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Spikes in Firm Investment

Until recently, economists generally thought of firm investment as smooth and based on a demand curve driven by changes in interest rates. In fact, firm investment often exhibits abrupt discontinuities, or “spikes,” that reflect the abrupt change in the demand curve. This feast-or-famine pattern is also called’spiky’, because many small firms have several spikes in […]

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Firm Investment and Firm Value

The relationship between Firm Investment and Firm Value is influenced by the portfolio diversification of the controlling owners. This divergence is positive for publicly traded firms, but negative for privately held firms. Regardless of the source of capital, under-diversification can affect the allocation of resources within a firm. The empirical results of this study are […]

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The Different Types of Venture Capital

The Different Types of Venture Capital When a business seeks venture capital, they must determine the value of their company. This is a complex process involving a number of factors, including age, revenue, cash flow, intellectual property, and experience of senior management. VC investors also look at the potential return on investment and financial projections. […]

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The Effects of Profitability on Firm Investment

The Effects of Profitability on Firm Investment The effects of profitability on firm investment have not been fully understood until recently. This article provides an overview of the literature and discusses some of the recent studies that support this view. First, it describes the effect of profitability on firm investment. The article also explores how […]

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Funding & Investors

Funding & Investors There are many ways for small businesses to raise capital, and one of the most common is debt-based fundraising. This involves borrowing money now and repaying it later. Debt-based investment is the most common form of outside capital for new businesses. While venture capitalists and angel investors get most of the attention […]

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Understanding Venture Capital

Understanding Venture Capital Venture capital refers to private equity investments in high-growth startups. These funds are managed by professional money managers who invest other people’s money. These investors are often banks, insurance companies, and university endowments. These investors are known as ‘General Partners’ (GPs). Their interests are aligned with the LPs’. These investors provide money […]

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Public Firm Misvaluation and Private Peer Investments

The Relationship Between Public Firm Misvaluation and Private Peer Investments: A Study of Public-Private Peer Capital Markets finds that public firm misvaluation influences the amount of private peer investments, while the alternative shared sentiment hypothesis finds that there is no such relationship. Using a price-to-fundamental ratio as the exogenous instrument and mutual fund flows as […]

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Funding & Investors

Funding & Investors A good small business plan will attract investors and attract funds from several sources. A strong business plan will ensure that you are able to repay the money and that you know all the risks involved. Potential investors want to know about the management team and people behind the plans. They’ll also […]

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The History of Venture Capital

The main difference between venture capital and other forms of venture financing is the type of investment made. The former invests in companies with little or no potential for growth and failure. The latter, on the other hand, focuses on companies with an outstanding chance of making it big. Typically, a VC investment consists of […]

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The History of Venture Capital

The first major round of financing for venture capital took place in 1978. The amount raised by the industry was $750 million. At the time, the US Labor Department had prohibited many risky investments in privately held companies, but it later relaxed these restrictions under the “prudent man” rule. This change allowed the venture capital […]

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Firm Size and Investment

Firm Size and Investment The distribution of firm sizes has been a key topic in recent research on firms. While very large firms account for less than one percent of firms, their output is much larger than that of small firms. In fact, they account for just under 10% of the total investment. In the […]

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The Advantages of Venture Capital

Venture capital is a form of investment where a company seeks investment to create new products or services. It is a great way to finance the early stage of a business and avoid the risks associated with traditional sources of financing. There are many advantages to utilizing venture capital. Listed below are some of the […]

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Factors That Affect Firm Investment

Using data from the Journal of Business and Economics, we find that firm investment is influenced by four key factors: profitability, size, and leverage. In each country, the profit of a firm is positively correlated with investment decisions. A similar pattern is observed when considering the value of the company’s assets. As expected, higher profitability […]

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Securing Venture Capital

Securing Venture Capital The first step in securing venture capital is to determine the value of your company. Typically, a startup’s value is determined by the amount of cash it generates from operations, revenue and growth rate. Other factors that can influence the value of a company are the intellectual property and experience of the […]

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Firm Investment and Financial Leverage

The relationship between firm investment and financial leverage is largely a function of the controlling owners’ portfolio diversification. While this relationship is significant for publicly traded firms, it is weak for privately held firms. This may be because of the firm’s risk-averse stance. Moreover, the findings of this study also apply to a range of […]

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Is Venture Capital Right For Your Company?

Venture Capital is an investment method used by private equity firms to provide capital to startups and early-stage companies. It involves investing in early-stage companies based on their growth potential and profitability. While a lot of people are confused as to how this type of investment works, there are some basic rules you should keep […]

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The Economic Model for Firm Investment

The economic model for firm investment is an important tool for analyzing investment policies. The assumption of perfect markets affects both public and private firms. In a publicly traded firm, portfolio diversification is positive, whereas in a privately held firm, portfolio diversification is negative. In addition, both public and private firms should avoid under- and […]

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Funding & Investors

Investment funds are a fantastic way to invest with other investors and to benefit from the inherent benefits of working as part of a group. By pooling your money together, you can significantly reduce your risks. A common misconception about investment funds is that they are only for big corporations. In reality, any investor can […]

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The Basics of Venture Capital

Venture Capital is a form of private equity financing where venture capital firms provide funding to emerging and early stage companies. These firms are specifically looking for companies that have a high growth potential and can help the company expand rapidly. This type of financing is a great way for a new business to get […]

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How Private Equity Firms Make Private Equity Investments

How Private Equity Firms Make Private Equity Investments In a recent study, profitability is a significant determinant of firm investment. The authors found that, in general, firms with higher credit worthiness are more responsive to internal cash flow, compared with those with lower creditworthiness. Their study also finds that higher profitability leads to higher firm […]

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Funding & Investors

Funding & Investors Investment funds are a way to invest alongside other investors and benefit from the inherent advantages of working as a group. This type of investment also greatly reduces the risk of making a bad investment. Unlike individual investments, you can invest in an investment fund that has already been proven to be […]

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The Importance of Venture Capital

Venture Capital is the private equity funding that is provided to emerging companies at the very early stages of their development. It is a form of early-stage financing and can be a very helpful resource for any budding business. Many people don’t realize the importance of this type of finance, so this article will discuss […]

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Determinants of Firm Investment

There are numerous determinants of firm investment. These factors are financial, including profitability. In this article, we will examine the role of cash holdings in explaining firm investment decisions. We will also discuss the financial constraints that affect resource allocation. We will discuss whether the size of the firm has any effect on firm investment […]

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Funding & Investors

Funding & Investors Investment funds are a great way to invest your money alongside other investors. This will significantly lower the risks associated with your investments, as you will have a pool of other people to share the burden with. Working as part of a group also has its benefits. This is especially important if […]

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Firm Investment in Four Countries

In the study of firm investment, the profitability of the company is taken into account. This is because higher profits tend to drive higher firm investments. The size of the firm is also an important determinant of its decision to invest. This article analyzes four countries in detail, examining the financial and operational factors that […]

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What is Venture Capital?

What is Venture Capital? Venture capital is a form of private equity financing. It is used to support early stage companies with a view to boosting their growth and profitability. Typically, these funds provide financing for a wide range of companies at various stages of development. These funds are provided by private equity firms that […]

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Venture Capital – The Primary Source of Private Equity Funding For Startups and Early-Stage Companies

Venture Capital is a form of private equity financing where companies with high growth potential receive financial backing from venture capital funds. A venture capital firm evaluates the company and looks for the possibility of future growth and success. Typically, it will provide financing to early-stage companies. The primary goal of a venture capital fund […]

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Factors That Affect a Firm’s Investment

A firm’s investment is an important component of a company’s value. Although this investment is important for a company’s bottom line, it can also be detrimental to the firm. This article will discuss the factors that can impact a firm’s investment decision. The first is a company’s profitability. A company that has a high profitability […]

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Venture Capitalists and Private Equity

Venture Capitalists and Private Equity Venture capital is a type of private capital financing which is offered by venture capital funds or private equity firms to budding, early stage, and established companies that have been considered to have excellent growth potential, or that have shown exceptional growth in one or more of their market segments. […]

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Selection of the Single Supervisory Mechanism for Financial Market Supervision

Firm Investment is the total value of a firm’s assets – stock and property included. The concept of Firm Investment was introduced to simplify the complex international financial reporting systems. Today, it is an often quoted statistic in assessing potential investment opportunities. In theory, Firm Investment should be proportional to the performance of the firm. […]

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The Hypothesis About Firms and Investment

The European Central Bank has made it clear that it will not allow banks in the euro area countries to engage in too much easing of financial conditions. In fact, this has been communicated very clearly to all banks in the region. However, many banks have disregarded this instruction and are continuing with their efforts […]

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Funding & Investors

Funding & Investors Investors and funding for real estate projects exist in two separate yet interconnected forms. First, there is the institutional investor. The typical institutional investor is a bank such as a mutual fund or a large pension or mutual insurance company. They usually have minimum investments requirements but often provide seed money for […]

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Venture Capital – Types of Venture Capital

Venture capital is an investment type of financing that provides small business owners with the tools they need to grow their business. Venture capital is a type of private equity financing which is provided by various venture capital firms or independent funds to early-stage, startup, and emerging businesses that have been deemed to possess high […]

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Flaws In Current Economic Theory

Many economic textbooks present firm investment as being an important factor behind successful firms in terms of profitability. However, very few economic journals have presented firm investment as being an important factor behind unsuccessful firms in terms of profitability. This gap in the literature has resulted in a split between those researchers who believe that […]

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Funding & Investors

Investing is an act of buying and selling of financial instruments either through a sale of securities in a stock exchange or through a sale of goods. While many people have a very casual idea as to how funding & investors work, there are actually two distinct forms of investing. One deals with the purchase […]

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Venture Capital Investors

Venture Capital Investors Venture capital is a type of private capital financing which is provided by venture capital funds or companies to early-stage, startup, and emerging businesses that have been deemed to possess high probability of success or that have shown evidence of high profit potential. Venture capitals are usually provided through a third party […]

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Firms and Their Types

There are a wide range of investments available, and one of the most common areas for investment is firm investment. A firm investment refers to an investment that is managed by a large company. This type of investment is usually made with the goal of turning a profit, but this can vary depending on the […]

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A Guide to Funding

A Guide to Funding Funding & Investors is an excellent online publication that covers the venture capital, private equity, and IPOs markets. Authors Michael Cohen and Amy Crews provide regular articles on funding issues and trends. They describe several common funding schemes and offer case studies. Their focus is on the aspect of private investors […]

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High Growth Startups Venture Capital – How to Capitalize on Entrepreneurship

Venture capital is basically a type of private equity funding which is offered by venture capital funds or private capital groups to emerging or growing companies which have been deemed to possess high potential for growth or that have shown high profit potential. The companies are usually preferred over other similar businesses in terms of […]

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Supervision of Firm Investments

Financial reports are the core function of finance departments but are ignored by finance officers as well as by shareholders due to lack of firm investment guidance. Drawing lessons from agency studies, this paper uncovers from the past that firm investment refers to financial leveraging and is inherently associated with firm risk. For high information […]

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Types Of Venture Capital

Types Of Venture Capital Venture capital is a type of private equity funding that is given by venture capital companies or funds to emerging or start-up companies which have been deemed to have very high potential for growth or which have proven high future growth potential. In exchange for receiving equity in the business, investors […]

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International Capital Flows Determine Foreign Direct Investment and Domestic Policy Tightness

International Capital Flows Determine Foreign Direct Investment and Domestic Policy Tightness To evaluate the relationship between firm size and firm investment, this article will show how firm investment decisions are affected by financial leverage. Using real case studies and an illustration of finance, this article shows how leveraged a firm is and the effect it […]

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Venture Capital – What it is and How it Works?

Venture Capital – What it is and How it Works? Venture capital is essentially a type of private equity financing which is given by venture capital firms to emerging businesses, early-stage, or growing companies who have been deemed to possess high potential for profitability or that have shown consistent growth over a period of time. […]

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Government Economic Stimulus Package – Employment, Investment, And Other Distinctive Factors

Financial Leverage: Financial Leverage and Its Impact on Firm Success. Drawing salient insights from many recent agency studies, this book charts that financial Leverage is significantly and negatively related to firm productivity. The paper also traces the decline in Leverage over the past two decades, and the authors describe new measures of financial Leverage that […]

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Types Of Funding & Investors

Types Of Funding & Investors For funding and investors dealing with real estate projects, an entity called a ” Funding ” refers to the financial institution that provides a loan or line of credit to a real estate developer for the purpose of facilitating the development of the project. This can be done in one […]

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Funding & Investors

As an investor looking for private funding sources, the current funding climate can be a difficult and perplexing place to be. There is a great deal of confusion about what is “safe” investment money and what is not. The current funding climate is fraught with uncertainty. In fact, funding is increasingly difficult to secure, as […]

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Firm Investment and Its Role in Economic Freedom and Domestic Credit Independence

It is generally seen that the effect of financial leverage in firm investment is positive for large information asymmetric businesses. But no clear relationship exists between leverage and investment for large-scale companies. Instead it is seen that leveraged companies tend to have more short positions (in stock) relative to their assets and liabilities. This implies […]

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The Benefits And Drawbacks Of Using A Private Funding Sources

Business Funding & Investors are necessary for the success of businesses. Without private funding available for growth and expansion, a business can find itself becoming stagnant or even closing down. When working with a funding & investors service it is important to remember that you have different needs than the average private investor. This means […]

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The Venture Capital Process For Start Ups

Venture capital is essentially a type of private capital financing which is provided by venture capital funds or private capital firms to early-stage, startups, and newer companies which have been considered to have high potential for growth or that have shown exceptionally high potential for growth. It is one of the most important types of […]

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What Is A Firm Investment?

To understand what firm investment really means, one has to first understand what firm investment is not. Firm investment is not a part of venture capital and/or private equity. Firm investment is basically the buying of company stocks as an active component of an overall capital structure for the purpose of creating value. By value, […]

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Firm Investments and Economic Freedom

Firm Investments and Economic Freedom When you say Firm Investment, what do you mean? It is not the same as Savings and Investment. It is a model of investing which focuses on firm assets like investments in fixed income securities and equities. Firm Investment is mainly dependent on capital gains, with a little bit on […]

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Firm Investment Theory – An Outline

“Firm Investment and Its Impact on the Bottom Line,” by Edward Czarnet, William K. Packer, and Kenneth S. Rogoff, is an excellent study. The book presents extensive evidence from a major representative sample of financial intermediaries to demonstrate the direct impact of firm investment on firm performance relative to other forms of investment. Financial leverage […]

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Capital Funding & Investors

Capital Funding & Investors Angel investors, Funding & Investors, and Private Funding Sources all go hand in hand when you are looking for your first investment. Most investors do not like to make a commitment of this type. They feel more comfortable dealing in more traditional capital markets, such as stocks, bonds, mutual funds, and […]

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Venture Capital, Seed Capital, Series A Funding and Series B Funding

Venture Capital, Seed Capital, Series A Funding and Series B Funding Venture capital is often referred to as an individualized approach to capital raising. Venture capital is simply a type of private equity funding that is offered by venture capital funds or angel networks to startups, pre-stage, and newer businesses that are deemed to have […]

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The Relationship Between Supervisory Architecture and Firm Investment

Financial LIFO and Firm Investment are two interrelated concepts that directly impact the investment decision making process. Financial leverage relates to the increased borrowings costs associated with a firm’s current asset base (its assets vs. its liabilities). This concept is useful for predicting the behavior of prices, and firms should consider financial leverage when formulating […]

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Funding & Investors

Funding & Investors for Small Businesses- When seeking funding for your new business, it is important to make sure that the funding you are seeking is actually from a reliable source. One of the best ways of getting this information is to ask for a referral from a current investor or funding organization. This can […]

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Finding Venture Capital

Venture capital is often referred to as private equity. Venture capital is a type of private equity funding that is offered by venture capital funds or private investment groups to emerging or start-up companies which are deemed to have high potential for success, or that have shown past success in obtaining financing. Venture capital can […]

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Firm Investment Analysis

This paper explores the tentativeness of short selling on identifying investment firm over-valuation, discovering that short traders adjust their transactions to utilize their internal information advantage by listing short positions prior to the release of a company’s second quarter financial statements. I show that a number of large investors use very narrow time frames to […]

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How to Find Venture Capitalists For Your Business

How to Find Venture Capitalists For Your Business Venture capital is a type of private capital financing, which is offered by venture capital funds or private equity firms to emerging companies, early-stage, or new companies that have been deemed to possess high growth potential or that have shown potential for profitability. Venture capitalists provide this […]

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Fundraising for Medical Professional Education

Fundraising for Medical Professional Education Financial reports are always required for financial institutions and all other bodies that have a mandate to keep track of stock ownership. The methodology followed for arriving at a conclusion is always dependent on the document that is to be derived. However, there are many debates on whether or not […]

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Funding & Investors – Finding Investors to Back Your Business Idea

Funding & Investors – Finding Investors to Back Your Business Idea Many small business owners struggle with financing and finding an investor. Most private financing comes from family, friends or business patrons. However, there are some alternative options that are available to entrepreneurs who are looking for funding for their businesses. The Internet is a […]

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Types of Venture Capital Funding

Types of Venture Capital Funding Venture capital is also known as private equity or venture capital. Venture capital is money from venture capital companies or funds to startups, mid-stage, or emerging companies that are deemed to have great potential for growth or that have proven a great success. Investors typically fund this type of financing […]

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Firm Investment Analysis

The present study shows that the relationship between firm fixed investment and firm growth is more significant for small-sized companies. But no such significant relationship is observed between fixed investment and large-scale business firms. This implies that irrespective of the size of the organization, the present study still does not show any significant relationship between […]

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Venture Capital

Venture capital is the common term used when referring to private equity funding. Venture capital is a type of private equity funding that is offered by venture capital companies or private funds to emerging startups, mid-stage, and early-stage companies that are deemed to have extraordinary growth potential or that have proven track records of success. […]

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Firm Investment Analysis – The Relationship Between Firms’ Investment Decisions and Internal Cash Flow

Many companies across the world are looking for ways to improve firm investment strategies. As the economy continues to falter, many companies are cutting back on their spending as they try to balance their books. However, it is also seen that the influence of financial leverage on firm investment isn’t as great for low information […]

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Venture Capital and Angel Investor Backgrounds

Venture Capital and Angel Investor Backgrounds Venture capital is a type of private equity funding that is usually provided by venture capital funds or individual investors to emerging or growing businesses that are deemed to have medium to long growth potential, or that have shown great promise in the technological or economic fields. Venture capital […]

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Why Are Some Financial Crises Worse Than Others?

Why Are Some Financial Crises Worse Than Others? The present article discusses the relationship between firm size and firm investment. It is observed that the effect of financial Leverage on firm investment has negative implications for large information asymmetric firms in particular. The analysis suggests that firms with a higher level of Leverage tend to […]

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How to Find Investors For Your Business

How to Find Investors For Your Business As a small business owner, you need funding and investors to finance the growth of your company. Small companies usually do not have the capacity to raise funds in a traditional manner. It is difficult for them to seek investors to fund their business needs. The options available […]

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Venture Capital

Venture capital is a type of private equity funding that is offered by venture capital funds or private equity firms to small, emerging, and sometimes ultra-new businesses that have been clearly defined as having high potential for success or that have proven very successful in prior venture-capital financing rounds. V Venture Capital is a highly-risky […]

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Firm Investment Analysis

Firm Investment Analysis Asset allocation is one of the most critical factors of allocation since it impacts both equity and fixed income. Asset allocation is done by many investors in their portfolios to ensure that they have made the right decisions so that they can earn high returns on their capital and so that their […]