Economic Policy Uncertainty and Corporate Investment Behavior: Evidence from China’s Five-Year Plan Cycles

2019 ◽  
pp. 1-18 ◽  
Author(s):  
Guanghua Xie ◽  
Jianlin Chen ◽  
Ying Hao ◽  
Jing Lu
Keyword(s):  
Economic Policy ◽  
Corporate Investment ◽  
Investment Behavior ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty

scholarly journals Economic policy uncertainty and investment in Spain

SERIEs ◽  
2021 ◽  
Author(s):  
Daniel Dejuan-Bitria ◽  
Corinna Ghirelli
Keyword(s):  
Adverse Effect ◽  
Economic Policy ◽  
Strong Evidence ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Precautionary Savings ◽  
Marginal Effect ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
High Uncertainty

AbstractThe aim of this paper is to investigate the effect of economic policy uncertainty on firms’ investment decisions. We focus on Spain for the period 1998–2014. To measure policy-related uncertainty, we borrow the economic policy uncertainty (EPU) indicator available for this country. We find strong evidence that uncertainty reduces corporate investment. This relationship appears to be nonlinear, being the marginal effect of uncertainty attenuated toward zero during periods of high uncertainty levels. Furthermore, the heterogeneous results suggest that the adverse effect of uncertainty is particularly relevant for highly vulnerable firms. Overall, these results are consistent with the hypotheses that economic policy-related uncertainty reduces corporate investment through increases in precautionary savings or to worsening of credit conditions.

scholarly journals The Sensitivity of Firms’ Investment to Uncertainty and Cash Flow: Evidence From Listed State-Owned Enterprises and Non-State-Owned Enterprises in China

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824402090343 ◽  
Author(s):  
Muhammad Arif Khan ◽  
Xuezhi Qin ◽  
Khalil Jebran ◽  
Abdul Rashid
Keyword(s):  
Economic Policy ◽  
Cash Flow ◽  
Generalized Method Of Moments ◽  
Corporate Investment ◽  
Policy Uncertainty ◽  
Market Uncertainty ◽  
Negative Effects ◽  
Economic Policy Uncertainty ◽  
Listed Firms ◽  
Positive Effects

This study examines the association between various uncertainties and corporate investment and further investigates this association between state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). Moreover, this study analyzes the indirect effects of uncertainty on corporate investment through cash flow. The current research uses an unbalanced panel data of Chinese nonfinancial listed firms for the period 1999–2016. To control endogeneity issues, this study applies a robust two-step system generalized method of moments (GMM) technique to estimate the model. Empirical findings indicate that market-based and firm-specific uncertainties have positive effects, whereas economic policy and CAPM-based uncertainties have negative effects on corporate investment. Furthermore, results indicate that the effects of market-based, CAPM-based, and firm-specific uncertainties (economic policy uncertainty) were less (more) prominent for SOEs. Additional analyses show that cash flow stimulates the effect of firm-specific uncertainty on SOEs’ investment, whereas it weakens the influence of CAPM-based uncertainty (economic policy uncertainty) on investment of non-SOEs (SOEs). Moreover, cash flow attenuates the market uncertainty effect on investment.

scholarly journals Enterprise Sustainability: Economic Policy Uncertainty, Enterprise Investment, and Profitability

2020 ◽  
Vol 12 (9) ◽  
pp. 3735 ◽  
Author(s):  
Aijun Guo ◽  
Haiqi Wei ◽  
Fanglei Zhong ◽  
Shuangshuang Liu ◽  
Chunlin Huang
Keyword(s):  
Sustainable Development ◽  
Economic Policy ◽  
Inhibitory Effect ◽  
Investment Behavior ◽  
Policy Uncertainty ◽  
Dynamic Interactions ◽  
The Sustainable Development ◽  
Economic Policy Uncertainty ◽  
The Government ◽  
Enterprise Investment

Under economic fluctuations, the sustainable development of enterprises is crucial. Currently, there are few studies on the interaction between economic policy uncertainty (EPU) and the sustainable development behavior of enterprises. Based on a panel vector autoregressive (PVAR) model, this paper explores the static and dynamic interactions among EPU, enterprise investment, and enterprise profitability and then analyzes regional heterogeneity in these factors. It finds that EPU has an inhibitory effect on the investment and profitability of enterprises, while the investment and profitability of enterprises also have an inhibitory effect on EPU. In addition, there are contribution differences and regional differences in the degrees of influence of the three factors. In the long run, EPU and the inhibition of enterprise investment and profitability are strongest in China’s central region. The results show that the stronger the certainty of economic policy, the more conducive this policy is to promoting enterprise investment behavior and improving enterprise profitability. Therefore, to ensure normal economic development, the government should limit changes in economic policy as much as possible; doing so is critical for promoting investment behavior and improving the profitability of enterprises.

Economic policy uncertainty and corporate investment: Evidence from the U.S. hospitality industry

2020 ◽  
Vol 77 ◽  
pp. 104019 ◽  
Author(s):  
Sagi Akron ◽  
Ender Demir ◽  
José María Díez-Esteban ◽  
Conrado Diego García-Gómez
Keyword(s):  
Economic Policy ◽  
Hospitality Industry ◽  
Corporate Investment ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The U.S
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