We investigate the empirical relationship between company's investment and fundamental financial factors relevant for investment decisions: growth opportunity (market-to-book ratio), return on capital, return on sales, profit (accounting and economic), ownership structure and measures of uncertainty. We consider firm's common stock return volatility as one of the measure of uncertainty and decompose it into market and specific risks. The sample consists of publicly traded Russian companies.

       The object of the study is investment (capital budgeting) decisions of companies and factors that determine the timing and level of investment. The aim of this study is to estimate how these factors may influence investment decisions. The research reveals techniques for market, industry and specific uncertainty estimations, gives a detailed analysis of related literature and contributes to the formation and analysis of investment decisions of Russian companies. This problem has not been thoroughly analyzed due to the lack of data, insufficient history and underdevelopment of the Russian stock market and non-transparency of most Russian companies.