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Record W6890365917 · doi:10.34989/tr-61

Un modèle du coût du financement et du ratio d'endettement des entreprises non financières

2021· article· en· W6890365917 on OpenAlexaboutno aff

Bibliographic record

VenueBank of Canada Research · 2021
Typearticle
Languageen
FieldComputer Science
TopicParallel Computing and Optimization Techniques
Canadian institutionsnot available
Fundersnot available
KeywordsCost of equityCost of capitalDebtRate of returnInterest rateInvestment (military)CreditorEquity (law)Weighted average cost of capital

Abstract

fetched live from OpenAlex

The main aim of this paper is to calculate the cost of financing for Canadian non-financial businesses and to develop a model to explain financing cost trends on the basis of selected macroeconomic variables. The model described herein is a system based on four equations: one for the real after-tax cost of financing; one for the real rate of return required by creditors and another for the real rate of return required by shareholders (these two rates are linked to, among other things, the firms' debt ratio); and, lastly, an equation for the optimal debt ratio, which is derived from conditions of cost minimization. We also show that, for certain parameter values, our model conforms to the Modigliani-Miller propositions (1958), according to which the cost of financing is independent of the debt ratio, which therefore does not affect firms' investment decisions. Our work is based on two empirical observations. The first is that the cost of financing is relatively stable with respect to real interest rates. In our model, interest-rate movements directly influence the cost of debt, although the link between real interest rates and the rate of return on (or cost of) equity is quite weak. Since equity represents, on average, 60 per cent of total financing, the reasons why the cost of financing varies much less than interest rates are obvious. The second interesting observation is that the cost of financing and the debt ratio of firms appear to be positively linked to the rate of inflation. In our model, these two variables are affected by inflation because of the asymmetric nature of the tax system. Given current tax parameters, our results indicate that a 1-percentage-point drop in the expected inflation rate reduces the cost of financing by 8 basis points and the debt ratio by 1.2 percentage points. However, these results are contingent upon one of our working assumptions—that investors in Canadian businesses are individuals residing in Canada.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.872
Threshold uncertainty score0.981

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.001
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0010.001
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.042
GPT teacher head0.292
Teacher spread0.250 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designNot applicable
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2021
Admission routes1
Has abstractyes

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