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 …

reverting processes are rarely used in investment models in the literature. In most models, geometric Brownian motion processes … investigations of aggregate industry investment …

This paper examines the impact of economic policy uncertainty on economic growth due to its effects on firms …' investment decisions, which subsequently justify firms' financial constraints. Using a sample of Chinese listed firms, the study … documents that economic policy uncertainty reduce firms' financial constraints. The reduction in financial constraints stems …

stochastic shocks imply that investment in radical innovation may very often be too time consuming and/or expensive to remain …We refine modelling of the radical innovation decision in this paper by extending real option theory to include non …

stochastic shocks imply that investment in radical innovation may very often be too time consuming and/or expensive to remain …We refine modelling of the radical innovation decision in this paper by extending real option theory to include non …

-based family of products or processes. A comparison of the numerical solution for a model with incremental product innovation, and … that with incremental process innovation, reveals that the central difference between the two is reflected in the optimised … production plan. In either case, the optimal research plan is characterised by an initially high but declining rate of investment …

market share across firms when assessing creditworthiness. The model is able to capture features of innovation and diffusion …

development and fluctuations. In many such applications, a key role is played by complementarities in the process of innovation …

We propose to analyse the hyperbolic discounting preferences effect on the innovator's research investment decision …. Investing in research allows him to acquire information, and then to reduce the uncertainty of the risks of his project. We find … that whatever the innovator's preferences, that is hyperbolic or time-consistent, there exists a research investment …