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Agricultural Decisions after Relaxing Credit and Risk Constraints

Karlan, Dean - 2014

conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or … leads to significantly larger agricultural investment and riskier production choices in agriculture. The binding constraint … to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face …

Persistent link: https://www.econbiz.de/10013065210

Self-Selection into Credit Markets : Evidence from Agriculture in Mali

Beaman, Lori - 2014

We examine whether returns to capital are higher for farmers who borrow than for those who do not, a direct implication of many credit market models. We measure the difference in returns through a two-stage loan and grant experiment. We find large positive investment responses and returns to...

Persistent link: https://www.econbiz.de/10013048579

Real Options, Taxes and Financial Leverage

Myers, Stewart C. - 2012

value (APV). The risk-free rate of interest must be after-tax. Debt capacity depends on the APV and target debt ratio for … the underlying asset, on the option delta and on the amount of risk-free borrowing or lending that would be needed for …

Persistent link: https://www.econbiz.de/10013104988

Financial Policies and the Financial Crisis : How Important Was the Systemic Credit Contraction for Industrial Corporations?

Kahle, Kathleen M. - 2014

Although firm financial policies were affected by a credit contraction during the recent financial crisis, the impact of increased uncertainty and decreased growth opportunities was stronger than that of the credit contraction per se. From the start of the financial crisis (third quarter of...

Persistent link: https://www.econbiz.de/10013069349

Investment Under Uncertainty with Financial Constraints

Bolton, Patrick - 2014

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings under uncertainty for a financially constrained firm, which features endogenous growth options, abandonment options, and payout policies. Facing costly external financing, the firm...

Persistent link: https://www.econbiz.de/10013044990

Microinsurance, Trust and Economic Development : Evidence from a Randomized Natural Field Experiment

Cai, Hongbin - 2010

We report results from a large randomized natural field experiment conducted in southwestern China in the context of insurance for sows. Our study sheds light on two important questions about microinsurance. First, how does access to formal insurance affect farmers' production decisions? Second,...

Persistent link: https://www.econbiz.de/10013150736

Insurance Contracts When Individuals “Greatly Value” Certainty : Results from a Field Experiment in Burkina Faso

Serfilippi, Elena - 2018

In discussing the paradoxical violation of expected utility theory that now bears his name, Maurice Allais noted that individuals tend to “greatly value” payoffs that are certain. Allais' observation would seem to imply that people will undervalue insurance relative to the predictions of...

Persistent link: https://www.econbiz.de/10012911082

The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso

Stoeffler, Quentin; Carter, Michael R.; Guirkinger, … - 2022

potential of index insurance as a risk-management tool. However, we uncover important flaws in the implementation of the project …

Persistent link: https://www.econbiz.de/10013300931

Liquidity Management and Corporate Investment During a Financial Crisis

Campello, Murillo - 2010

This paper uses a unique dataset to study how firms managed liquidity during the financial crisis. Our analysis provides new insights on the interactions between internal liquidity, external funds, and real corporate decisions, such as investment and employment. We first describe how companies...

Persistent link: https://www.econbiz.de/10013138771

The Real Effects of Financial Constraints : Evidence from a Financial Crisis

Campello, Murillo - 2010

We survey 1,050 CFOs in the U.S., Europe, and Asia to assess whether their firms are credit constrained during the global credit crisis of 2008. We study whether corporate spending plans differ conditional on this measure of financial constraint. Our evidence indicates that constrained firms...

Persistent link: https://www.econbiz.de/10013149992