Limited liability debt financing of irreversible investments can affect investment timing through an entrepreneur …'s option value, even after compensating a lender for expected default losses. This non-neutrality of debt arises from an … truncating the lower tail of risks, thereby lowering the investment threshold. Compensating the lender for expected default …

possibilities is dangerous for them and is hard to rebuild possibilities to create cash revenues. Financial liquidity investment …

In this paper we investigate corporate investment behavior using a large panel of Hungarian firms between 1993 and 2002 …, the effect of user cost changes on investment is significant and robust across several specifications providing strong … evidence against simple sales-accelerator models of investment. Firms' cash-flow proved to be a significant determinant of …

In this paper we investigate corporate investment behavior using a large panel of Hungarian firms between 1993 and 2002 …, the effect of user cost changes on investment is significant and robust across several specifications providing strong … evidence against simple sales-accelerator models of investment. Firms' cash-flow proved to be a significant determinant of …

may default.  To signal their capabilities, the contenders may finance their bids through debt or equity, depending on the … effort and exacerbates default more than risky debt does. … social choice function cannot be achieved by any mechanism using only debt financing and can be achieved by a mechanism using …

investment dynamics with partial commitment drastically differ from those with full and no commitment. In particular, investment …