Effect of Exchange Rate Uncertainty on Investments(上).doc

Effect of Exchange Rate Uncertainty on Investments(上) AbstractIn this paper an option pricing model is used to explore the relationship between exchange rate uncertainty and investments of firms. Assuming the investment is irreversible, the option to wait approach was developed by Dixit (1989, 1992), Krugman (1989), and Pindyck (1991). In this model the value of waiting is considered as value of an option to wait and the firm can delay the investment to wait for further information about exchange rate, output price and macroeconomic variables. Using the exchange rate volatility as the proxy for exchange rate uncertainty, we extend the option model to analyze the effect of exchange rate uncertainty on investments in the cases of exports and imports firms and find out that an increase in the exchange rate volatility decreases investments regardless of exports or imports firms.点击查看全文其他参考文献：1.赵慧芝.加强高校科研经费管理的几点思考J.现代经济信息,2010(12). 2.付林,李冬叶.高校科研经费的使用监管机制J.黑龙江高教研究,2009(11). 3.江轶.高校科研经费管理若干问题探析J.福建财会管理干部学院学报,2010(4). 4.李红宇.高校科研经费管理有效性探究J.财会通讯·综合(中),2009(1). 5.石勉.对高校科研经费管理和审计的探讨J.经济师,2010(10). 6.林大静.构建高校科研经费内部审计机制的思考J.审计月刊,2009(6).