A simple contracting environment with a creditor who has wealth and a entrepreneur who has a two-period investment …

pecking order theory. Third, we investigate whether new forms of financing are substitutes or complements to traditional …

When individual returns are increasing in the aggregate level of investment, decentralized individuals fail to … internalize the positive externality of their investment on the return of others. This paper shows how financial intermediation …, intermediaries induce investment by individuals with unfavorable private information. The increase in investment generates positive …

We investigate the impact of the reputation of a private equity group (PEG) on financing costs in leveraged buyouts … (LBOs). PEGs with a strong reputation have superior selection abilities and may be able to obtain cheaper LBO loans due to …' reputation indeed lowers financing costs. The size of the effect depends crucially on the chosen syndicate structure. The effect …