Time-to-build, regulation, and investment
研究了建设周期和监管的不确定性如何影响企业最优投资决策，发现建设周期不确定性会加速投资并提升企业价值，而监管不确定性可缓解投资扭曲，且两者并存时可能存在无害监管。
This study investigates the effects of uncertainty in time-to-build and regulation, which hinders immediate revenue generation after investment, on a firm’s optimal investment decision. We show that in the absence of regulation, uncertainty in time-to-build always accelerates investment and enhances pre-investment firm value. We also show that in the absence of time-to-build, uncertainty in regulation can mitigate the distortion of investment induced by regulation. Furthermore, in the presence of both time-to-build and regulation, there can exist harmless regulation that does not induce any distortion in the investment decision and does not harm firm value. Lastly, in the presence of both time-to-build and regulation, not only uncertainty in time-to-build but also its presence can accelerate investment.