Article ID Journal Published Year Pages File Type
5069738 Finance Research Letters 2013 7 Pages PDF
Abstract
► Optimal capital structure is studied in a RO model with time-to-build. ► Firm increases initial leverage to reduce the impact of delayed cash flows. ► Time-to build has a substantial impact on firm values. ► The higher volatility, competitive erosion and investment costs, the higher its impact. ► Debt maturity also matters.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Optimal capital structure and the impact of time-to-build
Authors
, ,