Earlier studies have established guidelines to optimize the capital structure of a privatized project. However, in the US, many Public-Private Partnership (PPP) projects may not be fully self-financed through toll or other operating revenues due to insufficient revenue streams. With the limited debt capacity secured by toll revenues, most PPP projects must be backed by both private equity inves...

Crowdfunding as a new way of financing in the web 2.0 has increased over the last years, but only little is known how project initiators increase their chances of successful fundraising through on-page and off-page communication activities. Using a dataset of 740 projects published on one of the dominant crowdfunding platforms in Switzerland, we test communication-related determinants of fundra...

We study the optimal incentive schemes for multistage projects. Staged financing, pervasive in both venture capital and research funding, arises as a feature of the optimal contract. The nature of progress plays an important role. When progress is tangible, incentives are provided through a series of deadlines and a reward scheme that decreases over time. Early progress in one stage gives the a...

We develop a model of informed finance that explains the key qualitative and quantitative features of informed venture capital finance in the United States. We show that the two key features of our model— potential investors are better judges than entrepreneurs of a project’s economic viability and projects require both significant external funding and entrepreneurial inputs—give rise to under-...

A low-carbon energy transition on the basis of renewable energy sources (RES) is of crucial importance to solve the interlinked global challenges of climate change and energy security. However, large-scale deployment of RES requires substantial investments, including the participation of private capital. Scientific evidence shows that the economic feasibility of a RES project hinges on the avai...

A structural econometric investigation of the agency theory of financial structure We estimate a structural model of financing choices in presence of managerial moral hazard, financial distress costs and taxes. In the theoretical model, firms with low cost of managerial effort, and high financial distress costs and non–debt tax shields, find it optimal to issue equity. Correspondingly the likel...

Research on response rates to surveys mailed to study participants decades after baseline examination, with minimal interim contact, is limited. This paper documents response rates to a 26-year follow-up survey of surviving participants from a large cohort in Illinois and compares baseline characteristics of nonrespondents and respondents. Mortality follow-up of the Chicago Heart Association De...

The paper derives two analytical consequences of informed finance: Equity leads to under-financing, while debt leads to over-financing. We show that our model can explain key qualitative and quantitative features of informed venture capital finance in the United States. Using only three model parameters we match: (1) the venture capitalist’s equity share; (2) the venture capitalist’s expected r...

Background and Aim: The health system financing is the process of collecting, pooling and managing financial resources and purchasing healthcare services. Health financing plays an important role in achieving the health system goals and objectives specially universal health coverage. The aim of this study was to strategically analyze the Iranian health financing system and recommend strategies ...