Aa adequate ''financial architecture' for new economy firms
by Danny Cassimon, Peter-Jan Engelen
Global Business and Economics Review (GBER), Vol. 3, No. 2, 2001

Abstract: This paper develops a framework for devising an adequate financial architecture for the so-called ''new economy'' firms, suggesting that these firms need a distinct and different optimal capital structure and corporate control or corporate governance mechanisms. It is shown that an adequate financial architecture typically includes mechanisms with in-built option characteristics, such as the use of near-equity financing instruments (convertible bonds, or bonds-cum-warrants, which are all debt financing vehicles with in-built financial options) and the use of stock options. It is also shown that this financial architecture can be tailor-made to accommodate different types of new economy firms with the above-mentioned characteristics.

Online publication date: Mon, 07-Feb-2005

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the Global Business and Economics Review (GBER):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com