We consider the role of construction lags or time-to-build (TTB) in a firm's dynamic investment and financing decisions. We conjecture that construction lags can lead firms to finance large projects with equity so as to maintain financial flexibility during the construction period. After project...

We introduce the concept of the post-merger integration duration (PMID) which is the time delay that it takes a merged entity to fully capture synergistic gains. Using a dynamic model, we examine the effects of this duration on acquiring firms' financing behavior around mergers. When facing a...