Financing terms and investment decisions are jointly determined. This interdependence links firms' asset and liability … sides and can lead to short-termism in investment. In our model, financing frictions increase with the investment horizon …-best investment opportunities are long-term may change their investments towards second-best projects of shorter maturities. This …

investment opportunities. We find that publicly traded companies increase their external financing, and their subsequent product …

investment-grade ratings appear to be financially constrained. …

We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing … costs, the firm prefers to fund its investment through internal funds, so that the firm's optimal investment policy and …, and at times as a substitute, to the real flexibility given by the optimal timing of investment. We show that: 1) the …

We propose and test a theory of corporate liquidity management in which credit lines provided by banks to firms are a … implication that firms with low hedging needs (high correlation between cash flows and investment opportunities) are more likely …

follow the tradeoff theory of capital structure will be lower than target ratios for assets in place. Our results can … rationalize some empirical financing patterns that seem inconsistent with the tradeoff theory, but rigorous tests of the theory …

debt is strongly negatively correlated with corporate debt and investment, but strongly positively correlated with … strategy influences firms' capital structures and investment policies. …