Capital structure and seniority in entrepreneurial firms
We present a model of cash constrained entrepreneurs who need an investor to finance their project. Investors can either be uninformed, such as individual bondholders, or informed, such as venture capitalists and banks. There is an entrepreneurial moral hazard problem, which can be partially overcom...
Main Author: | |
---|---|
Format: | Working paper |
Published: |
University of Oxford
2005
|