The pace of innovation in financial instruments has been enormous over the last two dec-ades, but only a few of them have survived. Several papers deal with the valuation of existing financialproducts. In contrast, our approach tries to explain the use of certain financial innovations by...

<i>Recent Advances in Financial Engineering 2012</i> is the Proceedings of the International Workshop on Finance 2012, which was held at the University of Tokyo on October 30 and 31, 2012. This workshop was organized by the Center for Advanced Research in Finance (CARF), Graduate School of Economics,...

In this study we investigate the determinants of financing obstacles using survey data on a sample of around 5000 firms from the euro area countries. This completely new survey - started at the end of 2009 - gives us the opportunity to test whether firm characteristics such as size, age,...

Since the beginning of the 1990s, it has been widely expected that the implementation of the European Single Market would lead to a rapid convergence of Europe’s financial systems. In the present paper we will show that at least in the period prior to the introduction of the common currency...

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...

The Modigliani and Miller (MM) propositions provide a foundation for corporate finance theory. Their adoption, however, has led to a dis-engagement of corporate financial management from the humanity of business as well as from corporate strategic management more broadly. As an outcome, the...

Access to finance is essential for a successful development and growth of the private sector. In the absence of finance, enterprises cannot develop, innovate, and compete with other firms in other countries which offer more favorable access to finance. This paper makes use of the Enterprise...

Corporate innovation is an increasingly important topic that has attracted great attention from academic researchers in financial economics in recent years. Although the top three finance journals (i.e. the Journal of Finance, the Journal of Financial Economics, and the Review of Financial...

This paper analyses the characteristics and behavior of discouraged borrowers. First, we show that in their discouragement decision, firms trade off their expected return on investment with all borrowing related costs and their rejection likelihood. Second, we predict the approval likelihood of...