We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing … costs, the firm prefers to fund its investment through internal funds, so that the firm's optimal investment policy and …, and at times as a substitute, to the real flexibility given by the optimal timing of investment. We show that: 1) the …

In this article we develop a model to analyze patent-protected R&D investment projects when there is (imperfect … to deal with investments under uncertainty is extended to incorporate the game theoretic concepts required to deal with …. These benefits to society are countered by increased total investment costs in R&D and lower aggregate value of the R …

idiosyncratic and systematic risk lead developers to delay new real estate investments. Empirically, a one-standard deviation …We examine the extent to which uncertainty delays investment and the effect of competition on this relationship using a … increase in the return volatility reduces the probability of investment by 13 percent, equivalent to a 9 percent decline in …

The real options framework has been used extensively to analyze the timing of investment under uncertainty. While …. We extend the real options framework to model the investment timing decisions of entrepreneurs with such time …-inconsistent preferences. Two opposing forces determine investment timing: while evolving uncertainty induces entrepreneurs to defer investment …

Government subsidies are often used to stimulate environment-friendly investment. We find that Chinese firms reduce … green investment as the uncertainty of subsidies rises. This effect is identified from weather-driven fluctuations in air … pollution that lead to fluctuations in subsidy allocations: Firms in cities where weather-driven subsidy uncertainty is high …

Despite the fact that one of the main goals of corporate venture capital (CVC) investments in high-tech industries is … to gain a window on future technologies, the relationship between CVC investments and strategies used to acquire … literature suggesting that CVC investments can be used as real options in the markets for technology. Accordingly, we formulate …

to the q-theory of investment, and how these options affect the incentive to invest. Generally, the option to expand … profitability, and how the q-theory and option pricing approaches to investment are related …Capital investment decisions must recognize the limitations on the firm's ability later to sell off or expand capacity …

value (APV). The risk-free rate of interest must be after-tax. Debt capacity depends on the APV and target debt ratio for … the underlying asset, on the option delta and on the amount of risk-free borrowing or lending that would be needed for … follow the tradeoff theory of capital structure will be lower than target ratios for assets in place. Our results can …

standard methodology for valuing litigation risk. This paper proposes a dynamic real options framework for the valuation of … valuation. This approach offers a novel risk management and valuation tool for a range of stakeholders, including investors … relevance of the methodology by applying it to an actual international investment arbitration case …

The paper studies the effects of tax policy on venture capital activity. Entrepreneurs pursue a single high risk …, progressive taxation as well as investment and output subsidies to the entrepreneurial sector …