An Algorithm for the Pricing and Timing of the Option to make a Two-Stage Investment with Credit Guarantees

We develop a jump-diffusion model for a guarantee-investment combination financing mode (G-I mode) that is recently popular in financial practice. We assume that a borrower has exclusively an option to invest in a project in two stages. The project’s cash flow follows a double exponential jump-diffusion process and it is increased by a growth factor once the second-stage investment is exercised. The first-stage investment cost is financed by a bank loan with the guarantee provided by an insurer, who promises to provide the second-stage investment cost as well as take the lender’s all default losses. In return for the guarantee and investment, the borrower pays a guarantee fee upon first investment and grants a fraction of equity upon second investment to the insurer. In sharp contrast to prior papers on guarantee, the guarantee costs are contracted prior to investment. We provide closed-form solutions and produce a numerical algorithm for the timing and pricing of the two investment options.

Research on the Debt Default Risk of Guangyi Technology

In the process of production and operation, the funds held by enterprises often do not meet the needs of the expanding production scale, so enterprises usually obtain the required funds by borrowing. However, the financing mode of enterprises is not only limited to borrowing from banks or other financial institutions. With the rapid economic development and the continuous activity of the capital market, the bond market has gradually become an important channel for enterprise financing [1]. In order to improve the layout of the industrial chain, Guangyi Technology has carried out continuous mergers and acquisitions (M&A) since 2013. Due to its limited funds, Guangyi Technology acquired a large amount of funds required for M&A by means of equity pledge. However, the copyright cloud project invested in M&A in the early stage did not achieve the expected results, leading to a frequent breach of equity pledge, which evolved into debt defaults. Therefore, this article takes Guangyi Technology as the research subject and puts forward relevant avoidance suggestions through the evaluation of its debt default risk.

Research on the Prevention and Control of Supply Chain Financial Risks from the Perspective of Enterprise Financing

At present, China’s economy is developing rapidly and all companies actively participate in market competition. Hence, many small-sized companies with lower competitiveness face more risks and may be shut down if no efficient marketing strategies are adopted. Among their obstacles, financing problems seriously affects the company’s development. However, in view of the fierce market competition, emerging supply chain financing models has been constructed, which is highly valued by many companies. In addition, the supply chain financing mode has a positive impact on the development of enterprises. In this thesis, the corporate financing and its application in risk management will be analyzed in detail, so as to provide companies with better financial services and to ensure their stable and sustainable development.

District Reliance by Service Function: A Study of Public Financing of American Special Districts

Over the past several decades, special districts have proliferated and become the most rapidly growing type of local governments in the U.S. This study provides an exploratory investigation of special district finance reliance from two aspects, including expenditure reliance of general–purpose governments on special districts’ service delivery and financing mode of special districts. Using financial data collected from the Bureau of Census, this study provides detailed descriptive analyses on temporal trends and geographical patterns of expenditure reliance and revenue financing mode for four service functions. From the perspective of expenditure reliance, this study shows that special districts have replaced the role of general–purpose governments. In terms of revenue modes, special districts tend to rely on user fees, equating payers and beneficiaries of services. Moreover, this study shows that on which revenue sources the districts rely the most vary by service function and geography.

Enterprise Financing Mode and Technological Innovation Behavior Selection: An Empirical Analysis Based on the Data of the World Bank’s Survey of Chinese Private Enterprises

In China, private enterprises are becoming more and more important subjects of technological innovation, however(at the same time) financing difficulties of private enterprises are also ubiquitous. The research on the impact of financing methods on technological innovation behavior of private enterprises is conducive for the government to launch more targeted financing support policies.I men private enterprises are becoming the mainbody of technological innovation, but the difficulties in financing is especially heavy in China. Based on the data of the World Bank survey on China’s enterprises in 2012, this paper studies the impact of different financing methods on technological innovation behavior of private enterprises. The results show that (1) internal financing can promote the technological innovation behavior of enterprises better than external financing can do and (2) among the various forms of external financing, bank loans have the most significant impact on the technological innovation behavior of private enterprises, followed by commercial credit.

Research on Financing of Small and Micro Enterprises in Postepidemic Period: Based on Evolutionary Game and Numerical Simulation

Small and microenterprises are most affected during the COVID-19 epidemic period. Despite the government introducing many preferential policies, financing for small and microenterprises is still difficult. Based on evolutionary game theory and Matlab r2017b software, this paper discusses the causes of financing problems from two aspects. By taking loan amount, loan interest rate, guarantee value, and intermediary business income as variables, the research shows that banks not only pay attention to the comprehensive return of small and microenterprises but also pay more attention to the coverage of loan principal and interest by the value of collateral. Relying on collateral for credit is still the main way, and the lack of collateral causes financing difficulties of small and microenterprises. Accordingly, this paper puts forward the countermeasures and suggestions to improve the guarantee compensation mechanism and innovate the financing mode.