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Preemption, Start-Up Decisions and the Firms' Capital Structure

Author

Listed:
  • Paolo M. Panteghini

    (University of Brescia and CESifo)

  • Michele Moretto

    (University of Padova and FEEM)

Abstract

In this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.

Suggested Citation

  • Paolo M. Panteghini & Michele Moretto, 2007. "Preemption, Start-Up Decisions and the Firms' Capital Structure," Economics Bulletin, AccessEcon, vol. 4(39), pages 1-14.
    • Handle: RePEc:ebl:ecbull:eb-07d90003
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    References listed on IDEAS

    as
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    Cited by:

    1. Paolo M. Panteghini & Sergio Vergalli, 2016. "Accelerated depreciation, default risk and investment decisions," Journal of Economics, Springer, vol. 119(2), pages 113-130, October.

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    More about this item

    Keywords

    capital structure;

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • G3 - Financial Economics - - Corporate Finance and Governance

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