CORPORATE GROWTH OPPORTUNITIES, OWNERSHIP STRUCTURE, AND THE THEORY OF INVESTMENT
CONSTANTIN ZAHARIA • NICOLAE TUDORESCU• IOANA ZAHARIA • GEORGE C. ZAHARIAABSTRACT. Aggarwal and Kyaw hold that optimal debt structure minimizes net total agency and other costs of debt including its ability to deal with under- and over-investment problems. Becker-Blease and Paul put it that the increase in liquidity effectively expands the set of viable investments because it decreases the cost of capital. Baum et al. indicate that even in the presence of important firm-specific variables, uncertainty is an important determinant of firms’ investment behavior. Gilchrist et al. derive a model to investigate the effect of exogenous changes in the dispersion of investor beliefs on equilibrium stock prices, financing behavior, and real investment.