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reason. -- Liquidity ; Asymmetric Information ; Debt maturity …
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worsens financing terms for firms with shorter maturity projects, inducing them to change their investments as well. In …
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shorter maturity projects, inducing them to change their investments as well. In equilibrium, investment is inefficiently …
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worsens financing terms for firms with shorter maturity projects, inducing them to change their investments as well. In …
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We study a simple neoclassical model of investment in a developing country, modified to allow for long-term projects and short-term debt. Early signals indicating low productivity of investment may lead creditors to call loans in early. In such a crisis, firms protected by limited liability...
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In the conventional literature related to investment decisions, less attention has been paid to the length of maturity … cost at the end of the borrowing period. In this study, the effects of selecting different maturity years on firms … suggest that (1) ceteris paribus an optimum maturity year appears to exist that maximises the NVP, and (2) the change of …
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