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Economic Policy Uncertainty and Corporate Investment: Moderating Role of Corporate Governance and Firm Life Cycle

Year: 2024

Type: article

Abstract: : This study investigates the relationship between Economic Policy Uncertainty (EPU) and Corporate Investment (CI). Additionally, we assesses the moderating role of corporate governance and firm life cycle in determining the EPU-CI relationship. Using the sample of 548 listed non-financial Indian firms, we found that EPU has a negative and significant relationship with corporate investment. Secondly, we find that corporate governance plays a moderating role by reducing the negative impact of EPU on corporate investment. Further, we found that the negative impact of EPU on corporate investment is the least for growing firms, followed by introductory, mature, and declining stages. Keywords: Corporate Investment, Economic Policy Uncertainty, Corporate Governance, Emerging Economies JEL Classification Number: F40, G18, G31, M41

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.14606373

Authors: Anamika Rana, Byomakesh Debata

Institution: Birla Institute of Technology and Science, Pilani

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W6949364254

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