Capital And Uncertainty

Author : Ian Charles Runge
Publisher : Edward Elgar Publishing
Page : 232 pages
File Size : 40,8 Mb
Release : 2000
Category : Business & Economics
ISBN : STANFORD:36105025050472

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Capital and Uncertainty by Ian Charles Runge Pdf

Analyzes capital investment as a process in which an individual, entrepreneur, or organization comes to understand "value" before making a choice. Runge, an economist and mining engineer based in Australia, maintains that subjective value and uncertainty inform investment decision-making far more than the calculus of simple neoclassical choice suggests. His model of the capital investment process within a firm analyzes uncertainty and where it translates into risk. Runge sets out theories and tools for choosing between alternatives with differing risk and return profiles. His model provides a framework for decision-making that can lead to choices with lower overall risk, higher returns, and increased value. Annotation copyrighted by Book News Inc., Portland, OR

Author : Yamini Agarwal
Publisher : John Wiley & Sons
Page : 208 pages
File Size : 53,6 Mb
Release : 2013-03-29
Category : Business & Economics
ISBN : 9781118203163

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Capital Structure Decisions by Yamini Agarwal Pdf

Inside the risk management and corporate governance issues behind capital structure decisions Practical ways of determining capital structures have always been mysterious and riddled with risks and uncertainties. Dynamic paradigm shifts and the multi-dimensional operations of firms further complicate the situation. Financial leaders are under constant pressure to outdo their competitors, but how to do so is not always clear. Capital Structure Decisions offers an introduction to corporate finance, and provides valuable insights into the decision-making processes that face the CEOs and CFOs of organizations in dynamic multi-objective environments. Exploring the various models and techniques used to understand the capital structure of an organization, as well as the products and means available for financing these structures, the book covers how to develop a goal programming model to enable organization leaders to make better capital structure decisions. Incorporating international case studies to explain various financial models and to illustrate ways that capital structure choices determine their success, Capital Structure Decisions looks at existing models and the development of a new goal-programming model for capital structures that is capable of handling multiple objectives, with an emphasis throughout on mitigating risk. Helps financial leaders understand corporate finance and the decision-making processes involved in understanding and developing capital structure Includes case studies from around the world that explain key financial models Emphasizes ways to minimize risk when it comes to working with capital structures There are a number of criteria that financial leaders need to consider before making any major capital investment decision. Capital Structure Decisions analyzes the various risk management and corporate governance issues to be considered by any diligent CEO/CFO before approving a project.

Author : Robert Lensink,Hong Bo,Elmer Sterken
Publisher : Edward Elgar Publishing
Page : 176 pages
File Size : 50,7 Mb
Release : 2001-01-01
Category : Business & Economics
ISBN : 1782541241

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Investment, Capital Market Imperfections, and Uncertainty by Robert Lensink,Hong Bo,Elmer Sterken Pdf

This book presents an up-to-date overview of the theory as well as the empirics of the relationship between investment, financial imperfections and uncertainty. After reviewing the capital market imperfections literature and the empirical results, the authors discuss both traditional investment models with uncertainty and the more modern option based models. They present an overview of empirical results of the modelling of investment under uncertainty. In these examples the effects of capital market imperfections on investment are carefully considered. The authors conclude that there is overwhelming empirical support for a negative uncertainty-investment relationship. This book should appeal to academics with an interest in investment theory, professionals in the financial sector and students of macroeconomics and finance. "Investment, Capital Market Imperfections, and Uncertainty" assumes only a basic knowledge of mathematics and is easily accessible.

Author : Robert K. Dixit,Robert S. Pindyck
Publisher : Princeton University Press
Page : 484 pages
File Size : 54,5 Mb
Release : 2012-07-14
Category : Business & Economics
ISBN : 9781400830176

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Investment under Uncertainty by Robert K. Dixit,Robert S. Pindyck Pdf

How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.

Author : Robert S. Pindyck
Publisher : World Bank Publications
Page : 58 pages
File Size : 55,6 Mb
Release : 1989
Category : Capital investments
ISBN : 8210379456XXX

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Irreversibility, Uncertainty, and Investment by Robert S. Pindyck Pdf

Irreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. If the goal of macroeconomic policy is to stimulate investment, stability and credibility may be more important than tax incentives or interest rates.

Author : R.L. Crum,F.G.J. Derkinderen
Publisher : Springer Science & Business Media
Page : 246 pages
File Size : 46,6 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9789401174084

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Capital Budgeting Under Conditions of Uncertainty by R.L. Crum,F.G.J. Derkinderen Pdf

The business environment, particularly after the continuing oil crises of the seventies, can be characterized as evolving rapidly in complex and often unpre dictable ways. Such things as high interest and inflation rates, fluctuating ex change rates, volatile commodity markets, and increasing political turmoil have led to a situation in which explicit consideration of environmental dynamics is becoming much more important for successful business planning than was true in the past. Companies are finding that it is no longer possible to conduct "busi ness as usual" under these changing circumstances. Rather, decision makers are having to be more cognizant of the many sources of uncertainty that could have serious impacts on the continued prosperity of the firm, as well as of actions that can be taken so that the company can thrive in spite of these greater uncertainties. Businesses have responded to these challenges by giving more thorough con sideration to strategic issues. Whereas in the past the steady progression of mar kets and technology was taken for granted, the uncertainties associated with increased worldwide competition, as well as with other exogenous factors, have vii viii INTRODUCTION forced companies to think more about flexibility. This involves not only how best to exploit profitable current options, but also how to position themselves at present to be able to respond appropriately to threats and opportunities as they arise in the future. Unfortunately, in this redirection of outlook, the fmance profession has not kept pace.

Author : Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 24 pages
File Size : 45,6 Mb
Release : 2010-09-01
Category : Business & Economics
ISBN : 9781455205394

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Bank Capital and Uncertainty by Mr.Fabian Valencia Pdf

An important role for bank capital is that of a buffer against unexpected losses. As uncertainty about these losses increases, the theory predicts an increase in the optimal level of bank capital. This paper investigates this implication empirically with U.S. Commercial Banks data and finds statistically significant and robust evidence supporting it. A counterfactual experiment suggests that a decline in uncertainty to the lowest level measured in the sample generates an average reduction in bank capital ratios of slightly over 1 percentage point. However, I also find suggestive evidence that the intensity of this precautionary motive is stronger during recessions. From a policy perspective, these results suggest that the effectiveness of countercyclical capital requirements during bad times will be undermined by banks desire to hold more capital in response to increased uncertainty.

Author : Raj Aggarwal
Publisher : Unknown
Page : 308 pages
File Size : 53,7 Mb
Release : 1993
Category : Business & Economics
ISBN : MINN:31951D01076495U

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Capital Budgeting Under Uncertainty by Raj Aggarwal Pdf

Author : Frank H. Knight
Publisher : Cosimo, Inc.
Page : 401 pages
File Size : 47,6 Mb
Release : 2006-11-01
Category : Business & Economics
ISBN : 9781602060050

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Risk, Uncertainty and Profit by Frank H. Knight Pdf

A timeless classic of economic theory that remains fascinating and pertinent today, this is Frank Knight's famous explanation of why perfect competition cannot eliminate profits, the important differences between "risk" and "uncertainty," and the vital role of the entrepreneur in profitmaking. Based on Knight's PhD dissertation, this 1921 work, balancing theory with fact to come to stunning insights, is a distinct pleasure to read. FRANK H. KNIGHT (1885-1972) is considered by some the greatest American scholar of economics of the 20th century. An economics professor at the University of Chicago from 1927 until 1955, he was one of the founders of the Chicago school of economics, which influenced Milton Friedman and George Stigler.

Author : Robert K. Dixit
Publisher : Unknown
Page : 483 pages
File Size : 46,8 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:1027203892

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Investment Under Uncertainty by Robert K. Dixit Pdf

How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are mad.

Author : Stewart C. Myers
Publisher : Sagwan Press
Page : 76 pages
File Size : 46,6 Mb
Release : 2015-08-23
Category : Electronic
ISBN : 1340073161

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Procedures for Capital Budgeting Under Uncertainty by Stewart C. Myers Pdf

This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work.This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work.As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Author : S. J. Nickell
Publisher : Welwyn : Nisbet ; Cambridge : Cambridge University Press
Page : 344 pages
File Size : 40,9 Mb
Release : 1978
Category : Business & Economics
ISBN : STANFORD:36105035466098

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The Investment Decisions of Firms by S. J. Nickell Pdf

Author : Robert Heigermoser
Publisher : Unknown
Page : 128 pages
File Size : 42,8 Mb
Release : 2019
Category : Electronic
ISBN : 3750266115

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Essays on Capital Structure Determinants and Economic Policy Uncertainty by Robert Heigermoser Pdf

Author : Stewart C. Myers
Publisher : Forgotten Books
Page : 70 pages
File Size : 41,8 Mb
Release : 2017-10-27
Category : Business & Economics
ISBN : 0266824781

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Procedures for Capital Budgeting Under Uncertainty (Classic Reprint) by Stewart C. Myers Pdf

Excerpt from Procedures for Capital Budgeting Under Uncertainty The initial cash flow b(o) will typically be an investment, and thus negative. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Author : Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 26 pages
File Size : 48,8 Mb
Release : 2013-12-02
Category : Business & Economics
ISBN : 9781475518580

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Aggregate Uncertainty and the Supply of Credit by Mr.Fabian Valencia Pdf

Recent studies show that uncertainty shocks have quantitatively important effects on the real economy. This paper examines one particular channel at work: the supply of credit. It presents a model in which a bank, even if managed by risk-neutral shareholders and subject to limited liability, can exhibit self-insurance, and thus loan supply contracts when uncertainty increases. This prediction is tested with the universe of U.S. commercial banks over the period 1984-2010. Identification of credit supply is achieved by looking at the differential response of banks according to their level of capitalization. Consistent with the theoretical predictions, increases in uncertainty reduce the supply of credit, more so for banks with lower levels of capitalization. These results are weaker for large banks, and are robust to controlling for the lending and capital channels of monetary policy, to different measures of uncertainty, and to breaking the dataset in subsamples. Quantitatively, uncertainty shocks are almost as important as monetary policy ones with regards to the effects on the supply of credit.