- the act of turning yourself (or your gaze) away
- a feeling of intense dislike
- She felt an aversion to him.
- In other words, imperfect or asymmetric information tends to exacerbate risk aversion.
- When required returns increase (for example owing to an increase in investors’ risk aversion), the price of zero coupon bonds falls, resulting in an immediate loss in capital.
- Risk aversion: investors may become more reluctant to provide risk capital to SMEs, the more the provision of risk capital is subject to imperfect of asymmetric information.
- Regarding the access to capital of small and young enterprises, the main difficulties of equity financing are the high transaction and agency costs as well as the risk aversion of investors related to risk capital investments.
- In these cases there may be an additional shortage of capital available for them given their remote location from venture capital centres, the lower population density, and the increased risk-aversion of private investors.
- Taking into account the risk aversion of the economic agents, the sale of HSY would be preferred over the liquidation of HSY only if the statistical expectancy of payments following from the guarantee would be significantly smaller than EUR 6 million.
- This problem may be even greater for risk capital measures targeting SMEs in assisted areas. In these cases there may be an additional shortage of capital available for them given their remote location from venture capital centres, the lower population density, and the increased risk-aversion of private investors.