scholarly journals Crowdfunding and bank financing: substitutes or complements?

2022 ◽  
Author(s):  
Anton Miglo
Keyword(s):  
Moral Hazard ◽  
Bank Loan ◽  
Market Demand ◽  
High Quality ◽  
Production Scale ◽  
Bank Financing ◽  
Moral Hazard Problem

AbstractIn this paper, we analyze a firm choice between crowdfunding and bank financing. For many entrepreneurs, it is an important issue. We analyze a model where the choice of financing is affected by moral hazard problem regarding the choice of production scale that favors bank financing, and by the uncertainty about market demand that favors crowdfunding. We argue that long crowdfunding campaigns or campaigns with large targets usually are less efficient in mitigating moral hazard problem than small/short campaigns. We also argue that high-quality firms and firms with potentially large markets will tend to select bank financing while projects with largest amount of investment should select mixed financing where the firm uses a short crowdfunding campaign and a bank loan. Most of our model empirical predictions have not been directly tested so far while they are indirectly consistent with available evidence.

scholarly journals Bank Loan as a Source of Financing an Investment Project

2019 ◽  
Vol 5 (12) ◽  
pp. 292-297
Author(s):  
S. Belyaev
Keyword(s):  
Russian Federation ◽  
Investment Project ◽  
Bank Loan ◽  
Project Financing ◽  
Investment Projects ◽  
Bank Financing ◽  
Literary Sources ◽  
Fixed Assets ◽  
The Russian Federation

The purpose of this article is to consider a bank loan as a source of financing for investment projects. To achieve this goal, the following tasks were solved: the structure of investments in fixed assets in the Russian Federation by sources of financing was investigated; the forms of bank financing of investment projects are characterized, types of project financing are identified depending on the distribution of risks between the bank and the borrower. During the study, the following methods were used: a review of literary sources, comparison and grouping.

Modelling the public moral hazard problem of international remittance inflows in Bangladesh

2021 ◽  
Vol 13 (2) ◽  
pp. 166
Author(s):  
Muntasir Murshed ◽  
Syed Rashid Ali ◽  
Mohammad Haseeb ◽  
Solomon Prince Nathaniel
Keyword(s):  
Moral Hazard ◽  
The Public ◽  
Moral Hazard Problem

Study on Soil Properties towards Formation of High Quality Agarwood Resin in Aquilaria crassna

2021 ◽  
Vol 1025 ◽  
pp. 110-115
Author(s):  
Mohd Syafik Mohamad Hamdan ◽  
Mohd Azrul Hisham Ismail ◽  
Siti Hajar Noor Shaarani ◽  
Saiful Nizam bin Tajuddin
Keyword(s):  
Soil Analysis ◽  
Chemical Properties ◽  
Soil Condition ◽  
Market Demand ◽  
High Quality ◽  
Induction Technique ◽  
Chemical Profiles ◽  
Medicinal Properties ◽  
Agarwood Resin ◽  
Aquilaria Crassna

Agarwood has been used for its fragrance and medicinal properties in Asian culture for centuries. In recent years, agarwood gains its popularity in the west due to its usage in perfume formulation. Unfortunately its supply not meets the augmentation market demand. This is mostly because of depleting nature agarwood reservoir and lack of induction technique that can produce agarwood consistently in the plantation. In this study, we look into a case where artificial inducing technique successfully produced high quality agarwood. To assure its quality, agarwood chip was analysed by Gas Chromatography for its chemical profiles. Discovered compounds were identified as sesquiterpene group which also had been characterized as major agarwood compound listed on previous studies. Few compounds that are detected such as δ-cadinene (0.20%), jinkoh-eremol (22.09%), epi-α-cadinol (4.74%), agarospirol (3.75%) and others. Soil condition that contributes into this agarwood formation; soil analysis on physical properties, chemical properties and nutrients content of the soil have been analyzed. Based on the findings, soil condition is an important factor to successfully induced high quality agarwood.

scholarly journals The Incentive Model in Supply Chain with Trade Credit and Default Risk

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-11
Author(s):  
Hong Cheng ◽  
Yingsheng Su ◽  
Jinjiang Yan ◽  
Xianyu Wang ◽  
Mingyang Li
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Moral Hazard ◽  
Private Information ◽  
Default Risk ◽  
Trade Credit ◽  
Uncertain Demand ◽  
Market Demand ◽  
Incentive Contract ◽  
Risk Neutral

Trade credit is widely used for its advantages. However, trade credit also brings default risk to the manufacturer due to the uncertain demand. And moral hazard may aggravate the default risk. The purpose of this paper is to investigate the role of moral hazard in trade credit and explore incentive contract under uncertain demand and asymmetric information. We consider a two-echelon supply chain consisting of a risk-neutral retailer ordering a single product from a risk-neutral manufacturer. Market demand is stochastic and is influenced by retailer’s sales effort which is his private information. Incentive theory is used to develop the principal-agent model and get the incentive contract from the manufacturer’s perspective. Results show that the retailer will reduce his effort level to get more profit and the manufacturer’s profit will be reduced, in the case of asymmetric information. Facing this result, the manufacturer will reduce the order quantity in incentive contract to lessen his losses. Numerical examples are provided to illustrate all these theoretical results and to draw managerial insights.

Monsters to Destroy

2020 ◽  
Author(s):  
Navin A. Bapat
Keyword(s):  
Moral Hazard ◽  
War On Terror ◽  
Energy Markets ◽  
Economic Security ◽  
Global Markets ◽  
Energy Market ◽  
Reserve Currency ◽  
American Military ◽  
Moral Hazard Problem ◽  
The U.S

This study argues that the war on terror can be explained as an effort to cement the U.S. dollar as the world’s foremost reserve currency by expanding American control over the global energy markets. Since the 1970s, the states of OPEC agreed to denominate their oil sales in U.S. dollars in exchange for American military protection. The 9/11 attacks gave the U.S. cover to eliminate current challengers to this system while simultaneously striking new security agreements with host states throughout the Middle East, Africa, and central Asia that are critical to the extraction, sale, and transportation of energy to global markets. However, the U.S. security guarantee soon created a moral hazard problem. Since the host states had American protection, they were free to engage in corrupt behaviors—while labeling their political opponents as terrorists. To make matters worse, these states had incentives to keep terrorists in their territory, given that doing so would force the U.S. to protect them indefinitely. As a result of this moral hazard problem, terrorists in the host states gradually grew in power and transitioned to insurgencies, which caused a rapid escalation in violence. Facing the increasing cost of securing the host states, the U.S. was forced to scale back its security guarantee, which in turn contributed to greater violence in the energy market. Although the U.S. began the war to maintain its economic dominance, it now finds itself locked into a seemingly permanent war for its economic security.

SUBCONTRACTING, RENEGOTIATION OF CONTRACT AND QUALITY PROVISION

2011 ◽  
Vol 56 (01) ◽  
pp. 113-144
Author(s):  
TANMOYEE BANERJEE CHATTERJEE ◽  
AJITAVA RAYCHAUDHURI
Keyword(s):  
Moral Hazard ◽  
Critical Level ◽  
Replacement Cost ◽  
High Quality ◽  
Investment Level ◽  
Quality Product ◽  
High Investment ◽  
Product Replacement ◽  
High Level ◽  
High Quality Product

In a principal-agent framework under moral hazard, when the monopolist can pass on the liability of any defect of the product to the subcontractors, and cannot credibly commit to a high level of investment, he actually chooses a low investment level and supplies a low quality product if the product replacement cost is below a critical level. However, under contract renegotiation, when the monopolist is taking the entire risk of replacing the defective product, he will profitably choose high investment level and serves high quality product. But the results show that the monopolist will choose to renegotiate the contract only for limited values of product replacement cost, even if renegotiation is socially optimal.

Process Design on Baogang 2250mm Hot Rolling Project

2013 ◽  
Vol 744 ◽  
pp. 283-287
Author(s):  
Lin Li ◽  
Fu Ming Zhang ◽  
Hong Wen Liu ◽  
Ruo Yu Zang ◽  
Fan Wang
Keyword(s):  
Hot Rolling ◽  
Process Design ◽  
Raw Materials ◽  
International Standards ◽  
Design Flow ◽  
Utilization Efficiency ◽  
High Quality ◽  
Flow Process ◽  
Production Scale ◽  
Starting Point

Based on scale and output, process design assures high-end products for Baogang, ensures advancement and reliability of devices, enhances Chinese split supply ratio; ability to decrease investment and implement sustainable scientific outlook on development. To introduce production scale and product scheme in Baogang 2250mm hot rolling project, and illustrate design flow, process arrangement and equipment level. Ability to insist on a high starting point, reference to international standards, use advanced devices in order to meet high-quality needs and achieve strong competitiveness, adhere to strategy of sustainable development, improve on utilization efficiency of raw materials, energy and water, accomplish cyclic utilization. Leading products are high-quality rare-earth auto plates, steel sheets for home electrical appliances. The layout of plant is tightly linked with process design and whole plan, short process, smooth logistics, less middle stages and advanced automatic control system create international level in 21st century.

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