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on Corporate Finance |
| By: | Hwang, Sunjoo |
| Abstract: | By examining project-level data on real estate project financing (PF), I find that higher equity ratios are associated with lower overall risk and reduced project costs. This finding supports policy measures aimed at strengthening capital structures without unduly constraining PF activity. If regulatory lending limits are to be introduced, they should target only lowequity PF projects. Moreover, preferred shares should be recognized as regulatory-eligible equity capital, and the deferral of capital gains tax should be made permanent to encourage in-kind land contributions. It is equally important to address regulatory arbitrage involving Project Finance Vehicles (PFVs), which are often exploited to pursue large-scale developments with minimal capital. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:331223 |
| By: | G. Atzeni; P. Arca; A. Carosi |
| Abstract: | This paper examines whether climate-risk mitigation investments enhance firms' access to bank credit, with a particular focus on small and medium-sized enterprises (SMEs), which typically operate in information-opaque environments. We hypothesise that the adoption of mitigation practices serves as a signal of managerial quality, which is positively perceived by financial institutions. Using firm-level data from the Enterprise Survey conducted by the EBRD, EIB, and World Bank Group, we estimate an endogenous switching regression model to account for selection on both observables and unobservables. Firms are classified into mitigation-intensive and low-mitigation regimes based on their adoption of ten climate-related practices. Our results show that firms in the mitigation-intensive regime have a 38.6% higher probability of accessing credit compared to the counterfactual scenario, while firms in the low-mitigation regime would increase their probability by 28.9% if they adopted more mitigation measures. The difference between the treatment effects confirms positive selection into the mitigation-intensive regime and supports the signalling hypothesis. |
| Keywords: | climite-risk mitigation measures;Bank Credit;endogenous switching;Signalling |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cns:cnscwp:202513 |
| By: | Ruiqing Cao; Abhishek Bhatia |
| Abstract: | The rapid diffusion of generative artificial intelligence (GenAI) has substantially lowered the costs of launching and developing digital ventures. GenAI can potentially both enable previously unviable entrepreneurial ideas by lowering resource needs and improve the performance of existing ventures. We explore how founders' technical and managerial expertise shapes GenAI's impact on digital ventures along these dimensions. Exploiting exogenous variation in GenAI usage across venture categories and the timing of its broad availability for software tasks (e.g., GitHub Copilot's public release and subsequent GenAI tools), we find that the number of new venture launches increased and the median time to launch decreased significantly more in categories with relatively high GenAI usage. GenAI's effect on new launches is larger for founders without managerial experience or education, while its effect on venture capital (VC) funding likelihood is stronger for founders with technical experience or education. Overall, our results suggest that GenAI expands access to digital entrepreneurship for founders lacking managerial expertise and enhances venture performance among technical founders. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.06545 |