This paper examines the role of uncertainty and capital market imperfection in influencing firm investment …. Introduction of uncertainty in the investment model allows for limited expandability and limited reversibility of capital over time … group. We identify financially constrained firms in various years by relying on investment-asset sale sensitivity. Using an …

important but often neglected element of micro- and macroeconomic theory. With the onset of the financial crisis in 2007 and the … investment decisions play with regard to business cycle fluctuations.<br><br>However, the inclusion of real option values in … of uncertainty in macroeconomic models against the background of the theory of real option values, with a strong focus on …

This book presents an up-to-date overview of the theory as well as the empirics of the relationship between investment … investment theory, professionals in the financial sector and students of macroeconomics and finance. Investment, Capital Market …, the authors discuss both traditional investment models with uncertainty and the more modern option based models. They …