This paper studies the effect of durability on the financing of durable assets. We show that more durable assets … the price of an asset and hence the overall financing need more than its collateral value. This insight has implications … for the choice between new and used capital, technology adoption, and the rent versus buy decision. Constrained borrowers …

This review evaluates the four major theories of corporate financing: (1) the Modigliani–Miller theory of capital …-structure irrelevance, in which firm values and real investment decisions are unaffected by financing; (2) the trade-off theory, in which … financing responds to managers’ personal incentives; and (4) the pecking-order theory, in which financing adapts to mitigate …

This paper examines the role of capital market conditions and target leverage on the marginal financing decisions of … hypothesis whereby REITs have target leverage, but they also choose and time their marginal financing decisions according to the … behavior in the financing decisions of REITs. In particular, we find strong and consistent evidence that REITs exhibit market …