We consider the investment timing and financing decisions of financially constrained small and medium-sized enterprises (SMEs) in a dynamic setting with asymmetric information. To alleviate its financing constraints, an SME finances a risky project using equity-for-guarantee swaps (EGS), which...

This paper develops a signal game model to investigate the impact of ambiguity aversion on small and medium-sized enterprises (SME) investment in incomplete markets with asymmetric information. Information asymmetry has twofold effects on SMEs' investment decisions. First, in a separating...