This paper analyzes the investment timing of firms facing two dimensions of financingconstraints: Liquidity constraints and capital market frictions inducing financing costs. We showthat liquidity constraints are not sufficient to explain voluntary investment delay. However, whenadditionally...

In Shakespeare’s play The Taming of the Shrew, theprotagonist tames his beloved one. Lately, Germanpolitics has presented The Taming of the Heuschrecken(grasshoppers). Heuschrecken is the politically incorrectdescription for private equity companies, so named byFranz Müntefering, the leader...