EconPapers    
Economics at your fingertips  
 

Determinants of Financial Capital Use: Review of theories and implications for rural businesses

Jarmila Curtiss

No 123, Factor Markets Working Papers from Centre for European Policy Studies

Abstract: This paper presents a review of financial economics literature and offers a comprehensive discussion and systematisation of determinants of financial capital use. In congruence with modern financial literature, it is acknowledged here that real and financial capital decisions are interdependent. While the fundamental role of the (unconstrained) demand for real capital in the demand for finance is acknowledged, the deliverable focuses on three complementary categories of the determinants of financial capital use: i) capital market imperfections; ii) factors mitigating these imperfections or their impacts; and iii) firm- and sector-related factors, which alter the severity of financial constraints and their effects. To address the question of the optimal choice of financial instruments, theories of firm capital structure are reviewed. The deliverable concludes with theory-derived implications for agricultural and non-agricultural rural business’ finance.

Pages: 54 pages
Date: 2012-02
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.factormarkets.eu/system/files/FM_WP19%2 ... al%20use%20_D4.3.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eps:fmwppr:123

Access Statistics for this paper

More papers in Factor Markets Working Papers from Centre for European Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by Eleni Kaditi ().

 
Page updated 2020-01-24
Handle: RePEc:eps:fmwppr:123