دانلود رایگان مقاله حساسیت عدم قطعیت منفی سرمایه گذاری و ساختار بازار

ABSTRACT

This paper examines how industry competition changes the sensitivity of investment to uncertainty using Japanese firm data. A switching regression model is employed to test the predictions of the real options theory regarding the uncertainty–investment relationship under different industry competition attributes. We find that the negative uncertainty sensitivity of investment is increased by industry concentration, but decreased by market share. The latter finding supports the view of strategic investment behavior of rival firms under uncertainty, rather than the erosion of option values by competition.

5. Conclusion

Previous empirical studies, using sample-split methods, support the views that competition erodes the value of waiting and accelerates investment and that the option value of a firm with dominant market power is less reduced by competition. We utilize a switching regression model to examine the sensitivity of investment to uncertainty under different market structure characteristics. By analyzing Japanese firm data, we find that the negative uncertainty sensitivity of investment is increased by industry concentration, but decreased by market share. The latter result supports the view of strategic investment behavior of firms in rivalry under uncertainty, rather than the erosion of option values by competition.