Optimal Capital Structure of Power Plant Projects with Various Bargaining Powers in Project Negotiations
| Autor: | Fen-May Liou, Borliang Chen |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Finance
Capital structure Power station Renewable Energy Sustainability and the Environment business.industry 020209 energy media_common.quotation_subject 0211 other engineering and technologies Energy Engineering and Power Technology 02 engineering and technology Microeconomics Negotiation Bargaining power Nuclear Energy and Engineering Loan Simulated data 021105 building & construction 0202 electrical engineering electronic engineering information engineering Economics Debt ratio business Waste Management and Disposal Civil and Structural Engineering media_common |
| Zdroj: | Journal of Energy Engineering. 143 |
| ISSN: | 1943-7897 0733-9402 |
| DOI: | 10.1061/(asce)ey.1943-7897.0000407 |
| Popis: | Identifying the optimal capital structure or optimal debt ratio for a physical project is a critical issue for decision makers who aim to maximize project worth. The debt ratio initially designed by the project company is finally determined during loan negotiations between project company and loan providers. With simulated data from a power plant project, this study conducted a two-party game model to examine the optimal capital structure with various combinations of bargaining powers between project company and loan providers. The results showed that the combination of bargaining powers between participants in the loan negotiation significantly affects the optimal debt ratio. The debt ratio was higher when the project company had more influence on the bargain, and it reached the highest level when the two parties had equal bargaining power. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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