haku: @author Snyder, C. / yhteensä: 4
viite: 3 / 4
| Tekijä: | Snyder, C. |
| Otsikko: | Loan commitments and the debt overhand problem |
| Lehti: | Journal of Financial and Quantitative Analysis
1998 : MAR, VOL. 33:1, p. 87-116 |
| Asiasana: | LOANS COMMITMENT DEBT |
| Kieli: | eng |
| Tiivistelmä: | The debt overhang problem is shown to arise in the context of an entrepreneurial project that requires a sequence of investments financed by an outside lender. The entrepreneur, not internalizing losses accruing to the lender which financed the initial investments, may inefficiently cancel the project and instead pursue an outside opportunity. It is shown that loan commitments are the optimal financial contracts in this setting, strictly dominating standard debt. |
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