Risk is a vital concept to grasp when investing in a firm or project. It is also a key ingredient required to evaluate the cost of capital and perform a valuation. An organization’s capital structure, specifically the amount of leverage and debt financing employed, must be accounted for to...

We use a survey approach to investigate how managers in a frontier market apply financing and dividend decision techniques in practice. 15 firm characteristics were grouped into paired subgroups for a two-sample t-test analysis that generated statistical differences, economic significance levels...

Fundamentalmente as empresas necessitam de recursos de capital para financiar, por um lado, a sua estrutura, e por outro a sua actividade.O financiamento da actividade será a necessidade de fundo de maneio, ou seja, o valor monetário necessário para financiar o ciclo de negócio. Este valor...

This paper examines the effects of country-level governance—such as voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption—on the capital structure and investment financing decisions of firms. The full sample...

We examine market value implications of managing liquidity via supplier financing. Results suggest a direct relation between shareholder wealth and use of trade credit. Further, the relation exhibits significant cross-sectional variation. In particular, industry affiliation influences the market...

Emerging markets have common weaknesses in their financial market development. Financial development is one institutional force that shapes financing and governance of firms in emerging markets. Debt and equity are alternative governance instruments. Trade credit is part of debt and therefore...

The market for small-firm funds is constantly in flux. Imbalances in both the supply and the demand for capital can trace either to the flow of funds or to the flow of available deals. The legal environment can and does change, and can sometimes drive temporary supply and demand imbalances....

This paper presents evidence on the private placement discounts for a large sample of private placement transactions completed by public companies between 2002 and 2007. Using detailed information about the restriction duration for the unregistered common stocks placed, I analyze whether the...

We study the relation between product market competition and convertible debt financing. Competitive threats motivate firms to use convertible debt because the possibility of future conversion enhances financial flexibility. Consistent with this intuition, we find that the intensity of...