Home  Journals  Finance and Credit  29(605) - 2014 August

Determination of the effective volume of the additional loan capital at risk and uncertainty

Available online: 4 August 2014

Subject Heading: Banking

JEL Classification: 

Pages: 6-14

The article considers multi-criteria target setting of defining of the effective volume of the external loan financing in a format of normative theory of decision making under risk and uncertainty. The distinctive feature of the paper is the author's criteria for determining the additional volume of bank credit for a variety of possible scenarios. Proposed multifactor models that include operational and financial leverages, interest loan payments provide a significantly high, new and more extensive level of financial risk-management analysis to study the functional dependence of return on equity of the combined impact of these risk factors.

Keywords: external financing, loan repayment, interest payment, weighted average price, capital, margin, economic added value, risk, uncertainty, analysis, operational and financial leverages impact

References:

1. Vasil'ev V.D. Optimizatsionnyi podkhod k vyboru investitsionnykh strategii i proektov v stroitel'stve ob"ektov regiona [An optimization approach to the choice of investment strategies and projects in construction of objects of a region]. St. Petersburg, SPbSUEF Publ., 287 p.
2. Trukhaev R.I. Modeli prinyatiya reshenii v usloviyakh neopredelennosti [Models of decision-making under uncertainty]. Moscow, Nauka Publ., 1981, 258 p.
3. Cheng F. Lee, Joseph E. Finnerty. Finansy korporatsii: teoriya, metody i praktika [Corporate Finance: Theory, Method, and Applications]. Moscow, INFRA-M Publ., 2000, 686 p.

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ISSN 2311-8709 (Online)
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