returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … the firm's exposure to IST shocks and risk premia. Our calibrated model replicates: i) the predictability of returns by …

This paper considers investment decisions within an uncertain dynamic and competitive framework. Each investment … theory where the capacity level is given. We consider a monopoly setting as well as a duopoly setting. Our main results are …

This paper examines the effects of firm-level common ownership on the level and efficiency of investment when firms … a deadweight loss for the economy through decreased investment. Proponents of common ownership suggest that it allows … firms to increase investment due to a reduced threat of involuntary knowledge spillover to rivals. This study contributes to …

This study examines how the effect of uncertainty on capital investment varies between focused firms and conglomerate … frictions, I find that uncertainty, measured by industry-level stock return volatility, has a negative effect on investment … among focused firms but has no statistically significant effect on investment among conglomerate segments. I also show that …

This paper investigates the effect of uncertainty on R&D investment. We find that firms invest more in R&D when they … support the theory of strategic growth option in which firms under competition follow preemptive strategy when they face high …

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 …