effects of regime uncertainty on a firm's strategic investment decision, taking into consideration the remaining time to the …

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 …

In this paper we offer an analysis of the effects of uncertainty about future tax policy on irreversible investment …. The main message of the paper is that investment is not much affected by the degreee of tax policy uncertainty. This is … that reducing tax policy uncertainty is probably no magic bullet to increase private investment spending …

The paper aims to examine the effects of global economic policy uncertainty and monetary policy on corporate investment … that monetary policy, relative risk in fixed investment, and the risk-adjusted return gap between financial and fixed … uncertainty impedes real investment. In addition, findings also expect that investment depends on internal funds extracted from …

We derive a new equation for the optimal investment boundary of a general irreversible investment problem under … exponential Lévy uncertainty. The problem is set as an infinite time-horizon, two-dimensional degenerate singular stochastic … the Wiener-Hopf factorization allow us to derive an integral equation for the optimal investment boundary. In case the …

correlation is shown to increase always the values of the trigger, the active project and the option. The impact of uncertainty is … market as a whole. Uncertainty can, for some cases, decrease the trigger and the option values, namely when the correlation …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … doctrine. Factors formed on characteristics are not necessarily risk factors; characteristics-based factor models are linear … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …

investor “rationality,” the relation must be “explained” by a risk (factor) model. The investment approach questions the … doctrine. Factors formed on characteristics are not necessarily risk factors; characteristics-based factor models are linear … approximations of firm-level investment returns. The evidence that characteristics dominate covariances in horse races does not …

Conventional wisdom suggests that optimism should be positively associated with risk taking. However, this has hardly … been directly tested in the laboratory. In this paper, we report an experiment regarding risk perception and risk taking … between optimism and risk taking are (a) pure chance and (b) imprecise probabilities. Our findings bring forth some …