Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2013.3290.3294XianiYang 1220131316Based on the external financing analysis framework under asymmetric
information, this study introduces a chance of reinvestment which could increase
the probability of success. And then we analyze its influence on the firms
liquidity and risk management through variable-investment model. Both of the
theory and numerical calculations show that this kind of profitable growth opportunity
could significantly improve the firms
ability against liquidity risk.]]>Baker, D.A.,197951318Guo, L.H. and D.H. Jin,20073123132Holmstrom, B. and J. Tirole,200032295319Liu, R.J.,1998167Moulton, H.G.,191826484508Prochnow, H.V.,1949Pages: 444Pages: 444Shi, Q. and F.P. Meng,200821109109Smith, A.,1976