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We study the impact of the refinancing channel of monetary policy on very small and medium-sized businesses. Using data covering the near universe of these businesses, we find that increased household refinancing reduces the probability that a business exits or exhausts its debt capacity in the calendar year, as well as 6 years after the first exposure. It also helps younger businesses maintain credit relationships. Financial factors, like business liquidity, as well as local demand dependence, amplify these effects, especially for very small businesses. These results suggest that the refinancing channel of monetary policy can have large long-run effects on local economies. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

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We use household‐level data to analyze how the introduction of interest‐only (IO) mortgages in Denmark affected consumption expenditure and borrowing. Using an ex ante measure of exposure to the IO mortgage reform motivated by mortgage‐payment and leverage constraints, we show households more likely to use an IO mortgage to relax their mortgage‐payment constraint increased consumption following the reform. This increase in consumption is financed by borrowing at the time of refinancing and by borrowers with lower prereform leverage and higher needs for liquidity. We find even larger postreform consumption growth for the leverage‐constrained homeowners through house‐price growth stimulated by the reform. [ABSTRACT FROM AUTHOR]

We compare different models on estimating the probability of default over a time horizon, considering censored data. Models were fitted from a survival analysis perspective, considering both classic models (Cox Proportional Hazard) with penalized variations and ensemble machine learning methods (boosting and bagging). Using a dataset of credit card refinancing operations, we assess accuracy performance in both out-of-sample and out-of-time observations. We assess well-established metrics, such as the concordance index, and measures that indicate calibration power (integrated Brier score and time-dependent dynamic AUC). Results show that a boosting approach with component-wise regression as base learner outperform other models for short term operations (36 months), in contrast to longer term transactions (60 months), where Cox Proportional Hazard (with and without penalization) depicted better results. [ABSTRACT FROM AUTHOR]

Refinancing is an activity that can generate profits for the recipient. Carrying out refinancing can be a challenge for a company so it will make efforts well and optimally so that the refinancing is successful. This research uses a case study method by collecting data through interviews and documentation studies related to refinancing by PT Celebes Railway Indonesia (CRI). The aim of this research is to describe the refinancing carried out by PT CRI with the "Makassar-Parepare Railway" project which uses the Availability Payment (AP) scheme. PT Celebes Railway Indonesia has carried out refinancing after the completion of the construction period, the operations and maintenance processes have also been carried out and the first Availability Payment has been absorbed in December 2022. Refinancing is carried out based on stages developed by PT CRI itself so that profits are obtained for the Company. PT CRI is the pioneer of the first refinancing of railway infrastructure in Indonesia. It is hoped that the success of the refinancing carried out by PT CRI can be used as a benchmark and can be used as a guide for future researchers in carrying out refinancing. [ABSTRACT FROM AUTHOR]

The aim of the article is to study the features of the use of anti-crisis monetary instruments to support liquidity at the macro level and ensure financial stability in Ukraine in the context of the ongoing full-scale military invasion of the russian federation. The NBU is facing new challenges and tasks related to maintaining the functional capacity of banks, prudent actions aimed at supporting liquidity and financial stability of the banking system. It has already been proved that both a shortage and a surplus of liquidity can be the starting point of a shock explosion in the economy. A comparative-dynamic analysis of the main monetary indicators of the money sphere has been carried out, which has shown their dynamism, controllability, and relative stability. It is noted that in the context of the «unattainable triad», or the Mundell-Fleming trilemma, an independent monetary policy was introduced with respect to the currency, but under the influence of non-monetary factors influencing the monetary sphere, there is a twisting of the spiral of liquidity and the formation of its surplus. Transactions with government bonds and certificates of deposit, which, unlike government bonds, are not a socially useful transaction, do not always achieve the goals of ensuring financial stability and liquidity management under martial law. Monetary transmission in the government securities market does not have a positive effect due to the mandatory military spending of the government of Ukraine. For banks, these operations are a source of profitable liquidity. Due to the non-working transmission mechanism, the inconsistency of the actions of the government and the central bank, in particular, the dynamics of the interest rate does not have a stabilizing effect on the economy.

Three financial institutions granted separate loans to refinance unpaid debt owed by almost the same insolvent debtor. The new financing was guaranteed by the Spanish state, drawing to a line of credit exceptionally open in times of Covid-19. The financial lenders had old debts paid off with the new money. Upon subsequent insolvency proceedings of the debtor, a Companies Court has held that the payments made with the money from the new finance must be void, because the money received by the debtor and guaranteed by the state would have to have been distributed pari passu among the rest of the argues why this is so. [ABSTRACT FROM AUTHOR]

With the invasion of russian troops on the territory of Ukraine, the NBU faced the task of preventing the depreciation of the national currency, avoiding panic, and ensuring the stability of the banking system. This was achieved, in particular, due to anti-crisis monetary measures. The regulator was promptly making the necessary decisions, the review of which and the assessment of their effectiveness in the paradigm of the economy of war this study is devoted to. The set of tools of anti-crisis monetary management, prerequisites, factors and features of their application in the conditions of a full-scale military invasion are reviewed. A comparative-dynamic analysis of the main monetary indicators was conducted, which showed their manageability and relative stability. It’s proved that the main inflationary trend in Ukraine is characterized by uncertainty, formed under the influence of non-monetary factors of a subjective nature, which are outside the influence of monetary policy. These and other non-market factors provoked a reduction in international reserves and instability in the foreign exchange market. NBU reacted by introducing pre-emptive currency restrictions. It was determined that in order to avoid panic in the foreign exchange market, the NBU made such important and prompt decisions as fixing the exchange rate, introducing the necessary restrictions on the purchase of foreign currency and cross-border currency transactions, restricting withdrawal of funds from foreign currency accounts, providing the possibility of exchanging cash hryvnias abroad. To avoid uncontrolled devaluation and capital outflow, the NBU supported the foreign exchange market with interventions. Anti-crisis measures aimed at maintaining the liquidity of the banking system were analysed, including operations with certificates of deposit and government bonds, which in the conditions of martial law don't always achieve the goals of ensuring financial stability. These and other measures helped the regulator maintain the banking system's overall stability and uninterrupted operation.

This paper assumes that an insurer can control the dividend, reinsurance and refinancing strategies dynamically, and needs to bear proportional and fixed transaction costs. Different from previous literature, we assume that the insurer can buy reinsurance from two groups of reinsurers, i.e. the first group consists of m reinsurers and the second group consists of n reinsurers. The two groups of reinsurers have different risk attitudes and use the variance premium principle and the exponential premium principle in pricing, respectively. By using the optimal control methods, we obtain the optimal joint strategies for maximizing the insurance company's value. The results prove that dividends should be paid according to the impulse strategy; refinancing should be considered if and only if the transaction costs are not too high and the surplus is null; the insurer should diversify risks to all reinsurers in the market simultaneously when the surplus is not too large. The proportion of risk ceded to each reinsurer depends on its quoted price. Finally, numerical examples and economic interpretations are provided to make illustrations. [ABSTRACT FROM AUTHOR]

The lack of comprehensive response to a recent wave of non-pro rata refinancing transactions poses theoretical as well as practical puzzles. Most market participants seem to think that workout negotiations at least presumptively ought to treat creditors in a bond or a loan facility equally. Yet more than two years after it became clear that debtors would consider non-pro rata deals, and despite evidence that clever advisors might be able to circumvent contractual changes addressed to a specific non-pro rata transactional form, no effort to ensure equal treatment generally has taken hold. Why not? This essay offers an optimistic account of the status quo. A common, fatalistic attitude supposes that participants in the leveraged debt markets lack the institutional tools to course correct. Ironically, though, the persistence of non-pro rata dealmaking may be a function of there being too many, rather than too few, efficacious answers. Contract drafters, distressed asset managers, and judges each have the means to put a stop to wealth-destroying non-pro rata transactions. The problem is that it is hard to know a priori whether the most targeted responses will prove feasible. Because time will tell, the value-maximizing strategy for actors with relatively blunt tools may be to wait and see. Temporary inaction might thus reflect prudent epistemic modesty rather than institutional paralysis. A prediction follows: courts or contract drafters will soon rule out non-pro rata deals generally if asset managers do not figure out how to sort net-valuable from net-costly transactions on a case-by-case basis. [ABSTRACT FROM AUTHOR]

With the invasion of russian troops on the territory of Ukraine, the NBU faced the task of preventing the depreciation of the national currency, avoiding panic, and ensuring the stability of the banking system. This was achieved, in particular, due to anti-crisis monetary measures. The regulator was promptly making the necessary decisions, the review of which and the assessment of their effectiveness in the paradigm of the economy of war this study is devoted to. The set of tools of anti-crisis monetary management, prerequisites, factors and features of their application in the conditions of a fullscale military invasion are reviewed. A comparative-dynamic analysis of the main monetary indicators was conducted, which showed their manageability and relative stability. It’s proved that the main inflationary trend in Ukraine is characterized by uncertainty, formed under the influence of non-monetary factors of a subjective nature, which are outside the influence of monetary policy. These and other non-market factors provoked a reduction in international reserves and instability in the foreign exchange market. NBU reacted by introducing pre-emptive currency restrictions. It was determined that in order to avoid panic in the foreign exchange market, the NBU made such important and prompt decisions as fixing the exchange rate, introducing the necessary restrictions on the purchase of foreign currency and cross-border currency transactions, restricting withdrawal of funds from foreign currency accounts, providing the possibility of exchanging cash hryvnias abroad. To avoid uncontrolled devaluation and capital outflow, the NBU supported the foreign exchange market with interventions. Anti-crisis measures aimed at maintaining the liquidity of the banking system were analysed, including operations with certificates of deposit and government bonds, which in the conditions of martial law don't always achieve the goals of ensuring financial stability. These and other measures helped the regulator maintain the banking system's overall stability and uninterrupted operation. [ABSTRACT FROM AUTHOR]

The concept of self-reliance in India has gained momentum after the 2019 pandemic, although it has been part of our ancient ethos. The Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015 to provide credit support to the non-corporate, non-farm sector of the economy, especially to the micro-segment, offering credit assistance of up to Rs 10,00,000. This paper examines the role of MUDRA (Micro Units Development and Refinance Agency) in promoting self-reliance in India. The (MUDRA) Yojana was launched to provide refinance support to financial institutions engaged in providing credit support to Micro and Small Enterprises (MSE). Its broader objective was to foster entrepreneurship development, generate employment opportunities, reduce regional imbalances, promote inclusive growth, and contribute to the vision of Atma Nirbhar Bharat. This paper aims to assess various features of the MUDRA Yojana, its impact on the MSE sector, and its contribution to achieving self-reliance. The research examines pertinent literature and statistical information to evaluate MUDRA Yojana's role in empowering businesses and fostering economic independence. [ABSTRACT FROM AUTHOR]

The article studies the relationship between regulatory interest and market interest rates in Vietnam from 2015 2022. This relationship has been mentioned in many theories and empirical studies in different countries and in different periods. In order to explain it, the research team collected data on the refinancing rate which represents the regulatory interest rates and lending rates representing the market interest rates from 2005 to 2022. The data is collected quarterly and analyzed using Eviews8 software to build a linear regression model showing the relationship between regulatory interest rates and market interest rates during the research period. In this article, the research team divides the research period into three phases: 2005Q1 2011Q4, 2012Q1 2016Q4, 2017Q1 2022Q4. The results of the linear regression model show that for the period 2005Q1 2011Q4, when the regulatory interest rate increases by 1%, the market interest rate increases by 1%, the market interest rate increases by 0.7326%; for the period 2012Q1 2016Q4, when the regulatory interest rate increases by 1%, the market interest rate increases by 0.5943%; for the period 2017Q1-2022Q4, when the regulatory interest rate increases by 1%, the market interest rate increases by 0.2269%. This shows a positive relationship of regulatory interest rate and market interest rate. In addition, for the period 2012Q1-2016Q4, the research team added trend variables and for the period 2017Q1-2022Q4 the research team added trend variables and dummy variables to the regression model. It also proves that the market interest rate in the research period is governed by the trend and volatility of the economy. From the research results, the research team made several exchanges and discussions to improve the effectiveness of the interest rate management policy in order to achieve the goal of stabilizing the macro economy and supporting economic growth. [ABSTRACT FROM AUTHOR]

"Zombie lending" remains a widespread practice by banks around the world. In this paper, we exploit a series of large-scale on-site inspections made on the credit portfolios of several Portuguese banks to investigate how these inspections affect banks' future lending decisions. We find that an inspected bank becomes 20% less likely to refinance zombie firms, immediately spurring their default. Overall, banks seemingly reduce zombie lending because the incentives to hold these loans disappear once they are forced to recognize losses. This paper was accepted by Tomasz Piskorski, finance. Funding: D. Bonfim and G. Cerqueiro acknowledge financial support from Fundação para a Ciência e a Tecnologia [Grants PTDC/EGE-OGE/30314/2017 and UID/GES/00407/2013]. H. Degryse acknowledges financial support from Fonds Wetenschappelijk Onderzoek. S. Ongena acknowledges financial support from the Horizon 2020 European Research Council [Grant ERC ADG 2016 - GA 740272 lending]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4452. [ABSTRACT FROM AUTHOR]

Abstract In this paper, we explore how refinancing influences subsequent housing outcomes for financially vulnerable homeowners, including overcrowding, homeownership sustainability, and residential mobility. Drawing on a unique dataset of refinance applicants to the Startlån mortgage programme in Norway, we model these housing outcomes as a function of being approved for mortgage refinancing and a wide range of demographic, socioeconomic, and housing characteristics matched from various public registries, as well as local housing market characteristics. We test, and where appropriate, control for endogeneity in the refinance mortgage approval decision using endogenous treatment modelling. We find a strong positive effect of refinancing: approved mortgage applicants have a 13 percentage points higher probability of sustaining homeownership compared to declined applicants. Refinancing also decreases the number of post-application moves by about a third, and increases the amount of living space available. Our results demonstrate the benefits of access to prime rate refinancing as a tool to stabilise housing careers for lower-income homeowners. [ABSTRACT FROM AUTHOR]

This article introduces measures of credit risk for all outstanding mortgages in the United States between 1999 and 2019. Terminations play a fundamental role in offsetting risk introduced by new originations because of refinance activity and the often dual nature of home buyers as concurrent sellers. To illustrate these concepts in a policy setting, I show that the Home Affordable Refinance Program increased origination risk metrics but reduced overall risk due to associated terminations of even riskier loans. In addition to these flow dynamics, amortization, loan age, collateral appreciation, and prior selection drive changes to portfolio‐level risk. [ABSTRACT FROM AUTHOR]

We examine the ability of the government to impact mortgage refinancing activity and spur consumption by focusing on the Home Affordable Refinance Program (HARP) that relaxed housing equity constraints by extending government credit guarantee on insufficiently collateralized refinanced mortgages. Difference-in-difference tests based on program eligibility criteria reveal a significant increase in refinancing activity by HARP. More than three million eligible borrowers with primarily fixed-rate mortgages refinanced under HARP, receiving an average reduction of 1.45 |$\%$| in interest rate ($3,000 in annual savings). Durable spending by borrowers increased significantly after refinancing. Regions more exposed to the program saw a relative increase in non-durable and durable consumer spending, a decline in foreclosure rates, and faster recovery in house prices. Competitive frictions in the refinancing market hampered the program's impact: the take-up rate and annual savings among those who refinanced were reduced by 10–20 |$\%$|⁠ , with amplified effects for the most indebted borrowers. [ABSTRACT FROM AUTHOR]

The purpose of the article is to study the problems associated with the possible unfolding of the banking crisis in the USA and European countries, the content of state regulatory measures aimed at ensuring the financial stability of Ukrainian banks, which will be implemented consecutively from February 2022, the justification of additional, most urgent measures aimed at overcoming existing problems in the country's banking system. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. In the course of the research, it was concluded that the bankruptcy of some leading foreign banks should not have a significant negative impact on the banking sector of the Ukrainian economy. The article also discloses the content of state regulatory measures aimed at ensuring the financial stability of Ukrainian banks, which include the implementation of full (regardless of the amount and currency) state guarantee of bank deposits of individuals, providing banks with the required amount of refinancing, a radical increase in the discount rate, active accumulation of international reserves, withdrawal of problem banks from the market, activation of the use of norms of mandatory reservation of funds raised by banks, reduction of the rate on overnight deposit certificates, activation of the work of the Financial Stability Council. The positive consequences of the implementation of a set of measures to support the banking system of Ukraine were determined, in particular: a decrease in inflation rates, strengthening of the hryvnia exchange rate, preservation of profitability of the banking system, gradual restoration of bank capitalization. Problems that require the adoption of additional regulatory measures by the state are highlighted, namely the increase in the share of problem loans and the actual suspension of credit activities of banks. A number of measures are proposed within the framework of improving the current monetary policy of Ukraine: development of the mechanism of "emergency" refinancing of banks in case of rapid spread of crisis phenomena; unconditional adherence to the policy of "expensive money"; limitation of emission and money supply growth rates; restoration of the practice of compulsory sale of a part of the foreign currency earnings of exporters; ensuring further "fine-tuning" of the current method of mandatory reservation of the funds involved; settlement of the "new" NPL management procedure; creation of a specialized state institution for the management of problem assets to accept NPL portfolios of state banks on the balance sheet. The results of the research can be used at the level of the National Bank and the government in the process of forming urgent measures in the field of monetary policy implementation. [ABSTRACT FROM AUTHOR]

This paper examines debt maturity management through early refinancing, where firms retire their outstanding bonds before the due date and simultaneously issue new ones as replacements. Speculative-grade firms frequently refinance their corporate bonds early to extend maturity, particularly under accommodating credit supply conditions, leading to a procyclical maturity structure. In contrast, investment-grade firms do not manage their maturity in the same manner. I exploit the protection period of callable bonds to show that the maturity extension is not driven by unobservable confounding factors. The evidence is consistent with speculative-grade firms dynamically managing maturity to mitigate refinancing risk. Received June 6, 2016; editorial decision September 21, 2017 by Editor Philip Strahan. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between environmental violations and the cost of corporate bonds, and further analyzes whether refinancing constraints, the lending restrictions on penalized firms, are an important channel through which environmental violations affect the cost of corporate debt financing in China. Using the manually collected environmental violation events from 2008 to 2020, we find that the bond cost of firms violating environmental regulations increases significantly after being penalized. The finding is robust to potential sample selection bias and endogeneity problems. Furthermore, we find that the effect of environmental violations on the cost of corporate bonds is more profound in short‐term debt‐dependent firms and can be alleviated by the internal financing dependence. These results confirm that the refinancing risk arising from China's green loan policy on pollution‐intensive firms plays a key role in the relation between environmental violations and the cost of capital in the firms. In the context of the growing concerns of global society about climate change, our findings have great implications for pollution‐intensive firms, bond investors, and regulatory authorities in emerging economies to manage the increasing environmental risk. [ABSTRACT FROM AUTHOR]

Qualified Securities for Short-sale Refinancing (QSSR) is a unique trading mechanism that has exogenously increased the supply of loanable securities in Chinese stock markets. Using difference-in-differences (DID) methodology, this paper is the first to investigate whether and to what extent additions to the QSSR eligibility list affect short selling activities and stock price behaviors. The paper finds that stocks added to the QSSR list exhibit better liquidity and less negative skewness in returns than non-QSSR stocks. However, QSSR stocks are more volatile and display a higher frequency of extreme negative returns. In addition, on average, QSSR stocks experience larger negative abnormal returns (ARs) and cumulative abnormal returns (CARs) relative to non-QSSR stocks, and the difference in CARs is positively related to investor heterogeneity. The results indicate that short selling has mixed effects on stock prices. Removing short-sale constraints can improve liquidity and reduce price bubbles, but can also increase return volatility and amplify market crashes. [ABSTRACT FROM AUTHOR]

Purpose: This study seeks to analyse if the adjustment towards the target short-term debt ratio of small and medium-sized firms (SMEs) is related to financial distress risk. Design/methodology/approach: Data obtained for a sample of Portuguese manufacturing SMEs from 2010 to 2017 were analysed using the system-generalised method of moments (GMM-sys). Using the modified Z-Altman score, the authors classify SMEs according to their exposure to financial distress risk. Findings: Manufacturing SMEs exposed to a high risk of financial distress rebalance their short-term debt ratio quicker. However, regardless of the financial distress risk level, SMEs distant from the target short-term debt ratio adjust more slowly, suggesting that transaction costs are greater than financial distress costs. Practical implications: Policymakers should promote the access to external sources of finance with low transaction costs for SMEs, exposed to low levels of financial distress risk, to rebalance their short-term debt ratios quicker. Distressed SMEs far from their target short-term debt ratios, but with capacity to rebalance, need government programmes to access finance with low transaction costs to rebalance their short-term debt ratios. Originality/value: This paper contributes to deepening our understanding of how SMEs, facing financial risk, rebalance their short-term debt ratios. SMEs, facing high financial distress risk, adjust towards their target short-term debt ratios more rapidly. However, SMEs, distant from the target short-term debt ratio face higher transaction costs than financial distress costs. These firms adjust towards their target short-term debt ratios more slowly, which may aggravate the refinancing risk and, ultimately, announce bankruptcy. [ABSTRACT FROM AUTHOR]

This paper presents empirical evidence that the maturity structure of financial leverage affects the cross‐section of equity returns. We find that short‐term leverage is associated with a positive premium, whereas long‐term leverage is not. The premium for short‐term compared to long‐term leverage reflects higher exposure of equity to systematic risk. To rationalize our findings, we show that the same patterns emerge in a model of debt rollover risk with endogenous leverage and debt maturity choice. Our results suggest that analyses of leverage effects in asset prices and corporate financial applications should account for the maturity structure of debt. [ABSTRACT FROM AUTHOR]

The article examines the first Chinese green bond issued in Europe to explore how a green bond is created and how it can be issued across boundaries. Raising questions of "green" valuation at multiple scales, it follows the way the bond's proceeds hit the ground in Portugal, refinancing wind farms previously built under a Feed in Tariff (FiT) regime. It shows how if on the one hand green bonds are designed as abstract and fungible instruments, then on the other they are spatially situated and predicated upon the larger dynamic of global financial accumulation with its recurrent and contingent crises. In this context, the rush over renewables intersects with expansive Chinese financial monetary policy and the EU austerity process. [ABSTRACT FROM AUTHOR]

Background: In the past, a reduced length of postoperative hospital stay was considered a sufficient trade-off to refinance the additional costs associated with minimally invasive surgery; however, with the implementation of the Nursing Personnel Strengthening Act and disincorporation of nursing costs, this argumentation needs to be fundamentally reevaluated. Method: Using right-sided hemicolectomy as an example, a retrospective case analysis was conducted. Cost reductions associated with the length of hospital stay were compared before and after the introduction of the revised German diagnosis-related groups (aG-DRG) and offset against the increased material and personnel costs. Results: Among the analyzed cases, the utilization of minimally invasive surgical techniques led to a substantial cost reduction per case compared to conventional surgical treatment. After the introduction of the aG-DRGs the financial benefits of a shortened hospital stay are greatly diminished and cannot be used to refinance the expenses necessary to perform minimally invasive surgery. From a strictly economical perspective, there is a strong incentive to only perform open surgical procedures. Conclusion: Disincorporation of nursing costs has destabilized the fragile concept of indirect refinancing of advanced operative techniques by the financial incentives associated with a shorter hospital stay. In order to comply with statutory regulations to implicate a performance-based funding, there is an urgent necessity to adjust the grouping algorithms for minimally invasive surgical procedures to the corresponding flat rates. [ABSTRACT FROM AUTHOR]

Purpose: With the majority of highway projects in China having entered their operational phases, the maintenance and repair of the pavement is receiving increasing attention. One problem that needs to be addressed urgently is that of how to raise the proper funds for highway maintenance to ensure the sustainable operation of the project. To this end, the aim of this study is to investigate the capital demand for operation and maintenance of a project by means of a refinancing scheme, in order to reduce the possibility of project bankruptcy and to enhance the economic value of the project. Design/methodology/approach: Based on an analysis of the dynamic complexity of the highway pavement maintenance system, a Markov model is used to predict pavement performance, and an optimal capital structure decision model is proposed for highway public–private partnership (PPP) project refinancing, using the method of system dynamics (SD). The proposed model is then applied to a real case study. Findings: Results show that the proposed model can be used to predict accurately the dynamic changes in the demand for road maintenance funds and refinancing during the period of operation, before making the optimal decision for the refinancing capital structure. Originality/value: Although many scholars have studied the optimal refinancing capital structure of PPP projects, the dynamic changes inherent in the demand for maintenance funds for highway PPP projects are seldom considered. Therefore, in the approach used here the influence of the dynamic change of road maintenance capital demand on refinancing is investigated, and SD is used for the optimal capital structure decision-making model of highway PPP project refinancing, to make the decision-making process more reasonable and scientific. [ABSTRACT FROM AUTHOR]