In this paper we introduce flexibility as an economic concept and apply it to the firm’ssecurity issuance decision and … ofthis theory of capital structure evolution is that optimal capital structure is essentiallydynamic, and depends on the firm …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory …

We develop an economic theory of “flexibility”, which we interpret as the discretion orability to make a decision that … value of the flexibilityoption is decreasing in the extent to which the decisionmaker’s future decision-relevantopinion is … correlated with the opinions of others who may be able to impede the decision.We argue that flexibility drives economic decisions …

-cycle theory of debt maturity …

In this paper we introduce flexibility as an economic concept and apply it to the firm’s security issuance decision and …-issuance choices. The strongest implication of this theory of capital structure evolution is that optimal capital structure is … when stock prices are low. The theory explains many stylized facts that fly in the face of existing capital structure …

In this paper we introduce flexibility as an economic concept and apply it to the firm’ssecurity issuance decision and … ofthis theory of capital structure evolution is that optimal capital structure is essentiallydynamic, and depends on the firm …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory …

We develop a theory of multiperiod debt structure. A simple trade-off between the termination threat required to make …