This paper investigates the interactions between preemptive competition and leverage. We find that the second mover always leaves the duopoly market before the first mover, although the leader may exit before the follower’s entry. We also see the leverage effects of debt financing increasing firm values and accelerating investment, even in the presence of preemptive competition. In addition to ...

This paper argues that trade liberalization has a potentially significant impact on financial leverage. We compare the predictions of the trade-off model of capital structure with the pecking order model. In the first case, we suggest that trade liberalization affects the trade-off between the tax advantages of debt and expected bankruptcy costs. This implies that a reduction in domestic tariff...

We introduce the concept of ordinal pattern dependence between time series and show in an explorative study that both types of this dependence show up in real world nancial data. The classical way to capture the leverage e ect in models for stock markets is to assume a negative correlation between the two datasets which is constant in time (e.g. Barndor Nielsen and Shepard (2002)). However, the...

Rework in construction development projects can significantly degrade project cost and schedule performance. In a typical construction development project which involves design and construction, rework in the construction phase could increase construction cost by 10%-15% of the contract price (Burati. 1992, Josephson & Hammerlund 1999, Love & Li 2000). The proportion of money and time spent on ...