Working Capital Structure and Financing Pattern of Mauritian SMEs Kesseven Padachi*; C. Howorth[1]; M. S. Narasimhan[2] and R. Durbarry3 *School of Business, Management and Finance University of Technology, Mauritius La Tour Koenig, Pointe – aux – Sables, Mauritius kpadachi@utm.intnet.mu ABSTRACT The competitive nature of the business environment requires firms to adjust their strategies and adopt good financial policies to survive and sustain growth. Most firms have an important amount
Words: 9965 - Pages: 40
Bureau of Economic Research, Cambridge, MA 02912, USA (Received 2 August 1999; final version received 10 December 1999) Abstract We survey 392 CFOs about the cost of capital, capital budgeting, and capital structure. Large firms rely heavily on present value techniques and the capital asset pricing model, while small firms are relatively likely to use the payback criterion. A surprising number of firms use firm risk rather than project risk in evaluating new investments. Firms
Words: 18591 - Pages: 75
we are embracing innovation and engaging with our customers in new and exciting ways. Annual General Meeting The fourth Annual General Meeting of Myer Holdings Limited will be held on Wednesday 20 November 2013 at 11.00am (Melbourne time) in Mural Hall. Mural Hall Level 6, Myer Melbourne Store Bourke Street Mall Melbourne VIC 3000 Myer Holdings Limited ABN 14 119 085 602 Front cover image: JAG Handbags – Melbourne City Store Right: MAC Cosmetics – Melbourne City Store Improve customer
Words: 62086 - Pages: 249
on their internal capital market as a source of financing is strong evidence that internal markets are more efficient than external markets.” ANSWER Although internal capital is preferable to external capital based on the reasons below: * According to the pecking order theory (Myers, 1984; Myers & Majluf, 1984), firms follow a hierarchical financing pattern. Thus, firms would prefer internal funds (retained earnings) to external funds because: * External capital would result in higher
Words: 2055 - Pages: 9
empirical evidence and applications to capital budgeting. Financing decisions and market efficiency. Payout policy, capital structure and valuation. Course Content Summary Finance and the financial manager. Valuing bonds and common stocks. NPV and investment decisions. Risk, return and the opportunity cost of capital. Capital budgeting and risk. Efficient markets and behavioural finance. Payout policy, debt policy and capital structure. Financing and valuation. Textbooks
Words: 386 - Pages: 2
traditional corporate finance? 6 D. What are the major short-comings of project finance? 7 E. Typical Project finance Transaction 8 References 10 A. Introduction Unlike the traditional loan arrangements, project finance is a financial structure which facilitate the arrangements for project but the repayment of such loans are exclusively defrayed from the cash flows generated from the operations of the project and are specifically used in financing large-scale projects in the areas of oil
Words: 2029 - Pages: 9
11.1 Introduction Most empirical models of company investment rely on the assumption of perfect capital markets. One implication of this assumption is that, in a world without taxes, firms are indifferent to funding their investment programs from internal or external funds. However, there is a rapidly growing body of literature examining the possible existence of imperfections in capital markets and their effects on firms' financial and real decisions. In this paper we provide some econometric
Words: 5150 - Pages: 21
Wor9 - 1 04 - 0 71 R EV: JU LY 2 6 , 2 00 4 RO BERT S. KAPLAN D A VI D KIR O N Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took responsibility until it was too late . — Richard Thornburgh, former U.S. attorney general1 On
Words: 8351 - Pages: 34
Empirical Capital Structure: A Review Christopher Parsons1 and Sheridan Titman2 1 2 University of North Carolina at Chapel Hill, USA, Chris Parsons@kenan-flagler.unc.edu University of Texas at Austin, USA, Sheridan.Titman@mccombs.utexas.edu Abstract This survey provides a synthesis of the empirical capital structure literature. Our synthesis is divided into three parts. The first part examines the evidence that relates to the cross-sectional determinants of capital structure. This literature
Words: 32172 - Pages: 129
Bachelor of Finance & Banking Thesis -------------------------------------- The impact of capital structure on profitability of listed construction companies on Hanoi Stock Exchange from 2008 to 2013 FALL 2014 Instructor Mr. Tran Viet Dung Group members Nguyen Thi Thanh Tam (FB00464) Nguyen Thi Viet Chinh (FB00405) Hoang My Linh (FB00073) Dang Thi Hong Hanh (FB00253) Nguyen Thi Kieu Trang (FB00078) Hanoi, December 2014 Table of Contents List of tables 3 List of figure 4 Abstract
Words: 20311 - Pages: 82
