Agliardi, Elettra; Koussis, Nicos - In: Finance Research Letters 10 (2013) 3, pp. 124-130
We develop a dynamic investment options model with optimal capital structure and evaluate the effect of time-to-build … on firm value and leverage choices. With time-to-build the firm increases initial leverage in order to reduce the impact … of delayed cash flows resulting from time-to-build. The impact of time-to-build is more severe the higher the revenue …