a growth option, I analyze how PSD affects equityholders' investment and financing incentives. With no pre-existing debt …

have a significantly higher investment-cash flow sensitivity than comparable private firms. These differences in investment … agency-based explanation, since differences in investment-cash flow sensitivities can only be observed for the unexpected …. Our study adds a new aspect to the ongoing debate on the effect of a stock market listing on a firm's investment decisions …

debt when financing investment to retain financial flexibility. Underutilization of debt persists even when firms exercise … their last investment options, and it is more (less) severe for more back-loaded (front-loaded) investment opportunities …. Thus, leverage dynamics crucially hinge upon the structure of the investment process and otherwise identical firms appear …