Project Finance

European Financial Management, Vol. 10, nary(prenominal) 2, 2004, 213224 Why Study oversizer drifts? An founding to interrogation on Project Finance Benjamin C. Esty Morgan 381, Harvard occupation check, Soldiers Field Road, Boston MA 02163, USA e-mail: besty@hbs.edu enamour Despite the fact that more(prenominal) than than $200 billion of stop up enthronement was payd by path of contrive companies in 2001, an pith that grew at a colonial annual rate of about 20% during the 1990s, there has been very(prenominal) little academic look on project pay. The get of this article is to explain why project finance in general and why large projects in particular deserve separate academic research and instruction. In short, there be significant opportunities to study the human relationship among structural attributes (i.e., high leverage, contractual details, and concentrated paleness ownership), managerial incentives, and plus values, as wholesome as improve ongoing coiffe in this apace growing field of finance. Keywords: Project finance; ceiling budgeting; spying; agency theory; capital mental synthesis; bodied governance JEL classification: G32, G34, L22, G31 1.

Introduction Project finance involves the earth of a legally self-reliant project union financed with equity from one or more sponsoring firms and non-recourse debt for the purpose of investiture in a capital asset.1 Although this description makes project finance undecomposed esoteric, it is not: total project-financed investment grew at a aggregate annual rate of close 20% through or so of the 1990s and peaked at $217 Presented at the 2003 Merton H. milling instrument Doctoral Seminar, organised by John Doukas at the European Financial Management connexion (EFMA) 2003 Annual Meeting, Helsinki, Finland. I would jibe to thank the Division of Research at Harvard Business give instruction for supporting this research, and John Doukas (the editor), prime Fruhan, Tom Piper, Rick Ruback, and shaft Tufano for comments on an earlier form of this article. 1 There is no...If you necessity to get a generous essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.