Research Article


DOI :10.26650/JEPR1593045   IUP :10.26650/JEPR1593045    Full Text (PDF)

The Impact of Economic Policy Uncertainty on Corporate Investment Decisions

Muhammad Shafiq KhanMalik Fahim BashirMuhammad Akram

The purpose of this research work is to explore the impact of economic policy uncertainty on corporate investment across developed and developing economies. The study also investigates the impact on investment of firms having different ownership arrangements, financial system development, leadership status and capital intensity. The study employs Generalised Method of Moments technique to analyse a comprehensive dataset of 25 countries for the period from 2008 to 2021, comprising 11,718 firm-level observations. The results show that EPU has a significant negative effect on corporate investment, particularly in developed countries, developed financial systems, nonstate-owned enterprises, capital-intensive entities, and firms with CEO duality and dispersed ownership structures. On the other hand, EPU has an insignificant impact on investment made by firms in developing economies, underdeveloped financial markets, firms with state and concentrated ownership, and non-CEO duality. The results accentuate the complex interaction between EPU and firms’ investment, indicating the need for customised policy approaches to mitigate the negative effects across diverse economies, markets, ownership, and leadership structure.

JEL Classification : E22 , G18 , G30

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APA

Khan, M.S., Bashir, M.F., & Akram, M. (2025). The Impact of Economic Policy Uncertainty on Corporate Investment Decisions. Journal of Economic Policy Researches, 12(1), 195-217. https://doi.org/10.26650/JEPR1593045


AMA

Khan M S, Bashir M F, Akram M. The Impact of Economic Policy Uncertainty on Corporate Investment Decisions. Journal of Economic Policy Researches. 2025;12(1):195-217. https://doi.org/10.26650/JEPR1593045


ABNT

Khan, M.S.; Bashir, M.F.; Akram, M. The Impact of Economic Policy Uncertainty on Corporate Investment Decisions. Journal of Economic Policy Researches, [Publisher Location], v. 12, n. 1, p. 195-217, 2025.


Chicago: Author-Date Style

Khan, Muhammad Shafiq, and Malik Fahim Bashir and Muhammad Akram. 2025. “The Impact of Economic Policy Uncertainty on Corporate Investment Decisions.” Journal of Economic Policy Researches 12, no. 1: 195-217. https://doi.org/10.26650/JEPR1593045


Chicago: Humanities Style

Khan, Muhammad Shafiq, and Malik Fahim Bashir and Muhammad Akram. The Impact of Economic Policy Uncertainty on Corporate Investment Decisions.” Journal of Economic Policy Researches 12, no. 1 (Mar. 2025): 195-217. https://doi.org/10.26650/JEPR1593045


Harvard: Australian Style

Khan, MS & Bashir, MF & Akram, M 2025, 'The Impact of Economic Policy Uncertainty on Corporate Investment Decisions', Journal of Economic Policy Researches, vol. 12, no. 1, pp. 195-217, viewed 10 Mar. 2025, https://doi.org/10.26650/JEPR1593045


Harvard: Author-Date Style

Khan, M.S. and Bashir, M.F. and Akram, M. (2025) ‘The Impact of Economic Policy Uncertainty on Corporate Investment Decisions’, Journal of Economic Policy Researches, 12(1), pp. 195-217. https://doi.org/10.26650/JEPR1593045 (10 Mar. 2025).


MLA

Khan, Muhammad Shafiq, and Malik Fahim Bashir and Muhammad Akram. The Impact of Economic Policy Uncertainty on Corporate Investment Decisions.” Journal of Economic Policy Researches, vol. 12, no. 1, 2025, pp. 195-217. [Database Container], https://doi.org/10.26650/JEPR1593045


Vancouver

Khan MS, Bashir MF, Akram M. The Impact of Economic Policy Uncertainty on Corporate Investment Decisions. Journal of Economic Policy Researches [Internet]. 10 Mar. 2025 [cited 10 Mar. 2025];12(1):195-217. Available from: https://doi.org/10.26650/JEPR1593045 doi: 10.26650/JEPR1593045


ISNAD

Khan, MuhammadShafiq - Bashir, MalikFahim - Akram, Muhammad. The Impact of Economic Policy Uncertainty on Corporate Investment Decisions”. Journal of Economic Policy Researches 12/1 (Mar. 2025): 195-217. https://doi.org/10.26650/JEPR1593045



TIMELINE


Submitted03.12.2024
Accepted20.01.2025
Published Online14.02.2025

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