Call for exclusive book chapters: “Raising finance: From traditional to new forms of entrepreneurial finance”

Description

Call for exclusive book chapters:
“Raising finance: From traditional to new forms of entrepreneurial finance”

to be
published by World Scientific Publishing, August/July 2023

Editors
Douglas Cumming, Florida Atlantic University, College of Business, United States.
Hafiz Hoque, Swansea University, School of Management, United Kingdom.
Eilnaz Kahsefi Pour, Birmingham University, Birmingham Business School, United Kingdom.

Book description

The financial market has undergone many changes in the recent times and those changes have a profound impact on the ways companies raise money. This book covers both traditional and new forms of raising finance. The traditional way to raise finance is equity and debt capital. The equity capital is used when the company wants to expand its activities. Initial equity funding could come from several sources: angel investors, venture capital, private equity, and equity crowdfunding. Finally, the firms might want to conduct an initial public offering. Debt capital is another popular source of finance where firms can raise the debt in the bond market or take a bank loan.
As a recent development, FinTech refers to technologically enabled financial services innovation that may result in new business models, apps, procedures, or products with a meaningful impact on the supply of financial services. Technological innovation offers considerable promise for the supply of financial services, with the opportunity to expand market access, product options, and convenience while decreasing costs for raising money. At the same time, new entries into the financial services industry, such as FinTech startups and big, established technology organisations (‘BigTech,’) have the potential to significantly change the way how companies raise finance. Greater competition and diversity in lending, payments, insurance, trading, and investment banking can create more efficient and resilient ways to raise money.
It is well documented that smaller and riskier businesses struggle to obtain finance at reasonable terms in comparison to their larger and more stable counterparts, but the situation is expected to improve significantly with traditional and investment banks' adoption of machine learning (ML) methodologies and Big Data availability. Expectations for positive change are high, but many questions remain unanswered, such as what the expected impact on risk premia will be, which borrowers will be targeted by lenders using ML and Big Data approaches, would this lower the cost of raising money, and will risk in the banking industry increase?
Financial channels, methods, and instruments that have evolved outside the traditional finance system, such as regulated banks and capital markets, are referred to as alternative finance. Reward-based crowdfunding, equity crowdfunding, revenue-based financing, online lenders, peer-to-peer consumer, and commercial lending are some examples of alternative financing activities. As a result of alternative financing methods, alternative financial products emerges such SME mini-bonds, social impact bonds, and community shares. Alternative financing differs from traditional banking or capital market funding in that it uses technology-enabled “disintermediation,” which implies linking fundraisers directly with funders, decreasing transactional costs and improving market efficiency.
Additionally, sustainability concerns have transformed the way we raise finance. For instance, Sustainable finance is the process of taking environmental, social, and governance (ESG) factors into account when making financial investment decisions, resulting in longer-term investments in sustainable economic activities and projects. Green bonds were established to support initiatives that have a positive impact on the environment and/or the climate. Green “use of proceeds” or asset-linked bonds account for the vast majority of green bonds issued. Green “use of profits” revenue bonds, green project bonds, and green securitised bonds have also been issued.
Moreover, regulatory changes are proposed in the light of recent developments in the market affecting financial stability and fundraising. For example, the Kalifa Review of UK Fintech suggests improving the listing environment through free float reduction, dual-class shares, and relaxation of pre-emption rights, which could pave the way to raising finance through IPOs. This book is intended to include traditional approaches for raising finance as well as the impact of recent development in fintech, bigtech, machine learnings, and big data on following financing methods.

The book includes the following topics, but is not limited to:

• Traditional Finance: Capital Structure, debt maturity, debt choice, debt covenants, angel investors, private equity and venture capital, IPOs, SEOs, M&A, buybacks, SPACs etc.
• Digital finance: Reward-based crowdfunding, equity crowdfunding, revenue-based financing, online lenders, peer-to-peer consumer and commercial lending, ICOs, cryptocurrencies, etc.
• Green finance: Green bonds, Green use of profits revenue bonds, green project bonds, green securitised bonds, SME mini-bonds, social impact bonds, community shares, etc.
• Islamic finance: Islamic banking, Profit and Loss Sharing Contracts, Declining Balance Shared Equity, Lease to Own, Leasing (Ijarah), Sukuk.
• Financial Markets and Institutions: Traditional and modern practices of financial institutions; risk-taking and management of risks.

Submissions
The editors welcome conceptual papers as well as empirical research, including surveys, case and policy studies. Prospective contributors are invited to submit, before September 30, 2022, a 1-2 page chapter proposal (including a title, an abstract, and a tentative outline), clearly explaining the purpose, scope, and contents of their proposed chapters (The submission of full chapters at this stage is highly encouraged).

All submitted chapters will go through a quick blind review process. Each contributor will receive a free copy of the edited book. Please indicate the topic of your chapter.

Time frame
Deadline for proposal submission: September 30, 2022 (The submission of full chapters at this stage is highly encouraged)
Notification of the selection: 2 weeks following submission
Submission of full chapters: February 28, 2023
Revised chapters due: May 31, 2023
Book publication: August/September 2023

Contact
For inquiries about this call for chapters, please email to any of the following editors:
Dr. Hafiz Hoque (h.hoque@swansea.ac.uk)
Dr. Eilnaz Kahsefi Pour (e.kashefipour@bham.ac.uk)

Please put “Book Chapter: Raising finance: From traditional to new forms of entrepreneurial finance” in the subject line.