ultinational corporations (MNCs) typically use long-term sources of funds to finance long-term projects. They have access to both domestic and foreign sources of funds. It is worthwhile for MNCs to consider all possible forms of financing before making their final decisions. Financial managers must be aware of their sources of long-term funds so that they can finance international projects in a...

While the benefits of bank financing are relatively well understood, the costs are not. This paper argues that while informed banks make flexible financial decisions which prevent a firm's projects from going awry, the cost of this credit is that banks have bargaining power over the firm's profits, once projects have begun. The firm's portfolio choice of borrowing source and the choice of prior...

The opportunity cost of inappropriate health policy decisions is greater in Central and Eastern European (CEE) compared with Western European (WE) countries because of poorer population health and more limited healthcare resources. Application of health technology assessment (HTA) prior to healthcare financing decisions can improve the allocative efficiency of scarce resources. However, few CEE...

We review and extend recent contingent claims models of capital structure. We focus on two models with analytic formulas in perpetual horizonLeland (1994) and Mauer and Sarkar (2004). We implement the investment option in both models in finite horizon with a numerical lattice while maintaining the analytic structure for the capital structure decisions in the second stage by maintaining the perp...

Abstract In this paper we argue that financing decisions contribute to the zero-earnings discontinuity. We find a discontinuity in distribution of earnings before tax and special items, but not interest which suggests expense contributes To investigate role discontinuity, further show there was level debt issues around zero contemporaneous with also recent disappearance is coincident issuance d...

Financing constrains on investment are mainly important for small privately owned firms. Yet most of the investment literature focuses on the financing constraints of large publicly owned firms. This paper develops a financing constraints test based on a variable capital investment equation. Because it does not require the information about marginal q, the test can be easily applied to small fi...

We provide evidence that the financing decisions of companies that are audited by a Big Six auditor are less affected by information asymmetry. Specifically, these companies enjoy greater financial flexibility and depend less on favorable market conditions for their equity issuance decisions than those not audited by a Big Six firm. As a consequence, their debt ratios are less affected either b...