discount rate uncertainty is associated with increased firm investment of 6.8%, while profitability decreases by 4.1% …

Uncertainty over future business conditions lies at the heart of firm decision-making. Uncertainty can arise from a … decisions are affected by uncertainty. We also highlight recent advances in the measurement of uncertainty, distinguishing … between approaches that gauge aggregate uncertainty and those that capture different dimensions of firm-specific uncertainty …

We use forward-looking and exogenous measures of output price uncertainty to examine the effect of price uncertainty on … firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm … size. When faced with high price uncertainty, large firms increase their hedging intensity but do not lower capital …

We study the effects of uncertainty on corporate leverage adjustments with respect to investment spikes and find that … overlevered and underlevered firms behave very differently in response to the combination of uncertainty and investment spikes …. Overlevered firms facing high uncertainty converge to their targets substantially faster, whereas their counterparts facing low …

This paper examines how industry-specific uncertainty affects firms' investments for varying degrees of asset … other). We find that uncertainty only depresses capacity expansion investments, while non-capacity expansion investments … investments into the most irreversible capital goods will decrease if uncertainty raises. We provide several tests confirming the …

explain this finding with reference to CEO prior uncertainty: due to information asymmetry and/or uncertainty about the …. Consistent with this explanation, CEOs with higher prior uncertainty exhibit higher first-year delta: First-year delta is higher …

Theory suggests that uncertainty can play an important role in determining firms' decisions to shut down operations. In … this paper, I provide evidence that input-price uncertainty leads to significant and persistent reductions in plant exits … price uncertainty within a same industry and region with shocks to exchange rate uncertainty, and monthly data on the timing …

Using terrorist attacks as an exogenous shock to safety uncertainty, we provide causal evidence that firms located near … uncertainty, consistent with Abadie and Gardeazabal's (2008) theoretical model …