Venture capital (VC) funds are supplied by a wide range of individual and institutional investors with varied risk … profile. The funds vary in size and given funds life VC fund managers thus face two tiers of issues with liquidity and risk … management. First the fund managers could face a set of issues with size of commitment and fund suppliers' risk profile. Second …

risk-taking whereas low-ability managers refrain from risk-taking. High-ability managers cut capital expenditures but spend …

We develop a dynamic theory of capital structure, liquidity and risk management, and payout policies for a financially … firm may be either endogenously risk-averse or risk-loving depending on the degree of market incompleteness and its current … leverage. When it is risk-averse, the firm optimally manages its risk by fully hedges its hedgeable risk so as to minimize the …

substitute between saving cash for financial hedging to mitigate financial default risk, and spending on operational hedging to … mitigate operational default risk. Whereas financial hedging increases in financial leverage, operational hedging declines in … credit risk, which is stronger for firms facing financing constraints. We present empirical evidence supporting the …

. Besides output price uncertainty, the firm faces additional sources of risk which are aggregated into an additive background … risk. We show that the firm always chooses its optimal debt-equity ratio to minimize the weighted average cost of capital …, irrespective of the risk attitude of the firm and the incidence of the multiple sources of uncertainty. Even though the …

and analyzes its implications for risk using a structural model of credit risk. The analysis suggests that market … financing has played a more important role in financing French firms than the euro area as a whole. The credit risk of French …

Investors have to be offered risk premiums to invest in risky assets. These risk premiums take different forms in … different asset markets: equity risk premiums (ERP) in stock markets, default spreads in bond markets and real asset premiums in … economy, the risk aversion of investors, information uncertainty and fear of catastrophe, among other factors. In practice …

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are a …-seeking behavior by firms. Firms with high liquidity risk are likely to use cash rather than credit lines for liquidity management … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …