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We investigate the impact of expectations about future climate policy on investment decisions of fossil fuel firms. Our … empirical analysis reveals that firms with greater exposure to climate change significantly increased their investment in … response to the Paris Agreement, in contrast to firms with lower exposure. Importantly, investment was directed towards …
Persistent link: https://www.econbiz.de/10014558848
This paper analyses the impact of exchange rate uncertainty upon the pattern of investment in different exchange rate … exchange rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending …
Persistent link: https://www.econbiz.de/10011400788
-level corporate investment and GPR. When the GPR index doubles, investment rate in the next quarter declines by 14% of its sample mean …. The effect is more pronounced for firms with more irreversible investment or higher market power, confirming the real … with a higher labor-to-capital ratio, supporting the convex return theory. Furthermore, the impact of GPR on investment …
Persistent link: https://www.econbiz.de/10012850561
economic conditions. Owing to this, the current research tends to disclose the impact of economic policy uncertainty (EPU) on …A stable economic condition is crucial for an organization's success. Any fluctuation in economic policy directly … corporate investment decisions and how this impact varies across countries having better governance quality. To achieve the …
Persistent link: https://www.econbiz.de/10014500430
-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes … the simulated investment sequences from the model mimic the actual investment sequences. I find that policy uncertainty …
Persistent link: https://www.econbiz.de/10014198834
This paper examines the impact of economic policy uncertainty on economic growth due to its effects on firms … documents that economic policy uncertainty reduce firms' financial constraints. The reduction in financial constraints stems … policy uncertainty increase firms' financial constraints. The study recommends that changes in policies must be done …
Persistent link: https://www.econbiz.de/10013224908
Persistent link: https://www.econbiz.de/10014281033
We investigate the cost of capital in a model with an agency conflict between inside managers and outside shareholders. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs depends on a parameter representing investor...
Persistent link: https://www.econbiz.de/10011623466
Persistent link: https://www.econbiz.de/10009532885
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