GAUSSENS, Olivier; LECOSTEY, Sophie; SHAHBAZI, Kiumars - In: Annales d'Economie et de Statistique (2009) 93-94, pp. 233-257
We analyze in this paper the interaction between financing and investment decisions in presence of debt issuance costs. We find that, while debt issuance costs reduce tax shields, tax shields induce a higher investment trigger. Moreover, the investment trigger is a non-monotonic function of the...