Investment Reversibility and Agency Cost of Debt
通过动态模型证明，债务融资导致的投资低效程度取决于投资的可逆性，可逆性越高则低效上限越低，完全可逆时低效为零。
Previous research has argued that debt financing affects equity-holders' investment decisions, producing substantial inefficiency. This paper shows that the size of this inefficiency depends on the degree of investment reversibility. In a dynamic model of financing and investment, the paper provides an upper bound for the inefficiency produced by debt financing. The upper bound is decreasing in the degree of investment reversibility and is zero when investment is perfectly reversible.