Real Assets, Liquidation Value and Choice of Financing
نویسندگان
چکیده
منابع مشابه
Financing Durable Assets
This paper studies the financing of durable assets in a model with collateral constraints due to limited enforcement. Durability affects the ease of financing: we show that more durable assets require larger down payments of internal funds per unit of capital making them harder to finance, because durability raises the price of an asset and hence the overall financing need more than its collate...
متن کاملOptimal Default and Liquidation with Tangible Assets and Debt Renegotiation
This paper proposes a new pricing model for corporate securities issued by a levered firm with the possibility of debt renegotiation. We take the structural approach that the firm’s earnings follow a geometric Brownian motion with stochastic collaterals. While equity holders can default the firm for their own benefits when the earnings become insufficient to go on the firm, they may want to liq...
متن کاملReal Estate Risk, Corporate Investment and Financing Choice
This paper examines how asset risk impacts corporate investment and financing decisions. We derive a general model that incorporates risk, adjustment cost, and depreciation features of assets-in-place into investment decisions. The model suggests that the risk and adjustment cost of assets-in-place reduce both corporate investment and financing. We empirically test the model in a panel of US fi...
متن کاملInformation Assets and their Value
This paper presents the results from a literature study on the value of information. I have reviewed the information, accounting and business literature to find economic attributes of information and information valuation attempts. There is at least some consensus on a number economic properties and identifying information as an asset to the organization. Also a number of valuation attempts hav...
متن کاملPortfolio Choice with Illiquid Assets
We investigate how the inability to continuously trade an asset affects portfolio choice. We extend the standard Merton model to include an illiquid asset that can only be traded at infrequent, stochastic intervals. Because consumption is financed through liquid wealth only, the presence of illiquidity leads to increased and state-dependent risk aversion. Illiquidity leads to under-investment i...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2010
ISSN: 1556-5068
DOI: 10.2139/ssrn.1721844