negative abnormal capital investment/return relation is shown to be stronger for firms that have greater investment discretion … to the empire building implications of increased investment expenditures. Although firms that increase capital … investments tend to have high past returns and often issue equity, the negative abnormal capital investment/return relation is …

variable is the particular decision stage at which a global risk is resolved: (i) before the investment decision; (ii) after … the investment decision, but before the resolution of the decision risk; (iii) after the resolution of the decision risk …

This paper experimentally investigates investment behavior.We find that global risk – i.e. risk independent of an agent …’sinvestment decision (like political risk) – substantiallydecreases investment. Also effort to obtain the capital usedfor investment … decreases investment substantially. Theseresults are neither in line with expected utility theory norwith psychologically …

classical investment theory. The presence of a price floor and learning from personal experience during the experiment do not …In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a … options approach and the classical investment theory can predict farmers’ investment behaviors. We also examine differences in …

measured during the experiment.Main findings are that delayed resolution can affect investment, that the effect depends on the … investment task. Moreover,emotions were explicitly measured, including anticipatory emotions experienced during the waitingperiod …-based questionnaire before the experiment and participants' preferencesfor resolution timing, risk, and time were incentive compatibly …