| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965791 | Journal of Macroeconomics | 2011 | 9 Pages |
Abstract
⺠We model a company's investment size, timing and financing decisions simultaneously. ⺠Optimal debt financing generally results in delayed but larger investment. ⺠Delayed (accelerated) investment size is generally larger (smaller) in size. ⺠But when tax rate or bankruptcy cost is increased, investment is delayed but smaller. ⺠Overall, models should not ignore firm's choice of investment size and debt financing.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sudipto Sarkar,