TY - JOUR
T1 - Designing the financial structure of a preferred investment
AU - Nisani, Doron
PY - 2019
Y1 - 2019
N2 - One of the challenges of public offering is efficiently competing with other firms over the investors’‘ capital. Each firm strives to design financial investments that, on the one hand, would be profitable, and on the other, would attract the investors’‘ capital. These two restrictions can be simplified into the financial investment’‘s return and risk: increasing the investment’‘s return reduces the raised capital, but decreasing the investment’‘s risk increases the firm’‘s credit risk. This paper invokes the Riskiness Index to modify the investment’‘s structure using its statistical moments, while preserving the required investment’‘s return and risk.
AB - One of the challenges of public offering is efficiently competing with other firms over the investors’‘ capital. Each firm strives to design financial investments that, on the one hand, would be profitable, and on the other, would attract the investors’‘ capital. These two restrictions can be simplified into the financial investment’‘s return and risk: increasing the investment’‘s return reduces the raised capital, but decreasing the investment’‘s risk increases the firm’‘s credit risk. This paper invokes the Riskiness Index to modify the investment’‘s structure using its statistical moments, while preserving the required investment’‘s return and risk.
U2 - doi.org/10.18374/ijbr-19-1.6
DO - doi.org/10.18374/ijbr-19-1.6
M3 - מאמר
VL - 19
SP - 51
EP - 56
JO - International Journal of Business Research
JF - International Journal of Business Research
ER -