This study examines how the effect of uncertainty on capital investment varies between focused firms and conglomerate … frictions, I find that uncertainty, measured by industry-level stock return volatility, has a negative effect on investment … among focused firms but has no statistically significant effect on investment among conglomerate segments. I also show that …

positive, approximately linear, trade-off between average return and systematic risk (beta) for portfolio returns of common …

a positive, approximately linear, trade-off between average return and systematic risk (beta) for portfolio returns of …

investment and expected returns. In imperfectly competitive industries, a firm's exposure to systematic risk is jointly affected … by its own investment strategy and the investment strategies of its industry peers, such that the dynamics of its …

. The result is a negative and economically significant relation between pension risk and corporate investment. The effect …Failure to correct for pension risk leads to upward-biased discount rate estimates in firms with pension risk exposure … is confined to investment decisions that require discount rate estimates. Moreover, it is stronger if project value is …

investment/risk link overturns key findings from prior incomplete contracting studies. We find that, if the investing manager has … his own share of the investment-induced risk premium (we label this a "risk transfer"), whereas the principal internalizes …We demonstrate a novel link between relationship-specific investments and risk in a setting where division managers …

, consequently, investors’ ability to hedge risk. We show that this is a robust feature of general investment decisions, and outline …Financial markets enable risk sharing and efficient allocation of capital. We characterize how these roles interact in … a “feedback effects” model with diversely informed, risk-averse investors and a manager who learns from prices when …

This paper theoretically investigates the effect of uncertainty about future investment on expected stock returns …. Based on a real options framework, we incorporate the learning-by-doing effect to analyze the irreversible investment … problem. In our investment decision framework, the timing of expansion is endogenous and results from a value …