{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/82989"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/82989","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"Farm Financing Strategy and the Lending Policy From Financial Institutions","abstract":"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.","abstract_html":"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.","abstract_has_math":false,"creators":["Zhao, Jianmei"],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Agricultural and Consumer Economics","degree_department":null,"school":null,"contributors":["Barry, Peter J."],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2015,"date_issued":"2015-09-25T20:55:43Z","date_published":"2015-09-25T20:55:43Z","updated_at":"2026-07-22T22:26:20Z","subjects":["Economics, Agricultural"],"languages":["eng"],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["(MiAaPQ)AAI3270068"],"render_values":[{"text":"(MiAaPQ)AAI3270068","href":null,"code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/2142/82989","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Barry, Peter J."]},{"key":"dc:creator","label":"Author","values":["Zhao, Jianmei"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2015-09-25T20:55:43Z","10000-01-01","2007"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Agricultural and Consumer Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Economics, Agricultural"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["eng"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/2142/82989","(MiAaPQ)AAI3270068"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["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). 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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."],"dc:identifier":["http://hdl.handle.net/2142/82989","(MiAaPQ)AAI3270068"],"dc:language":["eng"],"dc:subject":["Economics, Agricultural"],"dc:title":["Farm Financing Strategy and the Lending Policy From Financial Institutions"],"dc:type":["text"],"thesis:degree_discipline":["Agricultural and Consumer Economics"],"thesis:degree_level":["Dissertation"],"thesis:degree_name":["Ph.D."],"thesis:institution_name":["University of Illinois at Urbana-Champaign"]},"updated_at":"2026-07-22T22:26:20Z"}