Koussis, Nicos; Martzoukos, Spiros H. - In: The European Journal of Finance 18 (2012) 7, pp. 619-637
A contingent claims model is used to study the impact of debt-financing constraints on firm value, optimal capital structure, the timing of investment and other variables, such as credit spreads. The optimal investment trigger follows a U shape as a function of exogenously imposed constraint....