In contrast to previous research documenting negative effects of political and policy uncertainty, we show that uncertainty has a bright side. It motivates companies to increase their investment in research in development. This is due to the growth option effect - investing in more R&D now gives firms the option to invest even more in the future if the uncertainty resolution is favorable. Additional results support our conjecture. We find that firms that are more politically sensitive and operate in high-tech industries are more likely to benefit from this growth option effect.

Dr. Liying Wang, assistant professor of finance at the University of Nebraska–Lincoln College of Business, examines how the corporate bond offering price evolves in the primary market, where securities are created, before underwriters, who determine risk levels on transactions, allocate the bonds to investors. While a popular view is that corporate bonds are easy to price so that underwriters know all information they need, her research suggests this is not the case.

Dr. Julie Wu, assistant professor of finance, investigates the function of acquirer shareholder voting during mergers and acquisitions. This study shows acquirers with low institutional ownership, high deal risk and high agency costs are more likely to bypass shareholder voting, leading to lower announcement returns and higher offers.