successful in reducing capital requirements. Indeed the proposed local hedging scheme benefits from a higher exposure to equity …

This paper investigates the effect of uncertainty on R&D investment. We find that firms invest more in R&D when they …

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 …

investment and idiosyncratic risk in the absence of agency problem. A simple real options model predicts that the negative … relation between corporate investment and idiosyncratic risk is a U-shaped function of the level of idiosyncratic risk …: investment responds the most when idiosyncratic risk is at the intermediate level. And the negative relation is stronger when …

This paper empirically investigates the relation between uncertainty and investment among China's listed companies, and … analyzes the influence of government control on the investment-uncertainty relation. We find that there is a negative relation … between total firm uncertainty and investment in China's listed companies. However, this holds only for privately controlled …

explore corporate data to investigate how economic uncertainty affected investment, dividend payouts and cash holdings, based … of England. These data demonstrate that heightened economic uncertainty lowered investment even after controlling for … investment opportunities, sales growth, and the firm's own stock volatility. Economic uncertainty also explains the rise in cash …

gap is reliably and positively associated with firm performance and risk and with the riskiness of investment and …

shocks to their borrowing cost. It develops a dynamic model of corporate investment and financing decisions subject to real … size distribution and replicates the untargeted negative relationship between firm size and investment rates and cash … holdings. Cash holdings help firms sustain investment when access to debt becomes costly or restricted. However, a shock to …

the dynamic relation between corporate investment and financing conditions. It demonstrates that the cautionary effect … that makes actual corporate investment decisions indifferent to the firm's financing conditions increases in higher … uncertainty irrespective of the type of corporate investment—capital investment and R&D—and is more pronounced in firms with less …