financing
234737239
Initial Coin Offerings: Financing Growth with Cryptocurrency Token Sales
Initial coin offerings (ICOs) have emerged as a new mechanism for entrepreneurial finance, with parallels to initial public offerings, venture capital, and pre sale crowdfunding. In a sample of more than 1,500 ICOs that collectively raise $12.9 billion, we examine which issuer and ICO characteristics predict successful real outcomes (increasing issuer employment and avoiding enterprise failure) Success is associated with disclosure, credible commitment to the project, and quality signals. An instrumental variables analysis finds that ICO token exchange listing causes higher future employment, indicating that access to token liquidity has important real consequences for the enterprise.
Sabrina T Howell Marina Niessner David Yermack
212972877
Bank based versus market based financing: Implications for systemic risk
Against the background of the great financial crisis, this paper assesses the merits of bank based versus market based financing by exploring the relationship between financial structure and systemic risk. The findings indicate that bank based financial structures are associated with higher systemic risk than market based financial structures. In relatively bank based financial structures, bank financing is found to increase systemic risk while market financing decreases systemic risk. By contrast, in relatively market based financial structures, bank and market financing do not impact systemic risk. Together, the results signal that market based financial structures are more resilient to systemic risk.
Joost Bats Aerdt C F J Houben
213541569
Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects
The lack of long term financing, the low rate of return, the existence of various risks, and the lack of capacity of market players are major challenges for the development of green energy projects. This paper aimed to highlight the challenges of green financing and investment in renewable energy projects and to provide practical solutions for filling the green financing gap. Practical solutions include increasing the role of public financial institutions and non banking financial institutions (pension funds and insurance companies) in long term green investments, utilizing the spillover tax to increase the rate of return of green projects, developing green credit guarantee schemes to reduce the credit risk, establishing community based trust funds, and addressing green investment risks via financial and policy de risking. The paper also provides a practical example of the implementation of the proposed tools.
Farhad Taghizadeh-Hesary Naoyuki Yoshino
215796657
Financing Firms in Hibernation During the COVID 19 Pandemic
The coronavirus (COVID 19) pandemic has imposed a heavy toll on economies worldwide, nearly halting economic activity. Although most firms should be viable when economic activity resumes, cash flows have collapsed, possibly triggering inefficient bankruptcies with long term detrimental effects. Firms'valuable relationships with workers, suppliers, customers, governments, and creditors could be broken. Hibernation could slow the economy until the pandemic is brought under control and preserve those vital relationships for a quicker recovery. If all stakeholdersshare the burden of economic inactivity, firms are more likely to survive. Financing could help cover firms'reduced operational costs until the pandemic subdues. But financial systems are not well equipped to handle this type of exogenous and synchronized systemic shock. Governments could work with the financial sector to keep firms afloat, enabling forbearance as needed and absorbing part of the firms'increased credit risk, by implementing policies with proper incentives to keep firms viable.
Tatiana Didier Brandao Federico Huneeus Mauricio Larrain Sergio L Schmukler
225611053
Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn
Venture capital is associated with some of the most high growth and influential firms in the world. Academics and practitioners have effectively articulated the strengths of the venture model. At the same time, venture capital financing also has real limitations in its ability to advance substantial technological change. Three issues are particularly concerning to us: 1) the very narrow band of technological innovations that fit the requirements of institutional venture capital investors; 2) the relatively small number of venture capital investors who hold, and shape the direction of, a substantial fraction of capital that is deployed into financing radical technological change; and 3) the relaxation in recent years of the intense emphasis on corporate governance by venture capital firms. While our ability to assess the social welfare impact of venture capital remains nascent, we hope that this article will stimulate discussion of and research into these questions.
Josh Lerner Ramana Nanda
220404678
Financing entrepreneurship in times of crisis: Exploring the impact of COVID 19 on the market for entrepreneurial finance in the United Kingdom
This commentary explores the manner in which the current COVID 19 crisis is affecting key sources of entrepreneurial finance in the United Kingdom. We posit that the unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face to face interaction between investors and entrepreneurs. The article explores this conjecture by scrutinising a real time data source of equity investments. Our findings suggest that the volume of new equity transactions in the United Kingdom has declined markedly since the outbreak of the COVID 19 pandemic. It appears that seed finance is the main type of entrepreneurial finance most acutely affected by the crisis, which typically goes to the most nascent entrepreneurial start ups facing the greatest obstacles obtaining finance. Policy makers can utilise these real time data sources to help inform their strategic policy interventions to assist the firms most affected by crisis events.
International Small Business Journal: Researching Entrepreneurship
Ross Brown Augusto Rocha Marc Cowling
219738385
E Learning Financing Models in Russia for Sustainable Development
E learning brings new dimensions to traditional education. This especially affects countries that, due to many factors, have historically been considered the "talent pool" for the world community. In this study, a model for financing e education has been developed that is applicable to Russian realities. The model was built around the balance between demand (global politics, economics, and principles of sustainable development) and supply (sources of direct financing) As a result, a key challenge of improving the e learning financing methodology and models, specifically the efficiency of government spending and private investing, demands the use of new approaches and mechanisms. To improve e learning financing, a clear understanding of the applied purpose of public and private means is required. Responsibilities for the e learning outcome of institutions that receive financing are linked to their status. An unclear understanding of these issues is more likely associated with the issue of transparency of financing than with inefficiency. The proposed model allows transforming the "standards" of financing both in the field of e education and Russian education in general and presents a new vision of participants' interaction in the educational process, taking into account a set of restrictions and market features.
Da-yong Nie Elena Evgenevna Panfilova Vadim O Samusenkov Alexey A Mikhaylov
229618676
A Systematic Literature Review of Education Financing Model in Indonesian School
Financing school education is one of the issues faced by many countries, this is related to inclusive education, namely education for all people. This article was written to review three financial journals in schools, the evaluation of this article aims to identify the strengths and weaknesses contained in these three articles. The results of the three journals show that there must be an active role for the government in implementing loan schemes for students and support to schools so that the number of education participation can increase significantly.
Ade Onny Siagian Khayatun Nufus Nur Fatihah Md Yusuf Hadi Supratikta Ali Maddinsyah Awaluddin Muchtar Widya Intan Sari Denok Sunarsi Irfan Rizka Akbar Nurmin Arianto Agus Purwanto Hadi Wijoyo Hadi Wijoyo
73695298
Corporate Cash Shortfalls and Financing Decisions
Immediate cash needs are the primary motive for net debt issuances and a highly important motive for net equity issuances. Net debt issuers immediately spend almost all of the proceeds, but net equity issuers save most of the proceeds. Conditional on issuing a security, corporate lifecycle, precautionary saving, market timing, and static tradeoff theories are important in explaining the debt versus equity choice, even for firms that are running out of cash.
Rongbing Huang Jay R Ritter
216417197
Financing the Sustainable Development Goals
This paper contends that carving out pathways to finance the sustainable development goal (SDG) agenda entails to reconsider tacit assumptions regarding the functioning of financial systems. We first use a history of economic thought perspective to demonstrate the flaws of the loanable fund theory, which has come to underlie SDG finance strategies. We then introduce the alternative endogenous money theory using a consistent theoretical and accounting framework. This allows us to identify and discuss a set of financing mechanisms that would permit to bridge the SDG budget gap. These mechanisms include the issuing of sovereign green bonds, the modification of the European Central Bank's collateral framework, changes in capital adequacy ratios, a market of SDG lending certificates and the introduction of rediscounting policies. We back up the discussion with examples from economic history.
Thomas Lagoarde-Segot