: capital investment, hiring, research and development, and advertising. We find that uncertainty depresses capital investment …There is wide debate over the impact of uncertainty on firm behavior, due to the difficulty both of measuring … uncertainty and of identifying causality. This paper takes three steps that attempt to address these challenges. First, we develop …

A typical model of investment under uncertainty, where firms pay an irreversible cost in order to produce, is studied …

dispersion of idiosyncratic investment returns. An increase in uncertainty delays cross-border flows to the affected country. Yet …This paper studies the impact of uncertainty on cross-border investments. We build a data set of firm-level outward … Foreign Direct Investments between 2000 and 2015. We create a time and country varying measure of uncertainty based on the …

We analyze the impact of trade policy uncertainty on investment in the euro area. Our identification strategy assumes … respect to trade uncertainty. We find that the investment-to-GDP ratio is on average 0.8 percentage points lower for five … that countries that are relatively more dependent on global trade networks exhibit a higher sensitivity of investment with …

This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI … constitutes a link between arbitrage choice theory and corporate investment theory, and shows that explicit discounting is not …

investment dynamics. By doing so, we compare five prominent uncertainty proxies put forward in the recent literature: the … type of uncertainty proxy, we document pronounced negative investment responses to uncertainty shocks. We further show that …Investment fell sharply in the euro area after the financial crisis and has not yet returned to pre-crisis levels in …

) examining the association between this index and investment in risky projects. Using relative pay-at-risk as a proxy for risk …

This paper examines whether tax uncertainty can alter investment decisions, focusing primarily on the timing of large … tax uncertainty, finding that, on average, firms responded by delaying large capital investments. This effect is stronger …, we find managers buffer against higher tax uncertainty with cheaper sources of financing or cash, leading to an …

Building on a literature that underscores the value of delaying investment in the face of uncertainty, we study how … policy uncertainty in fifteen large economies affects trade flows into these countries. We show that high levels of … uncertainty in destination markets are associated with significantly lower exports to those markets. Furthermore, consistent with …

In this paper we investigate whether managerial overconfidence benefits shareholders when economic uncertainty is high …. Consistent with managerial overconfidence mitigating the underinvestment problems exacerbated by high economic uncertainty, we … find that during periods of import tariff cuts and the global financial crisis, investment and firm value are higher for …