Internet Appendix for “Entrepreneurial Finance and Non-diversifiable Risk”
نویسندگان
چکیده
This internet appendix contains supplemental materials for the published article. It is organized as follows. Section A considers the effect of borrowing constraints on the entrepreneur’s decisions. Section B models investment as a real option instead of a take-it-or-leave-it project. Section C examines the quantitative impact of under-diversified investors on debt pricing.
منابع مشابه
Entrepreneurial Finance and the Non - diversifiable Risk ∗
Entrepreneurs face significant non-diversifiable idiosyncratic business risks. In a dynamic incomplete-markets model of entrepreneurial finance, we show that such risks have important implications for their interdependent consumption/saving, portfolio choice, financing, investment, and endogenous default/cash-out decisions. Even though more risk-averse entrepreneurs default earlier for given de...
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