Entrepreneurs face significant non-diversifiable 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, external debt/equity and inside equity financing, investment, and endogenous default/cash-out decisions. More risk-averse en-trepreneurs default earlier for given debt service, and also choose higher initial leverage for diversification benefits. Non-diversified entrepreneurs demand not only a systematic risk pre-mium but also an idiosyncratic risk premium, which depends on entrepreneurial risk aversion, the project’s idiosyncratic volatility and the sensitivity of entrepreneurial value of equity wi...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Preliminary Version Entrepreneurs face significant non-diversifiable idiosyncratic business risks. I...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demon-strate the implica...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demon-strate the implica...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demon-strate the implica...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demonstrate the implicat...
An entrepreneur faces substantial non-diversifiable business risk and liquidity con-straints. We pro...
Financial market imperfections can prevent entrepreneurs from diversifying away the idiosyncratic ri...
Do entrepreneurs consider the risk of their business equity when making investment portfolio allocat...
Entrepreneurs bear substantial risk, but empirical evidence shows no sign of a positive premium. Thi...
In the standard venture capital contract, entrepreneurs have a large fraction of equity ownership in...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Preliminary Version Entrepreneurs face significant non-diversifiable idiosyncratic business risks. I...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demon-strate the implica...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demon-strate the implica...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demon-strate the implica...
We develop a dynamic incomplete-markets model of entrepreneurial firms, and demonstrate the implicat...
An entrepreneur faces substantial non-diversifiable business risk and liquidity con-straints. We pro...
Financial market imperfections can prevent entrepreneurs from diversifying away the idiosyncratic ri...
Do entrepreneurs consider the risk of their business equity when making investment portfolio allocat...
Entrepreneurs bear substantial risk, but empirical evidence shows no sign of a positive premium. Thi...
In the standard venture capital contract, entrepreneurs have a large fraction of equity ownership in...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...
Financial portfolio theory suggests that diversifying through establishing a group of businesses may...