Perspective Control of Listed Companies Outside Source of Financing Choices
Song Xiao-feng
Abstract
Song Xiao-feng
Abstract
In this paper,based on the perspective of control,we construct a unified mathematical model to analyse the option of different duration of the debt financing and different object of equity(re-)financing and drawn the following conclusion: Without effect to the listed companies control,the profitability of the stronger company,the more biased in favor of equity financing;financing the amount of the more biased in favor of equity financing.
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In this paper,based on the perspective of control,we construct a unified mathematical model to analyse the option of different duration of the debt financing and different object of equity(re-)financing and drawn the following conclusion: Without effect to the listed companies control,the profitability of the stronger company,the more biased in favor of equity financing;financing the amount of the more biased in favor of equity financing.
Key concepts: Equity financing, Debt financing, Finance, Business, Profitability index, Equity (law), Control (management), Perspective (graphical)