In this paper we investigate how demand and output price uncertainty affect investment plans of Belgian manufacturing … literature: two reduced form equations and a structural Euler equation. Our results show that uncertainty depresses investment …, uncertainty postpones investment today in favour of investment tomorrow. This effect is stronger for firms with more irreversible …

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 …

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 …

The authors show that there is a negative relationship between economic policy uncertainty (EPU) and firm …

This paper investigates whether and how economic policy uncertainty affects corporate debt maturity. Using a large firm …-level dataset for four European countries, we find that an increase in economic policy uncertainty is significantly associated with … investment and steepened term structure as the transmission mechanisms. …

This paper investigates whether and how economic policy uncertainty affects corporate debt maturity. Using a cross … uncertainty is significantly associated with a shortened debt maturity. Specifically, a 1% increase in economic policy uncertainty …, the impacts of economic policy uncertainty are stronger for innovation-intensive firms. We use firms' flexibility in …

in time. We show that in each problem, all risk-averse decision makers have the same (problem-dependent) ranking over … short- term risky assets. Moreover, in each of these problems, the ranking is represented by the same risk index as in the …

explore this possibility, I develop a theory that unifies models of investment choice, informal risk sharing, and formal … inefficiencies. First, borrowers free-ride on their partners, making risky investments without compensating partners for this risk …. Second, the addition of peer-monitoring overcompensates, leading to sharp reductions in risk-taking and profitability. Equity …