consumption, portfolio allocation, financing, investment, and business exit decisions. The optimal capital structure is determined …

financial crises. We develop a tractable model of dynamic corporate financial management (cash accumulation, investment, equity …. The stochastic financing conditions have rich implications for investment and risk management: (1) investment can be … issuance, risk management, and payout policies) for a financially constrained firm facing time-varying external financing costs …

management when external financing conditions are stochastic. Firms value financial slack and build cash reserves to mitigate … market timing motive can cause investment to be decreasing (and the marginal value of cash to be increasing) in financial … cash, and the risk premium over time. Thus, a firm may still appear unconstrained based on its relatively smooth investment …

center of corporate financial management. The firm balances mean-variance investment efficiency and the preservation of … indefinitely commit her human capital to the venture, which limits the firm's debt capacity, distorts investment and compensation …

and its optimal state-contingent risk management policies make its debt risk-free. Optimal debt-GDP ratio dynamics are …