@Article{mfj:804,
title={Corporate Finance and the (In)efficient Exercise of Real Options},
author={Bart Lambrecht and Grzegorz Pawlina},
journal={Multinational Finance Journal},
volume={14},
number={3/4},
pages={189--217},
year=2010,
publisher={Multinational Finance Society; Global Business Publications},
url={http://www.mfsociety.org/../modules/modDashboard/uploadFiles/journals/MJ~783~p170793v9p1v9oig18u3tfc14pd4.pdf}
keywords={real options, product market competition; costly search; financing constraints; agency problem},
abstract={This paper considers real options within a continuous-time corporate finance context. We analyze whether these real options are exercised effciently, and what the underlying sources of inefficiency are. In particular we consider the role of incomplete information, competition, search costs and financing constraints on investment decisions. We also analyze the stockholder-bondholder and the manager-stockholder agency problems, and their effect on a firm's investment and closure policies..},
}