Defining Financial Terms Paper

Tags: The Tin Drum And Schloendorff And EssaysEssay About Real HappinessThesis Accounting SystemAncient Egypt Homework HelpProteomics Research PapersPostgraduate Research ProposalBusiness Plan FormatsEssay On Self Help Is The Best Help

Moreover, because there is no consensus on the precise definition of long-term finance, wherever possible, rather than use a specific definition of long-term finance, the report provides granular data showing as many maturity buckets and comparisons as possible.

Importance of long-term finance Extending the maturity structure of finance is often considered to be at the core of sustainable financial development.

Indeed, some argue that attempts to promote long-term credit in developing economies without addressing the fundamental institutional and policy problems have often turned out to be costly for development. “Institutions, Financial Markets and Firm Debt Maturity.” Journal of Financial Economics 54 (3): 295–336.

For example, efforts to jump-start long-term credit through development financial institutions in the 1970s and 1980s led to substantial costs for taxpayers and in extreme cases to failures (Siraj 1983; World Bank 1989). “Law, Finance, and Firm Growth.” Journal of Finance 53 (6): 2107–37.

In well-functioning markets, borrowers and lenders will enter short- or long-term contracts depending on their financing needs and how they agree to share the risk involved at different maturities.

What matters for the economic efficiency of the financing arrangements is that borrowers have access to financial instruments that allow them to match the time horizons of their investment opportunities with the time horizons of their financing, conditional on economic risks and volatility in the economy (for which long-term financing may provide a partial insurance mechanism).

Back to Key Terms Explained Definition Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.

Maturity refers to the length of time between origination of a financial claim (loan, bond, or other financial instrument) and the final payment date, at which point the remaining principal and interest are due to be paid.

Equity, which has no final repayment date of a principal, can be seen as an instrument with nonfinite maturity.

The one year cut-off maturity corresponds to the definition of fixed investment in national accounts.


Comments Defining Financial Terms Paper

  • What Financial Wellness Really Means PLANSPONSOR

    Feb 6, 2017. In a recent paper, Davidson defined a state of financial well-being as one. and a greater level of freedom to pursue life on his own terms.…

  • Economics and Personal Finance Glossary St. Louis Fed

    Browse our glossary of economics and personal finance terms. to finance their purchases of high-quality asset-backed commercial paper ABCP from. Bank regulators have developed two definitions of capital for supervisory purposes.…

  • Financial Literacy -

    The paper deals with defining literacy in a general way in the. is, first of all, to define in general terms financial literacy, deal with financial literacy and selected.…

  • Paper dictionary definition paper defined - YourDictionary

    Paper definition Paper is defined as an essay, written report or school exam. noun An example of. Short-term debt instruments, especially commercial paper. A newspaper. Wallpaper. paper - Investment & Finance Definition. Short for.…

  • Financial Times

    News, analysis and comment from the Financial Times, the world's leading global business publication.…

  • Long Term Finance - World Bank Group

    Long-term finance can be defined as any financial instrument with maturity. “Long-Term Investment Financing for Growth and Development Umbrella Paper.…

  • Staff paper - IFRS

    Board meeting by asking for the Board's views on how we should describe the term capital structure to be used in our definition of finance income/expenses.…

  • FP&A Glossary - Corporate Finance Terms & Definitions.

    Financial planning and analysis FP&A is a core function of corporate and. Below is a list of terms and their definitions commonly used by FP&A professionals.…

  • Essay on Finance Bartleby

    Long-term finance providers are more likely to focus on the matter whether. Also will be looking at the definitions of different type of sources of finance, the. Global Finance Paper University of Phoenix Sadaf Asghar, Ryan Crooks.…

The Latest from ©