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We introduce debt issuance limit constraints along with market debt and bank debt to consider how financial frictions affect investment, financing, and debt structure strategies. Our model provides four important results. First, a firm is more likely to is ...
We consider how equity holders' bargaining power during financial distress influences the interactions between financing and investment decisions when the firm faces the upper limit of debt issuance. We obtain four results. First, weaker equity holders' ba ...
Steam networks and their utilities should be dimensioned to satisfy day-to-day demand as well peaks. Peaks can be caused by unit start-ups, extreme weather conditions or combinations of high demand from process units. During maintenance operations or unexp ...
We propose a model of a firm's reversible investment decision with macroeconomic conditions based on optimal switching of a diffusion regime. The switching costs and the cash flow generated from the firm depend on a business cycle alternating via a Markov ...
This study examines the role of reputation on decision making under ambiguity. Drawing on social cognition and behavioral theories, we propose that a firm's reputation exerts dual pressures on its decision making under ambiguity. On the one hand, a firm's ...
The architect Antonio Croci was born in Mendrisio on April 7th 1823. In 1837, he applies to the Brera Academy of Fine Arts in Milan where he studied ornament, architecture, aesthetics and perspective. Documents kept in the historical archive in Mendrisio w ...
We consider the capacity planning of telecommunications networks with linear investment costs and uncertain future traffic demands. Transmission capacities must be large enough to meet, with a high quality of service (QoS), the range of possible demands, a ...
We develop a model of investment, financing, and cash management decisions in which investment is lumpy and firms face uncertainty regarding their ability to raise funds in the capital markets. We characterize optimal policies explicitly and show that the ...
As more and more solar tower thermal power plants are being operated, built or planned, effort is put both on the development and research to bring costs down and increase the plant efficiency. In those plants, the central receiver is one of the key compon ...
We build a model of investment and financing decisions to study the choice between bonds and bank loans in a firm's marginal financing decision and its effects on corporate investment. We show that firms with more growth options, with higher bargaining pow ...