A model for determining the optimal financing tools for companies using the mechanism of matching the conditions of supply and demand sides

Subject Areas : Financial engineering

Seyed Mahdi Nemati Kheirabadi ¹ , Seyed Abdolhamid Sabet ² , seyed saeed malek sadati ³ , Masoud Salehi Rezveh ⁴

1 - Department of Economics, Faculty of Humanities, Adalat University, Tehran, Iran
2 - Department of Economics, Faculty of Humanities, Adalat University, Tehran, Iran
3 - Department of Economics, Faculty of Administrative and Economic Sciences, Ferdowsi University of Mashhad, Mashhad, Iran
4 - Department of Economics, Mofid University, Qom, Iran

Received: 2021-11-16 Accepted : 2022-01-20 Published : 2022-12-22

Keywords: ANP method, Delphi Technique, DEMATEL Technique, Corporate Life Cycle, AHP method, Matching, Corporate Finance, Financing Tools,

Abstract :

Corporate financing has always been one of the main concerns of managers and in this area, choosing the optimal financing tool is vital. This study has determined the optimal financing tools for companies by emphasizing the matching of supply and demand side conditions in different stages of the company's life cycle using Delphi and DEMATEL techniques plus ANP and AHP processes. The results show that there are a total of 28 tools for financing companies and 6 indicators for selecting the appropriate financing tools. Also based on matching: "expected return (justifiability)", "risk level" and "time horizon" are given priority, respectively. In addition, among the various financing instruments, in the "start-up" phase, business angels, crowdfunding, and direct government assistance take precedence. In the "early stage" stage, after the tools of the previous stage, venture capital and short-term banking resources take precedence. In the "development" phase, after the tools of the previous stages, short-term banking facilities, asset-based financing, hybrid instruments (excluding mezzanine) and the stock market of start-ups are preferred. Finally, in the "stabilization" stage, after the tools of the previous stages, long-term banking facilities, mezzanine, bond-based methods and initial public offering of shares take precedence.