2026-09-22T21:47:24Z https://www.ideals.illinois.edu/oai-pmh

oai:www.ideals.illinois.edu:2142/82989 2023-07-11 col_2142_5131 col_2142_13851 com_2142_5130 com_2142_684 com_2142_397

Barry, Peter J. Zhao, Jianmei 2015-09-25T20:55:43Z 2015-09-25T20:55:43Z 10000-01-01 2007 2007 The analytical framework is extended to a Monte-Carlo simulation after the econometric examination of the applicability of capital structure theories to farm businesses. Farm business performance under different combinations of financial strategy scenarios is simulated for a 10 year period to determine the benefits for both farmers and lenders in the agricultural credit relationships. Based on the forecasted net equity, credit score and the default rate, the simulation results demonstrate that farm businesses can expand at a faster speed with a relatively high financial safety when they jointly employ the pecking order financing in the short-run, and trade-off their capital structure in the long-run. Concurrently, low credit risk farm businesses which send credible signals to lenders could benefit from lower interest rates, further strengthening their financial performance. The simulation results document that responding to borrowers' signals and adopting risk-adjusted interest rates is a dominant lending policy for lending institutions to improve the management of their loan portfolio. Made available in DSpace on 2015-09-25T20:55:43Z (GMT). No. of bitstreams: 2 license.txt: 4848 bytes, checksum: 96035ab3f5e1c23cc7138a224ce498bd (MD5) 3270068.pdf: 3688155 bytes, checksum: 93c8509001e529719e470bfe60abc63a (MD5) Previous issue date: 2007 Embargo set by: Seth Robbins for item 84270 Lift date: Forever Reason: Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs U of I Only 159 p. Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2007. http://hdl.handle.net/2142/82989 (MiAaPQ)AAI3270068 eng Economics, Agricultural Farm Financing Strategy and the Lending Policy From Financial Institutions text Agricultural and Consumer Economics Agricultural and Consumer Economics University of Illinois at Urbana-Champaign Dissertation Ph.D.