Project-specific financing and interest rate risk in capital budgeting

Engineering Economist

Volumn 48, Issue 2, 2003, Pages 169-182

  Barney Jr , L Dwayne ^a   White, Harry ^a  

^a BOISE STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL BUDGETING; CAPITAL PROJECTS; FINANCING DECISIONS; FORMAL DERIVATION; INTEREST RATE RISK; NET PRESENT VALUE; OPERATING CASH; RESIDUAL METHOD;

BUDGET CONTROL;

INVESTMENTS;

EID: 23344447475     PISSN: 0013791X     EISSN: 15472701     Source Type: Journal    
DOI: 10.1080/00137910308965058     Document Type: Article

References (19)

1. BARNEY Jr., L.D., "The Relation Between Capital Structure, Interest Rate Sensitivity, and Market Value in the Property-Liability Insurance Industry: Comment," Journal of Risk and Insurance, Vol. 64, No. 4, 1997, pp. 733-738.
2. BIERMAN, H. Jr., and S. SMIDT, The Capital Budgeting Decision, Seventh Edition, Macmillan: New York, NY. 1988, pp. 108.
3. BIERWAG, G.O. and G.C. KAUFMAN, "Duration Gap for Financial Institutions," Financial Analysts Journal, Vol. 41, No. 2, March/April 1985, pp. 68-71.
4. BLOCHER, E. and C. STICKNEY, "Duration and Risk Assessments in Capital Budgeting," The Accounting Review, Vol. 14, No. 1, January 1979, pp. 180-188.
5. BOARDMAN, CM., W.J. REINHART and S.E. CELEC, "The Role of the Payback Period in the Theory and Application of Duration in Capital Budgeting," Journal of Business Finance & Accounting, Vol. 9, No. 4, Spring 1982, pp. 511-522.
6. BROWN, R.J. and M.S. KULKARNI, "Duration and the Risk Adjustment of Discount Rates for Capital Budgeting," The Engineering Economist, Vol. 3&, No. 4, Summer 1993, pp. 299 -307.
7. CHAMBERS, D.R., R.S. HARRIS and J.J. PRINGLE, 'Treatment of Financing Mix in Analyzing Investment Opportunities," Financial Management, Vol. 11, No. 2, Summer 1982, pp. 24-41.
8. CORNELL, B., "Risk, Duration, and Capital Budgeting: New Evidence on Some Old Questions," The Journal of Business, Vol. 72, No. 2, April 1999, pp. 183-200.
9. DURAND, D., "Payout Period, Time Spread and Duration: Aids to Judgment in Capital Budgeting," Journal of Bank Research, Vol. 4, Spring 1974, pp. 20-34.
10. FINCH, J. H. and T. H. PAYNE, "Discount Rate Choice and the Application of Duration for Capital Budgeting Decisions," The Engineering Economist, Vol. 41, No. 4, Summer 1996, pp. 369 - 375.
11. GROVE, M.A., "On 'Duration' and the Optimal Maturity Structure of the Balance Sheet," The Bell Journal of Economics and Management Science, Vol. 5, No. 2, Autumn 1974, pp. 696-709.
12. HAWLEY, D. and R.P. MALONE, "The Relative Performance of Duration in the Capital Budgeting Selection Process," The Engineering Economist, Vol. 35, No. 1, Fall 1989, pp. 67-74.
13. MACAULAY, F.R., Some Theoretical Problems Suggested by the Movements of Interest Rates, Bond Yields, and Stock Prices in the United States since 1856, New York, NY, Columbia University Press, 1938.
14. MODIGLIANI, F. and M.H. MILLER, "Corporate Income Taxes and the Cost of Capital: A Correction," American Economic Review, Vol. 53, No. 3, June 1963, pp. 433-443.
15. ROSE, P.S., Commercial Bank Management, Fourth Edition, Irwin/McGraw-Hill, Boston, MA, 1999, pp. 233 - 246.
16. SAMUELSON, P.A., "The Effect of Interest Rate Increases on the Banking System," The American Economic Review, Vol. 35, No. 1, March 1945, pp. 16-27.
17. SEITZ, N. and M. ELLISON, Capital Budgeting and Long-Term Financing Decisions, Third Edition, Harcourt Brace College Publishers, Fort Worth, Texas, 1999, pp. 676 - 679.
18. SHARPE, W.F., "Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk," Journal of Finance, Vol. 19, No. 3, 1964, pp. 425-442.
19. STAKING, K. and D. BABBEL, "The Relation Between Capital Structure, Interest Rate Sensitivity, and Market Value in the Property-Liability Insurance Industry," Journal of Risk and Insurance, Vol. 62, No. 4, 1995, pp. 690-718.