reverting processes are rarely used in investment models in the literature. In most models, geometric Brownian motion processes … investigations of aggregate industry investment …

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 …. Overlevered firms facing high uncertainty converge to their targets substantially faster, whereas their counterparts facing low …

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 …

firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm … expenditure and debt issuance even after controlling for investment demand. Moreover, the negative effect of uncertainty on … presence of financial frictions, high price uncertainty has significant dampening effects on capital investment of small firms …

We study the combined effects of revenue and cost uncertainty as well competition on the timing optimization of …-knowledge holds. For some input-sequencing investment scenarios, we find that ex-ante and ex-post market shares play an important role … in firms behaviour. When uncertainty about the input costs and revenue are considered together with competition, the …

robust impact of asset irreversibility on the investment-uncertainty relationship as we analyze several competing channels … explaining the negative investment-uncertainty relation, such as the financial friction or the market power channel …This paper examines how industry-specific uncertainty affects firms' investments for varying degrees of asset …

This paper theoretically investigates the effect of uncertainty about future investment on expected stock returns … explain the value premium. Second, we investigate how uncertainty about investment affects expected stock returns. Based on … the closed-form solution in our framework, we suggest that less uncertainty about investment induces lower expected stock …

Initiating a conflict is an investment in social, political or economic change. The decision to attack is sequential in … conflicts ; uncertain investment in conflict ; theory of conflict ; decision to attack …

’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm’s value due to profit sharing, linking this reduction to the …