NISHIHARA, Michi; SHIBATA, Takashi - Graduate School of Economics, Osaka University - 2013
preemptive competition. In addition to the case with optimal capital structure, we analyze a case with financing constraints that … require firms to finance investment costs by debt. Notably, financing constraints can delay preemptive investment and improve … firm values in preemptive equilibrium. Indeed, the leaderfs high leverage due to the financing constraints can lower the …