Uncertainty determinants of firm investment

Christopher F. Baum, Mustafa Caglayan, Oleksandr Talavera

Research output: Contribution to journalArticlepeer-review

53 Citations (Scopus)

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 effect on investment spending, while market-based uncertainty has a positive impact.
Original languageEnglish
Pages (from-to)282-287
Number of pages6
JournalEconomics Letters
Volume98
Issue number3
Early online date10 May 2007
DOIs
Publication statusPublished - Mar 2008

Cite this