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Financing constraints, irreversibility, and investment dynamics

✍ Scribed by Andrea Caggese


Book ID
113725794
Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
658 KB
Volume
54
Category
Article
ISSN
0304-3932

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Investment and dividends under irreversi
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Research ΓΏnds that ΓΏrms' investment and dividend policies are distorted by irreversibility and ΓΏnance constraints. Existing work considers the impact of each such friction in isolation. Using a real options framework, I explain how the investment and payout decisions interact over time when irrevers