Existing literature studies the effect of asymmetric information on many aspects of debt financing including debt maturity and seniority, collateral, liquidation rights, convertible debt, income bonds and sinking funds. Less is known about the effect of asymmetric information on firms'...

Becker and Fuest (forthcoming) provides a new explanation for the important and puzzling link between limited liability and corporate taxation. The authors argue that a corporate tax on all entrepreneurs with limited liability is optimal when entrepreneurs can offset potential losses and when...

The literature analyzing games where some players have private information about their types is usually based on the duality of good and bad types (GB approach), where good type denotes the type with better quality. In contrast, this paper analyzes a signalling game without types hierarchy....

We analyze the financing decisions and capital structure of internet companies and relate observed findings to the common capital structure theories. Large internet companies usually have low debt and small internet companies have high debt. We find that the trade-off theory of capital...

We build a model of debt for firms with investment projects for which flexibility and free cash flow problems are important issues. We focus on the factors that lead the firm to select the zero-debt policy. Our model provides an explanation of the so-called "zero-leverage puzzle" (Strebulaev and...

In this article we argue that asymmetric information can explain why seignorage is an inferior choice to debt for governments. We also argue that the Ricardian equivalence for governments is very similar to what the Modigliani-Miller proposition is for corporations. Our model is based on Bolton...

This article provides an overview of sources of finance and some patterns of financing for entrepreneurial firms in Canada. Based on Miglo (2018), we compare the predictions of major theories of entrepreneurial finance (flexibility theory of capital structure, asymmetric information, credit...

Crowdfunding has generally been used to finance very innovative projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. One of the major crowdfunding platforms, Indiegogo, has launched several...

This paper offers a model of crowdfunding that represents a growing area of interest among practitioners and theorists. It is one of the first articles analyzing the choice between different types of crowdfunding (reward-based vs. equity-based) and the choice between crowdfunding and traditional...

This paper offers a model of crowdfunding that represents a growing area of interest among practitioners and theorists. The model is based on asymmetric information between founders and funders regarding projects' quality. It provides several implications that have not yet been tested. For...