This document contains the Online Appendices for the paper Capital Structure, Product Market Dynamics, and the Boundaries of the Firm.The paper to which these Appendices apply is available at the following URL: "http://ssrn.com/abstract=1767483" http://ssrn.com/abstract=1767483

We study how a firm's optimal integration decision depends on the interaction between the product markets and capital markets in which it operates. An integrated firm operates an internal capital market, which provides allocative flexibility but does not allow the firm to commit to specific...

We study how the creation of an internal capital market (ICM) can invite strategic responses in product markets that, in turn, shape firm boundaries. ICMs provide ex post resource flexibility, but come with ex ante commitment costs. Alternatively, stand-alones possess commitment ability but lack...