Regime Uncertainty and Optimal Investment Timing

We construct a real options model in which a regime change is expected at a pre-determined future time and study the effects of regime uncertainty on a firm's strategic investment decision, taking into consideration the remaining time to the regime change and the probability of each regime state. We show that just before the time of a regime change, firms should act as if the worst-case scenario was about to happen, even if a good state is highly possible

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Year of publication:	2009
Authors:	Nishide, Katsumasa ; Nomi, Ernesto Kazuhiro
Publisher:	[S.l.] : SSRN
Subject:	Theorie \| Theory \| Realoptionsansatz \| Real options analysis \| Politisches System \| Political system \| Politische Instabilität \| Political instability
Description of contents:	Abstract [papers.ssrn.com]

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Extent:	1 Online-Ressource
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Journal of Economic Dynamics and Control, Vol. 33, No. 10, pp. 1796-1807, October 2009 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 3, 2009 erstellt Volltext nicht verfügbar
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; D92 - Intertemporal Firm Choice and Growth, Investment, or Financing ; G32 - Financing Policy; Capital and Ownership Structure
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014209938