Grenadier, Steven R.; Malenko, Andrey; Strebulaev, Ilya A. - In: Journal of Financial Economics 111 (2014) 1, pp. 137-157
We provide a real-options model of an industry in which agents time abandonment of their projects in an effort to protect their reputations. Agents delay abandonment attempting to signal quality. When a public common shock forces abandonment of a small fraction of projects irrespective of...
