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With the subprime mortgage crisis and ensuing credit tightening during the last nine months, buyers may now have no other financing choice than to assume or take over the sellers' mortgages.
One of the keys to making the right financing choice is understanding the concept of liquidation preferences.
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But the pivotal Miller-Modigliani theory, published in a 1958 paper, held what has become the most basic tenet of corporate financing: that the value of a company is determined by its investment decisions and not by its financing choices.
Consumers could see higher borrowing costs in the next year or so, along with a more limited number of financing choices, the experts say, because some of the proposed changes do not require Congressional approval and appear to already be in the works.
Pro-cyclical accounting standards and largely inadequate financing choices translated into investor shortsightedness.
Financing choices include fair market value leases, deferral programs, lease back financing and step payments.
This paper analyzes the financing choices of banks under capital regulation during the expansion period that preceded the crisis.
How does the development of financial markets affect the financing choices of banks that are subject to capital regulation?
Prior research suggests that executive compensation decisions can also affect corporate financing choices (Huang et al., 2014).
We posit that the effects of R&D investment on financing choices depend on the degree of intervention barriers and appropriation discrepancy between capital providers and the firm.
Both the level and the composition of other available support, through grants and family transfers, are relevant for their financing choices.
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