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Economic Fundamentals, Capital Expenditures and Asset Dispositions
Working Papers
  • Brent Ambrose, Pennsylvania State University
  • Eva Steiner, Cornell University School of Hotel Administration
Publication Date
Research on the disposition effect in real assets to date ignores the active management component of these investments. Active management notably includes decisions about follow-up investment in the form of capital expenditures, as well as dispositions. Using a real option framework, we develop testable hypotheses and provide empirical evidence for the relationships between economic fundamentals, capital expenditures, property values, and the subsequent likelihood of sale. Our results shed new light on the evidence for the disposition effect.

Required Publisher Statement
Copyright held by the authors.

Citation Information

Ambrose, B. W., & Steiner, E. (2017). Economic fundamentals, capital expenditures and asset dispositions [Electronic version]. Retrieved [insert date], from Cornell University, School of Hotel Administration site: