Economic Policy Uncertainty, Financial Leverage, and Corporate Investment: Evidence from U.S. Firms

Almustafa, Hamza and Jabbouri, Imad and Kijkasiwat, Ploypailin (2023) Economic Policy Uncertainty, Financial Leverage, and Corporate Investment: Evidence from U.S. Firms. Economies, 11 (2). p. 37. ISSN 2227-7099

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Abstract

This paper examines the effect of economic policy uncertainty (EPU) on firm-level investment and corporate financial leverage. The panel data of 1072 firms traded on the New York Stock Exchange (NYSE), New York Stock Exchange Market (NYSE MKT) (formerly known as American Stock Exchange—AMEX), or NASDAQ over the period 2012–2021 was analyzed using the fixed-effect model. The empirical results show that the financial leverage of a firm is negatively affected by EPU. Additionally, EPU depresses firms’ investment decisions and debt financing. Our results are robust when alternative measures of our main variables are used.

Item Type: Article
Subjects: OA Digital Library > Multidisciplinary
Depositing User: Unnamed user with email support@oadigitallib.org
Date Deposited: 17 Jun 2023 05:49
Last Modified: 04 Jun 2024 11:09
URI: http://library.thepustakas.com/id/eprint/1537

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