We develop a model of investment timing under uncertainty for a financially constrained firm. Facing external financing …, and at times as a substitute, to the real flexibility given by the optimal timing of investment. We show that: 1) the … investment timing in earlier stages in order to mitigate under-investment problems in later stages …

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 …

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 … reduces prices, but also shortens the time of developing the product and increases the probability of a successful development …

Cap and trade programs have considerable heterogeneity in permit validity and compliance timing. For example, permits … have different validity across time (e.g., banking, borrowing, and seasons) and space (e.g., zonal restrictions), and … compliance timing can be annual, in overlapping cycles, or in multi-year periods. We compare and contrast nine prominent cap and …

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 …

We develop measures of time-varying risk aversion and economic uncertainty that are calculated from financial variables … are highly correlated with economic uncertainty. Model-implied risk premiums outperform standard instruments for … predicting excess returns on equity and corporate bonds. A financial proxy to our economic uncertainty predicts output growth …

, while the time span of the data remains fixed, and the cross-sectional dimension is fixed or increasing. We derive a Central … Limit Theorem (CLT) for the cross-sectional beta dispersion at a point in time, enabling us to test whether this quantity … beta dispersion, as a function of time-of-day, changes across days. We extend this further by developing inference …

to the q-theory of investment, and how these options affect the incentive to invest. Generally, the option to expand … effect of uncertainty on investment, how these option values change in response to shifts of the distribution of future … profitability, and how the q-theory and option pricing approaches to investment are related …

exogenous uncertainty related to partner firms' technologies impact investors' decisions on CVC investments and ex post … technology acquisition. In our research setting, the most common way to exercise the option post-CVC investment is via technology …

We show how real and financial frictions amplify the impact of uncertainty shocks. We build a model with real frictions …, and find adding financial frictions roughly doubles the impact of uncertainty shocks. Higher uncertainty alongside … financial frictions induces the standard real-options effects on investment and hiring, but also leads firms to hoard cash …