Earticle

초록

영어

We create a real options model of leveraged investments to examine the eects of risky debt on investments and disinvestments (defaults). An investor nances a fraction of the investment cost with debt newly issued at the time of investments. The zone between investment trigger and disinvestment trigger is determined by the equity investor who has both the investment option and the disinvestment option. The zone between two triggers shrinks with leverage. The leveraged investor brings the disinvestment trigger forward; the value of waiting to disinvest is more valuable with risky debt. The leveraged investor also moves the investment trigger forward because the equity maximizer takes no account of the value of waiting for a lender. The leveraged investor seeks a lower uncertainty premium; with leverage, the investor considers less amount of equity investment even though the investor assumes the nancial risks. On the other hand, safe debt implies no real eects on the investment decisions.

목차

Abstract
 1 Introduction
 2 The Values of a Leveraged Investment
  2.1 The Value of the Investment
  2.2 The Value of the Equity
  2.3 The Value of the Debt
 3 The Value of an Investment Option
 4 Numerical Examples
 5 Conclusion
 Appendix
 References
 Figure

키워드

저자

• eungDong (Peter) You [ PhD Candidate, Sauder School of Business, University of British Columbia, Vancouver, Canada. ]

참고문헌

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간행물

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• 간행물명

  한국재무학회 학술대회

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  부정기

• 수록기간

  2006~2024

• 십진분류

  KDC 325 DDC 330