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Debt, Default, and Risk Management : Corporate Policies Under Incomplete Markets
Bolton, Patrick - 2020
constrained firm under incomplete markets. In addition to costly external equity financing, the key friction we emphasize is … limited financial spanning. We show that the marginal source of external financing on a on-going basis is debt. The firm only … relies on costly external equity financing or costly default, when it is near or exceeds its endogenous debt capacity. The …
Persistent link: https://www.econbiz.de/10012847578
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Dynamics of Entrepreneurship Under Incomplete Markets
Wang, Chong - 2011
An entrepreneur faces non-diversifiable business risk and liquidity constraints. We provide a unified framework that embeds these frictions to study interdependent business start-up/entry, capital accumulation/asset sales, portfolio allocation, consumption/saving, and business exit decisions....
Persistent link: https://www.econbiz.de/10013129278
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Investment Under Uncertainty and the Value of Real and Financial Flexibility
Bolton, Patrick; Wang, Neng; Yang, Jinqiang - National Bureau of Economic Research (NBER) - 2014
We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing …
Persistent link: https://www.econbiz.de/10010951274
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Agency Conflicts, Investment and Asset Pricing
Albuquerque, Rui; Wang, Neng - C.E.P.R. Discussion Papers - 2005
Corporations in many countries are run by controlling shareholders whose cash flow rights in the firm are substantially smaller than their control rights. This separation of ownership and control allows the controlling shareholders to pursue private benefits at the cost of minority investors by...
Persistent link: https://www.econbiz.de/10005497980
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Entrepreneurial Finance and Non-diversifiable Risk
Miao, Jianjun; Wang, Neng; Chen, Hui - National Bureau of Economic Research (NBER) - 2009
consumption, portfolio allocation, financing, investment, and business exit decisions. The optimal capital structure is determined …
Persistent link: https://www.econbiz.de/10005720323
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Agency Conflicts, Investment, and Asset Pricing
Albuquerque, Rui A. - 2018
The separation of ownership and control allows controlling shareholders to pursue private benefits. We develop an analytically tractable dynamic stochastic general equilibrium model to study asset pricing and welfare implications of imperfect investor protection. Consistent with empirical...
Persistent link: https://www.econbiz.de/10012706589
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Capital Structure, Investment, and Private Benefits of Control
Morellec, Erwan - 2011
behavior of the controlling shareholder on investment and financing decisions. The model shows that conflicts of interests …
Persistent link: https://www.econbiz.de/10012714812
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A unified model of entrepreneurship dynamics
Wang, Chong; Wang, Neng; Yang, Jinqiang - In: Journal of financial economics 106 (2012) 1, pp. 1-23
Persistent link: https://www.econbiz.de/10009666680
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Dynamics of entrepreneurship under incomplete markets
Wang, Chong; Wang, Neng; Yang, Jinqiang - 2011
"An entrepreneur faces substantial non-diversifiable business risk and liquidity constraints, both of which we refer to as frictions. We show that these frictions have significant economic effects on business start-up, capital accumulation/asset sales, portfolio allocation, consumption/saving,...
Persistent link: https://www.econbiz.de/10008933607
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Debt, taxes, and liquidity
Bolton, Patrick; Chen, Hui; Wang, Neng - 2014
Persistent link: https://www.econbiz.de/10010346618