with a higher labor-to-capital ratio, supporting the convex return theory. Furthermore, the impact of GPR on investment …Using a news-based index of geopolitical risk (GPR), we document a strong negative relationship between firm …-level corporate investment and GPR. When the GPR index doubles, investment rate in the next quarter declines by 14% of its sample mean …

) foreign direct investment because of political risk. Using a unique survey-based psychometric evaluation of manager risk … aversion, we show that firms with risk averse executives are more likely to avoid investment in politically risky countries – a … shown that political risk affects foreign direct investment using objective measures of such risk (electoral uncertainty …

. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs … terms reflecting both idiosyncratic and systematic risk, and weaker investor protection increases the weight on … idiosyncratic risk. Using firm-level data from 38 countries, we estimate the predicted relationships among investor protection …

. Inside ownership reflects the classic tradeoff between incentives and risk diversification, and the severity of agency costs … terms reflecting both idiosyncratic and systematic risk, and weaker investor protection increases the weight on … idiosyncratic risk. Using firm-level data from 38 countries, we estimate the predicted relationships among investor protection …

in capital price and levels of aggregate investment and output. I present a model economy where the industry-level policy …-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes …

Investors have to be offered risk premiums to invest in risky assets. These risk premiums take different forms in … different asset markets: equity risk premiums (ERP) in stock markets, default spreads in bond markets and real asset premiums in … economy, the risk aversion of investors, information uncertainty and fear of catastrophe, among other factors. In practice …

This paper empirically examines how real estate risk impacts corporate investment and financing decisions. Using a … particular salient during the financial crisis period when the endogeneity between risk and investment is less of a concern. The … the real estate value, real estate risk exposure exhibits mostly the opposite effects on investment, financing and capital …