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We present evidence that referenda have a significant, detrimental outcome on investment. Employing an unsupervised … policy-related uncertainty. Examining the relationship of these indices with investment on a longitudinal panel of 3 … uncertainty to investment. Our preferred specification suggests that a one standarddeviation increase in Brexit uncertainty …
Persistent link: https://www.econbiz.de/10012212854
In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since … investment research. For example, not including factor prices in investment models may seriously affect the model outco! mes … can explain to a large extent why empirical estimates of the investment-uncertainty relationship differ. …
Persistent link: https://www.econbiz.de/10011349194
This paper investigates how cross-sectional micro-uncertainty influences the investment of small and large firms and … discusses the aggregate implications of the heterogeneity in their investment decisions. Empirically, we find that large firms … show less investment decline in times of heightened uncertainty. We provide empirical evidence for the underlying driver of …
Persistent link: https://www.econbiz.de/10013323777
In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since … investment research. For example, not including factor prices in investment models may seriously affect the model outcomes … can explain to a large extent why empirical estimates of the investment-uncertainty relationship differ …
Persistent link: https://www.econbiz.de/10014057062
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
We study corporate investments around national elections in India. Investment rates drop by a nonsignificant 2.2% for … investment drop of 7.4%. The decrease in investment for private firms is likely attributable to political uncertainty. SOEs … perceived positively for both private firms and for SOEs. Increased investment by SOEs and reduction in investment by private …
Persistent link: https://www.econbiz.de/10014257722
repurchase to gain an immediate, risk free, and corporate tax free wealth transfer from uninformed shareholders, instead of … undertaking a real investment with long term, risky, and taxable payoff. We also find U.S. firms reduce their R&D intensity by … investment opportunities. Evidently, financial slack at an undervalued firm does not necessarily alleviate the underinvestment …
Persistent link: https://www.econbiz.de/10012953633
that monetary policy, relative risk in fixed investment, and the risk-adjusted return gap between financial and fixed … influenced by their ownership characteristics. It is remarkable to note that the relative risk in fixed investment and …. Meanwhile, firms’ financial investment witnesses influence of the rate of the risk-adjusted return gap between financial and …
Persistent link: https://www.econbiz.de/10013404426
Nowadays, non-financial corporations invest heavily in financial assets, questioning the traditional boundaries of non-financial firms. We investigate how economic policy uncertainty affects firms' holding of non-currency financial assets and portfolios of such assets in China. We find that...
Persistent link: https://www.econbiz.de/10012871993
The interest rate is generally considered as an important driver of macroeconomic investment. As an innovation, this … paper derives the exact shape of the "hysteretic" impact of changes in the interest rate on macroeconomic investment under … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis …
Persistent link: https://www.econbiz.de/10012099522