Theoretical models of investment under uncertainty predict that the sign and the strength of the investment … investment and the market power of the firm. This paper investigates the effects of uncertainty on the investment decisions of a …. Consistent with the predictions of the theory, there is considerable heterogeneity in the effect of uncertainty on investment: it …

This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …

This paper models the effect of disclosure on real investment. We show that, even if the act of disclosure is costless … cutting investment. Investment depends on asset pricing variables such as investors' liquidity shocks; disclosure depends (non … optimal to induce investment, the manager may be unable to commit to it. If hard information turns out to be good, he will …

crucial novel feature is the competition between lenders in their choice of contracts offered. The quality of investment … projects is unobservable by banks and entrepreneurs’ investment decisions are not contractible, but output conditional on … investment is. The paper explains the empirically observed prevalence of debt contracts as an equilibrium phenomenon with …

traders to arbitrageurs? We study firm business investment to address this question. In our model, benevolent managers of … with positive net present value. Empirically, we find a positive relation between investment and a number of proxies for … mispricing, controlling for investment opportunities and financial slack, suggesting that overpriced (underpriced) firms tend to …

We model corporate liquidity policy and show that aggregate risk exposure is a key determinant of how firms choose … with high aggregate risk find it costly to get credit lines and opt for cash in spite of higher opportunity costs and … liquidity premium. Likewise, in times when aggregate risk is high, firms rely more on cash than on credit lines. We verify these …

model’s predictions: First, investment and access to finance are positively correlated with accounting transparency … transparency on investment, and encourages transparency by financially dependent firms. …