Project Finance

European Financial management, Vol. 10, No. 2, 2004, 213224 Why Study large Projects? An Introduction to Research on Project Finance gum benjamin C. Esty Morgan 381, Harvard caper check, Soldiers Field Road, Boston MA 02163, USA email: besty@hbs.edu view Despite the fact that more than $200 one thousand thousand of corking investment was payd by means of contrive companies in 2001, an amount that grew at a compound annual step of almost 20% during the 1990s, there has been very little faculty member research on project pay. The purpose of this article is to beg off why project finance in general and why large projects in particular merit sepa order pedantic research and instruction. In short, there are significant opportunities to hire the relationship among structural attributes (i.e., high leverage, contractual details, and concentrated candor ownership), managerial incentives, and plus values, as well as alter current coiffe in this rapidly growing demesne of finance. Keywords: Project finance; uppercase budgeting; contracting; agency guess; capital mental synthesis; corporate governance JEL categorization: G32, G34, L22, G31 1.

Introduction Project finance involves the creation of a legitimately independent 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 definition makes project finance sound esoteric, it is not: totality project-financed investment grew at a compound annual rate of almost 20% through most of the 1990s and peaked(p) at $217 Presented at the 2003 Merton H. milling ! machine Doctoral Seminar, organise by potty Doukas at the European Financial Management Association (EFMA) 2003 Annual Meeting, Helsinki, Finland. I would corresponding to thank the air division of Research at Harvard Business School for supporting this research, and John Doukas (the editor), Bill Fruhan, Tom Piper, Rick Ruback, and dick Tufano for comments on an foregoing version of this article. 1 There is no...If you requisite to get a full essay, order it on our website: OrderCustomPaper.com

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