Uncertainty, Capital Investment, and Risk Management

We use forward-looking and exogenous measures of output price uncertainty to examine the effect of price uncertainty on firm-level capital investment, risk management, and debt issuance. The effects of uncertainty vary significantly by firm size. When faced with high price uncertainty, large firms i...

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Bibliographic Details
Published in:	Management science Vol. 64; no. 12; pp. 5769 - 5786
Main Authors:	Doshi, Hitesh, Kumar, Praveen, Yerramilli, Vijay
Format:	Journal Article
Language:	English
Published:	Linthicum INFORMS 01.12.2018 Institute for Operations Research and the Management Sciences
Subjects:	Capital Capital expenditures capital investment Capital investments Companies Constraints Debt financial frictions Hedges Hedging Hedging (Finance) Influence Investments Management Methods Prices Prices and rates real options Risk management Securities Small business Uncertainty
ISSN:	0025-1909, 1526-5501
Online Access:	Get full text
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