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Identifier

000466270

Title

Cross-Ownership Dynamics in Investment Financing / Konstantinos Paitakis.

Alternative Title

Δυναμικές της διασταυρούμενης ιδιοκτησίας στη Χρηματοδότηση επενδύσεων

Author

Παϊτάκης, Κωνσταντίνος

Thesis advisor

Ζορμπάς Δημήτριος

Reviewer

Νικολίτσα Δάφνη
Εμβαλωμάτης Γρηγόριος

Abstract

In my thesis, I investigate the impact of cross-ownership on the timing of irreversible investments under uncertainty, using the Real Options Approach (ROA). Specifically, I study a scenario in which a firm, unable to bear the full cost of an investment independently, forms a joint venture with a bank. The interaction between the firm and the bank is modeled as a two-stage leader-follower game. The bank first determines the allocation of the investment’s surplus, while the firm decides when to initiate the investment. The analysis focuses on cases of partial passive bilateral and unilateral cross-ownership, and the impact on investment timing is compared to a scenario without cross-ownership. I also allow for both symmetric and asymmetric ownership stakes. In a bilateral cross-ownership setting, the effect on time is non-monotonic and depends on the ratio of equity stake and the exogenous share of financing. Conversely, in the unilateral ownership setting, the timing of the investment follows a monotonic pattern. If the leader holds an equity stake in the follower, the investment is accelerated; otherwise, it is delayed.

Language

English

Subject

Cross-Ownership

Joint ventures

Optimal investment timing

Overlapping ownership

Real options

Αλληλεπικαλυπτόμενη Ιδιοκτησία

Βέλτιστος Χρόνος Επένδυσης

Διασταυρούμενη Ιδιοκτησία

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