کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5069584 1476991 2015 9 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Investment timing and capital structure with loan guarantees
ترجمه فارسی عنوان
زمان سرمایه گذاری و ساختار سرمایه با تضمین های وام
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
چکیده انگلیسی


- We derive closed-form solutions for the interaction of optimal investment and financing.
- There is an U-shaped relationship between investment timing and the coupon payment.
- The swap delays investment.
- Debt overhang and asset substitution are related to the guarantee cost.

The equity-for-guarantee swap (EGS) is a new popular financial derivative. We derive closed-form solutions for the interaction of the optimal investment and financing with the swap in a real-options framework. We find that there is an U-shaped relationship between investment timing and the coupon payment. In contrast to the classical model, EGS induces different investment and financing strategies. In particular, it delays investment. Whether the swap leads to debt overhang distortion depends on guarantee cost and the profitability of the project but it induces the borrower's risk-shifting incentive. The larger the guarantee cost, the stronger the incentive.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Finance Research Letters - Volume 13, May 2015, Pages 179-187
نویسندگان
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