firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm … capital investment is significantly weaker for firms that hedge their output price risk. Our analysis highlights that, in the … ability to hedge risk exposures …

how the agent’s risk attitude affects his decisions. This “Threshold Theory” framework is based on a real options approach … influence the agent’s risk attitude. The theory’s predictions help to explain many anomalies that the standard expected utility …In this paper we offer an alternative framework for examining why risk matters in the decisions of economic agents, and …

's disposition towards realizing an investment project under risk aversion. We show that capital gains taxation often reduces this …

&D outlays. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R …

's cost. When market risk increases, the equilibria can exist only when the firm is less certain …