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Finite project life and uncertainty effects on investment
16 references·6 citing·39 second hop
Finite project life and uncertainty effects on investment (2007)Finite project life and uncertainty effec…Optimal Capital Structure and Industry Dynamics (2005)Optimal Capital Structure and…Volatility and commodity price dynamics (2004)Volatility and commodity pric…On the investment–uncertainty relationship in a real options model (2000)On the investment–uncertainty…The Stochastic Behavior of Commodity Prices: Implications for Valuation and Hedging (1997)The Stochastic Behavior of Co…Uncertainty, Investment, and Industry Evolution (1996)Uncertainty, Investment, and …The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets (1996)The Strategic Exercise of Opt…Investment Under Uncertainty. (1994)Investment Under Uncertainty.Investment under Uncertainty (1994)Investment under UncertaintyNo Arbitrage and Arbitrage Pricing: A New Approach (1993)No Arbitrage and Arbitrage Pr…On the Sign of the Investment-Uncertainty Relationship (1991)On the Sign of the Investment…Time to build, option value, and investment decisions (1987)Time to build, option value, …Optimal Investment under Uncertainty. (1983)Optimal Investment under Unce…The Value of Waiting to Invest (1982)The Value of Waiting to InvestOption pricing when underlying stock returns are discontinuous (1976)Option pricing when underlyin…An Intertemporal Capital Asset Pricing Model (1973)An Intertemporal Capital Asse…The effects of price and cost uncertainty on investment (1972)The effects of price and cost…The interaction of debt financing, cash grants and the optimal investment policy under uncertainty (2018)The interaction of debt finan…The impact of Norwegian-Swedish green certificate scheme on investment behavior: A wind energy case study (2018)The impact of Norwegian-Swedi…Determinants of Private Investment in Iran based on Bayesian Model Averaging (2014)Determinants of Private Inves…Optimal R&D investment for a risk-averse entrepreneur (2010)Optimal R&D investment for a …Incomplete markets, ambiguity, and irreversible investment (2010)Incomplete markets, ambiguity…Investment timing, asymmetric information, and audit structure: A real options framework (2008)Investment timing, asymmetric…Irreversible Investment, Capacity Choice and the Value of the Firm (1986)Foreign Direct Investment, Exchange Rate Variability and Demand Uncertainty (1994)Policy uncertainty, irreversibility, and cross-border flows of capital (2016)The Asset Redeployability Channel: How Uncertainty Affects Corporate Investment (2016)Increasing risk II: Its economic consequences (1971)Investment and the Valuation of Firms When There is an Option to Shut Down (1985)Strategic Growth Options (1998)Investment and Demand Uncertainty (1999)Capital Theory and Investment Behavior (1963)Irreversibility, Uncertainty, and Cyclical Investment (1980)Conditional Heteroskedasticity in Asset Returns: A New Approach (1991)Joint Ventures and the Option to Expand and Acquire (1991)Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network (1994)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)EFFICIENT CAPITAL MARKETS: A REVIEW OF THEORY AND EMPIRICAL WORK* (1970)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)An equilibrium characterization of the term structure (1977)Electricity Prices and Power Derivatives: Evidence from the Nordic Power Exchange (2002)What do we learn from the price of crude oil futures? (2010)The Fundamentals of Commodity Futures Returns (2012)The Pricing of Options and Corporate Liabilities (1973)Option pricing: A simplified approach (1979)The Pricing of Options on Assets with Stochastic Volatilities (1987)A General Equilibrium Approach To Monetary Theory (1969)Optimum consumption and portfolio rules in a continuous-time model (1971)Tobin's Marginal q and Average q: A Neoclassical Interpretation (1982)A Unified Model of Investment Under Uncertainty (1993)Equilibrium Cross Section of Returns (2003)Theory of Rational Option Pricing (1973)Time to Build and Aggregate Fluctuations (1982)Option Valuation of Claims on Real Assets: The Case of Offshore Petroleum Leases (1988)Real Options and Interactions with Financial Flexibility (1993)Strategy through the Option Lens: An Integrated View of Resource Investments and the Incremental-Choice Process (1993)Theory of rational option pricing (2005)The Value Premium (2005)Policy Uncertainty and Corporate Investment (2015)Capital markets research in accounting (2001)
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References

  • 1994Investment Under Uncertainty.9,497 cited
  • 1994Investment under Uncertainty9,016 cited
  • 1973An Intertemporal Capital Asset Pricing Model6,557 cited
  • 1976Option pricing when underlying stock returns are discontinuous5,965 cited
  • 1982The Value of Waiting to Invest3,606 cited
  • 1997The Stochastic Behavior of Commodity Prices: Implications for Valuation and Hedging2,116 cited
  • 1983Optimal Investment under Uncertainty.1,230 cited
  • 1987Time to build, option value, and investment decisions912 cited
  • 1972The effects of price and cost uncertainty on investment833 cited
  • 1991On the Sign of the Investment-Uncertainty Relationship636 cited
  • 1996The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets632 cited
  • 2004Volatility and commodity price dynamics351 cited
  • 2000On the investment–uncertainty relationship in a real options model289 cited
  • 2005Optimal Capital Structure and Industry Dynamics277 cited
  • 1993No Arbitrage and Arbitrage Pricing: A New Approach264 cited
  • 1996Uncertainty, Investment, and Industry Evolution

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Cited by

  • 2008Investment timing, asymmetric information, and audit structure: A real options framework38 cited
  • 2018The interaction of debt financing, cash grants and the optimal investment policy under uncertainty35 cited
  • 2018The impact of Norwegian-Swedish green certificate scheme on investment behavior: A wind energy case study34 cited
  • 2010Incomplete markets, ambiguity, and irreversible investment33 cited
  • 2010Optimal R&D investment for a risk-averse entrepreneur29 cited
  • 2014Determinants of Private Investment in Iran based on Bayesian Model Averaging9 cited