Almeida, Heitor; Campello, Murillo; Weisbach, Michael S. - In: Journal of Corporate Finance 17 (2011) 3, pp. 675-693
We study a model in which future financing constraints lead firms to have a preference for investments with shorter payback periods, investments with less risk, and investments that utilize more pledgeable assets. The model also shows how investment distortions towards more liquid, safer assets...