Corporate Governance Concerns and Bankability Issues of the Digital Assets: More Guarantees with Less Collateral?

Roberto Moro-Visconti ()
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Roberto Moro-Visconti: Catholic University of the Sacred Heart
Authors registered in the RePEc Author Service: Roberto Moro Visconti

Chapter Chapter 24 in The Valuation of Digital Intangibles, 2022, pp 765-799 from Springer

Abstract: Abstract The bankability of digital assets represents a dominant aspect of the investment and valuation process. Digital intangibles create scalable value, levered by debt and serviced by incremental EBITDA and cash flows. However, they intrinsically incorporate information asymmetries and may so discourage debt but are a vital component of cash-generating value, so representing a key factor for debt servicing, with paradoxical effects (more guarantees with less collateral?). The ability to improve cash flows emerges as a key feature of value-enhancing intangibles, bypassing their lack of collateral value. Corporate governance concerns, unless softened, exacerbate bankability issues, and make the fair appraisal more difficult to carry on.

Keywords: Corporate governance; Stakeholder; Bankability; Intangibles; Debt service; Leverage; EBITDA; Cover ratio; Information asymmetries; Borrowing capacity; Agency costs of debt; Collateral; Guarantees (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-09237-4_24

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DOI: 10.1007/978-3-031-09237-4_24

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