This paper uses the enactment of China’s 2007 Property Law (the Law), which reduces the risk of expropriation by local … governments, as the setting to investigate the importance of property rights protection for private firm investment. Using … prior to the Law significantly increase their investment and investment efficiency after the Law. Cross-sectional analyses …

predicts that some commonly used types of breach remedies may protect too well, in the sense that they induce over-investment … provide, and the potential possibility to prevent breach by increasing the damage payment due through the investment made. The … damages, (ii) expectation damages and (iii) reliance damages. In line with theoretical predictions we find that over-investment …

Breach remedies serve an important role in protecting relationship-specific investments. Theory predicts that some … common remedies protect too well and induce over investment, either though complete insurance against potential separation or … the possibility that breach is prevented by increasing the damage payment due through the investment made. In this article …

We consider a real options model for the optimal irreversible investment problem of a profit maximizing company. The … two independent geometric Brownian motions. After paying a constant sunk investment cost, the company sells the products … on the market and thus receives a continuous stochastic revenue-flow. This investment problem is set as a twodimensional …

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 …