Risk-Taking, Agency Problem, and Small Business Loan Guarantee: An Application of Option Pricing Theory

We examine the relationship between the small business loan guarantee and the agency problem of small firms. We then recommend financial instruments or financial contracts that can minimize of eliminate the moral hazard problem.

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Year of publication:	2001
Authors:	So, Jacky C. ; Bharati, Rakesh ; Crain, Susan
Published in:	Journal of Entrepreneurial Finance. - Montrose, CA : The Academy of Entrepreneurial Finance (AEF), ISSN 1057-2287. - Vol. 6.2001, 1, p. 24-43
Publisher:	Montrose, CA : The Academy of Entrepreneurial Finance (AEF)
Subject:	Loan Guarantee \| Small Business Lending \| Agency Problem \| Risk \| Small Business \| Moral Hazard

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Type of publication:	Article
Type of publication (narrower categories):	Article
Language:	English
Other identifiers:	hdl:10419/114710 [Handle] RePEc:pep:journl:v:6:y:2001:i:1:p:24-43 [RePEc]
Classification:	M13 - Entrepreneurship
Source:	EconStor

Persistent link: https://www.econbiz.de/10011310373