Dynamic models of investment distortions

Shih Chuan Tsai*

*此作品的通信作者

研究成果: 雜誌貢獻期刊論文同行評審

7 引文 斯高帕斯(Scopus)

摘要

This paper studies the interaction between corporate financing decisions and investment decisions in a dynamic framework. When the production decision involves an expansion option, the firm trades off tax benefits of debt against two costs of debt financing, namely the investment distortion related to exercise of the expansion option and the loss of a valuable expansion opportunity if the firm defaults. The optimal capital structure is all equity for firms with more value in growth options (or intangible assets) and tends to involve debt financing for firms with more value in tangible assets.

原文英語
頁(從 - 到)357-381
頁數25
期刊Review of Quantitative Finance and Accounting
25
發行號4
DOIs
出版狀態已發佈 - 2005 十二月 1
對外發佈

ASJC Scopus subject areas

  • 會計
  • 商業、管理和會計 (全部)
  • 金融

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