the literature, our empirical findings reveal a negative impact of firm-specific uncertainty on investment. However …, further results show that the investment response is asymmetric, depending on the size and direction of the forecast error …. The investment propensity declines significantly if the realized situation is worse than expected. However, firms do not …

generalized LRR model is as tractable but more flexible due to its separation of ambiguity aversion from both risk aversion and … variance premium puzzle besides the puzzles of the equity premium, the risk-free rate, and the return predictability …. Specifically, the model matches reasonably well key asset-pricing moments with risk aversion under 5. Model calibration shows that …

risk of extreme climate conditions. However, being confronted with inaccurate forecast systems may undermine individuals …

backtest at the 1% risk level for single models and for linear and log pools. We also find that the robust VaR backtest … exhibited by linear and log pools is better than the one of single models at the 5% risk level. Finally, the equally …

Modeling the price risk of CO2 certificates is one important aspect of integral corporate risk management related to … emissions trading. The paper presents a risk model which may be the basis for evaluating the risk of emission certificate prices …

correlations with risk factors. We present two parsimonious alternatives to the HVZ model: the EP model based on persistence in … and risk factors. We recommend that future research use the RI model or the EP model to generate earnings forecasts …