Credit Rating, Reputation Spill-Overs, and Debt Contract Structure: A New Rationale for Limited-Recourse Project Financing

2021 ◽  
Author(s):  
Onur Bayar ◽  
Thomas J. Chemmanur ◽  
Qing Ma
Keyword(s):  
Credit Rating ◽  
Project Financing ◽  
Debt Contract ◽  
Contract Structure

Perspectives and Regulation of the Russian Market for Project-based Transactions under the Kyoto Protocol

2008 ◽  
pp. 108-125
Author(s):  
K. Zavodov
Keyword(s):  
Energy Efficiency ◽  
Market Mechanism ◽  
Point Of View ◽  
Market Regulation ◽  
Foreign Investments ◽  
Russian Market ◽  
Increase Energy Efficiency ◽  
New Form ◽  
Contract Structure ◽  
Carbon Fund

Project-based transactions (PBTs) are a market mechanism of attracting foreign investments in order to abate greenhouse gas emissions and increase energy efficiency of the country’s enterprises. The article provides a classification and analyzes advantages and drawbacks of PBTs from the point of view of a host country. The main trends and factors determining the dynamics of the PBT market are described. Given that Russia currently lags behind the leaders of the PBT market, an incorporation of a state carbon fund is put forward with an aim of channelling PBTs through it. This paper proposes a form of PBT market regulation by incorporating an option mechanism into the contract structure of a transaction. A comparison of the new form of regulation with the tools that are currently in use in Russia and other countries demonstrates its greater economic efficiency under uncertainty.

Specifics of creating an effective system of project financing of innovation and investment activities of dairy subcomplex enterprises

2020 ◽  
Vol 26 (9) ◽  
pp. 1951-1969
Author(s):  
S.A. Chernikova
Keyword(s):  
Financial Stability ◽  
Current Model ◽  
Methodological Approach ◽  
Information Support ◽  
Competitive Advantages ◽  
Project Financing ◽  
Financing System ◽  
Management Of Innovation ◽  
Effective System ◽  
The Impact

Subject. The article considers the need to study the financing of investment and innovation processes and creating an effective system of project financing. Objectives. The purpose is to search for new opportunities to enhance the competitive advantages of enterprises of the dairy subcomplex, to ensure their financial stability and steady position in specialized agricultural food-product markets. Methods. The study draws on the theoretical and methodological approach to the impact of project management of innovation and investment activities on improving the efficiency of the project financing system and financial stability of enterprises operating in the dairy subcomplex. Results. The findings show that four levels can be distinguished in the formation and improvement of the system of project financing and the management of innovation and investment activities, depending on the depth of transformation. The principle that provides the integration of the said system with the current model of management of the dairy subcomplex enterprise is defined as a driver. The paper offers a number of levels of the system transformation to gain competitive advantages. Conclusions. I present a mechanism for creating and improving the system of project financing and the management of innovation and investment activities, and a mechanism for interaction of the network of automated information systems, intended to make management decisions, with the automation of information support to innovative solutions.

Role of Credit Rating in determining Capital structure: Evidence from Non-Financial sector of Pakistan

2020 ◽  
Vol 38 (3) ◽  
Author(s):  
Shoaib Ali ◽  
Imran Yousaf ◽  
Muhammad Naveed
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Least Square ◽  
Annual Data ◽  
Leverage Ratio ◽  
Financial Decisions ◽  
Financial Firms ◽  
High Level ◽  
The Impact ◽  
The Capital Structure

This paper aims to examine the impact of external credit ratings on the financial decisions of the firms in Pakistan.  This study uses the annual data of 70 non-financial firms for the period 2012-2018. It uses ordinary least square (OLS) to estimate the impact of credit rating on capital structure. The results show that rated firm has a high level of leverage. Moreover, Profitability and tanagability are also found to be a significantly negative determinant of the capital structure, whereas, size of the firm has a significant positive relationship with the capital structure of the firm.  Besides, there exists a non-linear relationship between the credit rating and the capital structure. The rated firms have higher leverage as compared to the non-rated firms. The high and low rated firms have a low level of leverage, while mid rated firms have a higher leverage ratio. The finding of the study have practical implications for the manager; they can have easier access to the financial market by just having a credit rating no matter high or low. Policymakers must stress upon the rating agencies to keep improving themselves as their rating severs as the measure to judge the creditworthiness of the firm by both the investors and management as well.

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