Abstract:
The firms mobilizing resources using innovative debt from market reduce dependence on the traditional
banking and financial institutions. The firms raising resources by directly approaching
public have some incentive to do so, i.e., innovative firms will be able to better plan commitments
of future cash outflow and inflow, increase the borrowing capacity, save taxes, etc. to create higher
value to the shareholders. In this paper we have made an attempt to test whether such innovative
firms’ performance is higher than other firms. We also tried to understand if more variety of instruments
helped create better value of share in the market for such firms.
