A simple contracting environment with a creditor who has wealth and a entrepreneur who has a two-period investment … creditor prefers a contract that commits him not to refinance if and only if the extent of moral hazard problem is sufficiently …

We study SPACs in a continuous-time delegated investment model. Our model is built upon three unique features of SPACs … control over investment approval. Due to the misalignment in incentives, the sponsor has an increasing incentive to propose … control over investment approval reduces everyone’s welfare. This adverse effect is more pronounced if entrepreneurs …

discussed the pros and cons of private equity and whether the investment class is a viable alternative.While some Board members … of key issues questioning its viability.Ultimately, like any other investment, pros and cons should be weighed according …

This study investigates the effects of economic cycles on abnormal value creation of buyouts (BO) and on the investment … corresponding PE funds, we find that investment activity of initial fund flows is slightly pro-cyclical, while reinvestment activity …

Using a sample of Real Estate Investment Trusts (REITs), we show that institutional investors exploit location …

: incremental and lumpy with or without an exogenously given intensity. A bidder's investment cost comprises private information … seller from setting the exact dates of investment with the winner. However, the seller can set the royalty rate to equate the …. We derive two main conclusions. First, compared with the case in which investment is lumpy with an exogenously given …

In this paper I analyze a simple example of a debt contract based on an extension of the debt overhang problem. I …

We study how interest alignment between CEOs and corporate boards influences investment efficiency and identify a novel … force behind the benefit of misaligned preferences. Our model entails a CEO who encounters a project, gathers investment …

-related information. This exacerbates pre-existing agency frictions and may lead to investment inefficiencies. To counteract this … expense of residual inefficiency. Our findings thus highlight that shareholders' tolerance for investment inefficiencies may … and boards may impact investment efficiency, information quality, project profits, and management rents in a non …