Shibata, Takashi; Nishihara, Michi - In: Journal of Banking & Finance 36 (2012) 4, pp. 981-991
This paper examines the optimal investment timing decision problem of a firm subject to a debt financing capacity constraint. We show that the investment thresholds have a U-shaped relation with the debt capacity constraint, in that they are increasing (decreasing) with the constraint for high...