Financial Market Volatility and Its Implications for Business Investment Decisions

Authors

Dr. (Smt.) Anita Modi, Dr. Chandra Prakash Kulshreshtha

Abstract

Financial market volatility significantly impacts business investment decisions, necessitating a thorough understanding of its implications. This research paper examines the concepts, measurement, and effects of financial market volatility on businesses. Utilizing theoretical frameworks, empirical evidence, and real-world case studies, the paper elucidates the complex relationship between volatility and investment behaviour. Factors influencing this relationship, including macroeconomic indicators, market sentiment, and regulatory policies, are explored. Practical strategies for businesses to manage volatility-related risks and opportunities are discussed, emphasizing the importance of adaptive capital budgeting, robust risk management, and strategic asset allocation. By synthesizing diverse sources of information, this paper provides valuable insights for businesses seeking to navigate volatile market environments effectively and optimize their investment decisions.

Keywords

Financial Market Volatility, Business Investment Decisions, Risk Management, Macroeconomic Indicators, Adaptive Strategies

Financial Market Volatility and Its Implications for Business Investment Decisions. Dr. (Smt.) Anita Modi, Dr. Chandra Prakash Kulshreshtha. 2015. IJIRCT, Volume 1, Issue 2. Pages 297-304. https://www.ijirct.org/viewPaper.php?paperId=1502027