Strebulaev, Ilya A.; Zhu, Haoxiang; Zryumov, Pavel - 2013 - This version: November 18, 2013
We study the optimal timing of security issuance to finance a new project when the firm's assets in place have unobservable quality. Stochastic cash flows generated by assets in place reveal information about their quality and simultaneously reduce the required outside funding. A high-quality...