Systems Engineering - Theory & Practice · 2007 · 20 citations · 0 references
BusinessEconomicsFinanceInventory ControlInventory ManagementFinancing DecisionsInventory FinancingInventory TheoryLoan-to-value RatiosInventory FinanceInventory Financing CostInventory-based LendingLoan-to-value Ratio AnalysisLoan-to-value Ratio DynamicsLoan-to-value Ratio MeasurementLoan-to-value Ratio Risk
Given the price of the pledged stock is fluctuant randomly,the paper implements risk estimation strategies of main body+ debt and analyzes loantovalue ratio decision of banks with downside risk constraint when price distribution of the stock at the end of the loan follows general distribution and several special distributions.Based on these theory results,the case about inventory financing developed by banks and cooperating logistic firms is analyzed.The study shows: if price distribution of the stock at the end of the loan may be acquired,analytic result of loan-to-value ratio in static pledge fashion can be solved.