Improvement of Financing of Investment Projects in Lithuanian Industry

Since creative financing is usually done during times of financial stress, the thesis analyses the importance of funding source role in manufacturing investment projects by incorporating information standing beyond investment behavior, analyzing it to make assessments whether the various factors have more or less influence on the choice of financing source, as well as the motivation behind its use presumably has a direct impact on investment performance to compare the main methods of financing with alternatives, which is more attractive to the enterprise, and under what circumstances and the approaches which could be used instead. With reference to analysis of investment project financing trends in Lithuanian manufacturing considering firms’ specific characteristics, investment financing feasibility expansion analysis is carried out. Most of investigated results are directly applicable to the comparison of bank funding via bond market, providing an excellent review of the reasons why a company may wish to make that choice based on reputation building or adverse selection arguments, desire for greater diversification of finance and the relaxation of constraints among other reasons. Drawing on stylized facts from the empirical literature investment project financing selection creditworthiness based model is build, orienting to create incentives for high grow firm to obtain bond market finance and highlighting factors make financing decisions value relevant. Thesis consists of... [to full text]