The investment decision and its financing in a changing institutional environment: the case of an electronuclear facility

This document analyzes the consequences of the questioning of the hypothesis of independence between the investment and financing decisions, on the investment choice of a nuclear power company in a European market progressively opening to competition. This company, which can get into debts on the financial market, is taxable and can go bankrupt. It is shown that its investment opportunity, totally irreversible in self-financing, can become partially reversible for inter-dependent investment and financing decisions. (J.S.)