growth is also a central concern to both the practice and theory of business strategy. Despite both its theoretical and … robust theory of firm growth. This paper attempts to address this gap in our empirical knowledge of firm growth using a …

, which enables increased leverage and investment. In the absence of frictions in the securitization process, we show that the … required to repay debt and finance new investments when the economy is hit by a negative shock. Moreover, the equilibrium may … be constrained inefficient due to the existence of a pecuniary externality that can result in over or under-investment …