A1 Vertaisarvioitu alkuperäisartikkeli tieteellisessä lehdessä
The incentive effects of the overlapping project structure in credit markets
Tekijät: Niinimäki Juha-Pekka
Kustantaja: Elsevier
Julkaisuvuosi: 2024
Journal: Journal of Economics and Business
Tietokannassa oleva lehden nimi: Journal of Economics and Business
Artikkelin numero: 106159
Vuosikerta: 128
ISSN: 0148-6195
eISSN: 1879-1735
DOI: https://doi.org/10.1016/j.jeconbus.2024.106159
Verkko-osoite: https://doi.org/10.1016/j.jeconbus.2024.106159
Rinnakkaistallenteen osoite: https://research.utu.fi/converis/portal/detail/Publication/387262642
In this theoretical paper, we examine the risk-shifting problem between lenders and a firm running projects in two different environments. In a synchronous environment, the firm introduces two new 2-period projects that both begin and end on the same date and hence have a new start date in odd-numbered periods. In an asynchronous environment, the firm introduces one new 2-period project in every period: This process creates an overlapping structure for the projects. We show that the set of parameters that allow for reputation-supported lending is larger if projects are asynchronous rather than synchronous. The findings can be generalized to other forms of moral hazard.
Ladattava julkaisu This is an electronic reprint of the original article. |  |
