The impact of delivery lags on irreversible investment under uncertainty

Effects of growth volatility on economic performance – Empirical evidence from Turkey

“…The estimated coefficient for growth volatility is statistically significant and negative (i.e., growth volatility decreases investment), suggesting that growth volatility decreases output via investment. This supports the irreversible investment argument of Bernanke (1983), Pindyck (1991), Dangl (1999), and Alvarez and Keppo (2002) and the empirical study by Aizenman and Marion (1999).…”

Optimizing the Timing of M&A Decisions—An Analysis of Pro- and Anticyclical M&A Behavior in Germany

“…Firstly it is necessary to break down the DAX into different market value levels 30 . Secondly success will be measured based on annual financial statements and using differ- 26 If the M/B ratio is interpreted as an indicator of management performance it can be posited that when gauging the advantages of a potential transaction the market extrapolates the previous performance of the purchasing company's management too much ("performance-extrapolation hypothesis"). Cf.…”

“…Against the background of the hubris and performance extrapolation hypotheses 26 glamour acquirers pay higher premiums in boom phases than value acquirers in downturn phases. Lower premiums during anticyclical transactions are also sustained by the lower level of competition from other bidders, which allows for lower transaction prices in comparison to procyclical transactions in which multiple purchasing companies compete to buy scarcely available target companies 27 .…”

05/01588 Modeling technology adoption as an irreversible investment under uncertainty: The case of the Turkish electricity supply industry

“…Alvarez and Keppo, 2002;Bar-Ilan and Strange, 1996). We do not consider the latter aspect in the present application due to the unavailability of the necessary data.…”