Investment timing with fixed and proportional costs of external fnancing

Nishihara, Michi; Shibata, Takashi

Investment timing with fixed and proportional costs of external fnancing

Nishihara, Michi; Shibata, Takashi

Discussion Papers In Economics And Business, 2011, 11-29

アクセス数:153件（2025-03-13 16:12 集計）

固定URL: https://hdl.handle.net/11094/13389

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タイトル	Investment timing with fixed and proportional costs of external fnancing
著者	NRID 1000020456940 1000020456940 ORCID 0000-0003-2673-1250 0000-0003-2673-1250 researchmap permalink nishiharamichi nishiharamichi Scopus Author ID 23397674300 23397674300 著者名 Nishihara, Michi
著者	NRID 1000070372597 1000070372597 著者名 Shibata, Takashi
キーワード等	Real options
	investment timing
	costly external financing
	growth option
	optimal stopping
抄録	We develop a dynamic model in which a firm exercises an option to expand productionwith cash balance and costly external funds. While related papers explain their resultsonly by numerical examples, we analytically prove the following results. In the presence ofonly a proportional cost of external financing, the firm with more cash balance invests earlier;however, the presence of both proportional and fixed costs leads to a non-monotonicrelation between the investment time and cash balance. The firm with more cash balanceinvests later to save a fixed cost, particularly when the cash balance is close to theinvestment cost. Our results can potentially account for a variety of empirical resultsconcerning the relation between investment volume and financing constraints.
出版者	Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
収録物名	Discussion Papers In Economics And Business
巻(号)	11-29
刊行年月	2011-11
言語	英語
ハンドルURL	https://hdl.handle.net/11094/13389
NCID	AA1160366X
関連情報 (references)	URI http://www2.econ.osaka-u.ac.jp/library/global/dp/1129.pdf
アクセス権	metadata only access
カテゴリ	ディスカッション／ワーキング・ペーパー DP/WP
カテゴリ	Discussion Papers In Economics And Business

資源タイプ	テクニカルレポート
ローカル資源タイプ	ディスカッション／ワーキング・ペーパー
DCMI資源タイプ	text
DCTERMS.bibliographicCitation	Discussion Papers In Economics And Business. 2011, 11-29
DC.title	Investment timing with fixed and proportional costs of external fnancing
DC.creator	Nishihara, Michi
DC.creator	Shibata, Takashi
DC.publisher	Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
DC.language' scheme='DCTERMS.RFC1766	英語
DC.type' scheme='DCTERMS.DCMIType	text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2011-11
DC.relation' scheme='DCTERMS.URI	http://www2.econ.osaka-u.ac.jp/library/global/dp/1129.pdf
DC.subject	Real options
	investment timing
	costly external financing
	growth option
	optimal stopping
DCTERMS.abstract	We develop a dynamic model in which a firm exercises an option to expand productionwith cash balance and costly external funds. While related papers explain their resultsonly by numerical examples, we analytically prove the following results. In the presence ofonly a proportional cost of external financing, the firm with more cash balance invests earlier;however, the presence of both proportional and fixed costs leads to a non-monotonicrelation between the investment time and cash balance. The firm with more cash balanceinvests later to save a fixed cost, particularly when the cash balance is close to theinvestment cost. Our results can potentially account for a variety of empirical resultsconcerning the relation between investment volume and financing constraints.
DC.format	13389
citation_title	Investment timing with fixed and proportional costs of external fnancing
citation_author	Nishihara, Michi
citation_author	Shibata, Takashi
citation_publisher	Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
citation_language	英語
citation_date	2011-11
citation_journal_title	Discussion Papers In Economics And Business
citation_volume	11-29
citation_public_url	https://hdl.handle.net/11094/13389
citation_abstract_html_url	http://www2.econ.osaka-u.ac.jp/library/global/dp/1129.pdf

Investment timing with fixed and proportional costs of external fnancing

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