Investment timing, debt structure, and financing constraints

• Published in: European journal of operational research Vol. 241; no. 2; pp. 513 - 526
• Main Authors: Shibata, Takashi, Nishihara, Michi
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.03.2015; Elsevier Sequoia S.A
• Subjects: Bond issues; Debt issuance limit constraints; Debt structure; Default; Finance; Investment policy; Investment strategies; Market timing; Operations research; Rates of return; Real options; Spread; Studies; Debt issuance limit constraints; Real options; Finance; Debt structure; Investment strategies

•We examine how debt issuance limits influence the structure of investment, financing, and debt.•An increase in debt issuance limits leads to a preference for the issue of market debt over bank debt.•Investment strategies are nonmonotonic with respect to debt issuance limits.•Debt issuance limits cr...