How do firms finance large cash flow requirements? We examine this in the context of firms that are subject to substantial cash flow requirements. We find that trade credit, inventory and cash stock reductions are all important in the short term for mild requirements. Larger and longer cash flow shortages give rise to more equity than debt finance. After the shocks, firms gradually adjust their...

Raúl Aviles National Institute of Public Health. Center for Health System Research. Department of Health System Organization. Cuernavaca, México. E-mail: [email protected] Evidence on equity, governance and financing after health care reform in Mexico: lessons for Latin American countries Evidencias sobre gobernanza, equidad y financiamiento en salud en méxico: lecciones para paises latinoame...

This paper identifies the entrepreneur’s exposure to idiosyncratic risk as an important determinant of the demand for loans and the capital structure. The analysis is based on a sample of small and medium-sized private companies from the United States. The exposure to idiosyncratic risk is approximated by the share of personal net worth invested in one company (SNWI). Exposure to idiosyncratic ...

This paper examines to what extent credit ratings directly affect capital structure decisions. The paper outlines discrete costs/benefits associated with firm credit rating level differences, and tests whether concerns for these costs/benefits directly affect debt and equity financing decisions. The tests find that firms near a rating upgrade or downgrade issue less debt relative to equity than...

Does being located near institutional investors benefit corporations? We examine whether the ‘presence’ of local institutional investors, as measured by the equity assets under management of local institutions, reduces information asymmetry in the stock market. Firms in high institutional presence areas experience higher liquidity, faster information incorporation, lower costs of equity capital...

JEL Classification: Q2, Q5 Green growth entails several different kinds of processes: conversion to low-carbon energy, climate resilience, and response to climate shocks. Equity implies a fair sharing of the costs, within countries and between countries. The authors set out to explore some of the ways that equity has been considered in climate change discussions. They discuss per capita emissio...

BACKGROUND Changes in third party financing, whether public or private, are linked to a household's ability to access dental care. By removing costs at point of purchase, changes in financing influence the need to reach into one's pocket, thus facilitating or limiting access. This study asks: How have historical changes in dental care financing influenced household out-of-pocket expenditures fo...

The Countdown to 2015 country profiles present, in one place, comprehensive evidence to enable an assessment of a country's progress in improving reproductive, maternal, newborn and child health. Profiles are available for each of the 75 countries that together account for more than 95% of all maternal and child deaths. The two-page profiles are updated approximately every 2 years with new data...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. The study examines the effect of health care reform in Bulgar...

Building on Dixit & Pindyck (1994) model for determining investment timing, this paper develops a real options framework to understand how and when Entrepeneurs seek for Venture Capital financing. The setting comprises an established start-up firm which is deciding between a small and a large expansion project. The Entrepeneur will be seeking Venture Capital financing to carry a larger expansio...