Uncertainty And The Value Of The Firm

DOWNLOAD

Download Uncertainty And The Value Of The Firm PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Uncertainty And The Value Of The Firm book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page

Investment Under Uncertainty

DOWNLOAD
Author : Robert K. Dixit
language : en
Publisher: Princeton University Press
Release Date : 2012-07-14

Investment Under Uncertainty written by Robert K. Dixit and has been published by Princeton University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-07-14 with Business & Economics categories.

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.

On The Value Of The Firm And Optimal Investment Under Uncertainty

DOWNLOAD
Author : Guy V. G. Stevens
language : en
Publisher:
Release Date : 1972

On The Value Of The Firm And Optimal Investment Under Uncertainty written by Guy V. G. Stevens and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1972 with Capital productivity categories.

An Exact Soultion For The Investment And Market Value Of A Firm Facing Uncertainty Adjustment Costs And Irreversibility

DOWNLOAD
Author : Andrew B. Abel
language : en
Publisher:
Release Date : 1993

An Exact Soultion For The Investment And Market Value Of A Firm Facing Uncertainty Adjustment Costs And Irreversibility written by Andrew B. Abel and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1993 with categories.

This paper derives closed-form solutions for the investment and market value, under uncertainty, of competitive firms with constant returns to scale production and convex costs of adjustment. Solutions are derived for the case of irreversible investment as well as for reversible investment. Optimal investment is a non-decreasing function of q, the shadow value of capital. The conditions of optimality imply that q cannot contain a bubble; thus, optimal investment depends only on fundamentals. However, the value of the firm may contain a bubble that does not affect investment behavior. Relative to the case of reversible investment, the introduction of irreversibility does not affect q, but it reduces the fundamental market value of the firm.

Capital And Uncertainty

DOWNLOAD
Author : Ian Charles Runge
language : en
Publisher: Edward Elgar Publishing
Release Date : 2000

Capital And Uncertainty written by Ian Charles Runge and has been published by Edward Elgar Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2000 with Business & Economics categories.

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

Uncertainty And The Value Of The Firm Under Backward Looking Regulation

DOWNLOAD
Author : Stylianos Perrakis
language : en
Publisher:
Release Date : 1983

Uncertainty And The Value Of The Firm Under Backward Looking Regulation written by Stylianos Perrakis and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1983 with categories.

The Theory Of Price Uncertainty Production And Profit

DOWNLOAD
Author : Clement Allan Tisdell
language : en
Publisher: Princeton University Press
Release Date : 2015-12-08

The Theory Of Price Uncertainty Production And Profit written by Clement Allan Tisdell and has been published by Princeton University Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-12-08 with Business & Economics categories.

Firms and farmers, under pure competition, must make production decisions in the face of price uncertainty. The author has integrated diverse theories of behavior under uncertainty to provide a new framework for his mathematical analysis of the impact of price uncertainty on the behavior of the firm. Drawing upon the work of Knight, Hicks, von Neumann, and Morgenstern, he develops a schema that accounts for a greater diversity of behavior than do existing theories, yet one which yields simple economic theorems of practical value. The conclusions he draws apply to both socialist and capitalist economics. Originally published in 1968. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

Risk Uncertainty And The Agricultural Firm

DOWNLOAD
Author : Charles Britt Moss
language : en
Publisher: World Scientific
Release Date : 2010

Risk Uncertainty And The Agricultural Firm written by Charles Britt Moss and has been published by World Scientific this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with Business & Economics categories.

1. Introduction. 1.1. Formulating the risk problem. 1.2. Decision criteria. 1.3. Decision making under risk : fact and fiction -- 2. Probability theory - a mathematical basis for making decisions under risk and uncertainty. 2.1. Set theory and probability. 2.2. Random variables. 2.3. Conditional probability and independence. 2.4. Some useful distribution functions. 2.5. Expected value, moments, and the moment generating function. 2.6. Estimating probability functions. 2.7. Martingales and random walks. 2.8. Summary -- 3. Expected utility - the economic basis of decision making under risk. 3.1. Consumption and utility. 3.2. Expected utility. 3.3. Expected value - variance and expected utility models. 3.4. Problems with expected utility. 3.5. Summary -- 4. Risk aversion in the large and small. 4.1. Arrow-Pratt risk aversion coefficient. 4.2. Eliciting risk aversion coefficients. 4.3 Summary -- 5. Portfolio theory and decision making under risk. 5.1. The expected value - variance frontier. 5.2. A simple portfolio. 5.3. A graphical depiction of the expected value-variance frontier. 5.4. Mean-variance versus direct utility maximization. 5.5. Derivation of the expected value-variance frontier. 5.6. Summary -- 6. Whole farm-planning models. 6.1. Farm portfolio models. 6.2. Minimize total absolute deviation. 6.3. Focus-loss. 6.4. Target MOTAD. 6.5. Direct utility maximization. 6.6. Discrete sequential stochastic programming. 6.7. Chance-constrained programming. 6.8. Interpreting shadow values from risk programming models. 6.9. Summary -- 7. Risk efficiency approaches - stochastic dominance. 7.1. Stochastic dominance. 7.2. Applications of stochastic dominance. 7.3. Summary -- 8. Dynamic decision rules and the value of information. 8.1. Decision making and Bayesian probabilities. 8.2. Concepts of information. 8.3. A model of information. 8.4. Summary -- 9. Market models of decision making under risk. 9.1. Risk equilibrium from the consumer's point of view. 9.2. The role of the riskless asset. 9.3. Risk equilibrium from the firm's perspective. 9.4. Arbitrage pricing theorem. 9.5. Empirical applications of capital market models. 9.6. Summary -- 10. Option pricing approaches to risk. 10.1. Introductions to options and futures. 10.2. Real option valuation. 10.3. Crop insurance. 10.4. Summary -- 11. State contingent production model : the stochastic production set. 11.1. Depicting risk and input decisions in the production function. 11.2. State Production set and input requirement set. 11.3. Distance functions and risk aversion. 11.4. Summary -- 12. Risk, uncertainty, and the agricultural firm - a summary and outlook

Capital Budgeting Under Uncertainty

DOWNLOAD
Author : Raj Aggarwal
language : en
Publisher:
Release Date : 1993

Capital Budgeting Under Uncertainty written by Raj Aggarwal and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1993 with Business & Economics categories.

Corporate Decision Making With Macroeconomic Uncertainty

DOWNLOAD
Author : Lars Oxelheim
language : en
Publisher: Oxford University Press on Demand
Release Date : 2008-09-26

Corporate Decision Making With Macroeconomic Uncertainty written by Lars Oxelheim and has been published by Oxford University Press on Demand this book supported file pdf, txt, epub, kindle and other format this book has been release on 2008-09-26 with Business & Economics categories.

This book offers the essential elements of a corporate strategy for managing uncertainty in the macroeconomic environment. This strategy enhances firm value by allowing management and external stakeholders to distinguish between changes in the intrinsic competitiveness of the firm and changes in performance caused by macroeconomic fluctuations.--Résumé de l'éditeur.

Real Options And Investment Under Uncertainty

DOWNLOAD
Author : Eduardo S. Schwartz
language : en
Publisher: MIT Press
Release Date : 2004

Real Options And Investment Under Uncertainty written by Eduardo S. Schwartz and has been published by MIT Press this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Business & Economics categories.

The study of investment under uncertainty was stagnant for several decades until developments in real options revitalized the field. The topics covered in this book include the reasons behind the under-investment programme.