The aim of this paper is to investigate the effect of economic policy uncertainty on firms' investment decisions. We … focus on Spain for the period 1998-2014. To measure policy-related uncertainty, we borrow the economic policy uncertainty … (EPU) indicator available for this country. We find strong evidence that uncertainty reduces corporate investment. This …

In this paper, we analyze the effect of financial uncertainty on corporate investment using firm-level panel data from … the Republic of Korea. We find that financial uncertainty has a significant negative effect on corporate investment, and … investment irreversibility amplify the negative effect of uncertainty. The inverted U-shaped curve of the uncertainty effect …

In this study, we analyse the effect of financial uncertainty on corporate investment using firm-level panel data from … the Republic of Korea. We find that financial uncertainty has a significant negative effect on corporate investment, and … constraints and investment irreversibility amplify the negative effect of uncertainty. The inverted U-shaped curve of the …

This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI … which, compared with the risk-adjusted cost of capital, correctly signals wealth creation. For choosing between two mutually … exclusive projects, we derive an incremental AROI and an incremental risk-adjusted cost of capital, by means of which two …

We present a model of firm investment under uncertainty and partial irreversibility in which uncertainty is represented … impact the optimal investment and disinvestment policies, and how the presence oflarge negative jumps can drastically affect … negative effect of uncertainty on firm investment decisions. We test these predictions on a panel dataset of UK firms: we first …

affiliation of the future governor is a source of political risk to firms considering business investment. More importantly, the …We estimate the effect of electorally induced policy uncertainty on investment in the manufacturing sector. Because …, and because the policies relevant to business investment vary systematically by party, uncertainty over the partisan …

This paper reviews corporate investment decisions under risk. Various situations are discussed such as that of a single …Der folgende Überblicksbeitrag untersucht betriebliche Investitionsentscheidungen bei Risiko. Dabei werden verschiedene … entrepreneur or that of several owners. In addition, tradable securities may or may not exist. If such trade exists, investment …