Showing 1 - 10 of 3,346
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 …
Persistent link: https://www.econbiz.de/10012820828
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 …
Persistent link: https://www.econbiz.de/10013299801
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 …
Persistent link: https://www.econbiz.de/10014491718
This study investigates whether economic policy uncertainty (EPU) magnifies peer effects in corporate investment in …' investment activities, we show that peer effects are stronger when EPU is higher. We also find that greater EPU lowers the …
Persistent link: https://www.econbiz.de/10012855795
The authors show that there is a negative relationship between economic policy uncertainty (EPU) and firm overinvestment using Korean data from 2007 to 2016. Since Jensen (1986) shows that a firm's free cash flow is an important factor of overinvestment, the authors examine how free cash flow...
Persistent link: https://www.econbiz.de/10012658770
The aim of this paper is to investigate the effect of policy uncertainty on firms' investment decisions. We focus on … this country. We find strong evidence that policy uncertainty reduces corporate investment. Furthermore, the heterogeneous … decrease investment significantly more than their counterparts. Overall, these results are consistent with the hypotheses that …
Persistent link: https://www.econbiz.de/10012906286
reverting processes are rarely used in investment models in the literature. In most models, geometric Brownian motion processes … investigations of aggregate industry investment …
Persistent link: https://www.econbiz.de/10013150516
, uncertainty reduces corporate investment and employment. Using a novel firm-level measure of cash flow uncertainty, we find … empirically that uncertainty has a strong negative impact on corporate employment and investment in both tangible and intangible …, investment in tangibles would increase by 1.54%, and investment in intangibles would increase by1.29%. Our findings are robust to …
Persistent link: https://www.econbiz.de/10013092449
This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI … constitutes a link between arbitrage choice theory and corporate investment theory, and shows that explicit discounting is not …
Persistent link: https://www.econbiz.de/10012973932
between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory … outcomes. More importantly, we find evidence that the relation between policy uncertainty and capital investment is not uniform … in the cross section, being significantly stronger for firms with a higher degree of investment irreversibility and for …
Persistent link: https://www.econbiz.de/10012974775