We examine the interaction between investment and financing policies in a dynamic model for a firm with existing assets …-in-place and a growth option, of which investment cost is financed with equity and contingent convertible bond (CoCo). We attempt … to clarify how CoCo impacts on investment timing, capital structure and the inefficiencies arising from debt overhang and …

After critiquing arguments and evidence associated with the trade-off theory, the pecking order model, and the market … inversely related to) the value of the firm's profitable investment opportunities. We test the hypothesis using data on U …

I propose a neoclassical production economy with costly external financing, partial investment irreversibility, and … endogenous investment/financing decisions to rationalize and quantify the well-documented interaction between the book … arises in economic downturns because of the risk-enhancing investment/financing behavior of firms with a net worth below the …

effect can lead to an incorrect investment decision …

investment market, financial Internet communications create the integrated pace of world economic system. The companies test …

follow the tradeoff theory of capital structure will be lower than target ratios for assets in place. Our results can … rationalize some empirical financing patterns that seem inconsistent with the tradeoff theory, but rigorous tests of the theory …