Dynamic Financial Contract under Extended Liability.

We consider an entrepreneur looking for external financing who may face two types of independent financial risks: a risk associated with its activity and a risk associated with an environmental accident. Using a costly state verification model, we characterize the optimal two-period financial contract under a law on liability allowing for extended liability to lenders.

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Year of publication:	2000
Authors:	Coestier, B.
Institutions:	HEC Montréal (École des Hautes Études Commerciales)
Subject:	RISK \| ENVIRONMENT \| ASSURANCE

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Series:	Ecole des Hautes Etudes Commerciales de Montreal-.
Type of publication:	Book / Working Paper
Notes:	29 pages
Classification:	D23 - Organizational Behavior; Transaction Costs; Property Rights ; D82 - Asymmetric and Private Information ; G22 - Insurance; Insurance Companies ; G33 - Bankruptcy; Liquidation ; K32 - Environmental, Health, and Safety Law
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005474676