Uncertainty Determinants of Firm Investment

Christopher Baum, Mustafa Caglayan () and Oleksandr Talavera ()

No 646, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We investigate the impact of measures of uncertainty on firms' capital investment behavior using a panel of U.S. firms. Increases in firm-specific and CAPM-based measures have a significant negative impact on investment spending, while market-based uncertainty has a positive impact.

Keywords: capital investment; asymmetric information; financial frictions; uncertainty; CAPM (search for similar items in EconPapers)
JEL-codes: C23 D81 E22 (search for similar items in EconPapers)
Date: 2006-07-28, Revised 2007-02-24
New Economics Papers: this item is included in nep-bec, nep-cfn, nep-fmk and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published, Economics Letters, 98/3, 282-287, 2008.

Downloads: (external link)
http://fmwww.bc.edu/EC-P/wp646.pdf main text (application/pdf)

Related works:
Journal Article: Uncertainty determinants of firm investment (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boc:bocoec:646

Access Statistics for this paper

More papers in Boston College Working Papers in Economics from Boston College Department of Economics Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F Baum ().