In this paper, we analyze the effect of financial uncertainty on corporate investment using firm-level panel data from … the Republic of Korea. We find that financial uncertainty has a significant negative effect on corporate investment, and … investment irreversibility amplify the negative effect of uncertainty. The inverted U-shaped curve of the uncertainty effect …

This paper deals with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI … which, compared with the risk-adjusted cost of capital, correctly signals wealth creation. For choosing between two mutually … exclusive projects, we derive an incremental AROI and an incremental risk-adjusted cost of capital, by means of which two …

We derive a new equation for the optimal investment boundary of a general irreversible investment problem under … the Wiener-Hopf factorization allow us to derive an integral equation for the optimal investment boundary. In case the … underlying Lévy process hits any point in R with positive probability we show that the integral equation for the investment …

investment; the impact of uncertainty on investment occurs primarily through changes in credit spreads; and innovations in credit … spreads have a strong effect on investment, irrespective of the level of uncertainty. These findings raise a question … financial shocks. By influencing the effective supply of credit, both types of shocks exert a powerful effect on investment and …

Government subsidies are often used to stimulate environment-friendly investment. We find that Chinese firms reduce … green investment as the uncertainty of subsidies rises. This effect is identified from weather-driven fluctuations in air … engage in less green R&D investment, patent applications, and research staff. Industries that are heavy emitters and those …

In this study, we analyse the effect of financial uncertainty on corporate investment using firm-level panel data from … the Republic of Korea. We find that financial uncertainty has a significant negative effect on corporate investment, and … constraints and investment irreversibility amplify the negative effect of uncertainty. The inverted U-shaped curve of the …

corporate investment decisions and how this impact varies across countries having better governance quality. To achieve the … reveals an inverse relationship between EPU and corporate investment while a direct relationship between governance quality … and corporate investment. In addition to individual impact, better governance quality can mitigate the magnitude of the …

We study corporate investments around national elections in India. Investment rates drop by a nonsignificant 2.2% for … investment drop of 7.4%. The decrease in investment for private firms is likely attributable to political uncertainty. SOEs … perceived positively for both private firms and for SOEs. Increased investment by SOEs and reduction in investment by private …

The aim of this paper is to investigate the effect of economic policy uncertainty on firms' investment decisions. We … focus on Spain for the period 1998-2014. To measure policy-related uncertainty, we borrow the economic policy uncertainty … (EPU) indicator available for this country. We find strong evidence that uncertainty reduces corporate investment. This …