present a model that explains the slow recovery of bank capital and economic activity. Banks provide intermediation in markets …

Harvey (2001) find that 74% of their survey firms use the CAPM for capital budgeting. We provide an explanation for these two … capital. Following McDonald and Siegel (1986), we argue that the hurdle premium depends on the value of the option to defer … value firms, even though they have a lower cost of capital …

on the financing of 1157 worldwide private equity deals from 1980 to 2008. Buyout leverage is cross-sectionally unrelated … availability of financing impacts booms and busts in the private equity market, and that agency problems between private equity … funds and their investors can affect buyout capital structures …

constrained sector absorbs less and less capital, the real interest rate in the economy declines. Other sectors that compete for … the same inputs (including capital) thus experience lower costs, which boosts investment, output, and profits, reflecting …

access to additional financing. Overall, the results suggest that the bundle of inputs that angel investors provide have a …

Problems with mortgage financing are widely considered to be a major cause of the recent financial meltdown. Several …