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- W1852087968 abstract "This paper examines how uncertainty affects corporate investment under varying degrees of asset redeployability. We develop new measures of asset redeployability by accounting for the usability of assets within and across industries. We identify plausibly exogenous shocks to economic uncertainty by using major economic and political events. We find that after an increase in uncertainty, firms using less redeployable capital reduce investment more. More redeployable assets exhibit higher recovery rates and are traded more actively in secondary markets. Overall, our results suggest that frictions in redeploying assets significantly affect liquidation values and therefore make firms cautious about investment decisions." @default.
- W1852087968 created "2016-06-24" @default.
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- W1852087968 date "2011-01-01" @default.
- W1852087968 modified "2023-09-25" @default.
- W1852087968 title "Asset Specificity, Economic Uncertainty, and Corporate Investment" @default.
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- W1852087968 doi "https://doi.org/10.2139/ssrn.2022669" @default.
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