WebFeb 1, 2005 · This paper provides a theory of debt and hedging based on human capital. We distinguish human capital from physical capital in two ways: (1) human capital is inalienable and can exercise a one ... WebThis paper explores the hypothesis that the rise in intangible capital is a fundamental driver of the secular trend in US corporate cash holdings over the last decades. Using a new measure,we show that intangible capital is the most important firm-level determinant of corporate cash holdings.

Human capital investment and debt constraints

WebConsider an entrepreneur whocneeds to raise funds from an investor, but cannot commit not to withdraw his human capital from the project. The possibility of a default or quit puts … WebDownloadable! This paper provides a theory of debt and hedging based on human capital. We distinguish human capital from physical capital in two ways: (1) human capital is inalienable and can exercise a one-sided option to leave the firm, and (2) human capital is not perfectly replaceable. We show that a firm may reach the first best solution while … cloud software group bangalore

Human capital investment and debt constraints - ResearchGate

Webof human capital? Inalienability of Human Capital Since human capital cannot be alienated in the same way as physical asset, no contract can totally solve the problem of … Weboverlapping generations model with endogenous human capital formation. We endogenize the debt constraint in a manner suggested by Kehoe and Levine (1993, 2000). In this setup, debt constraints arise owing to the inalienability of certain types of assets (primarily human capital, but also various government entitlements). WebJan 1, 2024 · Request PDF On Jan 1, 2024, Sabri Boubaker and others published Inalienable Human Capital and Debt Choice: Evidence from Quasi-Exogenous Shocks Find, read and cite all the research you need on ... c2h6 is polar or nonpolar