Corporate investment decision: A review of literature

Artikel

This study is an attempt to review relevant literature on the theme of corporate real investment decisions. We have conducted a comprehensive survey of literature on the studies published in well-reputed journals of finance, i.e., The Journal of Finance, The Review of Financial Studies, and The Journal of Financial Economics, during the years 2010 to 2022. The theoretical analysis reveals that information asymmetry, cash holdings, policy uncertainty, idiosyncratic risk, governance quality, financing diversification, financial development, managerial network, investor protection, tax policy, etc., are prominent factors influencing investment decisions. The current review analysis is useful and has certain policy implications for investment managers regarding investment decisions. It guides on the factors that can impede or boost investment volume. Our study has a novel contribution to the literature by summarizing the voluminous empirical literature arranged on physical investment decisions.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 15 ; Year: 2022 ; Issue: 12 ; Pages: 1-17

Classification and Topics

• Classification: Management ; Corporate Finance and Governance: General ; Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
• Subject: capital investment ; physical investment ; theoretical review

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Farooq, Umar ; Tabash, Mosab I. ; Al-Naimi, Ahmad A. ; Drachal, Krzysztof
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2022

Further information

• DOI: doi:10.3390/jrfm15120611
• Handle: http://hdl.handle.net/10419/275088