This study examines how the effect of uncertainty on capital investment varies between focused firms and conglomerate … frictions, I find that uncertainty, measured by industry-level stock return volatility, has a negative effect on investment … among focused firms but has no statistically significant effect on investment among conglomerate segments. I also show that …

the level of external financing and corporate investment activities, we find evidence consistent with the market timing …. Controlling for R&D investment, we find that, consistent with the market timing hypothesis and inconsistent with the extant …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …

Traditional finance theory suggests that riskier investments should yield higher returns. Challenging this notion … aversion, resulting in lower return investment choices. Therefore, we assess whether incentives associated with stock option … compensation (“vega”), presumed to increase managers' appetite for risk, uniformly yield higher returns on R&D investment. Our …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …” expected returns; the investment approach is no more and no less “causal” than the consumption approach in “explaining …

managers have a consistent impact on corporate policies, providing support for the "behavioral consistency" theory. Further …

We show that Quantitative Easing (QE) stimulates investment via a corporate-bond lending channel. Fed's large … issuing relatively "safe'' bonds. Using micro-data around QE, we find that QE increases firm-level investment by 7 … debt lowers "safe'' corporate bond yields, stimulating investment …

The Modern Portfolio Theory (MPT) has been the cornerstone of the asset allocation for over 40 years. In the past …, such as the recent sub-prime crisis. The proposed Leveraged Portfolio Theory (LPT) removes the most fundamental axiom of …

liquidity. A framework is presented to determine the risk profile of a venture, to estimate the risk of investment loss, the … maximum potential investment loss, the maximum amount of financing available to a startup, the minimum percentage equity for …

's risk-taking incentive and investment choice. We find the average chief executive officer's (CEO) compensation contract … assess the effects on investment of FAS 123R and a hypothetical ban on option grants and find heterogeneous responses that …