investment. Using panel data on public companies functioning in developed countries, the authors prove that with increasing … uncertainty surrounding a firm, the real options effect increases the influence of financial constraints on investment. To this …

Low investment rates are a puzzling phenomenon particularly in transition economies with an urgent need for … modernisation. The literature offers two alternative explanations: imperfect capital markets and investment reluctance due to real … real option effects may lead to erroneous conclusions in the context of empirical investment equations …