the literature, our empirical findings reveal a negative impact of firm-specific uncertainty on investment. However …, further results show that the investment response is asymmetric, depending on the size and direction of the forecast error …. The investment propensity declines significantly if the realized situation is worse than expected. However, firms do not …

Corporate investment decisions require managers to forecast expected future cash flows from potential investments … infer the quality of their corporate investment decisions. Relying on the intuition that managers draw on similar skills … when generating external earnings forecasts and internal payoff forecasts for their investment decisions, we predict that …

–2011 affect firms’ investment propensity. Understanding how forecast errors affect firm investment behaviour is key to mitigate … impact of absolute forecast errors on investment. Strikingly, asymmetries arise depending on the size and direction of the … forecast error. The investment propensity declines if the realised situation is worse than expected. However, firms do not …

We study how the quality of investors' information across horizons influences investment. In our theory, managers care … about how investment is impounded in current stock prices. Because prices imperfectly reflect investment’s value, they under …