External Financing Method: Financing through Debt and Stock Issuance

Reza Aghajan Nashtaei, Ebrahim Chirani and Mehrdad Goudarzvand Chegini

International Journal of Agricultural Management and Development (IJAMAD), 2017, vol. 07, issue 4

Abstract: Countries need short, medium, and long-term investment plans for production growth and development. Different sources for these investments can be supplied through retained profit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for their survival, production, and also development of activities. In addition, these institutions and firms rely heavily on financial markets for self-financing. The role of financial markets is to provide the required capitals for institutions and firms. Financing strategy is considered as one of the main areas of financial management decisions in companies seeking to increase shareholders’ wealth. Therefore, the aim of this paper was to discuss conventional methods of external financing through debt and stock issuance and explain their associated advantages and disadvantages.

Keywords: Agricultural Finance; Public Economics (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijamad:292514

DOI: 10.22004/ag.econ.292514

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