The Experts below are selected from a list of 96 Experts worldwide ranked by ideXlab platform

Alexei Zhdanov - One of the best experts on this subject based on the ideXlab platform.

  • Financing Investment the choice between bonds and bank loans
    Management Science, 2015
    Co-Authors: Erwan Morellec, Philip Valta, Alexei Zhdanov
    Abstract:

    We build a model of Investment and Financing decisions to study the choice between bonds and bank loans in a firm's marginal Financing decision and its effects on corporate Investment. We show that firms with more growth options, with higher bargaining power in default, operating in more competitive product markets, or facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of Financing, these characteristics affect the timing of Investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory. Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2014.2005 . This paper was accepted by Gustavo Manso, finance.

  • Financing Investment the choice between bonds and bank loans
    2013
    Co-Authors: Erwan Morellec, Philip Valta, Alexei Zhdanov
    Abstract:

    We build a dynamic model of Investment and Financing decisions to study the choice between bonds and bank loans in a firm's marginal Financing decision and its effects on corporate Investment. We show that firms with more growth options, higher bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of Financing, these characteristics affect the timing of Investment. We test these predictions using a sample of U.S. firms and present new evidence which supports our theory.

Joao F Gomes - One of the best experts on this subject based on the ideXlab platform.

  • Financing Investment
    American Economic Review, 2001
    Co-Authors: Joao F Gomes
    Abstract:

    We examine Investment behavior when firms face costs in the access to external funds. We find that despite the existence of liquidity constraints, standard Investment regressions predict that cash flow is an important determinant of Investment only if one ignores q. Conversely, we also obtain significant cash flow effects even in the absence of financial frictions. These findings provide support to the argument that the success of cash-flow-augmented Investment regressions is probably due to a combination of measurement error in q and identification problems. (JEL E22, E44, G31)

Erwan Morellec - One of the best experts on this subject based on the ideXlab platform.

  • Financing Investment the choice between bonds and bank loans
    Management Science, 2015
    Co-Authors: Erwan Morellec, Philip Valta, Alexei Zhdanov
    Abstract:

    We build a model of Investment and Financing decisions to study the choice between bonds and bank loans in a firm's marginal Financing decision and its effects on corporate Investment. We show that firms with more growth options, with higher bargaining power in default, operating in more competitive product markets, or facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of Financing, these characteristics affect the timing of Investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory. Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2014.2005 . This paper was accepted by Gustavo Manso, finance.

  • Financing Investment the choice between bonds and bank loans
    2013
    Co-Authors: Erwan Morellec, Philip Valta, Alexei Zhdanov
    Abstract:

    We build a dynamic model of Investment and Financing decisions to study the choice between bonds and bank loans in a firm's marginal Financing decision and its effects on corporate Investment. We show that firms with more growth options, higher bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of Financing, these characteristics affect the timing of Investment. We test these predictions using a sample of U.S. firms and present new evidence which supports our theory.

Philip Valta - One of the best experts on this subject based on the ideXlab platform.

  • Financing Investment the choice between bonds and bank loans
    Management Science, 2015
    Co-Authors: Erwan Morellec, Philip Valta, Alexei Zhdanov
    Abstract:

    We build a model of Investment and Financing decisions to study the choice between bonds and bank loans in a firm's marginal Financing decision and its effects on corporate Investment. We show that firms with more growth options, with higher bargaining power in default, operating in more competitive product markets, or facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of Financing, these characteristics affect the timing of Investment. We test these predictions using a sample of U.S. firms and present new evidence that supports our theory. Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2014.2005 . This paper was accepted by Gustavo Manso, finance.

  • Financing Investment the choice between bonds and bank loans
    2013
    Co-Authors: Erwan Morellec, Philip Valta, Alexei Zhdanov
    Abstract:

    We build a dynamic model of Investment and Financing decisions to study the choice between bonds and bank loans in a firm's marginal Financing decision and its effects on corporate Investment. We show that firms with more growth options, higher bargaining power in default, operating in more competitive product markets, and facing lower credit supply are more likely to issue bonds. We also demonstrate that, by changing the cost of Financing, these characteristics affect the timing of Investment. We test these predictions using a sample of U.S. firms and present new evidence which supports our theory.

Droj Laurentiu - One of the best experts on this subject based on the ideXlab platform.

  • USAGE OF ACB-MININD SOFTWARE IN THE CBA ANALYSIS FOR Financing Investment PROJECTS THROUGH EUROPEAN FUNDING IN CORRELATION WITH THE Financing FROM THE BANKING SYSTEM
    Annals of Faculty of Economics, 2012
    Co-Authors: Droj Laurentiu, Droj Gabriela
    Abstract:

    The extension of the European Union with the first “wave†of new members in 2004 and later with the second “wave†of members in 2007 brought new opportunities for the countries in Eastern Europe, being obvious that “effective utilisation of EU support can foster the success of their economic performance†. Financing Investment projects proposed by the SMEs can be realized through several financial sources internal and external, from which two of the most common external sources constitute from subsidies-grants and through banking system. One of the most important Financing programme present in Romania, available for SMEs is SOP IEC, which awards grants for Investments proposed by production companies. This Financing program encourages its beneficiaries to combine the European grant with private funds mostly provided through the banking system. The paper analyzed the methodology used in Cost Benefit Analysis and also The ACB-MININD software which is compulsory to be used for the CBA analysis of these Investment projects links for the first time elements of analysis used by the European Commission with elements of analysis used by the banking system. In this context the present article tries to analyze how the ACB-MININD software links the main elements of Cost-Benefit analysis such as NPV or IRR with elements of the bankability software which are mainly used by the banking system such as: cash-flow analysis, loan/interest payment and financial sustainability. Also are presented the links between the banking sector and the external Financing sector in the field on Investment projects. As final conclusions of this paper we will demonstrate the theoretical and practical role of cost-benefit analysis - financial component to select the best applications that will be proposed for funding under the European grant programs and to link them to the banking system in order to ensure a proper co-Financing for these Investment projects.

  • DETERMINATION OF RESIDUAL VALUE WITHIN THE COST BENEFIT ANALYSIS FOR THE PROJECTS FINANCED BY THE EUROPEAN UNION
    Annals of Faculty of Economics, 2011
    Co-Authors: Droj Laurentiu
    Abstract:

    This paper will be later used within the Doctoral thesis: "The Mechanism of Financing Investment Projects by Usage of European Structural Funds", which is currently under development at the University Babeș Bolyai Cluj Napoca, Faculty of Economics and Business Management, under the coordination of the prof. univ. dr. Ioan Trenca. An increasing debate is rising recently between the academic community, the business community, the private lending institutions(banks, Investment funds, etc.) and the officials of the Romanian Government and of the European Union regarding the proposed method for calculation of the residual value in the European financed Investment projects. Several methods of calculation of the Residual Value were taken into consideration and contested by different parties in order to prepare and to submit financial analysis studies for Investment projects proposed to be financed within the European Regional Development Fund(ERDF). In this context, the present paper proposes to address the three main methods of calculation of the residual value and later to study its impact over the indicators, especially over the Internal Rate of Return, obtained in the financial analysis for an Investment project proposed by a Romanian medium sized company. In order to establish the proper method which should be used for selection and calculation of the residual value previously published studies and official documentations were analyzed. The main methods for calculation of the residual values were identified as being the following: A. the residual market value of fixed assets, as if it were to be sold, B. accounting economic depreciation formula and C. by using the net present value of the cash flows. Based on these methods the research model was elaborated, and using the financial data of the proposed infrastructure Investment was created a case study. According to the realized study a pattern was established for proper determination of residual value and for determination of IRR and methods A and C were proposed to be used. This paper tries to analyze a specific problem of the Romanian enterprises which access European funding, so it can be further used to improve the current methodology of the ERDF programme in Romania: Sectorial Operational Programme "Increase of Economic Competitiveness".