Moody's, however, said 'dependence on
external finance poses a vulnerability for some countries,' especially since the Brexit is expected to result in volatile markets globally.
In a statement, Fitch said that the rating came from a combination of Morocco's macro-stability, neutral public and
external finance indicators relative to 'BBB-' rated peers, and weak structural indicators.
how the rate of use of
external finance sources affects the return on equity.
Keywords: profitability retained earnings
external finance stock market discipline shareholder wealth growth rate
Of the businesses surveyed, a third used
external finance, while 30% of respondents said they had injected their own funds into their business over the past year.
Fewer firms reported increased costs of new borrowing, although the study also revealed that demand for
external finance is set to increase.
THE use of
external finance by small firms has fallen to its lowest level since the start of 2010 according to a major quarterly report.
Previous studies of capital structure in SMEs have presupposed these firms largely act to maximise their financial wealth, which means they seek to grow and need
external finance to do so," says Bell.
The purpose of this study is to assess the ability of firms to raise
external finance through equity, when the firms have different characteristics, have adopted different levels of corporate governance, and are doing business in a weak legal environment.
DISCUSSION OF WHETHER THERE IS sufficient
external finance for small firms dates back at least to the 1931 Macmillan Report.
Fewer small and medium-sized enterprises (SMEs) in the UK are planning to apply for
external finance, and those that will are less confident of success, a new survey showed today.
