Keywords: investment, uncertainty, investment spikes, entry, exit, duration model, GMM dynamic panel data estimator, Negative Binomial model, Heckman selection model, moving window ARIMA, Principal Component analysis, horticultureThis thesis focuses on the analysis of investment decision-making in order to better understand the variables that influence a firm's profit-maximizing strategy. The goal of a firm is to continue to exist, which can be achieved through the maximization of profit. Thus, the investment decision is considered as a realization of the firm's profit-maximizing objective.To understand the investment decision, investments in fixed capital in Dutch glasshouse horticulture were studied. Because an investment decision is dynamic by nature, investment patterns were analysed during the period 1975-1999, thereby providing a longer term overview. The salient characteristic of Dutch glasshouse horticulture firms is that they remain small-scale family firms with respect to labour and land, but are highly capital-intensive. Moreover, in recent decades, the sector has experienced many transformations in the fields of evolution and adaptation to new technologies, consumer preferences, and market and environmental requirements. This makes the Dutch glasshouse horticulture sector an attractive case for studying investment patterns. This is done by considering an investment decision as having three components: decisions about participation, about level, and about time. These components are a tangible part of investment decision-making; they reflect the latent factors of: investment thresholds, adjustment costs, irreversibility, and risk and uncertainty, all of which predetermine investments.Results from this research show the relevance of separating the participation and level decisions since the set of significant variables differ (e.g. energy- and land prices are not significant for the level decision), and some of the variables exhibited contrasting signs (e.g. debts, revenue, labour cost). The impact of ...