Belhaj, Mohamed; Klimenko, Nataliya - HAL - 2012
costly debt financing. Our analysis shows that lump-sum debt issuance costs play a prominent role in a determination of the … optimal investment strategy. Faced with larger lump-sum debt issuance costs, a firm will optimally set up a higher …-sum debt issuance costs, the optimal investment scale of financially constrained firms exhibits an inverted U …