Investment, uncertainty and cash flow: analysis of Brazilian firms

• Grant number: 11/11562-4
• Support Opportunities: Scholarships in Brazil - Post-Doctoral
• Start date: May 01, 2012
• End date: April 30, 2014
• Field of knowledge: Applied Social Sciences - Economics - Quantitative Methods Applied to Economics
• Principal Investigator: Carlos Roberto Azzoni
• Grantee: Marina Barboza Camargo
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

The aim of this research is to analyze the investment decisions using data from Brazilian firms over the 1986 to 2006 period, with interest in the relationship between cash flow and uncertainty. The research is conducted within a theoretical and applied context, using a new econometric approach, which involves the mixed-effect model with a stochastic term. The mixed model allows considering the heterogeneity in the coefficient on explanatory variables that avoids the bias introduced by assumption of homogeneity. Adding stochastic terms to standard mixed-effect model, which is is incorporated in sales and cash flow variables, allows us to study the effect of uncertainty on investment. The current research is complementary part that integrates a doctoral research and aims to contribute to the national literature about the investment's decisions under uncertainty.

Scientific publications

(References retrieved automatically from Web of Science and SciELO through information on FAPESP grants and their corresponding numbers as mentioned in the publications by the authors)

CAMARGO, MARINA BARBOZA; AZZONI, CARLOS ROBERTO. Deciding on large scale investments. APPLIED ECONOMICS, v. 48, n. 22, p. 2064-2077, MAY 2016. (11/11562-4)