Chichti, Jamel E.; Mansour, Walid - In: International Journal of Behavioural Accounting and Finance 3 (2012) 3/4, pp. 145-162
This paper examines investment lumpiness under incentive restrictions. When financial frictions enter the picture into the neoclassical framework, investment is no longer smooth due to the lump-sum costs that the firm incurs when raising costly external finance. Whited (2006) shows that the firm...