We model firms' choice between bank loans and publicly traded debt, allowing for debt-renegotiation in the event of financial distress. Entrepreneurs, with private information about their probability of financial distress, borrow from banks (multi-period players) or issue bonds to implement...

We analyze firms' choice between exchanges to list their equity (including multiple listings), and exchanges' choice of listing standards for firms which apply for listing, in an environment of competition and co-operation among exchanges. We model an equity market characterized by asymmetric...

We address the question: At what stage in its life should a firm go public, rather than undertake its projects using private equity financing? In our model, a firm may raise external financing either by placing shares privately with a risk-averse venture capitalist, or by selling shares in an...

We develop a theory of unit IPOs, in which the firm going public issues a package of equity with warrants. We model an equity market where insiders have private information about the riskiness as well as the expected value of their firm's future cash flows. We demonstrate that, in equilibrium,...

We develop a theory of unit IPOs, in which the firm going public issues a package of equity with warrants. We model an equity market characterized by asymmetric information, where insiders have private information about the riskiness as well as the expected value of their firm's future cash...

This paper investigates the optimal size and scope of a Venture Capitalist's (VC's) portfolio. We consider a VC who chooses the number of start-ups to invest in his portfolio. In our model, both the VC's and the entrepreneurs' inputs are necessary for the success of the project, making their...

This paper investigates the optimal size and scope of a Venture Capitalist's (VC's) portfolio. We consider a VC who chooses the number of start-ups to invest in his portfolio. In our model, both the VC's and the entrepreneurs' inputs are necessary for the success of the project, making their...

This paper investigates the interaction between synergies and internal agency conflicts that emerges endogenously in multi-division firms. We model internal agency activities as entrenchment: to avoid personal costs, a divisional manager can reduce the likelihood of her division being divested...

The increasingly large role played by financial intermediaries, such as venture capitalists and angels, in nurturing entrepreneurial firms and in promoting product market innovation has led to great research interest in the area of entrepreneurial finance and innovation. This paper introduces...