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 …

distress reduce their derivative portfolios and why they may shift to physical delivery contracts. Using hand-collected data …

This paper examines the effects of firm-level common ownership on the level and efficiency of investment when firms … a deadweight loss for the economy through decreased investment. Proponents of common ownership suggest that it allows … firms to increase investment due to a reduced threat of involuntary knowledge spillover to rivals. This study contributes to …

This paper investigates the effect of uncertainty on R&D investment. We find that firms invest more in R&D when they … support the theory of strategic growth option in which firms under competition follow preemptive strategy when they face high …

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 …

find that during periods of import tariff cuts and the global financial crisis, investment and firm value are higher for …

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 bias affects corporate investment decisions and firm financial performance, and we test additional predictions derived … discount rate uncertainty is associated with increased firm investment of 6.8%, while profitability decreases by 4.1% …