Two Polish entrepreneurs were so passionate about windmills that their friends nicknamed them "Don Quixote." Their plan to make money through free wind energy convinced banks to back their ambitious wind farm project. But when the project encounters delays, some begin to question whether they have adequately accounted for all the risks associated with such a large-scale capital project. Were these two about to live up to their deluded eponym?
Arce, Oscar; Campa Fernández, José Manuel; Gavilán, A.
How do different financing conditions affect investments, allocation of credit and output across sectors? IESE's José M. Campa, Óscar Arce, of the Bank of Spain, and Ángel Gavilán, of BBVA, explore financing conditions in the construction sector in a number of OECD countries during the decade prior to the 2007 financial crisis. Their findings present an interesting model, with salutary lessons for investors.
Sancho Gargallo, Carlos; Santomá Juncadella, Javier
If two companies from different countries with a contractual relationship have a conflict, it behooves them to go through an arbitrator rather than the national court system. According to IESE's Carlos Sancho and Javier Santomá, the procedure is faster, less expensive and ensures a greater degree of confidentiality than a lawsuit.