frictions are costly equity issuance and incomplete markets. We show that the marginal source of external financing on an on …

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

investment and financing decisions. In our model, corporate risk management involves internal liquidity management, financial … external cost of financing; 3) the firm's liquidation value; 4) the opportunity cost of holding cash; 5) investment adjustment …

obtained financing, and finds that formal institutions, such as banks and securities markets, played only a very limited role …

Firms face uncertain financing conditions and are exposed to the risk of a sudden rise in financing costs during … issuance, risk management, and payout policies) for a financially constrained firm facing time-varying external financing costs … financing opportunities also induce firms to rationally time the equity market, even if they have no immediate needs for cash …

We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing …