We use forward-looking and exogenous measures of output price uncertainty to examine the effect of price uncertainty on … firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm … size. When faced with high price uncertainty, large firms increase their hedging intensity but do not lower capital …

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 …

model to investigate the role of uncertainty and financial constraint in understanding the leasing decisions of corporate … firms. The model predicts that firms with high uncertainty over their future profits and firms that are more financially … constrained prefer to lease more of their capital than firms with low uncertainty and firms that are less financially constrained …

investment using information on firms' demand expectations, uncertainty, and credit constraints, based on the Bank of Italy … uncertainty does not seem to have played a significant role in explaining investment dynamics during the crisis …

This study tests for the presence of real options effects induced by uncertainty and (partial) irreversibility on fixed … aggregated over multiple investment decisions in separate types of capital goods and emphasizes effects of uncertainty on short …-run investment dynamics. Using a survey-based measure of uncertainty related to the assessment of managers responsible for the firms …

Uncertainty appears to have both a short-run and a long-run component, which we measure using firm and macro implied … volatility data from equity options of 30 days to 5 years duration. We ask what may be driving uncertainty over these different … time horizons, finding that policy uncertainty, interest rate volatility, and currency volatility are particularly …