Template-type: ReDif-Paper 1.0
Author-Name: Letterie Wilko
Author-Name: Laar Mindel van de
Author-workplace-name: METEOR
Title: The delaying effect of financing constraints on investment
Abstract: We develop a simple model in which a firm considers a number of investment projects. Because of limited financial resources, the firm can undertake at most one project. In line with the literature on real options we stress features like irreversibility, uncertainty and the possibility to postpone the investment decision and argue that financing constraints tend to increase the value of waiting.
Keywords: Economics ; 
Series: Research Memoranda
Creation-Date: 2003
Number: 004
File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:c768c1fb-3745-4068-9a57-0052cc4dd2fd/datastreams/ASSET1/content
File-Format: application/pdf
File-Size: 47343
Handle: RePEc:unm:umamet:2003004