We investigate the relative importance of sector and country factors in explaining the variation of leasing penetration rates across industries in Europe. According to our results, country effects represent the dominant driving factor for leasing when compared to sector effects. An explanation...

There is a lack of consensus regarding the sign of the uncertainty-investment relationship, with a strand of the literature suggesting a positive sign, and the Real Options Theory (ROT) advocating a negative relationship. As a way of testing the ROT, this paper empirically investigates its main...