This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI … constitutes a link between arbitrage choice theory and corporate investment theory, and shows that explicit discounting is not …

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 …

The authors show that there is a negative relationship between economic policy uncertainty (EPU) and firm …

Purpose: The purpose of this paper is to examine the impact of managerial optimism on corporate investment regarding … often overconfident an effort is made to highlight the effect of this psychological bias on managerial investment decision … – making. Design/methodology/approach: The research methodology is based on the approach that the investment-cash flow …

significant amplifying role for market uncertainty in the relation between sentiment and aggregate investment. A one …-standard-deviation increase in uncertainty more than doubles the effect of sentiment on investment. Moreover, allowing uncertainty …The effects of sentiment should be strongest during times of heightened valuation uncertainty. As such, we document a …

We aim at obtaining a simple quantitative rule for the joint determining of optimal corporate investment and financing …

A company's investment program is drawn up with specific reference, using a joint analysis of marginal cost of capital … (MCC) and investment opportunity schedule (IOS) curves. It is suggested to apply the modified internal rate of return (MIRR … to deal with the problem of the circling in determining the discount rate and calculating the optimal investment budget …

Does increased policy uncertainty dampen investment plans of firms? We provide direct evidence on this question by … induced policy uncertainty have revised their investment plans differently from those that did not perceive an increase in … uncertainty. We find strong evidence that an increase in policy uncertainty does lead firms to reduce their investment plans. As …

Does increased policy uncertainty dampen investment plans of firms? We provide direct evidence on this question by … induced policy uncertainty have revised their investment plans differently from those that did not perceive an increase in … uncertainty. We find strong evidence that an increase in policy uncertainty does lead firms to reduce their investment plans. As …

immediate investment and ignoring policy uncertainty … real options investment rule, and uncertain climate policy decisions delayed their investment rate; and (2) investors …Based on panel data of 214 licenses to construct small hydropower plants, we examine whether uncertainty with respect …