Purpose The majority of the literature on green buildings in Ghana focuses environmental benefits, innovative designs, construction technologies and project management techniques. However, little is known about how such facilities are financed. This issue creates potential knowledge gaps, one which this study aims to address. examines key drivers for building financing Ghana. Design/methodology...

Financial theory creates a puzzle. Some authors argue that high-risk entrepreneurs choose debt contracts instead of equity contracts since risky but high returns are of relatively more value for a loan-financed firm. On the contrary, authors who focus explicitly on start-up finance predict that entrepreneurs are the more likely to seek equity-like venture capital contracts, the more risky their...

External financing is important when inventors and small technology-based firms commercialize their inventions. However, the private information of inventors about the quality of their products causes information asymmetries and moral hazard problems. To help compensate for potentially non-existing capital markets, the Swedish Government has intervened by offering loans with different terms to ...

We characterize the optimal long-term financial contract in a setting in which a risk-neutral agent with limited capital seeks external financing for a project which pays stochastic cash flows over many periods. These cash flows are unobservable and unverifiable by outside investors. The agent can be induced to pay investors via the threat of the loss of control of the project. After solving fo...

HE BIGGEST increases in demand for oil and gas are occurring in the developing world, which is also where most of the world’s proven oil and gas reserves are located. International energy companies—investors, equipment suppliers, contractors, and consulting firms—are therefore shifting their attention from Europe and North America to developing countries, which are likely to offer more business...

prices? As it stands, the theorem provides an important benchmark and enforces careful thinking about financial markets’ workings and the imperfections that would create a world where a firm’s financial position (hence equity prices) affects its ability to engage in production. Many possible imperfections could generate such a world. This article focuses on failures of information. Suppose that...

New ventures that commercialize radical technologies tend to cluster in time. Funding for new ventures also ebbs and flows, often synchronous with significant innovations. We suggest that financial market activity is not purely a response to novel technologies but rather, financial markets drive innovation bubbles. We show that financing risk is inherent to the funding of new ventures, but vari...