Hanjoon Ryu
Areas of Expertise
Corporate Finance
Macrofinance
Featured Work
Dilutive Financing
Jun 1, 2026
This paper presents a dynamic model of firm financing where firms use financial slack to reduce rent extraction by financiers with bargaining power. Financing is lumpy because it is optimal to bargain infrequently. Moreover, firms may finance ‘early’ before exhausting internal funds to bargain when their outside options are better. Financing rents are thus endogenous to firms' dynamic financing strategy. Firms with good financing alternatives...
