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Mezzanine Debt: Benefits Or Drawbacks For Firm’S Financing?

Author

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  • Assoc. Prof. Ph.D Giurca Vasilescu Laura

    (University of Craiova Faculty of Economy and Business Administration, Craiova, Romania)

Abstract

Mezzanine finance is an alternative source of finance to debt and equity and it can be helpful in financing the start-up and firms’ expansion. But in order to take their investment decisions, the firms should compare the benefits and challenges generated by this form of financing in function of their development stage or the specific features of their activities. Despite the fact that mezzanine finance instruments are gaining in importance, and the advantages overtake the disadvantages, they still remain little used compared with traditional forms of financing (loan financing).

Suggested Citation

  • Assoc. Prof. Ph.D Giurca Vasilescu Laura, 2009. "Mezzanine Debt: Benefits Or Drawbacks For Firm’S Financing?," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(12), pages 14-21, April.
  • Handle: RePEc:aio:rteyej:v:1:y:2009:i:12:p:14-21
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    File URL: http://feaa.ucv.ro/RTE/012-02.pdf
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    References listed on IDEAS

    as
    1. Meghana Ayyagari & Asli Demirgüç-Kunt & Vojislav Maksimovic, 2008. "How Important Are Financing Constraints? The Role of Finance in the Business Environment," World Bank Economic Review, World Bank Group, vol. 22(3), pages 483-516, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    mezzanine debt; financing; firm; benefits; disadvantages;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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