This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S. firms fund a much larger proportion of their financing deficit with external equity when ...the cost of equity capital is low. The historical values of the cost of equity capital have long-lasting effects on firms’ capital structures through their influence on firms’ historical financing decisions. We also introduce a new econometric technique to deal with biases in estimates of the speed of adjustment toward target leverage. We find that firms adjust toward target leverage at a moderate speed, with a half-life of 3.7 years for book leverage, even after controlling for the traditional determinants of capital structure and firm fixed effects.
В статье раскрыты основные направления финансовой поддержки субъектов малого и среднего предпринимательства в сфере агропромышленного комплекса и в других системообразующих секторах экономики. ...Выявлены проблемы в сфере кредитования российскими и зарубежными банками малого и среднего предпринимательства. Разработаны предложения и рекомендации по форми-рованию эффективной системы финансирования субъектов малого и среднего предпринимательства российскими и зарубежными банками для создания перспектив развития в сфере агропромышленного комплекса и в других отраслях, обеспечивающих реализацию политики импортозамещения и переход к инновационной экономике.
In this paper, a manufacturer is considered who is regulated by the cap-and-trade scheme and sells products on an e-business (EB) platform. When this manufacturer is capital-constrained, funds can be ...accessed via EB platform financing mode, supplier credit financing mode, and mixed financing mode, where the manufacturer accesses funds from both the supplier and the EB platform. Considering the exogenous retail price, this paper develops optimizing models under all three financing modes to investigate the manufacturer's emission reduction, production quantities, and financing strategies. The financing strategy of a slightly capital-constrained manufacturer depends on the usage fee charged by the EB platform. The manufacturer prefers non-financing support if the usage fee rate is too high; otherwise, the manufacturer prefers accessing funds from the EB platform. A moderately capital-constrained manufacturer prefers EB platform financing if the financing rate charged by the EB platform financing is slightly higher than that charged by the supplier. Also, a moderately capital-constrained manufacturer prefers EB platform financing if the usage fee rate is relatively low; otherwise, supplier credit financing is preferred. Furthermore, a heavily capital-constrained manufacturer prefers mixed financing if the financing rate charged by the EB platform is higher than that charged by the supplier; otherwise, the manufacturer prefers EB platform financing. When the usage fee is endogenous, the EB platform financing mode is better than the non-financing mode for both the capital-constrained manufacturer and the EB platform. Furthermore, the above conclusions are robust when the retail price is endogenous.
Law, Stock Markets, and Innovation BROWN, JAMES R.; MARTINSSON, GUSTAV; PETERSEN, BRUCE C.
The Journal of finance (New York),
August 2013, Letnik:
68, Številka:
4
Journal Article
Recenzirano
Odprti dostop
We study a broad sample of firms across 32 countries and find that strong shareholder protections and better access to stock market financing lead to substantially higher long-run rates of R&D ...investment, particularly in small firms, but are unimportant for fixed capital investment. Credit market development has a modest impact on fixed investment but no impact on R&D. These findings connect law and stock markets with innovative activities key to economic growth, and show that legal rules and financial developments affecting the availability of external equity financing are particularly important for risky, intangible investments not easily financed with debt.
We use Chinese listed firms from 2011 to 2018 to explore whether and how financial technology impacts corporate debt-financing constraints and costs. Using two forms of financial technology cases in ...China, we explain why technology innovation in the financial industry flourishes and contributes to alleviating debt-financing constraints and reducing debt-financing costs. We empirically document that financial technology helps alleviate firms' financing constraints and reduce firms' debt-financing costs. We also find that financial technology plays a more significant role for private-owned firms, small firms, growth-stage firms, and firms under intense financial supervision.
is it more effective to give large grants to a few elite researchers, or small grants to many researchers? Large grants would be more effective only if scientific impact increases as an accelerating ...function of grant size. Here, we examine the scientific impact of individual university-based researchers in three disciplines funded by the Natural Sciences and Engineering Research Council of Canada (NSERC). We considered four indices of scientific impact: numbers of articles published, numbers of citations to those articles, the most cited article, and the number of highly cited articles, each measured over a four-year period. We related these to the amount of NSERC funding received. Impact is positively, but only weakly, related to funding. Researchers who received additional funds from a second federal granting council, the Canadian Institutes for Health Research, were not more productive than those who received only NSERC funding. Impact was generally a decelerating function of funding. Impact per dollar was therefore lower for large grant-holders. This is inconsistent with the hypothesis that larger grants lead to larger discoveries. Further, the impact of researchers who received increases in funding did not predictably increase. We conclude that scientific impact (as reflected by publications) is only weakly limited by funding. We suggest that funding strategies that target diversity, rather than "excellence", are likely to prove to be more productive.
Celotno besedilo
Dostopno za:
DOBA, IZUM, KILJ, NUK, PILJ, PNG, SAZU, SIK, UILJ, UKNU, UL, UM, UPUK
We develop a theory that shows signaling a firm’s fundamental quality (e.g., its operational capabilities) to lenders through inventory transactions to be more efficient—it leads to less costly ...operational distortions—than signaling through loan requests, and we characterize how the efficiency gains depend on firm operational characteristics, such as operating costs, market size, and inventory salvage value. Signaling through inventory being only tenable when inventory transactions are verifiable at low enough cost, we then turn our attention to how this verifiability can be achieved in practice and argue that blockchain technology could enable it more efficiently than traditional monitoring mechanisms. To demonstrate, we develop b_verify, an open-source blockchain protocol that leverages Bitcoin to provide supply chain transparency at scale and in a cost-effective way. The paper identifies an important benefit of blockchain adoption—by opening a window of transparency into a firm’s supply chain, blockchain technology furnishes the ability to secure favorable financing terms at lower signaling costs. Furthermore, the analysis of the preferred signaling mode sheds light on what types of firms or supply chains would stand to benefit the most from this use of blockchain technology.
This paper was accepted by Victor Martínez-de-Albéniz, operations management
.
This paper investigates the effects of financing constraints on prompting green innovations using a sample of Chinese listed firms in the period 2001–2017. Also, we explore how green finance policies ...resolve financing constraints of firms to green innovation. The capability of green innovation is found to be impaired when firms face higher financing constraints, and privately owned enterprises tend to be more vulnerable than state-owned ones in this regard. Although green finance policies can effectively ease financing restraints on green innovation overall, green credits are less likely to be available to privately owned enterprises. However, these enterprises which are deeply affected by financing constraints have relatively high innovation capabilities. We suggest the government to provide more supports to privately owned enterprises for investing in green projects. Further, both financial institutions and privately owned enterprises should be required to disclose more information on green credits and green projects, respectively. In addition, the China Banking Regulatory Commission should design a synthetic mechanism for evaluating green performance.
•Green innovation is impaired when firms face higher financing constraints.•Green finance policies effectively alleviate the effects of financing constraints.•Green finance policies seem unable to benefit privately owned enterprises.
We empirically investigate the impact of government debt on corporate financing decisions in an international setting. We show a negative relation between government debt and corporate leverage using ...data on 40 countries between 1990–2014. This negative relation is stronger for government debt that is financed domestically, for firms that are larger and more profitable, and in countries with more developed equity markets. To address potential endogeneity concerns, we use an instrumental variable approach based on military spending and a quasi-natural experiment based on the introduction of the Euro currency. Our findings suggest that government debt crowds out corporate debt.
We develop a model in which a start-up firm issues tokens to finance a digital platform, which creates agency conflicts between platform developers and outsiders. We show that token financing is ...preferred to equity financing unless the platform expects strong cash flows, has large financing needs, or faces severe agency conflicts. Tokens are characterized by their utility features, facilitating transactions, and security features, granting cash flow rights. While security features trigger endogenous network effects and spur platform adoption, they also dilute developers’ equity stake and incentives so that the optimal level of security features decreases with agency conflicts and financing needs.
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