タイトル(掲載誌)Discussion Papers In Economics And Business
一般注記We develop a dynamic model in which a firm exercises an option to expand productionon either a small or large scale with cash reserves and costly external funds. We show thatthe financing costs greatly distort the firm's financing and investment behavior and resultin a policy contingent on the dynamics of the cash flow and reserves. Most notably, weprove that an intermediate level of cash reserves is likely to accelerate investment in thesmall-scale project by interactions among financing costs, investment timing, and investmentsizing. Our results fill the gap between two types of results: (i) empirical findings ina U-shaped relation between the investment volume and internal funds, and (ii) empiricalpredictions of a U-shaped relation between the investment timing and internal funds.
連携機関・データベース国立情報学研究所 : 学術機関リポジトリデータベース(IRDB)(機関リポジトリ)