Agliardi, Elettra; Andergassen, Rainer - In: Review of financial economics : RFE 18 (2009) 3, pp. 142-155
This paper develops a real option model in which the interaction between debt, liquidation policy and risky investments is studied. We consider a manager who owns the firm and faces the opportunity to invest in risky pro jects which may bo ost current profits at the cost of bankruptcy if they...
