When investment is irreversible, theory suggests that firms will be "reluctant to invest." This reluctance creates a … wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We … we label the irreversibility premium. Estimates are based on panel data for the period 1980-2001. The large dataset …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …

When investment is irreversible, theory suggests that firms will be “reluctant to invest.” This reluctance creates a … wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We … we label the irreversibility premium. Estimates are based on panel data for the period 1980-2001. The large dataset …

variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two … irreversibility constraints. The financing constraint implies that firms cannot borrow unless the debt is secured by collateral; the … irreversibility constraint that they can only sell their fixed capital by selling their business. We use this model to examine the …

Research finds that firms' investment and dividend policies are distorted by irreversibility and finance constraints … theoretical result concerns the separation of the investment and payout thresholds. The ordering of investment and distribution … the constraints drive these results. Important ramifications for empirical work on investment are discussed. …

persistent decline in investment. Moreover, the territorial dispute has led to persistent pessimism in these firms' expectations … about future sales, which can explain 60% of the overall decline in investment. …

analysis of firm investment, suggesting that high uncertainty may transmit to investment and bank loans mainly through the real …This paper studies how high uncertainty affects corporate bank loans, addressing the important identification issue. In … times of high uncertainty, firms reduce their credit demand due to delayed investments or a deterioration in their credit …

investment (FDI) from its trend. Moreover, despite the quick recovery of local sales, Japanese MNCs in China have continued to …

-level uncertainty and imperfect information over their life cycle. We find that firms make non-negligible and positively correlated … informed. Moreover, young firms tend to wait long before entering or exiting the market faced with high uncertainty about their …

investment (FDI) from its trend. Moreover, despite the quick recovery of local sales, Japanese MNCs in China have continued to …