Recently, a guarantee-investment combination financing mode is popular. This paper considers an entrepreneur who has exclusively an option to invest in a project. The investment is irreversible but delayable with a growth option. Thanks to the financing mode, the initial investment cost is...

We consider loan guarantees and security token offerings (STOs). If information is symmetric, STOs are better than loan guarantees. Under asymmetric information we identify the highest equity price making imitation unprofitable. A pooling (separating) equilibrium is reached through loan...

An entrepreneur faces non-diversifiable business risk and liquidity constraints. We provide a unified framework that embeds these frictions to study interdependent business start-up/entry, capital accumulation/asset sales, portfolio allocation, consumption/saving, and business exit decisions....

We develop an incomplete-markets q-theoretic model to study entrepreneurship dynamics. Precautionary motive, borrowing constraints, and capital illiquidity lead to underinvestment, conservative debt use, under-consumption, and less risky portfolio allocation. The endogenous liquid...

We develop an incomplete-markets q-theoretic model to study entrepreneurship dynamics. Precautionary motive, borrowing constraints, and capital illiquidity lead to underinvestment, conservative debt use, under-consumption, and less risky portfolio allocation. The endogenous liquid...

We develop an incomplete-markets q-theoretic model to study entrepreneurship dynamics. Precautionary motive, borrowing constraints, and capital illiquidity lead to underinvestment, conservative debt use, under-consumption, and less risky portfolio allocation. The endogenous liquid...