| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5085321 | International Review of Financial Analysis | 2010 | 10 Pages |
Abstract
This paper develops a continuous-time contingent claims analysis model to study the impact of credit insurance on investment. We find that under shareholders' wealth maximization, the presence of credit insurance yields high investment relative to the level of investment without credit insurance. We also obtain a U shape relationship between the project debt maturity and its investment size, with more investment undertaken with short and long maturities and less investment with intermediate maturities.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Van Son Lai, Issouf Soumaré,