This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We … in response to changes in either macroeconomic or idiosyncratic uncertainty. We test this hypothesis using a panel of non … increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …

Economic theory predicts that earnings uncertainty increases precautionary saving and causes households to include … affect the household's portfolio. Both permanent and transitory earnings uncertainty boost total wealth, and this … compensation and income taxes provide insurance that reduce earnings uncertainty. As a result, precautionary saving is both …

We investigate the analytical and empirical linkages between cash flow, uncertainty and firms' capital investment … behavior. Our empirical approach constructs measures of own- and market-specific uncertainty from firms' daily stock returns … important firm-specific variables, uncertainty is an important determinant of firms' investment behavior. Depending on the …

In this paper we hypothesize that greater macroeconomic uncertainty would cause firms to increasingly turn to their …-financial firms drawn from the annual COMPUSTAT database and show that an increase in macroeconomic uncertainty leads to a narrowing …

We find that U.S. corporations' demand for liquidity is sensitive to two important factors: uncertainty facing the firm … firms' cash holdings. Our results also indicate that the interactions between uncertainty and governance measures are … significant. From a policy perspective, these new findings indicate both governance and the nature of uncertainty may play an …

firm-specific and macroeconomic uncertainty changes. Our estimates show that the influence of leverage on capital … investment may be stimulating or mitigating depending on the effects of uncertainty. …

uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as macroeconomic uncertainty … uncertainty increases, firms decrease their levels of leverage. Furthermore, we demonstrate that our results are robust with …

-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty … from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to …

industrialized countries (NICs) over 1980–2006 shows that exchange rate uncertainty has a consistent positive and significant effect … on the volatility of bilateral trade flows. A one standard deviation increase in exchange rate uncertainty leads to an … that exchange rate uncertainty does not affect the volume of trade flows of either industrialized countries or NICs. …

We test whether uncertainty in the CEO's compensation influences the firm's investment decisions, using panel … minimize the impact of such risk. We provide evidence that CEOs with high earnings uncertainty invest less. As expected, the … negative impact of permanent earnings uncertainty on firm investment is larger than that of transitory earnings uncertainty …