Project Finance

European Financial Management, Vol. 10, zero(prenominal) 2, 2004, 213224 Why Study bigger visualises? An launch to question on Project Finance Benjamin C. Esty Morgan 381, Harvard gag check, Soldiers Field Road, Boston MA 02163, USA e-mail: besty@hbs.edu see to it Despite the fact that much than $200 billion of cork up investiture was payd by operator of contrive companies in 2001, an nitty-gritty that grew at a raise annual rate of roughly 20% during the 1990s, there has been precise little academic look for on project pay. The heading of this article is to explain wherefore project finance in general and why cock-a-hoop projects in particular deserve separate academic research and instruction. In short, there be significant opportunities to study the affinity among structural attributes (i.e., high leverage, contractual details, and concentrated fairness ownership), managerial incentives, and plus values, as tumesce as improve modern coiffe in this apace growing field of finance. Keywords: Project finance; capital letter budgeting; detection; agency theory; capital mental synthesis; bodied governance JEL classification: G32, G34, L22, G31 1.

Introduction Project finance involves the cosmos of a legally self-reliant project union financed with equity from one or more(prenominal) sponsoring firms and non-recourse debt for the purpose of investiture in a capital asset.1 Although this translation makes project finance serious esoteric, it is not: total project-financed investment grew at a unite annual rate of closely 20% through or so of the 1990s and peaked at $217 Presented at the 2003 Merton H. milling motorcar Doctoral Seminar, organised by John Doukas at the European Financial Management affiliation (EFMA) 2003 Annual Meeting, Helsinki, Finland. I would interchangeable to thank the Division of Research at Harvard Business shallow for supporting this research, and John Doukas (the editor), standard Fruhan, Tom Piper, Rick Ruback, and son of a bitch Tufano for comments on an earlier sport of this article. 1 There is no...If you undeniable to get a full essay, order it on our website: Orderessay

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