bank’s interest expenses connected with financial resources utilization and bank’s and client’s administrative expenses, connected with providing / using the crediting service. Thus, the restrictions taken into account at calculation of such index are: profit as bank as client from such crediting service there have to be more than zero; expenses as bank as client, connected with crediting service, can't be negative; profit as bank as client has to be reasonable and appropriable for each party of the deal and have to aim to a maximum, expenses of each of the parties have to aim to a minimum. Conclusions and directions of further researches. Advantages of the index offered in article are: for calculation of index cumulative bank’s and client’s income and expenses are used; profit of a chain depends on client’s sales increases by using crediting service and grows in a case of reduction of cumulative expenses of bank and client, the increase of this index is possible through condition of increase in the income and reduction of expenses of all participants of a chain that completely corresponds to their interests. Application of the index developed by authors can be used in evaluation of profitability of factoring and overdraft as enterprise’s trading capital financing.

  17. 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.

  18. Managerial Factors and Management Conflict in Venture Capital Financing in Malaysia

    OpenAIRE

    Hisham bin Mohammad; Mohd Sobri bin Minai; Esuh Ossai-Igwe Lucky

    2014-01-01

    The warm venture cooperation built between venture capitalists and entrepreneurs may still be interrupted by the management's conflicts occurred due to various managerial factors. As a result, this study investigates the management conflict in venture capital investments. A cross-sectional study of questionnaire survey research design was conducted in this respect. Questionnaire data was generated from 35 Malaysian venture capital companies located in Kuala Lumpur and Selangor. The questionna...

  19. Capital

    OpenAIRE

    Coulangeon, Philippe

    2013-01-01

    Empruntée à l’appareil conceptuel de l’économie, la notion de capital désigne en première analyse l’ensemble des ressources dont disposent les individus et les groupes et qui affectent leurs trajectoires, notamment dans les domaines scolaire, professionnel, matrimonial et familial. La sociologie contemporaine se saisit le plus souvent du concept pour en souligner les différentes espèces : capital économique, capital culturel et capital social, principalement. Si le capital économique désigne ...

  20. Third party referrals in the venture capital financing process : do network ties matter?

    OpenAIRE

    Heuven, Joris

    2008-01-01

    In this paper we focus on the role of third party referrals in the venture capital funding process. Taking network theory as our theoretical perspective we explore if and how third parties play a role in the funding process. Hereby we focus on both the network ties between new venture teams and third parties and the network ties between VC’s and third parties. To do so we collected in depth information on 25 venture capital investment decisions and studied how third parties played a role in t...

  1. STUDY ON FINANCIAL OFFSHORE CENTRES, THE RISKS AND DEREGULATION OF THE INTERNATIONAL FINANCIAL SYSTEM, CAPITAL LAUNDERING AND TERRORISM FINANCING

    Directory of Open Access Journals (Sweden)

    MĂDĂLINA ANTOANETA RĂDOI

    2013-05-01

    Full Text Available After the end of the 90’s crisis, the settlement of the international financial system has taken an important place within the international organizations. There are important debates regarding the need of a compulsory reform to prevent crises. Means of preventing crises, especially within the field of foreign vulnerability assessment regard: transparency, following the international regulations and codes, refoundation of the financial compartments, liberalization of the capital movements. In addition, a set of work program is needed regarding the crises settlement and sovereign debt restructuring. Serious matters are requested regarding the adoption of fight tools against money laundering and terrorism finance. Offshore financial centers assessment is placed in the field of activity by refinancing of the financial sector, it is one of the health balance sheet elements achieved by the IMF and by the World Bank within the financial compartment assessment program.

  2. Third party referrals in the venture capital financing process : do network ties matter?

    NARCIS (Netherlands)

    Heuven, Joris

    2008-01-01

    In this paper we focus on the role of third party referrals in the venture capital funding process. Taking network theory as our theoretical perspective we explore if and how third parties play a role in the funding process. Hereby we focus on both the network ties between new venture teams and thir

  3. Access to finance for innovation: the role of venture capital and the stock market

    NARCIS (Netherlands)

    F. Bogliacino; M. Lucchese

    2011-01-01

    Financial constraints for young and small firms can prevent them from contributing to innovation and the creation of new jobs. The paper analyzes two of the several institutional mechanisms implemented to overcome that hurdle: the development of the venture capital market and access to the stock mar

  4. 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...

  5. 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.

  6. 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…

  7. Top incomes under finance-driven capitalism, 1990-2010: power resources and regulatory orders

    OpenAIRE

    Flaherty, Eoin

    2015-01-01

    This article examines the impact of financialisation on the income shares of the top 1% from 1990-2010, through a panel analysis of 14 OECD countries. Drawing together literatures stressing the dependence of income inequality on the structural bargaining power of capital relative to labour, and of the dependence of accumulation on underlying institutionalised modes of state regulation, it shows that financialisation has significantly enhanced top income shares net of underlying controls. Whil...

  8. FIRM VALUATION IN VENTURE CAPITAL FINANCING ROUNDS: THE ROLE OF INVESTOR BARGAINING POWER

    OpenAIRE

    A. HEUGHEBAERT; S. MANIGART; -()

    2010-01-01

    This study explores the impact of bargaining power of venture capital (VC) firms on the valuation of their portfolio companies. We argue that VC firm types with greater bargaining power vis-à-vis the entrepreneur negotiate lower valuations compared to VC firm types with less bargaining power. We find that VC firm types with stronger bargaining power, namely university and government VC firms, value investments lower compared to independent VC firms. The valuations of captive VC firms equal th...

  9. The capital structure adjustment through debt financing based on various macroeconomic conditions in Korean market

    Directory of Open Access Journals (Sweden)

    Hyun Jung Kim

    2015-01-01

    Full Text Available En este trabajo investigamos la relación entre la estructura de capital y las condiciones económicas en el mercado coreano. Para conocer el comportamiento de ajuste de la estructura de capital respecto a las condiciones macroeconómicas, utilizamos un modelo de ajuste parcial dinámico que estima las velocidades de ajuste hacia los objetivos. Los datos analizados en el estudio corresponden a las empresas no financieras que cotizan en la bolsa de valores de Corea. Empíricamente encontramos evidencia que es consistente con los argumentos de Hackbarth, Miao y Morellec (2006 y Cook y Tang (2010, respecto a que las empresas tienden a ajustar más rápidamente su apalancamiento respecto al nivel objetivo durante la expansión económica. Por lo tanto, nuestros resultados apoyan las teorías de pecking order y de market timing en términos de las teorías de finanzas corporativas relativas a la estructura de capital. Además, los resultados de nuestras pruebas son consistentemente robustos a pesar de que incluimos en nuestro modelo una variable ficticia ligada al tiempo como mecanismo de control de la crisis financiera global, en contraste con Kim (2013.

  10. 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. PMID:11010180

  11. Determinants of the cost of capital for privately financed hospital projects in the UK.

    Science.gov (United States)

    Colla, Paolo; Hellowell, Mark; Vecchi, Veronica; Gatti, Stefano

    2015-11-01

    Many governments make use of private finance contracts to deliver healthcare infrastructure. Previous work has shown that the rate of return to investors in these markets often exceeds the efficient level. Our focus is on the factors that influence that return. We examine the effect of macroeconomic, project- and firm-level variables using a detailed sample of 84 UK private finance initiative (PFI) contracts signed between 1997 and 2010. Of the above variables, macroeconomic conditions and lead sponsor size are related to the investor return. However, our results show a remarkable degree of stability in the return to investors over the 14-year period. We find evidence of a 'prevailing norm' that is robust to project- and firm-level variation. The sustainability of excess returns over a long period is indicative of a concentrated market structure. We argue that policymakers should consider new mechanisms for increasing competition in the equity market, while ensuring that authorities have the specialist resources required to negotiate efficient contract prices. PMID:26432655

  12. Capital gains

    International Nuclear Information System (INIS)

    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)

  13. Le rôle de la syndication des capital-investisseurs dans le financement de l’innovation, The Role of Venture Capitalists Syndication in the Financing of Innovation

    OpenAIRE

    Philippe Desbrières

    2015-01-01

    (VF) La pratique de la syndication est notablement développée dans le métier du capital-investissement, quels que soient le stade de développement, le secteur d’activité et la nationalité de l’entreprise financée. La syndication s’explique autant par des arguments financiers (partage des risques entre capital-investisseurs ; gouvernance du management de l’entreprise financée...) que par la nécessité d’une part, d’accéder à des ressources (informations, compétences) en matière de sélection et ...

  14. Financing Innovation

    OpenAIRE

    Yoo, JaeHoon

    2007-01-01

    More than 24 countries operate separate boards and exchanges aimed at small and medium-size enterprises (SMEs). Equity markets play a critical role in fostering economic productivity by financing innovation. But only a few SME exchanges function properly, providing coveted fresh capital and liquidity. What steps are key to building an efficient exchange to provide risk capital for SMEs? Cr...

  15. Pengaruh Capital Adequacy Ratio, Non Performing Loan, Operational Efficiency Ratio, Financing To Deposit Ratio Terhadap Return On Asset Bank Mega Syariah Indonesia

    OpenAIRE

    Nainggolan, Benget M.

    2011-01-01

    Tujuan dari penulisan skripsi ini adalah untuk menganalisis Pengaruh Capital Adequacy Ratio, Non Performing Loan, Operational Efficiency Ratio, Financing to Deposit Ratio terhadap Return On Asset Bank Mega Syariah Indonesia Jenis data yang akan diolah dan diteliti adalah data sekunder berupa laporan keuangan seperti neraca dan laporan laba-rugi serta bahan publikasi lain yang relevan dengan permasalahan yang diteliti. Tahun buku akuntansi yang dipilih adalah tahun buku 2007 sampai dengan t...

  16. 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...

  17. Social Capital and Venture Finance Selection of Migrant Workers%社会资本与农民工创业融资方式选择

    Institute of Scientific and Technical Information of China (English)

    王超恩; 刘庆

    2015-01-01

    基于全国性的农民工调查数据,从社会资本视角考察我国农民工创业融资方式问题,采用有序响应模型从三个方面对社会资本与农民工创业融资方式进行了实证检验,包括:个人特征、家庭禀赋、社会资本。调查结果表明,农民工创业者大部分依赖自有资金,融资渠道较少,只有少部分创业者能够获得正规金融结构的贷款,这严重制约了农民工自主创业的发展。值得注意的是,实证分析结果表明,个人特征和社会资本是影响农民工创业者借贷行为的重要因素,家庭禀赋对农民工创业融资方式影响并不显著,表明内源性融资与外源性融资有较强的替代性。社会资本对农民工获得有效借贷具有显著的正向影响,说明社会网络对发展普惠金融体系具有重要的作用。%Based on the data from a national survey ,this paper analyzes the migrant workers'venture capital fi‐nance problem from the perspective of social capital ,and applies the ordered response model to probe the determi‐nant factors that affect the venture capital finance of the migrant workers from three dimensions including the per‐sonal characters ,family endowment and social capital .The survey results show that migrant entrepreneurs rely mostly on their own funds ,with too few credit channels ,informal lending is still the main stream of rural financial market .Only a few entrepreneurs have access to formal lending ,which seriously restrict the development of mi‐grant workers'own businesses .Interestingly ,empirical analysis results show that the personal characters and social capital are important factors affecting migrant entrepreneurs credit behavior ,while family endowment has no obvi‐ous significant effect on venture finance selection .Endogenous finance can substitute exogenous finance in most ca‐ses .Social capital has a significant positive effect on the effective lending ,w hich

  18. 社会资本与农民工创业融资方式选择%Social Capital and Venture Finance Selection of Migrant Workers

    Institute of Scientific and Technical Information of China (English)

    王超恩; 刘庆

    2015-01-01

    Based on the data from a national survey ,this paper analyzes the migrant workers'venture capital fi‐nance problem from the perspective of social capital ,and applies the ordered response model to probe the determi‐nant factors that affect the venture capital finance of the migrant workers from three dimensions including the per‐sonal characters ,family endowment and social capital .The survey results show that migrant entrepreneurs rely mostly on their own funds ,with too few credit channels ,informal lending is still the main stream of rural financial market .Only a few entrepreneurs have access to formal lending ,which seriously restrict the development of mi‐grant workers'own businesses .Interestingly ,empirical analysis results show that the personal characters and social capital are important factors affecting migrant entrepreneurs credit behavior ,while family endowment has no obvi‐ous significant effect on venture finance selection .Endogenous finance can substitute exogenous finance in most ca‐ses .Social capital has a significant positive effect on the effective lending ,w hich means social capital plays an im‐portant role in the construction of inclusive finance system .%基于全国性的农民工调查数据,从社会资本视角考察我国农民工创业融资方式问题,采用有序响应模型从三个方面对社会资本与农民工创业融资方式进行了实证检验,包括:个人特征、家庭禀赋、社会资本。调查结果表明,农民工创业者大部分依赖自有资金,融资渠道较少,只有少部分创业者能够获得正规金融结构的贷款,这严重制约了农民工自主创业的发展。值得注意的是,实证分析结果表明,个人特征和社会资本是影响农民工创业者借贷行为的重要因素,家庭禀赋对农民工创业融资方式影响并不显著,表明内源性融资与外源性融资有较强的替代性。社会资本对农民工获得有效借贷具

  19. Entrepreneuriat répété, capital organisationnel et accès au financement par capital-risque

    OpenAIRE

    Jean Rédis; Jean-Michel Sahut

    2014-01-01

    This article is about the existence of potential differences in access to venture capital between serial entrepreneurs (who have founded several businesses, either one after the other or simultaneously) and new entrepreneurs (who create a

  20. 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.

  1. 内源融资能力、资本结构对信贷融资成本的影响--基于中小企业的实证研究%Empirical Analysis on the Impact of Internal Financing Ability, Capital Structure on SMEs' Credit Financing Cost

    Institute of Scientific and Technical Information of China (English)

    马雪彬; 佟美琪

    2015-01-01

    Taking the small and medium-sized listed companies' own internal financing ability, capital structure factors for the observation point, taking the listed SMEs credit financing cost as the research object, selecting the Shenzhen SME board 2007-2013 a total of 7 years of 55 listed corporations as the research sample, this paper studies deeply the impact of internal financing ability, capital structure of the listed SMEs credit financing cost. The result shows the endogenous financing capacity of SMEs is weaker, capital structure is more dependent on debt financing, SMEs credit financing cost is higher; endogenous fi-nancing capacity of SMEs is stronger, the capital structure of dependence on debt financing is weaker, SMEs credit financing cost is lower. Therefore, the small and medium-sized enterprise should constantly improve the internal financing ability of small and medium-sized enterprises, and optimize its capital structure, so as to reduce the small and medium-sized enterprises' own financing cost, and constantly promote the small and medium-sized enterprises' own market competitiveness.%论文以中小上市企业自身内源融资能力、资本结构因素为观察点,以中小上市企业信贷融资成本为研究对象,选择2007-2013年共7年的深市中小板55家上市公司作为研究样本,实证分析了中小企业内源融资能力、资本结构对中小企业信贷融资成本的影响。结果显示中小企业的内源融资能力越强,资本结构对债务融资的依赖性越弱,中小企业的信贷融资成本越低。因此中小企业应提高自身的内源融资能力,优化资本结构,从而降低自身信贷融资成本。

  2. 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...

  3. Financing energy projects in Africa

    International Nuclear Information System (INIS)

    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)

  4. Internal Capital Markets and Financing Choices of Mexican Firms Before and During the Financial Paralysis of 1995-2000

    OpenAIRE

    Gonzalo Castaneda

    2002-01-01

    This paper shows that, contrary to conventional wisdom, once the Mexican economy moved from financial liberalization to financial paralysis in 1995, liquidity constraints were relaxed for many large and financially healthy firms listed on the Mexican Securities Market. In the latter period, only those firms with a banking tie observe, on average, a dependence on cash stock to finance their investment projects. Econometric results are derived from dynamic panel data models estimated with the G...

  5. Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions

    OpenAIRE

    Alexandra Maßbaum; Caren Sureth

    2009-01-01

    Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Mi...

  6. STUDY ON FINANCIAL OFFSHORE CENTRES, THE RISKS AND DEREGULATION OF THE INTERNATIONAL FINANCIAL SYSTEM, CAPITAL LAUNDERING AND TERRORISM FINANCING

    OpenAIRE

    MĂDĂLINA ANTOANETA RĂDOI; ALEXANDRU OLTEANU

    2013-01-01

    After the end of the 90’s crisis, the settlement of the international financial system has taken an important place within the international organizations. There are important debates regarding the need of a compulsory reform to prevent crises. Means of preventing crises, especially within the field of foreign vulnerability assessment regard: transparency, following the international regulations and codes, refoundation of the financial compartments, liberalization of the capital movements. In...

  7. The Political Paradox of Finance Capitalism: Interests, Preferences, and Center-Left Party Politics in Corporate Governance Reform

    OpenAIRE

    Cioffi, J.; Höpner, M.

    2006-01-01

    A striking paradox underlies corporate governance reform during the past fifteen years: center-left political parties have pushed for pro-shareholder corporate governance reforms, while the historically pro-business right has generally resisted them to protect established forms of organized capitalism, concentrated corporate stock ownership, and managerialism. Case studies of Germany, France, Italy, and the United States reveal that center-left parties used corporate governance reform to atta...

  8. Financiranje podjetniških mrež s tveganim kapitalom = Financing Entrepreneurial Networks with Risk Capital

    Directory of Open Access Journals (Sweden)

    Lidija Robnik

    2006-12-01

    Full Text Available The future of entrepreneurship, its efficiency and possibilities for further development, are all conditioned by international global competition and strategic connecting and business networks. The successfulness of companies rests in the hands of entrepreneurs, who must be prepared to learn and to adapt themselves to the dynamics of competitiveness in the global business environment. The potential growth of the economy depends importantly on businessman and on entrepreneurship; this is why need constantly to conduct research into entrepreneurship and to seek for answers for the future, from the aspects of organisation, inter-connection, cooperation and financing.

  9. Thin Capitalization Rules and Entrepreneurial Capital Structure Decisions

    Directory of Open Access Journals (Sweden)

    Alexandra Maßbaum

    2009-12-01

    Full Text Available Tax planners often choose debt over equity financing. As this has led to increased corporate debt financing, many countries have introduced thin capitalization rules to secure their tax revenues. In a general capital structure model we analyze if thin capitalization rules affect dividend and financing decisions, and whether they can partially explain why corporations receive both debt and equity capital. We model the Belgian, German and Italian rules as examples. We find that the so-called Miller equilibrium and definite financing effects depend significantly on the underlying tax system. Further, our results are useful for the treasury to decide what thin capitalization type to implement.

  10. ‘We want what you have’: Faustian finance in The terrible privacy of Maxwell Sim and Capital

    OpenAIRE

    Di Bernardo, Francesco

    2013-01-01

    ‘We want what you have’ is the most emblematic sentence in Lanchester’s Capital: it is printed on a postcard left in the houses of Pepys Road and evokes the spectre of house repossessions followed by the 2008 financial crisis. Conversely, in literature the repossession by definition is that of Faust’s soul by Mephistopheles. Ian Watts (2006) tracing the origins of the Faustian myth recounts the historical and fictional roots of the myth and affirms that that Faust represents the ‘unrepentant ...

  11. Promoting and Financing Cultural Tourism in Europe through European Capitals of Culture: A Case Study of Košice, European Capital of Culture 2013

    Directory of Open Access Journals (Sweden)

    Miriam Šebová

    2014-05-01

    Full Text Available The paper highlights the link between the European Capital of Culture (ECoC designation and the development of cultural tourism in Europe. Cultural tourism is the fastest growing segment of tourism in the world and is the desirable objective of new defined cultural policies in European cities. According to the European Commission (2012, it is estimated that cultural tourism accounts for around 40% of all European tourism. In general, the European Commission confirms the significant role of cultural tourism in the development of tourism in Europe and one of the most visible tools of this strategy is the designation of the ECoC. Cultural policy has also become an important tool of urban regeneration and in the rebranding of European cities. The case study of Košice ECoC 2013 presents part of the results from the Košice ECoC evaluation project. The Košice ECoC 2013 project was designed as a community led project which was targeted at increasing the cultural consumption of residents rather than the number of foreign cultural tourists. However, the biggest events such as White night attracted a lot of tourists from the wider region. More than 70 million EUR was dedicated to investments, which have significantly improved the culture infrastructure in Košice. The ECoC designation supported the local cultural buzz and led to new local production of modern culture, art and the creative industries. Other visible effects have already been seen in the advantages gained by the decentralization of the cultural infrastructure and events in the neighbourhoods. The involvement of people outside the city centre has avoided gentrification in the city. From this point of view the project Košice ECoC 2013 has had the prerequisite to sustainable cultural tourism in Košice

  12. Financing Distributed Generation

    International Nuclear Information System (INIS)

    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

  13. Financing - general considerations

    International Nuclear Information System (INIS)

    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

  14. DIFFERENTIATED FINANCING SOURCES: THE IMPACT ON THE CAPITAL STRUCTURE OF BRAZILIAN SUGAR AND ALCOHOL COMPANIES FONTES DIFERENCIADAS DE FINANCIAMENTO: IMPACTO NA ESTRUTURA DE CAPITAL DE USINAS BRASILEIRAS DE AÇÚCAR E ÁLCOOL

    Directory of Open Access Journals (Sweden)

    Tatiana Albanez

    2009-10-01

    Full Text Available This paper analyzes the debt composition of sugar and ethanol companies from the center-south area of the country in five year-harvest (01/02, 02/03, 03/04, 04/05 and 05/06. It is tried to incorporate institutional factors to the capital structure analysis of the companies, such as the access to different sources, as well as to know the importance of those resources in the capital structure of the analyzed companies. Thus, it is tried to understand the participation of different financing lines used by the firms in their indebtedness, which are grouped in four categories: differentiated lines in national currency, differentiated lines in foreign currency, market lines in national currency and market lines in foreign currency. The research also tries to identify whether the companies used, in the analyzed period, the strategies of low debt and/or high liquidity to compensate the high interest rates of the national market. The sample is composed by 35 companies that process around 33% of the sugar cane of the country. The main results showed that the companies used mainly resources from differentiated lines in national currency and from market lines in foreign currency. It is also verified that, on average, the companies presented a debt level around 30%, in which prevails the use of long-term debt, and high liquidity levels through the period. It is noticed that the access to differentiated financing lines have influenced the financing decisions taken by the companies, since the use of these lines prevailed in all of the years, which ratifies the importance of including institutional factors in the capital structure analysis of the companies. Este artigo analisa a composição do endividamento de usinas de açúcar e álcool da região centro-sul do país em cinco anos-safra (01/02, 02/03, 03/04, 04/05 e 05/06. Procura-se incorporar fatores institucionais à análise da estrutura de capital das empresas, como o acesso a diferentes fontes de

  15. 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...

  16. Finansman Yöntemi Olarak Risk Sermayesi(A Financial Method: Venture Capital)

    OpenAIRE

    KUĞU, Tayfun Deniz

    2004-01-01

    Although, we have recently seen venture capital firms in form of technological firms, software and hardware have a long history. Venture capital is a financing method as well beside the other capital budgeting methods.Venture capital financing method has positive influence on developed countries’ economies. In fact, this method is a unique financing tecnique for countries that are facing to capital obsence.Venture capital financing method has long-run outcomes compare to the other capital bu...

  17. A Reader in International Corporate Finance, Volume Two

    OpenAIRE

    Claessens, Stijn; Laeven, Luc

    2006-01-01

    The Reader in International Corporate Finance offers an overview of current thinking on six topics: law and finance, corporate governance, banking, capital markets, capital structure and financing constraints, and the political economy of finance. This collection of 23 of the most influential articles published in the period 2000-2006 reflects two new trends: 1) interest in international ...

  18. Computational analytics for venture finance

    OpenAIRE

    Stone, T. R.

    2014-01-01

    This thesis investigates the application of computational analytics to the domain of venture finance – the deployment of capital to high-risk ventures in pursuit of maximising financial return. Traditional venture finance is laborious and highly inefficient. Whilst high street banks approve (or reject) personal loans in a matter of minutes It takes an early-stage venture capital (VC) firm months to put a term sheet in front of a fledgling new venture. Whilst these are fundamentally different ...

  19. 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. 223.7 Section 223.7 Money and Finance: Treasury Regulations Relating to Money and Finance (Continued... WITH THE UNITED STATES § 223.7 Investment of capital and assets. The cash capital and other funds...

  20. 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.

  1. 个人保障性住房融资再研究--基于政府财政与民间资本合力效应的实证分析%A Further Study on Financing of Personal Affordable Housing-An Empirical Analysis Based on Synergy Effect of Government Finance and Civilian Capital

    Institute of Scientific and Technical Information of China (English)

    王晓东; 洪爱华

    2014-01-01

    为了解决个人保障性住房建设中的融资难问题,文章采用实证的分析方法,以保障性住房的融资现状为切入点,通过对保障性住房融资的文献介绍,提出了相关的融资建议,研究结果发现:通过政府财政与民间资本的合力效应,不仅有利于提高民间投资者对个人保障性住房的建设积极性,整体社会福利也会因此而增加,而且更有利于政府对民间资本投资的有序引导。%In order to solve financing difficulties in the process of the construction of personal affordable housing,the pa⁃per puts forward relevant suggestions for financing by adopting empirical analysis methods,taking the present situation of fi⁃nancing of affordable housing as the breakthrough point and making a literature introduction on financing of affordable hous⁃ing. The results show that: the synergy effect of government finance and civilian capital will not only enhance private inves⁃tors’ enthusiasm on the construction of personal affordable housing, which brings about the increase of the overall social welfare,but also improve government’s more orderly guide to private capital investment.

  2. 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…

  3. Taxation and Venture Capital Backed Entrepreneurship

    OpenAIRE

    Keuschnigg, Christian; Nielsen, Søren Bo

    2004-01-01

    In recent years, venture capital has increasingly become a factor in the financing of new firms. We examine how the value of mature firms determines the incentives of entrepreneurs to start up new firms and of venture capitalists to finance and advise them. We examine how capital gains taxes as well as subsidies to start-up costs of new firms affect venture capital-backed entrepreneurship. We also argue that dividend and capital gains taxes on mature firms have important con...

  4. Dynamic investment and financing under personal taxation

    OpenAIRE

    Morellec, Erwan; Schuerhoff, N.

    2010-01-01

    This paper examines the effects of capital gains taxation on firms’ investment and financing decisions. We develop a real options model in which the timing of investment, the decision to default, and the firm’s capital structure are endogenously and jointly determined. Our analysis demonstrates that the asymmetric taxation of capital gains and losses fosters investment by eroding the option value of waiting. It also shows that firms controlled by taxable investors employ more equity financing...

  5. 产权性质、债务融资成本与资本结构%Ownership Type,Debt Financing Cost and Capital Structure

    Institute of Scientific and Technical Information of China (English)

    于欢

    2015-01-01

    From the perspective of the debt financing cost impact on the debt ratio,this paper investigates financing discrimination on listed private corporation. It finds that the way that debt financing cost influent on the debt ratio is U-shaped,and the influence between state-owned and private listed corporation have significant differences. The pri-vate listed corporations have lower inflection point than the state-owned listed corporations. When the debt financing cost and debt rate is negative,the leverage of private listed corporation changes in response to debt financing cost more than the state-owned listed corporation.%经济结构的转型升级是我国经济的重要任务,而金融资源分配不合理成为重要的阻碍因素,民营企业面临的信贷歧视就是这种不合理的重要体现。从债务融资成本对负债率影响的角度研究民营上市公司的信贷歧视问题,发现债务融资成本对负债率的影响呈U型,且这种影响在国有和民营上市公司之间有显著差异。表现在民营上市公司比国有上市公司有更低的U型关系拐点,当债务融资成本与负债率负相关时,民营上市公司负债率对债务融资成本变化的反应小于国有上市公司。

  6. FINANCING INNOVATION IN ROMANIA

    Directory of Open Access Journals (Sweden)

    SORIN SERBAN

    2012-05-01

    Full Text Available This article based on an examination of empirical literature, analyses the financing of innovative enterprises in Romania and presents the characteristics of Romanian policies in this regard. It sets forth an estimation of the number of innovative enterprises in Romania based on figures from different sources. Assessing the role of financial restrictions on innovation reveals that a firm is facing obstacles to finance its innovative activities but also other difficulties to innovate which appears to be enhanced. This article also puts forward the role of different financing actors and instruments at different stages of the firm's life cycle and emphasizes the function of proximity capital in filling the gap between supply and demand of financing. Finally a framework for policy is recommended.

  7. PUBLIC FINANCE VERSUS PRIVATE FINANCE

    OpenAIRE

    AUREL IOAN GIURGIU; FLORIN SEBASTIAN DUMA

    2010-01-01

    The generic term of finance comprises a multitude of practical forms, apparently different not only from the targeted purpose, but also by the way of creating and using of the funds. However, finance is divided in two main forms: public finance and private finance. The public finance is trying to satisfy the common needs of the entire community which is administered by the constituted authority, while the private finance refers to the needs of a much more restrained community constituted thro...

  8. MODELS OF CAPITAL COSTS QUANTIFICATION

    OpenAIRE

    Tomáš KLIEŠTIK; Katarína VALÁŠKOVÁ

    2013-01-01

    The present contribution deals with the quantification of capital costs. The contribution is written on a theoretical basis. The costs will be particularly quantified in financing only by equity and only by debt capital and particularly in the so-called mixed financing in which weighted average costs of capital will be quantified. The cost of capital can be seen from three different perspectives: in the assets part of a company, in the liability part of a company and in the part of potential ...

  9. Indirect financing can ease $ crunch

    Energy Technology Data Exchange (ETDEWEB)

    Healy, T.J.

    1978-06-01

    The electric utility industry is moving toward indirect financing as a more promising way to raise the $500 to $600 billion in capital needed for expansion. Techniques of indirect financing include forming generating companies and construction trusts, leveraged leasing, and fuel-inventory financing. Some of the new strategies include forming independent or regional multi-sponsor companies, funding refuse-derived fuel or co-generation projects, imposing all-events full cost-of-service tariffs, mandating and financing residential conservation programs, and loan guarantees.

  10. Financing electricity expansion

    International Nuclear Information System (INIS)

    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)

  11. Finansman Yöntemi Olarak Risk Sermayesi(A Financial Method: Venture Capital

    Directory of Open Access Journals (Sweden)

    Tayfun Deniz KUĞU

    2004-01-01

    Full Text Available Although, we have recently seen venture capital firms in form of technological firms, software and hardware have a long history. Venture capital is a financing method as well beside the other capital budgeting methods.Venture capital financing method has positive influence on developed countries’ economies. In fact, this method is a unique financing tecnique for countries that are facing to capital obsence.Venture capital financing method has long-run outcomes compare to the other capital budgeting methods, but it has higher risks involved. In addition to all, venture capital classified classic entrepreneur consept as “an investor” and “an entrepreneur”.

  12. 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.

  13. Publicly Financed Education in an Endogenous Growth Model

    OpenAIRE

    John Creedy; Norman Gemmell

    2002-01-01

    Purpose – This paper aims to examine the growth effects of human capital investment achieved through publicly-provided, compulsory education, financed from income and consumption taxes. Design/methodology/approach – Constructs an endogenous growth model for developing countries, based on human capital accumulation in which education is publicly provided and financed, and schooling is compulsory. Findings – Public investment in human and physical capital are financed from taxes on wage and cap...

  14. Positive and Negative Effects of Finance-based Social Capital on Incident Functional Disability and Mortality: An 8-year Prospective Study of Elderly Japanese

    OpenAIRE

    ,

    2012-01-01

    Background Rotating savings and credit associations (ROSCAs) involve group financial self-help activities. These voluntary financial cooperative associations—mujin in Japanese—are found in some rural areas of Japan. Cross-sectional evidence suggests that active participation in mujin correlates with rich social capital and better functional capacities among older adults. However, the effect of mujin on subsequent health outcomes is unknown. Methods In 2003, we conducted a baseline interview s...

  15. Venture capital and internationalization

    OpenAIRE

    Schertler, Andrea; Tykvová, Tereza

    2009-01-01

    Cross-border investments represent a substantial share of venture capital activities. We use a new and comprehensive dataset on worldwide investments to analyze the internationalization of venture capital financing. Our results from the perspectives of (i) venture capitalists, (ii) portfolio companies, (iii) portfolio companies' countries and (iv) pairs of venture capitalists' and portfolio companies' countries suggest that some factors, such as viable stock markets, boost investments by dome...

  16. 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...

  17. 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. PMID:7614219

  18. Excess capital and liquidity management

    OpenAIRE

    Toporowski , Jan

    2008-01-01

    These notes present a new approach to corporate finance, one in which financing is not determined by prospective income streams but by financing opportunities, liquidity considerations, and prospective capital gains. This approach substantially modifies the traditional view of high interest rates as a discouragement to speculation; the Keynesian and Post-Keynesian theory of liquidity preference as the opportunity cost of investment; and the notion of the liquidity premium as a factor in deter...

  19. International energy financing

    International Nuclear Information System (INIS)

    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)

  20. Indian Banks’ Methods for Assessing Working Capital

    OpenAIRE

    Malhotra Gunjan; Shastry Vikram; Sinharay Soumyadeep

    2010-01-01

    Working Capital is the capital required for by a firm to sustain its day to day activities. Different firms have different approaches to finance their working capital needs. After receiving proposals for working capital loans, as a precaution banks need to assess the amount of working capital loan which can be granted and also to determine the interest rate at which the loan can be provided. The RBI and its committees have introduced new methods for the calculation of credit eligibility for t...

  1. Toward A Reliable Cost of Capital

    OpenAIRE

    Jeremiah U. Idialu; Amos O. Arowoshegbe

    2013-01-01

    This is study is designed to provide basis for determining a reliable cost of capital. Corporate finance textbooks typically devote several chapters to the problems of capital budgeting, cash flow estimation and the determination of a firm’s cost of capital. However, it can be difficult in practice to obtain reliable estimates of the inputs required to perform capital budgeting as recommended by the textbooks. Also, the Weighted Average Cost of Capital (WACC) is commonly presented in a way th...

  2. Impact of venture capital on economic development

    OpenAIRE

    Laurinavičius, Antanas

    2014-01-01

    Object of the research is public venture capital as a tool of venture capital market incentive, innovative business start-up financing, and state policy, which helps addressing imperfect/inefficient market situations where private venture capital does not access all market players. Purpose of the research is to reveal the importance of public venture capital to the national venture capital sector, its impact on the economy and, based on the experience of European countries, to create a hypoth...

  3. The Private Finance Initiative and public sector finance

    OpenAIRE

    Rob Ball; Maryanne Heafey; David King

    2002-01-01

    Traditionally, when the public sector wanted more capital assets, it borrowed funds for the purpose. Under the Private Finance Initiative (PFI), private consortia borrow funds to build assets and then, in return for a charge, use them to provide services for the public sector. The authors explore the implications for the public finances of using the PFI. A widely held belief, which has been put forward by the Treasury, is that using the PFI allows investment in assets used by the public secto...

  4. The Centrality of Finance

    OpenAIRE

    Tabb, William K.

    2015-01-01

    In the contemporary conjuncture financialization is driving a fundamentalreorganization of American capitalism and increasingly that of other economiessignificantly impacting the trajectory of the world-system. This paper interrogates the nature and extent of financialization, the ways it is adding to systemic risk with attention to the future of the dollar, and implications for the relationship between US based finance and new emerging centers of the world-system.

  5. The Centrality of Finance

    Directory of Open Access Journals (Sweden)

    William K. Tabb

    2015-08-01

    Full Text Available In the contemporary conjuncture financialization is driving a fundamentalreorganization of American capitalism and increasingly that of other economiessignificantly impacting the trajectory of the world-system. This paper interrogates the nature and extent of financialization, the ways it is adding to systemic risk with attention to the future of the dollar, and implications for the relationship between US based finance and new emerging centers of the world-system.

  6. 75 FR 6151 - Minimum Capital

    Science.gov (United States)

    2010-02-08

    ... Cease and Desist Order, as amended. See 74 FR 5597 (January 30, 2009). As a result, the definition of... AGENCY 12 CFR Part 1225 RIN 2590-AA01 Minimum Capital AGENCY: Federal Housing Finance Agency. ACTION... Soundness Act that provides for a temporary increase in the minimum capital level for entities regulated...

  7. ROMANIA’S CAPITAL MARKET

    OpenAIRE

    ROBERT SZABO; ILIE RĂSCOLEAN

    2008-01-01

    The book presents the features and the evolution of the capital market in Romania and also presents its role and efficiency in financing the economy. Also the book presents the participants in the capital market, which are defined as regulated entities, investors and issuers.

  8. 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…

  9. Financing and insurance problems

    International Nuclear Information System (INIS)

    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

  10. Capital Gains Taxes, Irreversible Investment, and Capital Structure

    OpenAIRE

    Norman Schuerhoff

    2004-01-01

    Personal taxation can be an important determinant of corporate investment and financing decisions if the marginal investor is taxed. I develop a dynamic capital budgeting model under realization-based capital gains taxation that highlights distinct cross-sectional and time-series implications. Capital gains taxation creates an embedded tax timing option that reduces investors’ uncertainty about after-tax payoffs in downstates. The inherent asymmetry in personal taxation diminishes the value...

  11. Behavioralizing Finance

    OpenAIRE

    Shefrin, Hersh

    2010-01-01

    Finance is in the midst of a paradigm shift, from a neoclassical based framework to a psychologically based framework. Behavioral finance is the application of psychology to financial decision making and financial markets. Behavioralizing finance is the process of replacing neoclassical assumptions with behavioral counterparts. This monograph surveys the literature in behavioral finance, and identifies both its strengths and weaknesses. In doing so, it identifies possible directions for behav...

  12. Financing a nuclear programme

    International Nuclear Information System (INIS)

    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)

  13. 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.

  14. Venture Capital Backed Growth

    OpenAIRE

    Keuschnigg, Christian

    2002-01-01

    The paper proposes a simple equilibrium model of venture capital, entrepreneurship and innovation. Venture capitalists not only finance but also advise start-up entrepreneurs and thereby add value to new firms. The paper demonstrates how a productive and active VC industry boosts innovation driven growth.

  15. 中小企业集群与民间资本对接提升了融资效率吗?——基于长三角数据的检验%Does the Docking Between SME Cluster and Folk Capital Promote the Financing Efficiency?——Based on the Data of Yangtze River Delta

    Institute of Scientific and Technical Information of China (English)

    徐攀; 潘煜双

    2016-01-01

    Whether the docking between small and medium-sized enterprise ( SME) cluster and folk capital can raise the enterprises'financing efficiency has become one of the hot topics in the society from all walks of life.This paper uses the data of Yangtze river delta as SME cluster sample, and builds a panel data model to study the financing efficiency of docking between SME cluster and folk capital.The results show that the docking between the SME cluster and the folk capital can im-prove the enterprises'financing efficiency.Empirical results from subsample show that the docking between the SME cluster and the folk capital can improve the non-state-owned enterprises'financing efficiency, but has no significant impact on the state-owned enterprises'financing efficiency.Moreover, the docking between the SME cluster and the folk capital has signifi-cant effects on corporate financing efficiency in Zhejiang province, but no significant effects in Jiangsu and Shanghai.Finally, the research results can provide the theoretical basis and realistic foundation for improving the financing efficiency of SME in China.%本文以长三角地区中小企业作为集群样本, 构建面板数据模型, 探讨中小企业集群与民间资本对接对企业融资效率的影响. 研究结果表明: 中小企业集群与民间资本对接提升了企业融资效率. 分样本的实证结果显示: 中小企业集群与民间资本对接能有效提升非国有企业的融资效率, 而对国有企业的融资效率的影响并不显著. 此外, 浙江省中小企业集群与民间资本对接对企业融资效率影响显著, 而江苏与上海地区的影响并不显著. 本文的研究结果为提高我国中小企业融资效率提供了理论依据和现实基础.

  16. Creative Financing, House Prices, and Property Tax Inequities

    OpenAIRE

    G. Stacy Sirmans; Sirmans, C. F.; Smith, Stanley D.

    1987-01-01

    This paper examines the distortions in house prices caused by the use of creative financing and the horizontal and vertical inequities in property tax assessments that can result if the proper adjustment of prices for financing is not made. The results show that horizontal inequities exist across financing alternatives (i.e., between conventional and assumption financing). The results also indicate vertical inequities in house prices since the amount of capitalization of financing differs acr...

  17. 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.

  18. The research on the influencing factors of financing strategy of woman entrepreneurs in China

    OpenAIRE

    Xiong Xiong; Rong Fu; Wei Zhang; Yongjie Zhang; Lin Xiong

    2011-01-01

    Based on the data from the nationwide surveys of SMEs in "China's Private Economic Research in 2002, this paper examines gender differences among Chinese entrepreneurs seeking financing pattern, including external and internal financing, and studies on the factors those affect women entrepreneurs’ financing strategies through theoretical analysis and model validation from the human capital and social capital perspective. We find that human capital and social capital have positive influe...

  19. The Capital Structure of Firms in Central and Eastern Europe

    OpenAIRE

    Cornelli, Francesca; Portes, Richard; Schaffer, Mark E.

    1996-01-01

    According to more recent theories on the optimal capital structure, the availability of external financing is not always guaranteed, or it may come at different costs, depending on the methods of financing used (debt vs. equity, long-term debt vs. short-term debt, etc.). Under such circumstances, firms’ investment and financing decisions are interdependent. This paper studies the optimal capital structure for enterprises in transition economies and investigates the actual capital structure an...

  20. 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

  1. Innovative financing techniques for nuclear power exports

    International Nuclear Information System (INIS)

    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

  2. New Regulations Affect School Debt Financing.

    Science.gov (United States)

    Olson, Carol Duane

    1993-01-01

    Provides an overview of changes in Treasury Regulations as they affect school debt financing, including bond and note construction and acquisition issues, other types of equipment and property financing, as well as tax and revenue anticipation notes for working capital needs. (MLF)

  3. Project financing

    International Nuclear Information System (INIS)

    Project financing was defined ('where a lender to a specific project has recourse only to the cash flow and assets of that project for repayment and security respectively') and its attributes were described. Project financing was said to be particularly well suited to power, pipeline, mining, telecommunications, petro-chemicals, road construction, and oil and gas projects, i.e. large infrastructure projects that are difficult to fund on-balance sheet, where the risk profile of a project does not fit the corporation's risk appetite, or where higher leverage is required. Sources of project financing were identified. The need to analyze and mitigate risks, and being aware that lenders always take a conservative view and gravitate towards the lowest common denominator, were considered the key to success in obtaining project financing funds. TransAlta Corporation's project financing experiences were used to illustrate the potential of this source of financing

  4. Consumer Finance

    OpenAIRE

    Peter Tufano

    2009-01-01

    Although consumer finance is a substantial element of the economy, it has had a smaller footprint within financial economics. In this review, I suggest a functional definition of the subfield of consumer finance, focusing on four key functions: payments, risk management, moving funds from today to tomorrow (saving/investing), and from tomorrow to today (borrowing). I provide data showing the economic importance of consumer finance in the American economy. I propose a historical explanation fo...

  5. Behavioral Finance

    OpenAIRE

    Hirshleifer, David

    2003-01-01

    Behavioral finance is the study of how psychology affects financial decision making and financial markets. A valuable resource for both academics and practitioners, this authoritative collection brings together the main works in both psychology and finance, dealing with the debate between proponents of the behavioral school and advocates of the efficient market school. The first volume contains works written by leading psychologists that underlie behavioral finance, focusing on general issues...

  6. From capital to capital

    Institute of Scientific and Technical Information of China (English)

    2002-01-01

    HOW easy it is for one who lives in Beijing, capital of the country, to have the impression that all things significant happen there! This is to forget how there are now many provincial capitals in China, that are rapidly modernizing. In order to achieve such modernization, these cities, like

  7. The international Finance Corporation and financing of sustainable energy

    International Nuclear Information System (INIS)

    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.)

  8. PARTICULARITIES OF VENTURE CAPITAL MARKET FORMATION AND DEVELOPMENT

    OpenAIRE

    Pilipenko, B.

    2010-01-01

    The article elucidates contemporary approaches to defining the essence of venture capital market and venture financing, characterizes its peculiarities and features, and substantiates the need for creating the infrastructure of venture capital market on the basis of stock market development.

  9. New Approaches to Debt Financing.

    Science.gov (United States)

    Levitz, Larry; And Others

    1987-01-01

    The use of tax-exempt and taxable bonds by colleges and universities to raise capital is discussed. Currently, the most common tax-exempt instrument issued by higher education institutions is the revenue bond. Until the early 1980s the most common form of tax-exempt financing was long-term fixed-rate debt. Variable or floating rate debt became…

  10. Project financing

    International Nuclear Information System (INIS)

    This paper presents the basic concepts and components of the project financing of large industrial facilities. Diagrams of a simple partnership structure and a simple leveraged lease structure are included. Finally, a Hypothetical Project is described with basic issues identified for discussion purposes. The topics of the paper include non-recourse financing, principal advantages and objectives, disadvantages, project financing participants and agreements, feasibility studies, organization of the project company, principal agreements in a project financing, insurance, and an examination of a hypothetical project

  11. Using the capital markets in Ras Gas

    International Nuclear Information System (INIS)

    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)

  12. The research on the influencing factors of financing strategy of woman entrepreneurs in China

    Directory of Open Access Journals (Sweden)

    Xiong Xiong

    2011-08-01

    Full Text Available Based on the data from the nationwide surveys of SMEs in "China's Private Economic Research in 2002, this paper examines gender differences among Chinese entrepreneurs seeking financing pattern, including external and internal financing, and studies on the factors those affect women entrepreneurs’ financing strategies through theoretical analysis and model validation from the human capital and social capital perspective. We find that human capital and social capital have positive influence on seeking external financing. There is also some evidence that the impact in Administrative system may promote external financing in China.

  13. 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 STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.2 Issuance of capital stock. (a) In general. A Bank...

  14. 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 STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.1 Classes of capital stock. The authorized...

  15. 12 CFR 932.4 - Credit risk capital requirement.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Credit risk capital requirement. 932.4 Section 932.4 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL REQUIREMENTS § 932.4 Credit risk capital requirement. (a) General requirement. Each Bank's credit...

  16. 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...

  17. Building A Venture Capital Index

    OpenAIRE

    Liang Peng

    2001-01-01

    This paper builds a venture capital index from 1987 to 1999 that consists of 12,946 rounds of venture financing with 5,643 venture-backed firms. The paper uses two innovative techniques, a re-weighting procedure and a method of moment repeat sales regression, to mitigates three problems - missing data, censored data, and sample selection. We report the time series of capital flows, net asset value, and returns of the venture capital index. We find that the venture capital industry experienced...

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

    International Nuclear Information System (INIS)

    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)

  19. 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.

  20. Internationalisation and financing options of Ghanaian SMEs

    Directory of Open Access Journals (Sweden)

    Joshua Abor

    2004-12-01

    Full Text Available This article presents a study of internationalisation and the financing options of Ghanaian small and medium scale nontraditional exporters. The article also examines how the age and size of an organisation affect the choice of financing. The results show a positive association between debt financing and the age of an organisation. Over time, organisations become more acceptable investments to lenders, and consequently older organisations are more likely to obtain debt financing than their younger counterparts. With respect to size, the results again indicate that larger organisations are more likely to receive debt financing. The results also show a positive relationship between degree of internationalisation and debt financing. The results suggest that as organisations engage more in international activities, they employ more debt but use less of equity financing. This is explained by the fact that organisations involved in international business tend to be more diversified and, as such, are capable of accommodating more debt capital

  1. 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...

  2. Intellectual Capital.

    Science.gov (United States)

    Snyder, Herbert W.; Pierce, Jennifer Burek

    2002-01-01

    This review focuses on intellectual capital and its relationship to information professionals. Discusses asset recognition; national practices and the acceptance of intellectual capital; definitions of intellectual capital; measuring intellectual capital, including multiple and single variable measures; managing intellectual capital; and knowledge…

  3. 77 FR 11618 - Solutions Capital I, L.P.; Notice Seeking Exemption Under the Small Business Investment Act...

    Science.gov (United States)

    2012-02-27

    ... Administration Rules and Regulations (13 CFR 107). Solutions Capital I, L.P., proposes to acquire debt financing... Act''), in connection with the financing of a small concern, has sought an exemption under Sec. 312 of.... The financing is contemplated to provide growth capital for the company. The financing is...

  4. Financing Investment

    DEFF Research Database (Denmark)

    Hirth, Stefan; Flor, Christian Riis

    Intuition suggests that corporate investment should be decreasing in financing constraints. We show that even when financing is obtained using a standard debt contract and there is symmetric information between the firm and outside investors, the relation is actually U-shaped. We thus provide a new...... theoretical explanation for the recent empirical findings of Cleary et al. (2007). We split up the endogenously implied financing costs and propose a trade-off between expected liquidation costs and second-best investment costs. For rather unconstrained firms, the risk of costly liquidation dominates the cost...

  5. The financing of new mining ventures

    International Nuclear Information System (INIS)

    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.)

  6. The Capital Asset Pricing Model

    OpenAIRE

    André F. Perold

    2004-01-01

    The Capital Asset Pricing Model (CAPM) revolutionized modern finance. Developed in the early 1960s by William Sharpe, Jack Treynor, John Lintner and Jan Mossin, the model provided the first coherent framework for relating the required return on an investment to the risk of that investment. This paper lays out the key ideas of the model, places its development in a historical context, and discusses its applications and enduring importance to the field of finance.

  7. Erotic Capital

    OpenAIRE

    Jensen, Natalie Madeleine; Jensen, Benjamin; Engstrøm, Emma; Maas, Jannik; Majchrzak, Izabela

    2016-01-01

    This project “Erotic Capital” concerns the topic and theory of Erotic Capital, coined by Catherine Hakim. The idea of Erotic Capital derives from Pierre Bourdieu’s theory of Personal Capitals – in this, Erotic Capital is discussed as an additional Personal Capital. In connection to the investigation of the theory Erotic Capital, certain theories of Feminism, Masculinity, Femininity, Gender and Cultural Differences are explored and examined. This is done in order to study how these theories...

  8. Internal capital markets and capital structure: bank versus internal debt.

    OpenAIRE

    Dewaelheyns, Nico; Van Hulle, Cynthia

    2007-01-01

    Recent empirical evidence has shown that internal capital markets within multinational corporations are used to reduce overall financing costs by optimizing the mix of internal and external debt of affiliates in different countries. We show that this cost saving use of internal capital markets is not limited to multinationals, but that domestic business groups actively optimize the internal/external debt mix across their subsidiaries as well. We use both subsidiary and group level financial s...

  9. 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...

  10. A New Test of Capital Structure.

    OpenAIRE

    Mayer, Colin; Sussman, Oren

    2004-01-01

    This paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment spikes. We find that the spikes are predominantly financed with debt by large firms and with new equity by small firms. In the process of financing large projects, firms move significantly away from their previous capital structure, as predicted by the pecking order theory. Furthermore, consistent with the pecking order theory, new equity issues are primarily associated with...

  11. An Islamic capital asset pricing model

    OpenAIRE

    Tarek H. Selim

    2008-01-01

    Purpose – The purpose of this paper is to describe the application of the Islamic financing method based on direct musharakah to the conventional capital asset pricing model yielding several interesting hypotheses. Design/methodology/approach – Theoretical methodology, with maximin criteria, and rational economic optimization. Findings – There are four major findings. First, an Islamic financing partnership based on complementary capital is proven to necessarily yield a lower beta-risk of inv...

  12. RECENT INTERNATIONAL RESEARCH IN CAPITAL STRUCTURE

    OpenAIRE

    Nisiyama, Edelcio Koitiro; Nakamura, Wilson Toshiro

    2015-01-01

    Capital Structure is still one of controversial themes in corporate finance, which allows many research activities both on the theories that have been widely discussed but also on the several interrelationships with other corporate aspects. The aim of this article was to review the most recent academic publication of researches involving capital structure of the firms. This study focuses on the last 3 years, from 2011 to 2013, and on the international scientific journals in Finance that pres...

  13. OVERVIEW OF CAPITAL STRUCTURE THEORY

    OpenAIRE

    Taha, Roshaiza; SANUSI Nur Azura

    2014-01-01

    The aim of this paper is to provide a comprehensive review on two major theories of capital structure; pecking order theory and static-trade off theory in regard with achieving an optimal capital structure. Researchers believed bankruptcy costs, transactions costs, agency conflicts, adverse selection and taxes has been attribute as major explanations of the corporate used of debt financing which has been used as an argument in both theory. To date there is no consensus on the existing of opti...

  14. Asia Small and Medium-sized Enterprise (SME) Finance Monitor 2013

    OpenAIRE

    Asian Development Bank (ADB)

    2014-01-01

    The Asia SME Finance Monitor 2013 is the knowledge sharing product on SMEs in Asia and the Pacific, specially focusing on SME access to finance. The Monitor reviews various country aspects of SME finance covering the banking sector, nonbank sector, and capital markets. It is expected to support evidence-based policy making and regulations on SME finance in the region.

  15. Financing wind energy projects

    International Nuclear Information System (INIS)

    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)

  16. 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.

  17. THE ROLE OF THE BANKING SYSTEM OF UKRAINE IN FUNDING OF CAPITAL INVESTMENTS INTO NATIONAL ECONOMY

    Directory of Open Access Journals (Sweden)

    N. Shpygotska

    2014-01-01

    Full Text Available The paper studies the capital structure of domestic enterprises by sources, forms and terms of financing. The structure of capital investments financing in the economy of Ukraine are analysed. The role of banking lending in financing of current and investment activity of domestic enterprises are anatomized. The key tools to foster bank lending to stimulate the national economy are developed.

  18. New directions in electric power financing

    International Nuclear Information System (INIS)

    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)

  19. 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 fi

  20. 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...

  1. ECONOMIC COST OF FOREIGN FINANCING

    OpenAIRE

    Glenn Jenkins; Chun-Yan Kuo

    1999-01-01

    The conventional treatment by the economic appraisal of investments has been to disregard the particular terms of foreign financing as a benefit or cost. This approach is being called into question as the private provision of public services has become dominated by foreign investors and operators. Many of the BOT and BOO contracts are far from being transparent capital market transaction. This paper contains a methodology for introducing the measurement of extra costs or benefits attributable...

  2. Financing a portfolio of projects

    OpenAIRE

    Inderst, Roman; Mueller, Holger M.; Münnich, Felix

    2006-01-01

    This paper shows that investors financing a portfolio of projects may use the depth of their financial pockets to overcome entrepreneurial incentive problems. While competition for scarce informed capital at the refinancing stage increases the investor’s ex post bargaining position, it may nevertheless improve entrepreneurs’ ex ante incentives. This is because projects funded by investors with 'shallow pockets' must have not only a positive NPV at the refinancing stage, but one that is higher...

  3. Analysis of the influence factors on the capital cost

    OpenAIRE

    Popescu, Eleodor

    2011-01-01

    The capital structure refers to the long-term financing types used by the enterprises (for example, reinvested profit, long-term shares and debts) and the way they are financed by a combination of the own capital and debts. An optimal structure of the capital involves making some important decisions regarding the maximization of the enterprise value by their managers. But these decisions are not important only for maximizing the enterprise value, but also for the impact they have on the en...

  4. Crude Carrier Consolidation and Capital Cost

    OpenAIRE

    T T Gilje; J Dinwoodie; J Challacombe

    2002-01-01

    This paper investigates the role of consolidation strategies amongst crude carrier operators anxious to reduce costs and attract institutional capital. Could consolidation combat erratic tonnage demand, mounting regulatory pressure to provide quality service at reduced costs, rising costs of finance and unpredictable long-term returns that deter institutional capital? A questionnaire survey of capital providers' and charterers' attitudes towards consolidation found that long-term vessel emplo...

  5. FINANCIAL INTERMEDIARIES’ ACTIVITY ON ROMANIAN CAPITAL MARKET

    OpenAIRE

    Dumitru-Cristian OANEA

    2014-01-01

    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 ...

  6. Sustainable finance

    NARCIS (Netherlands)

    Boersma-de Jong, Margreet F.

    2012-01-01

    Presentation for Springschool of Strategy, University of Groningen, 10 October 2012. The role of CSR is to stimulate ethical behaviour, and as a result, mutual trust in society. Advantage of CSR for the company and the evolution of CSR. From CSR to Sustainable Finance: how does CSR influence Sustai

  7. Computational Finance

    DEFF Research Database (Denmark)

    Rasmussen, Lykke

    One of the major challenges in todays post-crisis finance environment is calculating the sensitivities of complex products for hedging and risk management. Historically, these derivatives have been determined using bump-and-revalue, but due to the increasing magnitude of these computations does...

  8. Financing options for small hydro projects

    International Nuclear Information System (INIS)

    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

  9. On the expansion of finance and financialisation

    OpenAIRE

    Russo, Alberto; Zanini, Adelino

    2010-01-01

    In this paper we explore the role of finance in the recent crisis noting that its expansion, in a context of deregulation and globalisation, has boosted financial profits and capital accumulation, but at the cost of a growing systemic instability both in the leading capitalist economy, i.e. the USA, and at the international level. The expansion of finance tends to emerge in certain phases of capitalist development, in particular during periods of countries’ decline. At the same time, each pha...

  10. Corporate Social Responsibility and Access to Finance

    OpenAIRE

    Cheng, Beiting; Ioannou, Ioannis; Serafeim, Georgios

    2012-01-01

    In this paper, we investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance. We hypothesize that better access to finance can be attributed to a) reduced agency costs due to enhanced stakeholder engagement and b) reduced informational asymmetry due to increased transparency. Using a large cross-section of firms, we find that firms with better CSR performance face significantly lower capital constraints. Moreover, we provide ...

  11. Three essays in dynamic corporate finance

    OpenAIRE

    Boris NIKOLOV

    2008-01-01

    The three essays constituting this thesis focus on financing and cash management policy. The first essay aims to shed light on why firms issue debt so conservatively. In particular, it examines the effects of shareholder and creditor protection on capital structure choices. It starts by building a contingent claims model where financing policy results from a trade-off between tax benefits, contracting costs and agency costs. In this setup, controlling shareholders can divert part of the firms...

  12. Modern Technologies of Agrarian Business Venture Financing

    OpenAIRE

    Yuriy Lupenko; Volodymyr Feshchenko

    2015-01-01

    The article is devoted to study of features and prerequisites of venture investing of business, possibilities of modern tools and technologies of risk financing of companies, and substantiation of recommendations for their efficient application in agrarian sector of national economy. Interaction procedures between venture capital and business are disclosed. Comparative analysis of modern risk financing tools is made, in particular, venture investment funds, business-angels of investment proje...

  13. Finance versus democracy? Theorizing finance in society

    OpenAIRE

    Sylvia Walby

    2013-01-01

    What should be the place of finance in social theory? What is the relationship between finance and democracy? The article identifies four major frameworks that analyse finance: orthodox, drawing on Adam Smith; political economy, drawing on Marx; heterodox, drawing on Keynes and Minsky; and societal, drawing on Polanyi. These frameworks are critically analysed along five dimensions: the conceptualization of finance; the relations between finance and the economy; the relations between finance a...

  14. Private Power Financing : From Project Finance to Corporate Finance

    OpenAIRE

    Karl G. Jechoutek; Lamech, Ranjit

    1995-01-01

    Project financing of independent power producers (IPPs) may seem the only solution to the intractable problem of getting private credit to the power sector. In the developing world, however, the public-private partnership in project-financed IPP ventures has been slow to produce results. To achieve substantive progress in IPP financing, limited recourse project financing will have to evolv...

  15. VENTURE CAPITAL AS A CATALYST OF BUSINESS DEVELOPMENT IN LITHUANIAN

    OpenAIRE

    Laurinavicius, An

    2012-01-01

    Article tries to establish whether (and how) appropriate financing sources – especially venture capital funds – could reveal any strategic opportunities of new and innovative companies and of the whole national economy. The question is raised about which – private or public – venture capital is more able to solve the problem of insufficiency of capital for the beginning of inno-vative businesses.

  16. 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. PMID:16583848

  17. Corporate financing decisions: UK survey evidence

    OpenAIRE

    Beattie, V.; Goodacre, A.; Thomson, S. J.

    2006-01-01

    Despite theoretical developments in recent years, our understanding of corporate capital structure remains incomplete. Prior empirical research has been dominated by archival regression studies which are limited in their ability to fully reflect the diversity found in practice. The present paper reports on a comprehensive survey of corporate financing decision-making in UK listed companies. A key finding is that firms are heterogeneous in their capital structure policies. About half of the fi...

  18. Profit-Loss Sharing Model for External Financing (Research Paper)

    OpenAIRE

    Bendjilali, Boualem

    1994-01-01

    It is an attempt to construct a model for a small open economy with external financing. It spells out the conditions to attract foreign partner to project investment instead of investing in the international capital market.

  19. Factors associated with lease financing in the hospital industry.

    Science.gov (United States)

    McCue, Michael J

    2007-01-01

    In contrast to capital leases, which are reported on the balance sheet as debt, operating leases are a form of off-balance sheet financing only reported in the notes to the financial statement and have limited disclosure requirements. Following the perpetuity method of corporate finance, this study developed a capitalized operating lease value for hospitals. Evaluating the substitutability between lease and debt financing, the findings show a marginal displacement of debt by lease financing. Assessing the relationship of market, mission, operating, and financial factors on lease financing for all short-term, acute-care hospitals across the United States, the results indicate that investor-owned hospital management companies and hospitals located in CON markets are less likely to lease and that smaller hospitals with fewer unoccupied beds, higher proportion of government payers, low liquidity, and lower capital expenditures are more likely to lease. PMID:19175234

  20. Displaced Capital

    OpenAIRE

    Valerie A. Ramey; SHAPIRO, MATTHEW D

    1998-01-01

    This paper studies the efficiency with which physical capital can be reallocated across sectors. It presents a model of a firm selling specialized capital in a thin resale market. The model predicts that the selling price depends not only on the sectoral specificity of capital, but also on the thinness of the market and the discount factor of the firm. It then provides empirical evidence on the sectoral mobility of capital based on equipment-level data from aerospace industry auctions. These ...

  1. Financing energy projects: experience of the International Finance Corporation

    International Nuclear Information System (INIS)

    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)

  2. Capital budgeting

    OpenAIRE

    Dorel BERCEANU; Costel IONAŞCU

    2009-01-01

    This paper has like objective to present some aspects concerning capital budgeting. So, after a short introduction where we specify necessary conditions for a decision situation and we define investment decision and capital budgeting we made a large presentation of stages of capital budgeting process.

  3. Household Finance

    OpenAIRE

    Campbell, John

    2006-01-01

    The welfare benefits of financial markets depend in large part on how effectively households use these markets. The study of household finance is challenging because household behavior is difficult to measure accurately, and because households face constraints that are not captured by textbook models, including fixed costs, uninsurable income risk, borrowing constraints, and contracts that are non-neutral with respect to inflation. Evidence on participation, diversification, and the exercise ...

  4. Sustainable finance

    OpenAIRE

    Boersma-de Jong, Margreet F.

    2012-01-01

    Presentation for Springschool of Strategy, University of Groningen, 10 October 2012. The role of CSR is to stimulate ethical behaviour, and as a result, mutual trust in society. Advantage of CSR for the company and the evolution of CSR. From CSR to Sustainable Finance: how does CSR influence Sustainable Business Administration & Management Accounting, Financial Leadership and what is the importance of CSR in the financial sector

  5. 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 ...

  6. Present and future nuclear power financing schemes

    International Nuclear Information System (INIS)

    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.)

  7. 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....

  8. Promoting Equalization and Local Control in Financing Colorado's Schools.

    Science.gov (United States)

    Mathers, Judith K.; King, Richard A.

    1997-01-01

    Per-pupil property valuation extremes among Colorado school districts are as varied as the landscape. A foundation plan levels funding disparities for school operations, but financing of major capital outlay projects still depends on local property taxation. Funds are needed to finance classroom technologies and Internet connections. (MLH)

  9. Low-wealth Entrepreneurs and Access to External Financing

    DEFF Research Database (Denmark)

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

    2016-01-01

    II tracks business founders attempting to start ventures from 2005 to 2012. Findings Receipt of outside financing during business formation is largely determined by the business founder’s personal finances (controlling for human capital, venture type and industry, and whether money was sought in the...

  10. Corporate Behavioural Finance – The Case of Lithuania

    OpenAIRE

    Daiva Jurevičienė; Egidijus Bikas; Greta Keliuotytė-Staniulėnienė; Lina Novickytė; Petras Dubinskas

    2013-01-01

    Behavioural finances became especially important in recent years. Majority of studies covers individual investor decision making factors while corporate customers’ investment behaviour, as a rule, encompass liability side (capital expenses, financing and structure; dividend policy; assessment of potential investment projects, etc.). This paper aims to establish investment possibilities of non-financial corporate investors in financial markets, basing on accomplished survey of companies manage...

  11. Capital Structure and Cost-of-Capital for the Multinational Firm

    OpenAIRE

    Marjorie Thines Stanley

    1981-01-01

    This paper reviews recent developments in models dealing with capital structure and cost of capital for the multinational firm. A number of issues which bear upon the financing decisions of the multinational corporation are addressed, and related to underlying theoretical and empirical questions with regard to the degree of segmentation or integration of international money and capital markets and the efficiency of the foreign exchange market. Data problems, areas of conflict, and topics for ...

  12. Asset Pricing, Capital Structure and the Spirit of Capitalism in a Production Economy

    OpenAIRE

    Jizheng Huang; Heng-fu Zou

    2013-01-01

    This paper investigates an intertemporal general equilibrium theory of capital asset pricing with the spirit of capitalism. It is an attempt to put together ideas from the modern finance literature and the literature on stochastic growth models. Using methods adopted in Brock (1982), an equivalent characterization of equilibrium by first-order conditions for optimal growth is investigated. We also consider the Modigliani-Miller theorem with the spirit of capitalism.

  13. Contratos de capital humano

    Directory of Open Access Journals (Sweden)

    Oscar Alejandro Goyes Viteri

    2005-01-01

    Full Text Available 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.

  14. 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.

  15. The Study on Stage Financing Model of IT Project Investment

    OpenAIRE

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

    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 v...

  16. Financing Resources for Egyptian Small and Medium Enterprises

    OpenAIRE

    Rola Nabil El Kabbani; Christian Kalhoefer

    2011-01-01

    Even though small and medium enterprises (SMEs) represent the majority of the Egyptian firms, their value added is relatively low. According to previous research, SMEs face a financing gap that causes undercapitalization and represents an obstacle that hinders SMEs from growth. This paper analyzes the current situation of SMEs in Egypt and addresses the question whether the financing problem still exists. In addition, we discuss the role of venture capital as a possible source of financing. B...

  17. 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...

  18. 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.

  19. ORIGIN AND CONCEPT OF MICRO FINANCE

    OpenAIRE

    Shanta. B. Astige

    2015-01-01

    The “femin ization of development” entailed in Tmicro finance is now commonly justifiedthrough efficiency and empowermentarguments that draw on the principles of social capital theory. Women in many rural agrarian societies typically lack the collateral, literacy, numeracy, and freedom of mobility necessary to compete for credit from conventional institutional sources.

  20. Financing Development Through Future-Flow Securitization

    OpenAIRE

    Ratha, Dilip

    2002-01-01

    Securitization of future hard currency receivables, that is, converting them into tradable securities, can allow developing country borrowers with good credit to overcome sovereign credit ceilings, and raise financing in international capital markets. The note examines the case of PEMEX, Mexico's state-owned oil and gas company, which in 1998 issued oil export-backed securities that receiv...

  1. The Strategic Use of Debt Financing.

    Science.gov (United States)

    Hornfischer, David

    1997-01-01

    Increasingly, colleges and universities are using debt financing to respond quickly to new needs and for capital initiatives that will produce long-term benefits. The borrowing process is complex and subject to a variety of government tax regulations and legal limits. Recommends that both small and large institutions work with an experienced…

  2. The Determinants of Capital Structure: An Empirical Evidence from Germany

    OpenAIRE

    Pornsuwankul, Juthamart/Miss

    2012-01-01

    Abstract This paper develops a preliminary study to explore the determinants of capital structure of listed and unlisted companies in Germany using panel data methodology. The findings suggest that the capital structure of listed and unlisted firms is significantly different. Also, some insights from the modern finance theory of capital structure are portable to Germany in that firm-specific factors that are identified to be significant in explaining capital structure in empirical studies...

  3. The Crisis of Capitalism and the 'Civil Economy' Alternative

    OpenAIRE

    Pabst, Adrian

    2014-01-01

    Arguably there is no such thing as the current crisis of capitalism because capitalism is always in crisis. This is linked to the inner contradictions of expansion and contradiction, notably the regular over-accumulation of capital and the declining rates of return, as Adam Smith recognised long before Karl Marx. However, the current phase of the continuous capitalist crisis differs from previous times of turmoil because global finance capitalism has eroded the moral economy on which all econ...

  4. Laffer Strikes Again: Dynamic Scoring of Capital Taxes

    OpenAIRE

    Strulik, Holger; Trimborn, Timo

    2011-01-01

    We set up a neoclassical growth model extended by a corporate sector, an investment and finance decision of firms, and a set of taxes on capital income. We provide analytical dynamic scoring of taxes on corporate income, dividends, capital gains, other private capital income, and depreciation allowances and identify the intricate ways through which capital taxation affects tax revenue in general equilibrium. We then calibrate the model for the US and explore quantitatively the revenue effects...

  5. 12 CFR 931.3 - Minimum investment in capital stock.

    Science.gov (United States)

    2010-01-01

    ... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Minimum investment in capital stock. 931.3 Section 931.3 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.3 Minimum investment in capital stock. (a) A Bank shall require each member to...

  6. The Valuation of Organizational Capital

    Directory of Open Access Journals (Sweden)

    Fiala Roman, Borůvková Jana

    2012-12-01

    Full Text Available The authors’ aim was to create a model suitable for measuring organization capital. This model was produced by means of the Forward and Backward Stepwise methods, on the basis of company information. Low p-levels (approaching 0 show the statistical significance of all regression coefficients, including the intercept. Organizational capital of 2,796 companies in the Czech Republic was quantified. A statistically significant correlation between organizational capital and return on equity (ROE, as well as between organizational capital and return on assets (ROA, has been established. This article is a part of the results of the project No. 402/09/2057 ‘‘Measurement and Management of Intangible Assets Impact on Firm Performance’’ financed by Czech Science Foundation.

  7. 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 and...

  8. RURAL SMALL BUSINESS FINANCE: EVIDENCE FROM THE 1998 SURVEY OF SMALL BUSINESS FINANCES

    OpenAIRE

    Gustafson, Cole R.

    2003-01-01

    The 1998 Survey of Small Business Finances provides robust information on the financing of small businesses including an overview of their firm's organization, financial characteristics, and credit use. Information from the survey is used in this study to compare the financial characteristics of urban and rural small businesses. Overall, rural small businesses have very similar financial characteristics, access to technology and financial services, sources of financial capital, and creditwort...

  9. Intellectual Capital

    DEFF Research Database (Denmark)

    Mouritsen, Jan; Bukh, Per Nikolaj

    2015-01-01

    Intellectual capital (IC) consists of human capital, organizational capital, and relational capital, and their relationships. It has been said to be important to explain the difference between market value and book value of a firm, but measurement of IC is more likely to be important because it...... forms a starting point for understanding and managing value-creating processes. Three distinct agendas within IC management and research can be identified. The first concerns to measure the components of IC, the second attempts to relate indicators to effects using statistical models, while the third...

  10. Corporate Finance Practices: The Perspective of Qatar Firms

    OpenAIRE

    Haider, Shahrazad Sabri

    2014-01-01

    The purpose of this research was to examine the perceptions of the CFOs of private and listed firms in Qatar on current corporate finance practices and decision making namely, cost of capital, capital budgeting, capital structure, and dividend policy. The research specifically examines the survey responses of CFOs according to CFO’s characteristics and firm’s attributes such as CFO’s education, tenure, age, firm size, sector, equity, and target debt ratio. Using descriptive and exploratory re...

  11. 13 CFR 108.820 - Financings in the form of guarantees.

    Science.gov (United States)

    2010-01-01

    ... 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... amount of the debt guaranteed, whichever is less....

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

    International Nuclear Information System (INIS)

    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

  13. Supply Chain Optimized Strategies in the Mode of External Financing

    Institute of Scientific and Technical Information of China (English)

    Wenyi; DU; Xingzheng; AI; Xiaowo; TANG

    2015-01-01

    In the circumstance that market demand is uncertain,it studies the decision-making problem of supply chain financial system consisting of the single supplier,a capital constraint retailer and a bank. Considering the mode of external financing,we obtain the optimal order decision of the capital constraint retailer,the optimal financing rate and the optimal wholesale price of the supplier and analyze the effects of owned capitals of retailer on the optimized decision-making of supply chain financial system. At last,it demonstrates the effectiveness of conclusion by numerical examples.

  14. Celebration Capitalism

    OpenAIRE

    Boykoff, Jules

    2014-01-01

    Capitalism is a nimble shapeshifter. In this talk Jules Boykoff draws from the history of the Olympic Games to offer a theory of “celebration capitalism,” a form of modern-day economics that complements Naomi Klein’s “disaster capitalism” marked by neoliberalism: privatization, deregulation, and free-market rhetoric.

  15. 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 ostatní: 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

  16. 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.

  17. 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.

  18. Financing the Air Transportation Industry

    Science.gov (United States)

    Lloyd-Jones, D. J.

    1972-01-01

    The basic characteristics of the air transportation industry are outlined and it is shown how they affect financing requirements and patterns of production. The choice of financial timing is imperative in order to get the best interest rates available and to insure a fair return to investors. The fact that the industry cannot store its products has a fairly major effect on the amount of equipment to purchase, the amount of capital investment required, and the amount of return required to offset industry depriciation.

  19. Public utility economics and finance

    Energy Technology Data Exchange (ETDEWEB)

    Howe, K.M.; Rasmussen, E.F.

    1982-01-01

    Students will find this presentation of the economic and institutional arrangements that surround the area of public utilities helpful in understanding current regulations and possibly suggesting solutions for future problems. The eight sections of the text cover: (1) an introduction to the nature and types of services provided by public utilities; (2) economic characteristics; (3) legal concepts; (4) traditional issues in regulation; (5) independent regulatory commissions; (6) a critique of public-utility regulation; (7) pricing and the regulation of consumer demand; and (8) capital budgeting and finance. 490 references, 37 figures, 38 tables. (DCK)

  20. ANGEL CAPITAL AND APPLICATIONS IN TURKEY

    Directory of Open Access Journals (Sweden)

    Gözde BİNGÖL

    2016-01-01

    Full Text Available Successful entrepreneurship activity through angel capital that has a long history around the world, is increasing in Turkey day by day although it is new and limited. Angel investors while being wealthy people who take place in an enterprise as core capital, they also supply counsel providing their experience gained from their entrepreneurship activities. Entrepreneurs call these successful people angels because when they are in need, angels give them feedback and contribute to their entrepreneurship significantly. An angel investor is known as one kind of private investor who invests in firms that have a high risk but a high potential to grow. On the other hand, angel investors who provide friendly support with their own experience to entrepreneurs, play a significant role in entrepreneurial finance today. They help entrepre- neurship exist and improve significantly while contributing to economic development. The use of this financing method that the usage in the United States and other countries is spreading rapidly, is also in- creasing steadily in Turkey. Today, we often hear that many of the world-famous firms prefer angel capital financing. This study features initiative and entrepreneurship, entrepreneurial finance and research on angel capital financing. The results of the implementation of a small but growing number of entrepreneurs and angel investors in Turkey are shown in this study with their current direction and contributions.

  1. Financing U.S. exploration

    International Nuclear Information System (INIS)

    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

  2. Project financing in the energy sector: The Indonesian experience

    International Nuclear Information System (INIS)

    Past Indonesian experiences in arranging Project Financing or Limited Recourse Financing in the Energy Sector and the feasibility of such a structure for Nuclear Power Projects are reviewed in this paper. Many of the projects in the energy sector, including Nuclear Power Project are capital intensive projects. A single project may require an investment level of several billion dollars. Large capital investments of this nature may drastically limit the availability of funds from external sources used to finance other non-energy projects in a developing country such as Indonesia. Therefore, the financing concept of a project is becoming a paramount element in the policies adopted by the Republic of Indonesia. As an example, a non-recourse finance structure is the preference of the government for export oriented energy projects. The aim of the government financing policy for export oriented energy projects is to limit the recourse to the applicable Indonesian state enterprise (the project sponsor) by transferring to third parties as much of the project risks as possible. Most of the export oriented energy projects come close to achieving a non-recourse structure. Domestic oriented energy projects however, continue to be financed with a loan guarantee by the government or by state owned enterprises. In addition to maintaining fund availability from external sources for the non-energy sector, Indonesia's reported external debts as well as debt service ratios are other factors in considering a limited recourse financing structure for capital intensive projects. (author)

  3. Public Policy for Venture Capital

    OpenAIRE

    Keuschnigg, Christian; Nielsen, Søren Bo

    2001-01-01

    This paper proposes a simple partial equilibrium model to investigate the effects of government policy on venture capital backed investments. Giving up an alternative career, entrepreneurs focus their effort on a single, high risk venture each. Venture capitalists acquire an equity stake and offer a base salary as well. In addition to providing incentive compatible equity finance, they support the venture with managerial advice to raise survival chances. We analyze several policy measures add...

  4. Venture Capital and Sequential Investments

    OpenAIRE

    Dirk Bergemann; Ulrich Hege; Liang Peng

    2008-01-01

    We present a dynamic model of venture capital financing, described as a sequential investment problem with uncertain outcome. Each venture has a critical, but unknown threshold beyond which it cannot progress. If the threshold is reached before the completion of the project, then the project fails, otherwise it succeeds. The investors decide sequentially about the speed of the investment and the optimal path of staged investments. We derive the dynamically optimal funding policy in response t...

  5. Venture Capital and Sequential Investments

    OpenAIRE

    Dirk Bergemann; Ulrich Hege; Liang Peng

    2008-01-01

    We present a dynamic model of venture capital financing, described as a sequential in­vestment problem with uncertain outcome. Each venture has a critical, but unknown threshold beyond which it cannot progress. If the threshold is reached before the completion of the project, then the project fails, otherwise it succeeds. The investors decide sequentially about the speed of the investment and the optimal path of staged investments. We derive the dynamically optimal funding policy in response ...

  6. Does the Capital Structure Matter for Islamic Microfinance Institutions?

    OpenAIRE

    Ismail, Abdul Ghafar; Possumah, Bayu Taufiq

    2014-01-01

    One of the leading and contemporarily become prominent issue in the finance institutions is the capital structure. Islamic microfinance institutions as one of instrument to solve the poverty problem have risen to the forefront as invaluable institutions in the development process. Since capital constraints have precluded the expansion of microfinance programs and microfinance institutions have had various degrees of performance and sustainability, the question of how best to finance these org...

  7. The role of venture capital in Italian IPOs

    OpenAIRE

    Luca Pennacchio

    2013-01-01

    This paper analyses the role of venture capitalists in Italian Initial Public Offerings (IPOs). Between 1999 and 2012 venture capital backed IPOs are on average less underpriced than non-venture backed IPOs. By using a regression-based approach to account for the non-random distribution of venture financing across firms, I show that the lower underpricing of IPOs venture capital backed is actually due to the causal effect of venture financing. The result is consistent with the certification h...

  8. Start-ups, Venture Capitalists, and the Capital Gains Tax

    OpenAIRE

    Keuschnigg, Christian; Nielsen, Søren Bo

    2002-01-01

    A model of start-up finance with double moral hazard is proposed. Entrepreneurs have ideas but lack their own resources as well as commercial experience. Venture capitalists provide start-up finance and managerial support. Both types of agents thus jointly contribute to the firm's success, but neither type's effort is verifiable. We find that the market equilibrium is biased towards inefficiently low venture capital support. In this situation, the capital gains tax is particularly harmful. Th...

  9. Exploration and production financing: an overview of some innovative approaches

    Energy Technology Data Exchange (ETDEWEB)

    Dole, R.D.

    1986-03-01

    Raising money to finance oil- and gas-producing activities is not as easy as it once was, but is still possible if an operator has the vision (and sometimes the courage) to explore new financial territory. Innovative financing methods include completion funds, institutional acquisition funds, exchange offers, master partnerships, royalty trusts, mergers and acquisition, mezzanine financing/venture capitalists, service company joint ventures, oil-indexed financing, foreign venture capital, and sale of reserves. Three examples illustrate typical structures. It is important to make a careful assessment of all the risks and benefits and to get tax, accounting, and legal advice before proceeding. 3 figures.

  10. The bank capital requirement and information asymmetry

    OpenAIRE

    Sangkyun Park

    1994-01-01

    This paper recognizes two main factors that cause the capital requirement to affect the weighted average cost of capital and hence the investment behavior of banks: underpriced debt resulting from the deposit insurance and information asymmetry between managers and the stock market. For a bank enjoying a low cost of debt (deposits), an increased proportion of equity financing raises the weighted average cost ofcapital. When the stock market underestimates the value of a bank due to informatio...

  11. Proces dezinwestycji funduszy venture capital poprzez ipo

    OpenAIRE

    Grzegorczyk, Elżbieta

    2012-01-01

    The main subject of the following article is to introduce one of Polish most popular way of divestment used by venture capital funds - the Initial Public Offering. Venture capital, considered as an innovative source of financing, supporting especially SMEs, is also an important mechanism of introducing companies on the Stock Market. Entrepreneurs are often interested this form of divestment, as it is associated with numerous benefits, which strengthen the position of a company and deepen the ...

  12. Market structure and the cost of capital

    OpenAIRE

    Arouri, Mohamed El Hedi; Rault, Christophe; Sova, Robert; Sova, Anamaria

    2013-01-01

    We contribute to the finance literature in two main ways. First, we present a theoretical capital asset pricing model (CAPM) to price assets in different market structures. Second, we use our model to analyze whether when markets are partially segmented using the local or the global CAPM yields significant errors in the estimation of the cost of capital for a sample of firms from developed and emerging countries.

  13. Capital Structure, Strategic Competition, and Governance

    OpenAIRE

    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 firm in the U.S. manufacturing. We show that demand uncertainty is positively related to leverage for firms in both the Cournot and the Bertrand samples. Cost uncertainty has a significantly positive...

  14. Variety Enterprises Corporation: Capital Budgeting Decision

    OpenAIRE

    Ilhan Meric,; Kathleen Dunne; Sherry F. Li; Gulser Meric

    2010-01-01

    The capital budgeting decision is one of the most important financial decisions in business firms. In this case, Variety Enterprises Corporation (VEC) is considering whether to invest in a new production system. To determine if the project is profitable, VEC must first determine the weighted average cost of capital to finance the project. The simple payback period, discounted payback period, net present value (NPV), internal rate of return (IRR), and modified internal rate of return (MIRR) te...

  15. CAPM-based capital budgeting and nonadditivity

    OpenAIRE

    Magni, Carlo Alberto

    2006-01-01

    This paper deals with the CAPM-derived capital budgeting criterion, and in particular with Rubinstein’s (1973) criterion, according to which a project is profitable if the project rate of return is greater than the risk-adjusted cost of capital, where the latter depends on the project’s disequilibrium systematic risk. It is shown that the disequilibrium net present value implied by this criterion, widely used in corporate finance, is nonadditive. Four proofs are provided: (i) a counterexample...

  16. FINANCIAL COMMUNICATION AND INTELLECTUAL CAPITAL REPORTING PRACTICES

    OpenAIRE

    BELENESI (BUMBA) MARIOARA; POPA DORINA; CHIRA (CHIŞ) ANCA OANA; AVRAM (BOITOS) CAMELIA

    2014-01-01

    In a highly competitive economy, driven by globalization, the abundance of digital information and communication facilities, the investor directs its capital to those companies that promise added value of the invested capital. Even so, companies seek to obtain favorable terms of financing by rendering sensitive the investors. To achieve their goal, they must provide information about their financial and non financial performance with sufficient regularity to meet the information needs of actu...

  17. Path Dependencies in Venture Capital Markets

    OpenAIRE

    Schertler, Andrea

    2002-01-01

    This paper examines the impact of venture capitalistsÂ’ reputation building and experience accumulation on the genesis of venture capital markets. Venture capitalists must accumulate experience to successfully support high-technology enterprises. They must build reputation, i.e., a track record for successfully financing high-technology enterprises, in order to raise new funds from outside investors that have little information about the profitability of venture capital investments. Simulatio...

  18. CAPITAL STRUCTURE AND VENTURE CAPITAL

    Directory of Open Access Journals (Sweden)

    Becsky-Nagy Patricia

    2015-07-01

    Full Text Available Venture capital significantly changes the capital structure of the portfolio company at the time of the investment. Venture capitalists contribute to the company’s success through their active involvement in the management and their added value appears in the increase of the value of the equity. At the same time with taking active role in the management, agency problem occurs, that complicates the cooperation and the success of exit. In this article we search the answer for the question whether the preferred equity, that are commonly used in the US for bridging the agency problem, are used and able to help Hungarian venture capitalists to manage agency problems. On the other hand we examined how the venture capital affect capital structure, how the venture capitalists value added appear in the capital structure. During the evaluation of the three case studies, we came to the conclusion, that the venture capital investments have positive effect on the liabilities of the enterprises, as the capital structure indexes show. However, the investors need the ownership, which help them to step up resolutely, when things change for the worse, and companies need the expertise, which the investors bring with their personal assistance. The investor’s new attitude also has positive effect on a mature company, which has an experienced leader, because he can show another aspect, as a person who come from outside. During the examination of the capital structure, we cannot disregard the events of the company’s environment, which have effects on the firm. The investor’s decisions also appear different ways. Because of this, every venture capital investment is different, just as the capital structure of the firms, in which they invest.

  19. 资金约束下基于零售商竞争的融资模式对比研究%A Research on Financing Model Selection Based on Retailer Competition with Capital Constraints

    Institute of Scientific and Technical Information of China (English)

    2015-01-01

    以单供应商与多个零售商的供应链为研究背景,供应商是供应链上的核心企业,而零售商面临着资金约束,与供应商签订收益共享契约。供应商为中小企业提供两种融资方式:保兑仓融资和延迟支付融资。本文研究两种融资对供应链绩效以及供应链各方的影响,构建单供应商和多零售商的Stackelberg博弈模型,发现保兑仓融资模式能增加零售商的订货量,这两种融资模式在分散型供应链下,供应商都可以设置合适的收益分配系数和批发价格实现在集中型供应链下的协调,并能够保证供应商利润最大化。%A supply chain consisting of a supplier and a lot of retailers is used as the background of this re -search .All retailers are small and have financing difficulties .Revenue sharing contract is signed between the supplier and each retailer .To improve the supply chain performance , the supplier provides two finan-cing ways for retailers .They are delay payment and confirmed warehouse .A research is conducted into the impact of these two financing modes on the supply chain performance .A Stackelberg game model is used to compare these two financing modes .The retailer's optimal order quantity under confirmed warehouse is larger than that under delay payment .It is found that in the case of centralized supply chain these two fi-nancing modes can coordinate the supply chain , while in the decentralized supply chain , the wholesale price and income distribution factor can maximize supplier profit and coordinate the supply chain at the same time.

  20. A REVIEW OF THE IPO ACTIVITY ON THE ROMANIAN CAPITAL MARKET. COMPARATIVE ANALYSIS WITH THE INTERNATIONAL CAPITAL MARKET

    Directory of Open Access Journals (Sweden)

    Laura Raisa MILOŞ

    2008-01-01

    Full Text Available The process of transition detered for the Romanian economy the creation and development of an adequate economical infrastructure and of the institutions and mechanisms that regard the transactions with financial instruments.Through the main functions of the capital market, the one of financing the economy is one of the most important. It is an alternative to financing through the banking system, though it is slightly little used in Romania by the nonfinancial companies. In this paper the author tries to analyse the benefits of issuing equity on the capital market as a mean for financing a company’s deficit and in the same time, tries to emphasize the current state of the Romanian capital market in comparison with the other European capital markets, as far as concerns the attractiveness of capital market, measured as the volume and structure of IPO’s on the market.

  1. 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 ...

  2. Public Education Finances: 2010

    Science.gov (United States)

    Dixon, Mark

    2012-01-01

    The U.S. Census Bureau conducts a Census of Government Finances and an Annual Survey of Government Finances as authorized by law under Title 13, U.S. Code, Sections 161 and 182. The Census of Government Finances has been conducted every 5 years since 1957, while the Annual Survey of Government Finances has been conducted annually since 1977 in…

  3. Public Education Finances, 2009

    Science.gov (United States)

    US Census Bureau, 2011

    2011-01-01

    The U.S. Census Bureau conducts a Census of Government Finances and an Annual Survey of Government Finances as authorized by law under Title 13, U.S. Code, Sections 161 and 182. The Census of Government Finances has been conducted every 5 years since 1957, while the Annual Survey of Government Finances has been conducted annually since 1977 in…

  4. DOSTOYEVSKI'S "CAPITAL"

    OpenAIRE

    GUNAL, E. Zeynep

    2012-01-01

    Dostoyevski who was always in need of money and in debt, wrote two great novels about capital: "Idiot" and "Crime and Punishment". In these novels the writer tries to prove the negative effects of capital on people. This article particularly focuses on "Crime and Punishment". Because crime is discussed as the multi-dimensional factor in this work. Moreover, it is claimed that in the troika of crime which formed of Raskolnikov, Svidrigaylov and Luzhin, Luzhin is the most dangerous character w...

  5. Intellectual Capital

    OpenAIRE

    Mardešič, Jakub

    2011-01-01

    The work is focused on intellectual capital and its reporting of intangible assets. First part of the work defines the basic theoretical principles, which are an essential part of the work for understanding the issue. Literature review discusses the various components of intellectual capital and focuses on their function within organizations. Work also discusses various approaches of literature and the authors developing a complex theoretical basis for this issue. The following practical part...

  6. Capitalizing China

    OpenAIRE

    Joseph Fan; Randall Morck; Bernard Yeung

    2011-01-01

    Despite a vast accumulation of private capital, China is not embracing capitalism. Deceptively familiar capitalist features disguise the profoundly unfamiliar foundations of "market socialism with Chinese characteristics." The Chinese Communist Party (CCP), by controlling the career advancement of all senior personnel in all regulatory agencies, all state-owned enterprises (SOEs), and virtually all major financial institutions state-owned enterprises (SOEs), and senior Party positions in all ...

  7. Royalty financing for the oil and gas industry

    International Nuclear Information System (INIS)

    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

  8. Composition of Government Expenditure, Human Capital Accumulation, and Welfare

    OpenAIRE

    John Matovu

    2000-01-01

    This paper uses a dynamic general equilibrium model calibrated to Ugandan data to examine the welfare effects of alternative scenarios of government expenditure and tax financing. Two expenditure types are considered: social spending that affects human capital, and infrastructure expenditures that affect productivity. The paper finds that social expenditures lead to higher economic growth depending on the form of financing; young generations benefit most from social spending financed by consu...

  9. 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. PMID:24138730

  10. "Money in Finance"

    OpenAIRE

    Wray, L. Randall

    2011-01-01

    This paper begins by defining, and distinguishing between, money and finance, and addresses alternative ways of financing spending. We next examine the role played by financial institutions (e.g., banks) in the provision of finance. The role of government as both regulator of private institutions and provider of finance is also discussed, and related topics such as liquidity and saving are explored. We conclude with a look at some of the new innovations in finance, and at the global financial...

  11. Information technology financing options.

    Science.gov (United States)

    Rai, D

    1996-01-01

    Healthcare executives facing the challenges of delivering quality care and controlling costs must consider the role information technology systems can play in meeting those challenges. To make the best use of information system expenditures, organizations must carefully plan how to finance system acquisitions. Some options that should be considered are paying cash, financing, financing "soft" costs, leasing, credit warehousing and early acceptance financing, and tax-exempt and conduit financing. PMID:10154097

  12. Financing nuclear programmes in developing countries

    International Nuclear Information System (INIS)

    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)

  13. FINANCING MODE FOR SUSTAINABLE FARMLAND CONSOLIDATION

    Institute of Scientific and Technical Information of China (English)

    BAO Hai-jun; XU Bao-gen; WU Ci-fang; ZHOU Wang-yue

    2004-01-01

    Sustainable farmland consolidation covers ecology, economy and society, which means, its only goal is to protect eco-environment, in accordance with public benefits and economic laws. China is still a developing country, facing capital-lacking, an important but difficult problem, while sustainable farmland consolidation will need more money than common farmland consolidation. To solve the problem, this paper put forward and designed a new financing mode for farmland consolidation: BOT(Build-Operate-Transfer), which can effectively solve the financing problem and investment reclamation by the way of concession, and make sustainable farmland consolidation be realized in China.

  14. Financing nuclear programmes in developing countries

    International Nuclear Information System (INIS)

    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

  15. SMES' FINANCING, Hard Nut to Be Cracked?

    Institute of Scientific and Technical Information of China (English)

    Rose Yan

    2009-01-01

    @@ Small and medium-sized enterprises (SMEs) are a crucial driving force for innovation,employment and development and the engines of growth in an economy. But as the sector is characterized by information asymmetries and high processing costs, banks are reluctant to lend to SMEs, which have long faced difficulties in financing. Amid capital depletion, risk aversion and credit contraction in the current global economic crisis, the issue of financing for SMEs isa pressing issue for all nations, which isnot exceptional to China.

  16. Diverse tipologie di venture capital e relazione tra investimenti e cash flow

    OpenAIRE

    Fabio Bertoni; Massimo G. Colombo; Annalisa Croce

    2009-01-01

    The impact of venture capital financing on the investment cash flow sensitivity - In this paper we study the effect of venture capital (VC) financing on firms’ investments in a longitudinal sample of 374 Italian unlisted new-technology-based firms (NTBFs) observed over the 10-year period from 1994 to 2003. In particular, we consider the influence of VC on both firms’ investment levels and the sensitivity of investments to firms’ cash flows. We also distinguish the effects of VC financing acc...

  17. 12 CFR 1229.11 - Capital restoration plans.

    Science.gov (United States)

    2010-01-01

    ....11 Banks and Banking FEDERAL HOUSING FINANCE AGENCY ENTITY REGULATIONS CAPITAL CLASSIFICATIONS AND... approve or disapprove the plan. The Director may extend the period for consideration of a capital..., after consideration of changes in conditions of the Bank, changes in market conditions and...

  18. Chinalco Spent 2 Billion Yuan to Build Financial Capital Platform

    Institute of Scientific and Technical Information of China (English)

    2015-01-01

    Following fast-paced preparation spanning three months,Chinalco quickly expanded the territory of its financial business by setting up Chinalco Capital Holdings Co.,Ltd(hereinafter Chinalco Capital)and Chinalco Financing Leasing Co.,Ltd(hereinafter Chinalco Leasing),with which it lifts the status of its

  19. 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.

  20. Financing Strategies for Nuclear Fuel Cycle Facility

    International Nuclear Information System (INIS)

    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

  1. Financing Strategies for Nuclear Fuel Cycle Facility

    Energy Technology Data Exchange (ETDEWEB)

    David Shropshire; Sharon Chandler

    2005-12-01

    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.

  2. THE EVOLUTION OF THE BEHAVIOUR OF INVESTORS ON THE CAPITAL MARKET

    OpenAIRE

    Radu Sorin Claudiu Ph. D Student

    2011-01-01

    This work captures the behaviour of investors who are moving away from domestic capital market and radically change their investment options while the role of capital market in financing private companies is really decreasing. Consequently, a shift to bank credit or especially the self financing is obvious. In 2010, the economic crisis deepened internally, its the effects being reflected particularly in the financial context:capital market activity was carried out with unbearable difficulty, ...

  3. ROMANIAN COMPANIES INCREASING PERFORMANCE UNDER THE INFLUENCE OF THEIER CAPITALIZATION STOCK

    OpenAIRE

    Assoc. Prof. Dalia Simion Ph. D, Assoc. Prof. Elena Tob Ph. D, Asist. Sabin Armelu Ph. D Student

    2011-01-01

    These Increasing importance and usefulness of the capital market mechanism functioning market economy of our country was emphasized more than ever lately, because it contributes to the achievement of two major objectives namely: financing economic activity and ensure mobility capital on economic efficiency principles. Using the stock market as a form of mobilization of capital resources and financing activities of a company, is a common practice in mature stock markets, many of these developi...

  4. The Impact of Venture Capital on Innovation Behaviour and Firm Growth

    OpenAIRE

    Peneder, Michael

    2010-01-01

    Proposing a novel research design for firm-level impact studies, I investigate the effects of venture capital financing on corporate performance by applying a two-stage propensity score matching on Austrian micro-data. Controlling for differences in industry, location, legal status, size, age, credit rating, export and innovation behaviour, the findings (i) assert the financing function of venture capital, showing that recipients lacked access to satisfactory alternative sources of capital; (...

  5. Technological and West capitals needs of CIS

    International Nuclear Information System (INIS)

    This paper describes the decline of petroleum production in the former USSR and the needs of technology transfer and financing by West capitals. Statistical data connected with natural gas and crude oil production, refined petroleum products, and exports are also given. 2 refs., 1 fig., 2 tabs

  6. A 150-year Perspective on Swedish Capital Income Taxation

    OpenAIRE

    DuRietz, Gunnar; Johansson, Dan; Stenkula, Mikael

    2014-01-01

    This paper describes the evolution of capital income taxation, including corporate, dividend, interest, capital gains and wealth taxation, in Sweden between 1862 and 2010. To illustrate the evolution, we present annual time-series data on the marginal effective tax rates on capital income (METR) for a marginal investment financed with new share issues, retained earnings or debt. Tax tables covering the period are presented. These data are unique in their consistency, thoroughness and time spa...

  7. 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...

  8. Determinants of Capital Structure: An Empirical Analysis of UK Organisations.

    OpenAIRE

    Gundroo, Shadaab/ SG

    2009-01-01

    In modern day finance, capital structure remains one of those issues under much controversy despite extensive research from academics and practitioners alike. There is a number of existing theories and empirical work on capital structure but as of yet no universal model has been found. The aim of this paper is to analyze the determinants of the capital structure of 73 UK companies over a 5 year period (2004-2008). This study adds to the relatively limited empirical literature on factors infl...

  9. Uso da estrutura de capital por empresas agroindustriais

    OpenAIRE

    Oliveira, Leticia; Antonialli, Luiz Marcelo

    2004-01-01

    The objective of the work was to identify and characterize the agribusiness companies concerning the use of the theory of capital structure for its financial activity. The capital structure is one of great importance, involving both investments and financings (both the capital of external parties' and their own). Methodologically, the research was characterized as descriptive conclusive, through an intentional sample of 69 agribusiness companies in the south of Minas Gerais. The objective was...

  10. Capital Controls and the Timing of Exchange Regime Collapse

    OpenAIRE

    Daekuen Park; Jeffrey Sachs

    1987-01-01

    This paper investigates the nature of balance of payments crises in regimes with capital controls. It extends earlier work on capital controls by assuming that households manage their consumption and asset portfolios to maximize intertemporal utility. Our main result is that capital controls are effective in delaying, but not preventing, a breakdown of a fixed exchange rate regime in the presence of money-financed fiscal deficits.

  11. 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. PMID:24269746

  12. 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.

  13. Intelligence Capital

    Directory of Open Access Journals (Sweden)

    Maid Pajevic

    2011-08-01

    Full Text Available The author of this article presents a new theoretical concept of intelligence capital, with which he explains the multi-meaningful term ‘intelligence’. The author offers a conceptual frame „intelligence capital“ as a generic complex consisting of four interactively linked elements. The contribution of this article is, among other things, an answer to a question: What is an applicative value of intelligence capital as a new theoretical concept for the sys­tem of security and intelligence of BiH? Historical context implies greater responsibility of OSA BiH in realising its preventive function of protecting security of BiH and its citizens. Theoretical frame of the intelligence capital implies that the system of security and intelligence of BiH should be able to respond to strategic questions: to know-what, to know – why, to know – how, to know – who.

  14. KEY FACTORS IN WORKING CAPITAL MANAGEMENT IN THE BRAZILIAN MARKET

    Directory of Open Access Journals (Sweden)

    Wilson Toshiro Nakamura

    2012-01-01

    Full Text Available Many studies have been conducted in corporate finance regarding long-term investment and financing decisions. However, short-term asset investments play a significant role in the balance sheet of companies. Moreover, financial managers dedicate significantamounts of time and effort to the subject of working capital management, balancing current assets and liabilities. This paper provides insights regarding the key factors of working capital management by exploring the internal variables of a number of companies. This study used data from 2,976 Brazilian public companies from 2001 to 2008, and found that debt level, size and growth rate can affect the working capital management of companies.

  15. On the theory of capital in post-industrial societies

    OpenAIRE

    Cavalieri, Duccio

    2013-01-01

    This is an analysis of the present unsatisfactory state of the theory of capital and a proposal to reformulate this theory in line with some neglected late-Marxian views on the subject and in the light of the passage of capitalism from the industrial to a post-industrial era characterized by the dominance of speculative finance. The author’s aim is to provide a better integration of the theory of capital with those of money and finance. Attention is focused on a Marxian price index, the monet...

  16. Intelligence Capital

    OpenAIRE

    Maid Pajevic

    2011-01-01

    The author of this article presents a new theoretical concept of intelligence capital, with which he explains the multi-meaningful term ‘intelligence’. The author offers a conceptual frame „intelligence capital“ as a generic complex consisting of four interactively linked elements. The contribution of this article is, among other things, an answer to a question: What is an applicative value of intelligence capital as a new theoretical concept for the sys­tem of security and intelligence of Bi...

  17. Trinidadian capitalism

    OpenAIRE

    Kevin A. Yelvington

    1999-01-01

    [First paragraph] Capitalism: An Ethnographic Approach. DANIEL MILLER. Oxford: Berg, 1997. x + 357 pp. (Cloth £39.00, Paper £17.99) Women, Labour and Politics in Trinidad and Tobago: A History. RHODA E. REDDOCK. London: Zed, 1994. vi + 346 pp. (Cloth £39.95, Paper £15.95) Despite the underdeveloped state of the scholarship on its admittedly short sugar plantation slavery period, we now have a corpus of studies on various aspects of capitalism in Trinidad - from its histor...

  18. Renewal of Patents and Government Financing

    OpenAIRE

    Svensson, Roger

    2008-01-01

    I apply a survival model to a detailed dataset of Swedish patents to estimate how different factors affect the likelihood of patent renewal. Since the owners know more about the patents than potential external financiers, there is a problem of asymmetric information. To overcome this, Sweden has for a long time relied on government support rather than private venture capital. The empirical results show that patents which have received soft government financing in the R&D-phase have a higher p...

  19. Dutch Corporate Finance, 1602-1850

    OpenAIRE

    2013-01-01

    Early 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 during the 18th century, when economic concentration and consolidation led to the appearance of business units large enough to need them. The financial intermediation and legal institutions available also facil...

  20. Issues Before the Thirteenth Finance Commission

    OpenAIRE

    M Govinda Rao; Sen, Tapas Kumar; Pratap R Jena

    2008-01-01

    The Thirteenth Finance Commission faces challenging times. Despite improvement, the fiscal situation continues to be a matter of concern when off budget liabilities and other fiscal risks are considered. In the changing situation of increasing oil prices on the one hand and surge in capital flows on the other, calibrating the transfer system in tune with counter-cyclical fiscal policy stance is a formidable challenge. The paper argues that irrespective of the wording of the Terms of Reference...

  1. Internal finance and investment : another look

    OpenAIRE

    Samuel, Cherian

    1996-01-01

    One of the best documented empirical facts in economic research has been the positive relationship between internal finance and cash flows and capital expenditures and investment. But disputes about the analytical basis for the cash flow theory have been largely unresolved. There are two distinct approaches to the cash flow theory of investments: the managerial (managers are primarily interested in maximizing the firm's growth rate) and information theoretic (managers try to maximize sharehol...

  2. Aviation industry-research in aircraft finance

    OpenAIRE

    Ehrenthal, Joachim C.F.

    2010-01-01

    Aircraft values are key to aircraft financing decisions: Aircraft values act as a source of security for providers of debt capital and lessors failing to re-place aircraft, and as a source of upside potential to equity investors. Yet, aircraft values cannot be precisely and continuously monitored. This is because neither actual primary nor secondary aircraft transaction prices are disclosed. Various types of third party valuation estimates exist, but relying solely on third party appraisa...

  3. Dutch Corporate Finance, 1602-1850

    OpenAIRE

    de Jong, Abe; Jonker, Joost; 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 during the 18th century, when economic concentration and consolidation led to the appearance of business units large enough to need them. The financial intermediation and legal institutions availabl...

  4. On Financing Retirement with an Aging Population

    OpenAIRE

    Ellen R. McGrattan; Edward C. Prescott

    2013-01-01

    A problem facing the United States and many other countries is how to finance retirement consumption as the number of their workers per retiree falls. Policy analysts are increasingly advocating a move to a savings-for-retirement system. An apparent problem with this move is the shortage of good savings opportunities given the limited ability of government to honor its debt. We find that there is no problem because there is much more productive capital than commonly assumed in macroeconomic m...

  5. Corporate finance theories. Challenges and trajectories

    OpenAIRE

    Mihaela Brînduşa TUDOSE

    2012-01-01

    The aim of this paper is to examine the evolution of corporate finance theories in order to outline already established and future trajectories. Compared with the earliest theories developed in the field (which mainly focused on the capital structure irrelevance), specialist literature has been enriched with wide-ranging debates on identifying the implications of financial decisions on the firm’s value, corporate governance, market strategies, etc. The existing body of theories on corporate f...

  6. Financing gas plants using off balance sheet structures

    International Nuclear Information System (INIS)

    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

  7. 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...

  8. Statistics for Finance

    DEFF Research Database (Denmark)

    Lindström, Erik; Madsen, Henrik; Nielsen, Jan Nygaard

    Statistics for Finance develops students’ professional skills in statistics with applications in finance. Developed from the authors’ courses at the Technical University of Denmark and Lund University, the text bridges the gap between classical, rigorous treatments of financial mathematics...

  9. 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...... optimal initial leverage ratio. We quantify distortions resulting from well-known debt priority structures and introduce an efficient priority rule (EPR) that incentivizes equity holders to choose first best investment timing and financing. Additionally, we derive the firm's cost of capital associated...

  10. Allergy Capitals

    Science.gov (United States)

    ... McAllen, TX The report looks at 3 important factors: Pollen score Allergy medication usage Availability of Board-certified allergists This year’s report named Jackson, Mississippi, as the top Spring Allergy Capital due to its: Higher than average pollen Higher ...

  11. Dream capitalism

    OpenAIRE

    Pierson, Christopher

    2015-01-01

    John Tomasi’s Free Market Fairness represents an heroic attempt to bridge the gap between Rawlsian ‘high liberals’ and the advocates of classical liberalism/contemporary libertarianism. I argue that Tomasi’s project fails, above all because it cannot give a compelling account of contemporary (American) capitalism or of its capacity to deliver free market fairness.

  12. Factoring, a Financing Alternative for Romanian Exporters During Crisis

    OpenAIRE

    Dugan Silvia; Pepenel Madelaine-Lorelai

    2011-01-01

    Factoring, a product used in dynamic business environments worldwide, is a quick solution for the issue of working capital locked in the loan provider, ensuring a productive use of financial resources. During the economic crisis and given the very limited access to traditional financing schemes, factoring may be a suitable alternative for some companies in Romania, particularly those operating in the provision of goods or services. Factoring is therefore a solution to short-term finance compa...

  13. The Structure of Corporate Finance in Belgium: An Empirical Investigation

    OpenAIRE

    TYCHON, Pierre

    1997-01-01

    This paper studies the factors influencing the capital structure of Belgian corporate finance since 1984. Using three different datasets, aggregate balance sheets, aggregate flows of funds and a large panel of individual firms followed up during 10 years, we are able to give some empirical evidence for the importance of institutional features in the choice of corporate financing decisions. At the aggregate level, large firms are generally more highly levered; however, in the past ten years we...

  14. Financing Microfinance: Exploring the Funding Side of Microfinance Institutions

    OpenAIRE

    Tor Jansson

    2003-01-01

    This paper aims to reveal some basic trends in the financing of microfinance institutions, such as where the financing comes from, and how the distribution changes over time. The paper does not claim to be a comprehensive review of this topic, but it offers some new information and points to some previously unexplored patterns. The paper also identifies and examines key emerging issues that face the increasing number of transformed microfinance institutions, including access to capital market...

  15. Securitizing receivables offers low-cost financing option.

    Science.gov (United States)

    Sen, S; Lawler, J P

    1995-05-01

    Securitization began in the 1980s with mortgage payments, auto loans, and credit card debt being pooled and used as collateral for securities offerings. More recently, healthcare providers have securitized accounts receivables to obtain low-cost, off-balance-sheet financing. As the need to both raise capital and contain costs grows in health care, providers likely will make increased use of this financing method. PMID:10142191

  16. Start-up financing in the age of Globalisation

    OpenAIRE

    Korosteleva, J.; Mickiewicz, T.

    2010-01-01

    We investigate the determinants of start-up financing in 54 countries, using the Global Entrepreneurship Monitor (GEM) surveys for years 2001-2006. We find that financial liberalisation increases the total financial size of the individual start-up entrepreneurial project both via the increased use of external and of own funds. In addition, the volume of start-up finance responds positively to international capital inflows as represented by loans from non-resident banks and remittances, and ne...

  17. Basel III E: Synthetic Financing by Prime Brokers

    OpenAIRE

    Christian M. McNamara; Andrew Metrick

    2014-01-01

    Hedge funds rely on “prime brokerage” units within banks to provide leverage. With the enhanced capital requirements and new liquidity standards introduced by Basel III driving up the cost to banks of engaging in such financing, prime brokers have begun to offer an alternative means of providing hedge fund clients with leveraged exposure to securities.  Known as synthetic financing, this alternative requires the prime broker enter into derivatives contracts with the clients.  Under the Basel ...

  18. Relational Financing as an Institution and its Viability under Competition

    OpenAIRE

    Masahiko Aoki; Serdar Dinc

    1997-01-01

    May 20, 1997 This paper presents a new, generic definition of relational financing that may cover a wide range of financial practices in different economies, ranging from the Japanese main bank relationship, to bank lending to smaller firms, and venture capital in the U.S. It then discusses various incentives of the financier to commit to relational financing and reviews the recent literature on issues about how those incentives are affected by increasing competition. One useful insight is th...

  19. Corporate finance and economic activity in the euro area

    OpenAIRE

    Task Force of the Monetary Policy Committee of the ESCB; Diego Rodriguez-Palenzuela; Matthieu Darracq-Pariès; Giacomo Carboni; Annalisa Ferrando; Petra Köhler Ulbrich; Marie-Denise Zachary; Felix Geiger; Manuel Rupprecht; Taavi Raudsaar; Fergal McCann; Vasileios Georgakopoulos; Carmen Martínez-Carrascal; Juan Carluccio; Guillaume Horny

    2013-01-01

    This report analyses and reviews the corporate finance structure of non-financial corporations (NFCs) in the euro area, including how they interact with the macroeconomic environment. Special emphasis is placed on the crisis that began in 2007-08, thus underlining the relevance of financing and credit conditions to investment and economic activity in turbulent times. When approaching such a broad topic, a number of key questions arise. How did the corporate sector’s capital structure, interna...

  20. Corporate Governance Mechanisms and Firm Financing in India

    OpenAIRE

    Jayesh Kumar

    2005-01-01

    This study investigates the firm financing patterns in India and the role of corporate governance mechanisms. We use firm-level time series data of nearly 2000 listed companies from 1994 through 2000, to analyze the firm’s corporate financing behavior in connection with its corporate governance arrangements, specially its shareholding pattern. Our results show that the capital structure of the firm is non-linearly linked to its corporate governance mechanisms (ownership structure). We find th...

  1. Islamic finance in Europe

    OpenAIRE

    2013-01-01

    Islamic finance is based on ethical principles in line with Islamic religious law. Despite its low share of the global financial market, Islamic finance has been one of this sector’s fastest growing components over the last decades and has gained further momentum in the wake of the financial crisis. The paper examines the development of and possible prospects for Islamic finance, with a special focus on Europe. It compares Islamic and conventional finance, particularly as concerns risks assoc...

  2. Does Finance Benefit Society?

    OpenAIRE

    Luigi Zingales

    2015-01-01

    Academics' view of the benefits of finance vastly exceeds societal perception. This dissonance is at least partly explained by an under-appreciation by academia of how, without proper rules, finance can easily degenerate into a rent-seeking activity. I outline what finance academics can do, from a research point of view and from an educational point of view, to promote good finance and minimize the bad.

  3. Caring finance practices

    OpenAIRE

    Staveren, Irene

    2013-01-01

    textabstractThe 2008 financial crisis has demonstrated the failure of both utilitarian and deontological ethics in finance. Alternatives do not need to be created from nothing, because the crisis itself has stimulated the emergence of ethically sound finance practices from within the sector. This article presents two cases of such alternatives, which can be understood as caring finance. Caring finance is built around more personal relationships, responsibility, and risk reduction. The example...

  4. Financing petroleum agreements

    International Nuclear Information System (INIS)

    This chapter describes the typical type of financing agreements which are currently used to finance North Sea petroleum projects whether they are in the cause of development or have been developed and are producing. It deals with the agreements which are entered into to finance borrowings for petroleum projects on a non-resource or limited resource basis. (UK)

  5. Guinea School Finance

    OpenAIRE

    World Bank Group

    2013-01-01

    Systems approach for better education results (SABER) school finance collects, analyzes, synthesizes, and disseminates comprehensive information on school finance policies in primary and secondary education across a range of different education systems. The goal is to enable policymakers to learn about how other countries address the same policy challenges related to school finance and thu...

  6. 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.

  7. Mezzanine finance and corporate bonds

    OpenAIRE

    Libena TETREVOVA

    2009-01-01

    The article deals with the problems of mezzanine finance in relation to corporate bonds. Firstly, attention is paid to definition of mezzanine finance. The term mezzanine finance is used as a term for hybrid forms of financing that combine elements of debt and equity financing. Mezzanine finance represents an alternative form of financing corporate activities. Secondly, possible forms of mezzanine finance are characterized. We can say that special types of corporate bonds (convertible bonds a...

  8. 资本市场分割:从有效市场假说到行为金融%Capital Market Segmentation:Efficient Markets Hypothesis and Behavioral Finance

    Institute of Scientific and Technical Information of China (English)

    谷伟; 周洁如

    2004-01-01

    有效市场假说(Efficient Markets Hypothesis)自面世以来,大量的实证研究支持有效市场假说.但是也有少量的现象明显违背有效市场假说,这些现象被称为市场异象(Market Anomalies).对市场异象的研究促进了金融学的发展,并产生了一门新的学科-行为金融(Behavioral Finance).本文主要对一种主要的市场异象-市场分割进行了研究综述,阐述了有效市场假说和行为金融理论对这个问题的各自的观点.大量的研究表明,市场并非总是有效的.

  9. Potential of Securitization in Solar PV Finance

    Energy Technology Data Exchange (ETDEWEB)

    Lowder, T.; Mendelsohn, M.

    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.

  10. Corporate finance and restructuring: evidence from Central and Eastern Europe

    OpenAIRE

    Köke, 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...

  11. Trends and Deviations in Federal, State and Local Finance

    OpenAIRE

    Jeffrey S. Zax

    1986-01-01

    This paper contains a descriptive analysis o+ real per capita annual revenues, expenditures, deficits, debt levels and capital expenditures for federal, state and local government finance in the United States for the rears 1952-83. It summarizes each time series as a deterministic trend and an ARIM characterization of the deviations around trend. These summaries demonstrate that civilian capital outlays are falling at an accelerating pace in ail levels of government; federal government expend...

  12. The Role of Social Feedback in Financing of Technology Ventures

    OpenAIRE

    Aleksandar Bradic

    2012-01-01

    This research examines relationship between staging of Venture Capital (VC) investments and social feedback visible in publicly available data on the Web. We address the question of Venture Capital investment sensitivity to performance and prospects of new venture, given as likelihood of obtaining future financing, available exit options and duration between investment rounds. We argue that in the case of Internet companies, publicly available social feedback data, such as search trends and w...

  13. "Finance in a Classical and Harrodian Cyclical Growth Model"

    OpenAIRE

    Jamee K. Moudud

    1999-01-01

    This paper is an extension of an earlier working paper ("Finance and the Macroeconomic Process in a Classical Growth and Cycles Model," Levy Institute Working Paper No. 253). The basic structure of the model remains unchanged in that it is based on a social accounting matrix (SAM) with endogenous money. Investment in circulating capital adds to output and investment in fixed capital adds to potential output. Driving the model's fast adjustment process, which describes the disequilibrium adjus...

  14. Availability of Financing, Regulatory Business Costs and National Entrepreneurial Propensity

    OpenAIRE

    Yuen Ping Ho; Poh Kam Wong

    2005-01-01

    In this paper, we focus on two barriers to entry that may hinder the formation of new firms: capital requirements and regulatory business cost. The contribution of this paper is twofold: we compare the availability of different types of financing sources to address the issue of capital requirement and we utilise a new measure of business cost by constructing a composite index using data from the World Bank’s Doing Business Database. Using cross-sectional data on 37 countries that participated...

  15. THE INFLUENCE OF CORPORATE SPECIFIC FACTORS UPON FINANCING DECISIONS

    OpenAIRE

    Lacatus Viorel-Dorin; Vaidean Viorela-Ligia; Cuceu Ionut-Constantin

    2013-01-01

    The purpose of this paper is to analyze the existing theories for the capital structure of a corporation and to determine the factors that influence the financing decisions of Romanian corporations. The gearing ratios vary a lot among Romanian corporations pointing out the fact that the internal specific factors are the ones with a greater impact upon their capital structure, and not the external factors. Our empiric research evaluates the determining factors for the debt ratio (total debt/to...

  16. Trinidadian capitalism

    Directory of Open Access Journals (Sweden)

    Kevin A. Yelvington

    1999-07-01

    Full Text Available [First paragraph] Capitalism: An Ethnographic Approach. DANIEL MILLER. Oxford: Berg, 1997. x + 357 pp. (Cloth £39.00, Paper £17.99 Women, Labour and Politics in Trinidad and Tobago: A History. RHODA E. REDDOCK. London: Zed, 1994. vi + 346 pp. (Cloth £39.95, Paper £15.95 Despite the underdeveloped state of the scholarship on its admittedly short sugar plantation slavery period, we now have a corpus of studies on various aspects of capitalism in Trinidad - from its historical advent (Sebastien 1978 to its twentieth-century manifestation in the petroleum sector (Seers 1964; Sandoval 1983, and from the ethnic structure of labor markets (Camejo 1971; Harewood 1971 and the role of capitalism in racial/ethnic inequality (Henry 1993; Coppin & Olsen 1998 to the way ethnicity affects business, big (Button 1981; Parris 1985; Centre for Ethnic Studies 1993 and small (Ryan & Barclay 1992; Griffith 1997, and the way ethnicity and gender are used in class recruitment (Yelvington 1995. There are also a number of fine working-class histories (e.g., Rennie 1973; Ramdin 1982; Basdeo 1983 and important works on the labor riots and strikes and the nature of the colonial state during the crises of the 1930s (e.g., Thomas 1987; Singh 1994. The two books under review here complement the works mentioned above, and they complement each other as well: Reddock's deals with the way capitalism up to the mid-century was buttressed by colonial politics, and explores how this formation engendered certain kinds of political responses, while Miller approaches capitalism through the assumption that fundamental changes in the post-Oil Boom period (ca. 1973-80 brought about considerable autonomy between production and consumption that can and should now be read through an analysis of the cultural circulation of images and commodities in the society. These books are both noteworthy because they engage in explicit theorizing on what capitalism was and is, and what it did and

  17. 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.

  18. 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.

  19. Instrumental Capital

    Directory of Open Access Journals (Sweden)

    Gabriel Valerio

    2007-07-01

    Full Text Available During the history of human kind, since our first ancestors, tools have represented a mean to reach objectives which might otherwise seemed impossibles. In the called New Economy, where tangibles assets appear to be losing the role as the core element to produce value versus knowledge, tools have kept aside man in his dairy work. In this article, the author's objective is to describe, in a simple manner, the importance of managing the organization's group of tools or instruments (Instrumental Capital. The characteristic conditions of this New Economy, the way Knowledge Management deals with these new conditions and the sub-processes that provide support to the management of Instrumental Capital are described.

  20. Capital-intensive reactors in capital-short countries

    International Nuclear Information System (INIS)

    The most prominent of the capital-short countries is probably the United States, at least when it comes to building new electrical generating capacity. Investors are disenchanted with nuclear power after a number of regulatory fiascos. At a cost of $3000 to $5000 per kilowatt, utilities need to raise too much capital to build large nuclear power plants. The cost of smaller plants relate more directly to the financial ability of the utility to sustain the risk of construction. Through the benefits of standardization and shorter lead time will be able to satisfy the problems arising from fluctuations in demand and could provide incremental power in smaller quantities so that utilities are not confronted with rate shock issues, regulatory and political reassessments, and the like. New methods of financing power plants in developing countries, structural changes in financial contracts, and increased government support to reassure investors should improve the chances that nuclear power remains a viable option

  1. 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.

  2. 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.

  3. Stage Financing and the Role of Convertible Debt

    OpenAIRE

    Cornelli, Francesca; Yosha, Oved

    1997-01-01

    Venture capital financing is characterized by extensive use of convertible debt and stage financing. The paper shows why convertible debt is better than a simple mixture of debt and equity in stage financing situations. When the venture capitalist retains the option to abandon the project, the entrepreneur has an incentive to engage in ‘window dressing’ or short-termism, i.e. to bias positively the short-term performance of the project, in order to reduce the probability that the project will...

  4. Investment requirements in the energy sector and their financing

    International Nuclear Information System (INIS)

    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.)

  5. Contagious Capitalism

    OpenAIRE

    Peter T. Leeson; Russell S. Sobel

    2006-01-01

    Is capitalism contagious? Since WWI, global foreign policy has treated economic freedom/repression like a virus that spreads between countries. Most recently, the ?domino theory? of freedom has played prominently in U.S. foreign policy toward Asia, Latin America, and the Caribbean during the Cold War, and the Middle East during the War on Terror. This paper investigates the spread of economic freedom between nations. Our analysis considers two potential channels of this spread: geography and ...

  6. Financing Business School Education: What Are the Economic Returns and Implications for Africa?

    OpenAIRE

    Murinde, Victor

    2001-01-01

    To be able to finance their physical assets and working capital costs, business schools mainly raise funds from any or a combination of the following: direct funding by the public sector or the government; income from providing educational services; debt (bank and bond); equity by private owners; public-private partnerships; research grants; and private sector endowment funds. This is a financing decision. But, it is the capital budgeting decision that matters! Business schools have to yield ...

  7. 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…

  8. Financing waste to energy plants

    International Nuclear Information System (INIS)

    Waste-to-energy projects are going ahead in the U.K., they are being project financed and they will make a valuable contribution to environmentally acceptable waste disposal and clean energy within the U.K. Starting from the premise that project sponsors must compete for funds therefore behoves the project sponsor to adapt his proposal to the needs of the investor rather than the other way around. Some of the major potential suppliers of funds are briefly surveyed. It is concluded that waste-to-energy projects do not fit easily into the business plans of venture capital companies, pension funds and banks. Projects must be reworked so that a more favourable opportunity can be offered to potential funders. Ways of achieving this through improved economics and reductions in risk and uncertainty are examined. (author)

  9. Project financing in Latin America: The search for greener pastures

    International Nuclear Information System (INIS)

    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

  10. Improving financing certainty for wind developers across Canada

    Energy Technology Data Exchange (ETDEWEB)

    Porter, Mark [Ernest and Young (Canada)

    2011-07-01

    Ernst and Young Orenda Corporate Finance Inc. (Ernst and Young) is a renewable energy company which has a significant experience in wind energy. The company provides different services to the renewable energy sector in terms of finance raising, capital recycling, government advisory, corporate strategic advisory and taxation. This presentation was prepared by Ernst and Young to provide Canadian wind developers with recommendations for improving financing certainty in their projects. The presentation tackles the subjects of access to transmission, PPA, land lease agreements, resource assessment, community engagement, equipment, project structure, and financing. In addition, the presentation points out that a recent study showed that wind energy is attractive to Canadian lenders, most of them considering it to be fully bankable; their main concern lies in the foreign exchange risk. This presentation provided useful information on how to improve financing certainty in wind energy project in Canada.

  11. Toward A Reliable Cost of Capital

    Directory of Open Access Journals (Sweden)

    Jeremiah U. Idialu

    2013-07-01

    Full Text Available This is study is designed to provide basis for determining a reliable cost of capital. Corporate finance textbooks typically devote several chapters to the problems of capital budgeting, cash flow estimation and the determination of a firm’s cost of capital. However, it can be difficult in practice to obtain reliable estimates of the inputs required to perform capital budgeting as recommended by the textbooks. Also, the Weighted Average Cost of Capital (WACC is commonly presented in a way that creates difficulties in calculating the estimate. The most cumbersome component of WACC estimation is the cost of capital. Practitioners therefore have to rely on more abstract and indirect methods to estimate cost of capital. In the study, we reviewed alternative methods of deriving reliable estimates of cash flow and cost of capital. Our review of relevant literature reveals procedures that will lead to methods that are less intensive in terms of the time and computations required to calculate a WACC estimate. We also establish methods that require fewer inputs and/or calculations that are based on subjective judgments of the analyst or the firm’s management.

  12. Christianity between Capitalism and Socialism

    OpenAIRE

    Robert Bogešić

    2010-01-01

    Modern society is in an unsustainable state. There is a crisis in our political systems, economies, finances and, what is worse, in our morals and value standards. On one side, American capitalism is burdened with the struggle for profit and social justice, and on the other, Europe is burdened with a grand unifying project as a way of building stability and security. Where is the Christian church in all of this? What does Christianity offer? Is there a Christian socialism? Regardless of how t...

  13. [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. PMID:19798903

  14. Christianity between Capitalism and Socialism

    Directory of Open Access Journals (Sweden)

    Robert Bogešić

    2010-11-01

    Full Text Available Modern society is in an unsustainable state. There is a crisis in our political systems, economies, finances and, what is worse, in our morals and value standards. On one side, American capitalism is burdened with the struggle for profit and social justice, and on the other, Europe is burdened with a grand unifying project as a way of building stability and security. Where is the Christian church in all of this? What does Christianity offer? Is there a Christian socialism? Regardless of how the system is named – be it capitalism, socialism or something else - only a system without the basic objective of profit maximization, one that does not consume resources to the point of their exhaustion, beyond its borders, one which is not based on greed, only considering its own well-being, and that does not blame others for its mistakes, but the one that is aware of its neighbor, only that one has a future.

  15. 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.

  16. 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

  17. An Empirical Study of Economic Growth,Human Capital and Financial Development in Qingdao City

    Institute of Scientific and Technical Information of China (English)

    Liping; KE

    2015-01-01

    Human capital and finance can boost economic growth,and this paper performs an empirical test of economic growth,human capital and financial level,and finds that there is a long-term stable dynamic equilibrium relationship between the three.Results show that the finance and human capital in Qingdao City go through six stages( " imbalance-on the verge of imbalance-narrow coordination-primary coordination-intermediate coordination-well coordination"),and during the coordination process,human capital significantly lags behind.Therefore,it is necessary to increase human capital,accelerate the coordination between finance and human capital,and further promote the development of economic level.

  18. Experience in the financing of nuclear power projects

    International Nuclear Information System (INIS)

    KfW has gained manifold experience in the granting of export loans to finance supplies and services for nuclear power plants in developing countries. The main problem KfW had to face were the considerable delays in the project execution due to administrative and financial difficulties which, apart from the negative impact on the national economy, resulted in higher project cost. So KfW had to adjust its financing accordingly. But the financing of foreign exchange costs did not pose very serious problems; what proved to be more difficult was the financing of local costs due to shortage of government funds and constraints in local capital markets. Thus it is vital to secure also the provision of sufficient local finance. The development of functioning domestic capital markets is particularly important for the funding from sources within the buyer country. The foreign currency financing of local costs tends to increase the debt burden and carries a foreign exchange risk. From the angle of fostering a country's technical and economic development, it would be desirable to make local finance to that extent available that the largest possible local content of the project can be realised. Both the execution and the financing of nuclear power projects are difficult by nature because of the long implementation period involved and the huge financing amounts. As a consequence the financing structure of such sophisticated projects should be rather simple and conventional in order to offer enough flexibility for adaptation in the event of unforeseeable changes during the project implementation period. (author)

  19. Cost of Capital-The Effect to Firm Value and Profitability Performance in Malaysia

    OpenAIRE

    Nor Edi Azhar Binti Mohamad; Noriza Binti Mohd Saad

    2012-01-01

    Firm's cost of capital is determined in the capital markets and is closely related to the degree of risk associated with new investments, existing assets, and the firm's capital structure. It is an overall return that a corporation must earn on its accessible assets and business operations in order to augment or preserve the value of its current stock. Thus a careful approximation of a firm's specific financing and weighted-average cost of capital (WACC) is essential for a good financial mana...

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

    OpenAIRE

    Fikret Kartal

    2013-01-01

    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 ...

  1. Integrasi Intellectual Capital dan Knowledge Management untuk Meningkatkan Kinerja Perusahaan Farmasi

    OpenAIRE

    Sigit Hermawan; Wiwit Hariyanto; Sumartik

    2015-01-01

    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), knowle...

  2. 76 FR 18821 - Convergent Capital Partners II, L.P.; Notice Seeking Exemption Under Section 312 of the Small...

    Science.gov (United States)

    2011-04-05

    ... 107). Convergent Capital Partners II, L.P., proposes to provide debt financing to Key Health Group, Inc., 30699 Russell Ranch Road 170, Westlake Village, CA 91362-7315. The financing is contemplated to... Business Investment Act of 1958, as amended (``the Act''), in connection with the financing of a...

  3. 76 FR 67017 - Praesidian Capital Opportunity Fund III, LP License No. 02/02-0647; Notice Seeking Exemption...

    Science.gov (United States)

    2011-10-28

    ... (13 CFR 107.730). Praesidian Capital Opportunity Fund III, LP proposes to provide debt financing to JPB Marketing Enterprises, Inc. d/b/a DisplayWorks (``DW''). The financing is contemplated for... financing of a small concern, has sought an exemption under Section 312 of the Act and Section...

  4. 13 CFR 108.730 - Financings which constitute conflicts of interest.

    Science.gov (United States)

    2010-01-01

    ... NEW MARKETS VENTURE CAPITAL (âNMVCâ) PROGRAM Financing of Small Businesses by NMVC Companies... NMVC Company, its shareholders or partners, or SBA. Unless you obtain a prior written exemption from... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false Financings which...

  5. Financing Structure of Enterprises in the Metal Industry in Poland Between 2000 and 2010

    Directory of Open Access Journals (Sweden)

    Piotr Rzeszowski

    2012-09-01

    Full Text Available This paper presents research results regarding the direction of changes in financing structure adopted by enterprises in the metal industry in Poland. This sector of industry is extremely important in Poland. The main reason for undertaking this research was a desire to gain insight into the problems that enterprises experience in finding financing sources during economic crises because banks restrict lending, profit declines, and the ability to utilize capital derived from stock exchanges is limited. The assessment was based on an analysis of the structure of financing sources and the relationship of credits to own capital and to liabilities. The structure of financing sources adopted by companies in the metal industry underwent significant changes between 2000 and 2010. Enterprises in this industry began to utilize own capital more often during the period, while the proportion of external capital to total liabilities decreased. The increase in the proportion of internal capital influenced the improvement in financial liquidity but also contributed to an increase in the average cost of capital and limited the range of profitable investments. The results validate initial research hypotheses regarding an increase in the participation of internal capital in the financing of enterprises’ activities and a decrease in the amount of bank loans utilized by the companies.

  6. Investment financing in cooperative firms

    Directory of Open Access Journals (Sweden)

    Gaetano Cuomo

    2015-04-01

    Full Text Available By general agreement, one of the main obstacles to the growth of producer cooperatives is difficult investment financing, due to inadequate Capitalisation levels and the resulting inability to lodge sufficient collateral with lenders. Moreover, worker-owned firms are considered not very reliable because they suffer from problems of moral hazard and insufficient commitment. Unfortunately, the literature on this issue is not extensive and has weaknesses that are highlighted in the paper. By means of its critical analysis, it is possible to provide evidence that the funding difficulties caused by the particular structure of cooperative firms can be effectively tackled by creating an institutional framework within which cooperatives would be offered a wider range of organizational options comparable to those open to traditional enterprises. Finally, it is proved that the willingness of the members to fund the operations of their cooperative with loan capital may not be enough to mobilize external credit. For member financings to persuade potential providers of funds to place trust in a firm, third-party claims must necessarily qualify as senior debt and be repaid before the claims of the partners are settled.

  7. 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

  8. Facilities Stewardship in the 1990s. Proceedings of the Institute for Facilities Finance in Higher Education (1st, Washington, D.C., November 1990).

    Science.gov (United States)

    Glazner, Steve, Ed.

    This publication presents 18 papers from the 1990 institute on facilities finance in higher education. An introduction is by Walter W. Schaw. Papers are: (1) "Facilities as a Capital Asset" by Sean C. Rush; (2) "State Issues in Capital Management" by Brenda N. Albright; (3) "Policy-making Issues" by Frederick R. Ford; (4) Financing Options" by…

  9. Alternative transportation fuels: Financing issues

    International Nuclear Information System (INIS)

    A multitude of alternative fuels could reduce air pollution and the impact of oil price shocks. Only a few of these fuels are readily available and inexpensive enough to merit serious consideration over the coming five years. In New York City, safety regulations narrow the field still further by eliminating propane. As a result, this study focuses on the three alternative fuels readily available in New York City: compressed natural gas, methanol, and electricity. Each has significant environmental benefits and each has different cost characteristics. With the Clean Air Act and the National Energy Strategy highlighting the country's need to improve urban air quality and move away from dependence on imported fuels, fleets may soon have little choice but to convert to altemative fuels. Given the potential for large infrastructure and vehicle costs, these fleets may have difficulty finding the capital to make that conversion. Ultimately, then, it will be the involvement of the private sector that will determine the success of alternative fuels. Whether it be utilities, fuel distributors or suppliers, private financing partners or others, it is critical that altemative fuels programs be structured and planned to attract their involvement. This report examines financing methods that do not involve government subsidies. It also explores financing methods that are specific to alternative fuels. Bond issues and other mechanisms that are used for conventional vehicles are not touched upon in this report. This report explores ways to spread the high cost of alternative fuels among a number of parties within the private sector. The emphasis is on structuring partnerships that suit methanol, electric, or natural gas vehicle fleets. Through these partnerships, alternative fuels may ultimately compete effectively against conventional vehicle fuels

  10. Private Finance Initiative (PFI) for Road Projects in UK: Current Practice with a Case Study

    OpenAIRE

    Akbiyikli, Rifat; Dikmen, Seyyit Umit; Eaton, David

    2011-01-01

    The long-term sustainable provision of new and high quality maintained road stock is vitally important, especially in times of economic constraint such as Europe is currently experiencing. The Private Finance Initiative (PFI) is one method of financing such large-scale, capital intensive projects. An important aspect of this form of financing projects is that the risks are borne not only by the sponsors but are shared by different types of investors such as equity holders, debt providers, and...

  11. Financing and Value Creation Under Mergers and Acquisitions: Comparative Study OF 350 Companies

    OpenAIRE

    Gupta, Ankit

    2009-01-01

    In this study, 350 mergers and acquisitions has been undertaken to examine, what form of payment method was used for financing those deals and their post acquisition returns of acquirers in terms of share capital. An attempt has been made to investigate how important is the correct financing/ payment technique for shareholder value creation and what determines financing decision in a merger and acquisition process. After conducting a literature review and analyzing the theoretical background ...

  12. Developing a project finance structure and power purchase agreement for an independent private power plant project

    OpenAIRE

    Seyyedi, Amir Hossein

    2011-01-01

    ABSTRACT: The aim of this work is to introduce project financing and underlining its importance and application for financing large capital intensive projects, such as infrastructure ones. In order to achieve this purpose, first a brief history of project finance and some distributive statistical findings in different industrial sectors has been presented. Then the financial model of a single cycle power plant being given to an independent power producer is built and its results reported. ...

  13. FINANCING OF INTERNATIONAL TRANSACTIONS

    Directory of Open Access Journals (Sweden)

    RADU NICOLAE BĂLUNĂ

    2013-02-01

    Full Text Available Financing (funding is essentially the purchase of funds necessary for a business. This can be done from internal sources (company’s own funds or external (borrowed funds. The high value of goods traded in international trade makes revenues generated from internal resources not sufficient to settle the value of the goods. Thus, it is frequent to resort to borrowed funds. In International Business Transactions, external financing is done both by classical techniques of credit (credit supplier and buyer credit and modern techniques of financing (factoring, forfeiting, leasing all trade tailored. In terms of the length of financing, accounting funding is short-term (1-12 months and long-term financing (over a year. In principle, export and import operations prevailing short-term financing techniques, while international investment and industrial cooperation actions are specific long-term funding

  14. Islamic Banking and Finance

    OpenAIRE

    AlFarra, Diaa M. S.

    2015-01-01

    Islamic Banking and Finance has been growing rapidly during the last decades. Descriptive analysis has been used in order to introduce the Islamic banking and finance and how it works. On other hand, clarify the Islamic Banking and Finance Systems and show how it works in part of liability and also profit and loss sharing basis. In addition to that, the main similarities and differences were properly identified, introduced and discussed in the paper. It is obvious that there are many similari...

  15. Hawkes processes in finance

    OpenAIRE

    Emmanuel Bacry; Iacopo Mastromatteo; Jean-Fran\\c{c}ois Muzy

    2015-01-01

    In this paper we propose an overview of the recent academic literature devoted to the applications of Hawkes processes in finance. Hawkes processes constitute a particular class of multivariate point processes that has become very popular in empirical high frequency finance this last decade. After a reminder of the main definitions and properties that characterize Hawkes processes, we review their main empirical applications to address many different problems in high frequency finance. Becaus...

  16. Globalisation et finances internationales

    OpenAIRE

    Prada B., Luis M.

    2011-01-01

    Cet article énonce les principales caractéristiques de la globalisation économique, il précise également en quoi consiste la globalisation financière et met en relief le rôle des investisseurs institutionnels dans les nouvelles finances. De même, l´article conclut que la globalisation financière offre de nouvelles opportunités ; à nous la responsabilité de les profiter.

  17. Financing of Business Activities

    OpenAIRE

    Klimkova, Jana

    2010-01-01

    This bachelor‘s thesis focuses on the financing of investment of a particular company. The thesis consists of three parts. The first part describes basic concepts, various sources of financing and methods of investment evaluation. In the second part, the company itself is introduced and there is also described the intention of the investment. In the third part the suggestions of the financing of investment are made. In the conclusion, there is chosen the exact suggestion, which is the most su...

  18. Nonrecourse financing and securitization

    OpenAIRE

    Kobayashi, Mami; Osano, Hiroshi

    2012-01-01

    We consider the role of the nonrecourse financing of securitization by a financial institution (FI). Our model suggests that even though the FI has the opportunity to provide liquidity support afterward, it is optimal for the FI to use the nonrecourse financing of securitization initially, because the nonrecourse security makes liquidation of the original asset more attractive for an FI that knows that the original asset is bad. However, our model also predicts that the nonrecourse financing ...

  19. 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…

  20. What factors determine the use of venture capital? Evidence from the Irish software sector

    OpenAIRE

    Hogan, Teresa; Hutson, Elaine

    2004-01-01

    We address the venture capital financing issue from the firm’s perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which 5 human capital and 3 other variables determine the firm’s use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capital-backed. Venture capital-backed firms have significant...

  1. The uranium producing industry - its capital structure

    International Nuclear Information System (INIS)

    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)

  2. How long do external capital constraints matter?

    OpenAIRE

    Stucki, Tobias

    2009-01-01

    Start-ups mostly have only limited internal financing. Post-entry performance should thus strongly depend on the availability of new external capital. In this study we analyze the impact of financial constraints on the performance of Swiss start-ups. Since we use cohort data, we have for some start-ups data at different points in time. This allows us to analyze whether the effect of the availability of external capital on firm performance changes with increasing age of the firms. To measure t...

  3. 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.

  4. 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

    ... working capital and general operating purposes. The financing is brought within the purview of Sec. 107... ADMINISTRATION Emergence Capital Partners SBIC, L.P.; Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest Notice is hereby given that Emergence Capital Partners...

  5. 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

    ... contemplated for working capital and general operating purposes. The financing is brought within the purview of... ADMINISTRATION Emergence Capital Partners SBIC, L.P. License No. 09/79-0454; Notice Seeking Exemption Under... Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo, CA 94402, a Federal...

  6. 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

    ... Street, Palo Alto, CA 94306. The financing is contemplated for working capital and general operating... ADMINISTRATION Emergence Capital Partners SBIC, L.P.; Notice Seeking Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest Notice is hereby given that Emergence Capital Partners...

  7. 76 FR 39645 - Exemptions for Advisers to Venture Capital Funds, Private Fund Advisers With Less Than $150...

    Science.gov (United States)

    2011-07-06

    ... between equity financing rounds,\\85\\ for working capital needs \\86\\ or for tax or structuring reasons.\\87... alternatives. Two commenters urged us to rely on the California definition of ``venture capital ] operating... Venture Capital Funds, Private Fund Advisers With Less Than $150 Million in Assets Under Management,...

  8. 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

    ... working capital and general operating purposes. The financing is brought within the purview of Sec. 107... ADMINISTRATION Emergence Capital Partners SBIC, L.P. License No. 09/79-0454; Notice Seeking Exemption Under... Emergence Capital Partners SBIC, L.P., 160 Bovet Road, Suite 300, San Mateo, CA 94402, a Federal...

  9. 75 FR 54661 - Main Street Capital II, LP; Notice of Exemption Under Section 312 of the Small Business...

    Science.gov (United States)

    2010-09-08

    ... ADMINISTRATION Main Street Capital II, LP; Notice of Exemption Under Section 312 of the Small Business Investment Act, Conflicts of Interest Notice is hereby given that Main Street Capital II, LP, 1300 Post Oak Blvd... Regulations (13 CFR 107.730), Financings which Constitute Conflicts of Interest. Main Street Capital II,...

  10. Very early stage financing in the petroleum industry

    International Nuclear Information System (INIS)

    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

  11. Why Finance Ministers Favor Carbon Taxes, Even if They Do not Take Climate Change into Account

    OpenAIRE

    Franks, Max; Edenhofer, Ottmar; Lessmann, Kai

    2015-01-01

    Fiscal considerations may shift governmental priorities away from environmental concerns: Finance ministers face strong demand for public expenditures such as infrastructure investments but they are constrained by international tax competition. We develop a multi-region model of tax competition and resource extraction to assess the fiscal incentive of imposing a tax on carbon rather than on capital. We explicitly model international capital and resource markets, as well as intertemporal capit...

  12. The Effects of World Financial Integration on Financing Current Account Deficits: The Case for Turkey

    OpenAIRE

    S. Cem Karaman; Nurettin Can

    2014-01-01

    The world financial markets are integrated more than ever. Together with countries opening their economies to the world, we see the dynamics of capital movements changing together with how countries respond to their domestic capital needs. Today, foreign capital is financing most of Turkey’s current account deficit. With this paper, we show that the main reason why Turkey is borrowing so much money from international markets and its current account deficit is substantial, is global liquidity ...

  13. Financial Ratios Effects on the Companies’ Grouping Financing Preferences: An Application on the BIST

    OpenAIRE

    ORUÇ ERDOĞAN, Eda; Adalessossi, Kokou

    2015-01-01

    Capital structure decisions of companies took an importance place between the decisions taken in the past and in the present for businesses.  To reach the optimal capital structure of companies, efforts to maximize the market values are one of topics in which most of studies have been conducted under the finance literature. Capital structure is a concept that describes the relationship between equity and debt. The necessary funds needed by a business come from two sources: external source and...

  14. Project financing knits parts of costly LNG supply chain

    International Nuclear Information System (INIS)

    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

  15. Financing the energy sector in developing countries: context and overview

    International Nuclear Information System (INIS)

    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)

  16. Flexible Capitalism

    DEFF Research Database (Denmark)

    Approaching “work” as at heart a practice of exchange, this volume explores sociality in work environments marked by the kind of structural changes that have come to define contemporary “flexible” capitalism. It introduces anthropological exchange theory to a wider readership, and shows how the...... perspective offers new ways to enquire about the flexible capitalism’s social dimensions. The essays contribute to a trans-disciplinary scholarship on contemporary economic practice and change by documenting how, across diverse settings, “gift-like” socialities proliferate, and even sustain the intensified...... flexible commoditization that more commonly is touted as tearing social relations apart. By interrogating a keenly debated contemporary work regime through an approach to sociality rooted in a rich and distinct anthropological legacy, the volume also makes a novel contribution to the anthropological...

  17. Understanding Capitalism

    DEFF Research Database (Denmark)

    du Gay, Paul; Morgan, Glenn

    2013-01-01

    they are to be sustained. Such logics are stabilized to the degree that they can pass the tests which they set themselves. The chapter shows how the projective city has increasingly failed these tests. It has instead created a privileged group of ‘mobile citizens’ working with mobile, global capital in...... ways that increasingly depend on a static, immobile group who are poorly paid, whose employment rights have been undermined and whose political voice is increasingly ignored. The chapter shows how Boltanski's pragmatist approach to critique as emergent from the experience of the actors themselves...... rather than being imposed by the analyst provides the basis for an understanding of how social and artistic critiques emerge. Whilst recognizing that New Spirits inevitably bears the marks of its origins in the particular context of France in the late 1990s, the chapter argues that there are key aspects...

  18. 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....... In addition to providing equity finance, venture capitalists assist with valuable business advice to enhance survival rates. Within a general equilibrium framework with a traditional and an entrepreneurial sector, the paper investigates the effects of taxes on the equilibrium level of...... entrepreneurship and managerial advice. It considers differential wage and capital income taxes, a comprehensive income tax, incomplete loss offset, progressive taxation as well as investment and output subsidies to the entrepreneurial sector...

  19. Financing for Gender Equality

    OpenAIRE

    Kim, Jim Yong

    2015-01-01

    Remarks delivered by Jim Yong Kim, President of the World Bank Group. The Third International Conference on Financing for Development represents an important milestone in efforts to achieve universal and sustainable development as we move beyond 2015 and introduce a new set of Sustainable Development Goals. This event aims to mobilize high-level political support for financing gender equality and women’s...

  20. Financing landfill gas projects

    International Nuclear Information System (INIS)

    The problems of financing landfill gas projects in the UK in the last few years are discussed. The approach of the author in setting up a company to finance such projects in the power generation field and a separate company to design and supply turnkey packages is reported. (UK)

  1. Caring finance practices

    NARCIS (Netherlands)

    I.P. van Staveren (Irene)

    2013-01-01

    textabstractThe 2008 financial crisis has demonstrated the failure of both utilitarian and deontological ethics in finance. Alternatives do not need to be created from nothing, because the crisis itself has stimulated the emergence of ethically sound finance practices from within the sector. This ar

  2. Finance Law Review

    Science.gov (United States)

    Forth, Douglas S.

    1975-01-01

    Reviews recent state and federal court decisions dealing with issues relevant to educational finance. Within the area of elementary and secondary education, cases involve general school finance, state funding programs, employee negotiations, and business management. In the area of higher education, cases involve taxation, student fees,…

  3. Public Education Finances, 2005

    Science.gov (United States)

    US Census Bureau, 2007

    2007-01-01

    The United States Census Bureau conducts an Annual Survey of Government Finances as authorized by law under Title 13, United States Code, Section 182. The 2005 survey, similar to other annual surveys and censuses of governments conducted for many years, covers the entire range of government finance activities--revenue, expenditure, debt, and…

  4. Public Education Finances, 2006

    Science.gov (United States)

    US Census Bureau, 2008

    2008-01-01

    The United States Census Bureau conducts an Annual Survey of Government Finances as authorized by law under Title 13, United States Code, Section 182. The 2006 survey, similar to other annual surveys and censuses of governments conducted for many years, covers the entire range of government finance activities--revenue, expenditure, debt, and…

  5. Public Education Finances, 2008

    Science.gov (United States)

    US Census Bureau, 2010

    2010-01-01

    The United States Census Bureau conducts an Annual Survey of Government Finances as authorized by law under Title 13, United States Code, Section 182. The 2008 survey, similar to other annual surveys and censuses of governments conducted for many years, covers the entire range of government finance activities--revenue, expenditure, debt, and…

  6. Public Education Finances, 2007

    Science.gov (United States)

    US Census Bureau, 2009

    2009-01-01

    Every five years, the U.S. Census Bureau conducts a Census of Government Finance, as authorized by law under Title 13, U.S. Code, Section 182. The 2007 Census, similar to annual surveys and censuses of governments conducted for many years, covers the entire range of government finance activities--revenue, expenditure, debt, and assets (cash and…

  7. When Art & Finance Collide

    Institute of Scientific and Technical Information of China (English)

    2011-01-01

    Fine art and big finance are proving a profitable combination in China but questions of authenticity need to be addressed CHINA’S art market is on fire.As sales and prices break records,a new force has appeared in the market - organized art finance in the form of art trust funds and artwork exchanges.

  8. Geothermal Financing Workbook

    Energy Technology Data Exchange (ETDEWEB)

    Battocletti, E.C.

    1998-02-01

    This report was prepared to help small firm search for financing for geothermal energy projects. There are various financial and economics formulas. Costs of some small overseas geothermal power projects are shown. There is much discussion of possible sources of financing, especially for overseas projects. (DJE-2005)

  9. Financing CFM through REDD

    OpenAIRE

    Skutsch, Margaret

    2008-01-01

    The Technology and Sustainable Development section of the Clean Technology and Environmental Policy Group, University of Twente, is working on a project financed by Netherlands Development Cooperation entitled “Kyoto: Think Global, Act Local” which will run from 2003 to 2009. The project is investigating the potential for carbon finance to support community forest management.

  10. Technical Education 1850-1914: Speculations on Human Capital Formation

    OpenAIRE

    Floud, Roderick

    1984-01-01

    In the late 19th century, the industrial countries of Europe and North America developed very different systems of technical education for the workforce. Some emphasised full-time instruction, largely state-financed, while others relied on part time instruction, financed by employees and seen as a supplement to work-place training. The paper suggests that the insights of human capital theory are useful in describing and understanding these systems and that the differences between them should ...

  11. Going public: UK companies’ use of capital markets

    OpenAIRE

    Pattani, Aashish; Vera, Giuseppe; Wackett, James

    2011-01-01

    Public capital markets play an important role in financing the activities of non-financial companies in the United Kingdom, providing them with the main alternative to bank loans and private sources of finance. Although a small number of UK companies issue public bonds and equity, those that do account for a relatively large share of domestic investment and employment. Since the start of the financial crisis in 2007, bond and equity issuance has allowed some large companies to dampen the impa...

  12. Financing Canadian international operations

    International Nuclear Information System (INIS)

    A primer on financing international operations by Canadian corporations was provided. Factors affecting the availability to project finance (location, political risk), the various forms of financing (debt, equity, and combinations), the main sources of government backed financing to corporations (the International Finance Corporation) (IFC), the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), the Overseas Property Insurance Corporation (OPIC), government or agency guarantees, political risk coverage, the use of offshore financial centres, and the where, when and how these various organizations operate, were reviewed. Examples of all of the above, taken from the experiences of Canadian Occidental Petroleum of Calgary in the U.S., in South America, in the Middle and Far East, and in Kazakhstan, were used as illustrations. figs

  13. Placing social capital

    OpenAIRE

    G Mohan; J Mohan

    2002-01-01

    Metadata only record This paper looks at the relevance and contributions of social capital analysis to human geography and vise versa. The authors start by defining social capital and clarifying and distinguishing concepts, and critiques of Putnam's work. Social capital is simultaneously an economic, sociological, political, and geographical concept, but it must be distinguished from human capital, cultural capital, and networks. Social capital can be relevant to human geographers because ...

  14. Debt Financing: Academia's Funding Alternative.

    Science.gov (United States)

    Baum, Rudy M.

    1981-01-01

    Discusses debt financing as a way to help universities alleviate the problems of obsolete scientific equipment and facilities for research. Reviews several forms of tax-exempt financing and takes note of some of the advantages of debt financing. (CS)

  15. Trade, Capital Mobility, and Tax Competition.

    OpenAIRE

    Wilson, John Douglas

    1987-01-01

    This paper examines a system of governments that finance public expenditures with taxes on mobile capital. Unlike previous research on "tax competition," expli cit consideration is given to the general-equilibrium determination o f the prices at which goods are traded between regions. The analysis identifies inefficiencies in government behavior that are not apparen t in models in which the terms of trade are exogenously given. Capita l taxation is shown to create an inefficient distribution ...

  16. Asset pricing and capital structure of SMEs

    OpenAIRE

    Crain, Michael Alan

    2013-01-01

    This thesis examines asset pricing and capital structure of small- and medium-sized enterprises (SMEs) in three essays. Firm finance and asset pricing are areas of voluminous research in the literature. Most of this research observes firms trading on public stock exchanges. In my thesis, I examine privately-owned SMEs where relatively little research has been done. I use a proprietary database of over 16,000 SMEs that sold from 1990 to 2010, reporting market valuations and accounting informat...

  17. Determinants of Capital Structure of UK Companies

    OpenAIRE

    Huang, Xu

    2013-01-01

    This paper aims to examine the determinants of capital structure of the UK companies and to provide some up-to-date empirical evidence for previous literatures. The sample of this study involves all non-financial companies listed on the FTSE350 Index during the time period from 2003 to 2012. The analysis of variance and panel data regression models are performed to test what factors may affect the UK companies’ financing decisions. In each model, three different measures of financial leverage...

  18. Do Firms Rebalance Their Capital Structures?

    OpenAIRE

    Michael R Roberts; Mark T. Leary

    2004-01-01

    We empirically examine the trade-off theory of capital structure, allowing for costly adjustment. After confirming that financing behavior is consistent with the presence of adjustment costs, we use a dynamic duration model to show that firms behave as though adhering to a dynamic trade-off policy in which they actively rebalance their leverage to stay within an optimal range. We find that firms respond to changes in their equity value, due to price shocks or equity issuances, by adjusting th...

  19. Innovation and venture capital exit performance

    OpenAIRE

    Nadeau, Pierre

    2011-01-01

    Venture capital is a potent source of R&D financing which contributes significantly to technological innovation output in the form of patented inventions. Scholars have argued that tighter protection of intellectual property rights reduces expropriation risks and encourages venture capitalists to invest in technology firms. Prior studies have showed that early stage technology investors give much weight to investment selection criteria related to innovation e.g. protection of intellectual pro...

  20. Capital Structure, Corporate Taxation and Firm Age

    OpenAIRE

    Pfaffermayr, Michael; Stöckl, Matthias; Winner, Hannes

    2008-01-01

    This paper analyses the relationship between corporate taxation, firm age and debt. We adapt a standard model of capital structure choice under corporate taxation, focusing on the financing and investment decisions a firm is typically faced with. Our model suggests that the debt ratio is positively associated with the corporate tax rate, and negatively with firm age. Further, we predict that the tax-induced advantage of debt is more important for older than for younger firms. To test these hy...

  1. Equity participation in financial intermediaries: a new donor instrument in rural finance? A proposal submitted to the International Fund for Agricultural Development, Rome

    OpenAIRE

    Seibel, Hans Dieter

    2000-01-01

    The IFAD Rural Finance Policy lists among the initiatives to be supported commercially-operated apex organizations for refinancing MFIs (para. 20) and stipulates that, Equity financing through appropriate apex institutions may be developed by IFAD as a new instrument, which would provide the much-needed external capital and leverage multiples of domestic capital. (para. 32) Equity participation, which avoids some of the pitfalls of credit lines, strengthens the capital base of apex funds and ...

  2. Capital Income Tax Coordination and the Income Tax Mix

    DEFF Research Database (Denmark)

    Huizinga, Harry; Nielsen, Søren Bo

    2005-01-01

    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 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...

  3. A REVIEW OF THE IPO ACTIVITY ON THE ROMANIAN CAPITAL MARKET. COMPARATIVE ANALYSIS WITH THE INTERNATIONAL CAPITAL MARKET

    OpenAIRE

    Laura Raisa MILOŞ

    2008-01-01

    The process of transition detered for the Romanian economy the creation and development of an adequate economical infrastructure and of the institutions and mechanisms that regard the transactions with financial instruments.Through the main functions of the capital market, the one of financing the economy is one of the most important. It is an alternative to financing through the banking system, though it is slightly little used in Romania by the nonfinancial companies. In this paper the auth...

  4. Innovative M and A financing structures

    International Nuclear Information System (INIS)

    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

  5. 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. PMID:26708982

  6. Do residential property companies systematically adjust their capital structure? The case of Germany

    OpenAIRE

    Kurzrock, Björn-Martin; Mokinski, Frieder; Schindler, Felix; Westerheide, Peter

    2011-01-01

    This paper analyzes whether predominantly non-listed corporations in the residential property industry systematically adjust their capital structure to changing financing requirements. Since previous research almost exclusively focused on listed companies, little is known about the considerations that drive the choice of capital structure of nonlisted companies. We therefore adopt established testing approaches for the pecking order theory and the trade-off theory from the finance literature,...

  7. Do residential property companies systematically adjust their capital structure? : The case of Germany

    OpenAIRE

    Kurzrock, Björn-Martin; Mokinski, Frieder; Schindler, Felix; Westerheide, Peter

    2011-01-01

    This paper analyzes whether predominantly non-listed corporations in the residential property industry systematically adjust their capital structure to changing financing requirements. Since previous research almost exclusively focused on listed companies, little is known about the considerations that drive the choice of capital structure of nonlisted companies. We therefore adopt established testing approaches for the pecking order theory and the trade-off theory from the finance literature,...

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

    OpenAIRE

    Eichenberger, Reiner; Stadelmann, David

    2010-01-01

    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...

  9. 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. PMID:21252935

  10. Financial portfolio selection using the multifactor capital asset pricing model and imported options data

    OpenAIRE

    Mehmet F. Dicle

    2013-01-01

    Diversification and portfolio selection are integral parts of a finance curriculum. In this article, a multifactor capital asset pricing model is fit for components of the Dow Jones Composite Index using data from Yahoo! Finance. Along with the capital asset pricing model's Beta, other statistics that are common criteria for portfolio selection are calculated: historic standard deviation (total risk), total return, average daily return, and Sharpe and Treynor measures. Two new commands are in...

  11. 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.

  12. The global financial crisis, neoclassical economics, and the neoliberal years of capitalism La crise financière globale, la théorie néoclassique et les années néolibérales du capitalisme La crisis financiera global, la economía neoclásica y los años neoliberales del capitalismo.

    Directory of Open Access Journals (Sweden)

    Luiz Carlos Bresser-Pereira

    2010-06-01

    Full Text Available The 2008 global financial crisis was the consequence of financialization or the creation of massive fictitious financial wealth, and of the hegemony of a reactionary ideology, namely, neoliberalism, based on the self-regulated and efficient markets.Although laissez faire capitalism is intrinsically unstable, the lessons from the stock-market crash of 1929 and the Great Depression of the 1930s were transformed into theories and institutions that led to the “30 glorious years of capitalism”. Yet, after the late-1970s, a coalition of rentiers and “financists” achieved hegemony, deliberately promoted deregulation and created financial innovations that made these markets even more risky. These were the “neoliberal years of capitalism”. Neoclassical economics played the role of a meta-ideology as it legitimized, mathematically and “scientifically”, neoliberal ideology and deregulation. From this crisis a new democratic capitalist system will emerge, though its character is difficult to predict. It will not be so financialized, and probably the tendencies present in the 30 glorious years toward global and knowledge-based capitalism, as well as the tendency to improve democracy by making it more social and participatory, will be resumed.La crise globale de 2008 a été le résultat du processus de financiarisation, soit de création massive de capital financier fictif et de l’hégémonie d’une idéologie réactionnaire, le néolibéralisme, idéologie basée sur les suppositions que les marchés sont autorégulés et efficients. Bien que le capitalisme du « laissez-faire » soit intrinsèquement instable, l’apprentissage du crash financier de 1929 et de la Grande Dépression des années 1930 a été transformé en des théories et des institutions qui ont mené l’économie mondiale aux « 30 glorieuses » - une période caractérisée par la stabilité financière, la croissance et la réduction des inégalités. Cependant

  13. Bank Debt Regulations Implications for Bank Capital and Bond Risk

    OpenAIRE

    Stig Helberg; Snorre Lindset

    2013-01-01

    We use a structural model of default risk to study how optimal bank capital and bond risk are influenced by deposit insurance, implicit guarantees, depositor preference, asset encumbrance, and bail-in resolution frameworks. We find that these features of bank financing, in addition to having an immediate impact on bond debt risk, also change optimal bank capital, countering the first-order effect on bond debt risk. Bondholders' risk is thereby not materially affected, but shareholder value an...

  14. "Minsky's View of Capitalism and Banking in America"

    OpenAIRE

    Randall Wray, L.

    2010-01-01

    Before we can reform the financial system, we need to understand what banks do—or, better yet, what banks should do. Senior Scholar L. Randall Wray examines Hyman Minsky’s views on banking and the proper role of the financial system—not simply to finance investment in physical capital but to promote the "capital development" of the economy as a whole and the improvement of living standards, broadly defined.

  15. Multinationals, hedging, and capital structure under exchange rate uncertainty

    OpenAIRE

    Wong, KP; Broll, U

    2006-01-01

    This paper examines the interplay of the financing and hedging decisions of a risk-averse multinational firm having a wholly-owned foreign subsidiary. Exchange rate risk management of the multinational firm is shown to have direct impacts on its international capital structure decision and on its currency of denomination decision. If a currency forward market exists, the multinational firm will devise its international capital structure so as to minimize the global weighted average cost of ca...

  16. Essays on the valuation and syndication of venture capital investments

    OpenAIRE

    Seppä, Tuukka

    2003-01-01

    This dissertation aims at contributing to the body of literature covering the field of entrepreneurial finance. More specifically, the study focuses on the valuation and syndication of venture capital investments. The dissertation comprises a theory review and four essays, each of which makes distinct but complementary contributions to both theory and practice. The first essay of this dissertation constructs and tests a binomial pricing model for staged venture capital investments. Using ...

  17. How Do Capital Markets Influence Product Market Competition?

    OpenAIRE

    Riordan, Michael H

    2003-01-01

    This article is the written version of the author's keynote presentation to the inaugural International Industrial Organization Conference held in Boston on April 4--5, 2003. It summarizes selectively a literature on the interaction between the capital and product markets at the nexus of industrial organization and corporate finance, and develops two key insights. First, capital market constraints on an individual firm are determined at the level of the industry and depend on product market c...

  18. Capital Structure Decisions and the Use of Factoring

    OpenAIRE

    Stöter, Alwin

    2013-01-01

    This thesis analyzes three research questions that belong to the field of corporate finance. The first and the second parts of this thesis examine predictions of the trade-off theory of capital structure. This theory postulates that firms balance the benefits and costs of debt versus equity and as a result, choose target capital structures. The third research question analyzes the determinants of the decision of a firm to sell its accounts receivable to a factor. According to the trade-...

  19. Capital structure : an analysis of the shipping market

    OpenAIRE

    Myhre, Christian Melsom

    2011-01-01

    Capital structure in shipping has proven to be complex. The market is known for high volatility and the financial funding alternatives have changed as a result of these cycles. This master thesis introduces the shipping market with focus on the dry bulk and tanker segments. It then discusses capital structure theory and relates it to shipping. These theories form the basis of the analysis. Evaluating the segments does not give a clear answer to the best way of financing given the mar...

  20. 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. PMID:20027782