Economic policy uncertainty and firm investment: evidence from the U.S. market

References

• Aghion, P., and G. Angeletos –M., Banerjee, A., and K. Manova. 2010. “Volatility and Growth: Credit Constraints and the Composition of Investment.” Journal of Monetary Economics 57: 246–265.
   Google Scholar
• Aizenman, J., and N. P. Marion. 1993. “Policy Uncertainty, Persistence and Growth.” Review of International Economics 1: 145–163.
   Google Scholar
• Altman, E. I. 1968. “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy.” Journal of Finance 23: 589–610.
   Web of Science ®Google Scholar
• Andres, P., and E. Vallelado. 2008. “Corporate Governance in Banking: The Role Of The Board Of Directors.” Journal Of Banking & Finance 32: 2570–2580. doi:10.1016/j.jbankfin.2008.05.008.
   Web of Science ®Google Scholar
• Archibugi, D., A. Filippetti, and M. Frenz. 2013. “The Impact of the Economic Crisis on Innovation: Evidence from Europe.” Technological Forecasting & Social Change 80: 1247–1260.
   Web of Science ®Google Scholar
• Arellano, M., and O. Bover. 1995. “Another Look at the Instrumental Variables Estimation of Error-Components Models.” Journal of Econometrics 68 (10): 29–51.
   Web of Science ®Google Scholar
• Arellano, M., and S. Bond. 1991. “Some Tests Of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” The Review Of Economic Studies 58: 277-297. doi:10.2307/2297968.
   Web of Science ®Google Scholar
• Baker, S. R., N. Bloom, B. Canes-Wrone, S. J. Davis, and J. A. Rodden. 2014. “Why Has U.S. Policy Uncertainty Risen since 1960?” Working Paper.
   Google Scholar
• Baker, S. R., N. Bloom, and S. J. Davis. 2013. “Measuring Economic Policy Uncertainty.” Working Paper.
   Google Scholar
• Bar-Ilan, A., and W. C. Strange. 1999. “The Timing and Intensity of Investment.” Journal of Macroeconomics 21: 57‒77.
   Web of Science ®Google Scholar
• Barnett, S. A., and P. Sakellaris. 1988. “Nonlinear Response of Firm Investment to Q: Testing a Model of Convex and Non-Convex Adjustment Costs.” Journal of Monetary Economics 42: 261–288.
   Web of Science ®Google Scholar
• Baum, C. F., M. Caglayan, and O. Talavera. 2010. “On the Sensitivity of Firms’ Investment to Cash Flow and Uncertainty.” Oxford Economic Papers 62: 286–306.
   Web of Science ®Google Scholar
• Bernanke, B. S. 1983. “Irreversibility, Uncertainty, and Cyclical Investment.” The Quarterly Journal of Economics 98: 85–106.
   Web of Science ®Google Scholar
• Bloom, N. 2009. “The Impact of Uncertainty Shocks.” Econometrica 77: 623–685.
   Web of Science ®Google Scholar
• Bloom, N., M. Floetotto, N. Jaimovic, I. Saporta-Eksten, and S. Terry. 2012. “Really Uncertain Business Cycles.” Working Paper.
   Google Scholar
• Blundell, R., and S. Bond. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.” Journal Of Econometrics 87: 115-143. doi:10.1016/S0304-4076(98)00009-8.
   Web of Science ®Google Scholar
• Blundell, R., and S. Bond. 2000. “GMM Estimation with Persistent Panel Data: An Application to Production Functions.” Econometric Reviews 19 (3): 321–340.
   Google Scholar
• Bo, H., and R. Lensin. 2005. “Is the Investment-Uncertainty Relationship Nonlinear? an Empirical Analysis for the Netherlands.” Economica 72: 307‒331.
   Web of Science ®Google Scholar
• Bolton, P., H. Chen, and N. Wang. 2011. “A Unified Theory of Tobin’s Q, Corporate Investment, Financing, and Risk Management.” The Journal of Finance 66: 1545–1578.
   Web of Science ®Google Scholar
• Bond, S., and C. Meghir. 1994. “Dynamic Invstment Models and the Firm’s Financial Policy.” Review of Economic Studies 61: 197–222.
   Web of Science ®Google Scholar
• Byrne, J. P., and E. P. Davis. 2004. “Permanent and Temporary Inflation Uncertainty and Investment in the United States.” Economics Letters 85: 271–277.
   Web of Science ®Google Scholar
• Carriere-Swallow, Y., and L. F. Cespedes. 2013. “The Impact of Uncertainty Shocks in Emerging Economies.” Journal of International Economics 90: 316–325.
   Web of Science ®Google Scholar
• Chung, K. H., and S. W. Pruitt. 1994. “A Simple Approximation of Tobin’s Q.” Financial Management 3: 70–74.
   Web of Science ®Google Scholar
• Converse, N. 2012. “Uncertainty, Capital Flows, and Maturity Mismatch.” Working paper.
   Google Scholar
• Fama, E. F., and K. R. French. 1993. “Common Risk Factors in the Returns on Stocks and Bonds.” Journal of Financial Economics 33: 3–56.
   Web of Science ®Google Scholar
• Ghosal, V., and P. Loungani. 2000. “The Differential Impact of Uncertainty on Investment in Small and Large Business.” Review of Economics and Statistics 82: 338‒349.
   Web of Science ®Google Scholar
• Gourio, F., M. Siemer, and A. Verdelhan. 2013. “International Risk Cycles.” Journal of International Economics 89: 471–484.
   Web of Science ®Google Scholar
• Guiso, L., and G. Parigi. 1999. “Investment and Demand Uncertainty.” Quarterly Journal of Economics 110: 185‒227.
   Google Scholar
• Gulen, H., and M. Ion. 2016. “Policy Uncertainty and Corporate Investment.” The Review of Financial Studies 29 (3): 523–564.
   Web of Science ®Google Scholar
• Heshmati, A., and H. Loof. 2008. “Investment and Performance of Firms: Correlation or Causality?” Corporate Ownership & Control 6: 268–282.
   Google Scholar
• Julio, B., and Y. Yook. 2012. “Political Uncertainty and Corporate Investment Cycles.” Journal of Finance 67: 45–83.
   Web of Science ®Google Scholar
• Kadapakkam, P. R., P. C. Kumar, and L. A. Riddick. 1998. “The Impact of Cash Flows and Firm Size on Investment: The International Evidence.” Journal of Banking & Finance 22: 293–320.
   Web of Science ®Google Scholar
• Kahle, K. M., and R. M. Stulz. 2013. “Access to Capital, Investment, and the Financial Crisis.” Journal of Financial Economics 110: 280–299.
   Web of Science ®Google Scholar
• Kahneman, D., and A. Tversky. 1979. “Prospect Theory: An Analysis of Decision under Risk.” Econometrica 47: 263‒291.
   Web of Science ®Google Scholar
• Kirchesch, K. 2004. “Financial Risks, Bankruptcy Probabilities, and the Investment Behavior of Enterprises.” Working Paper.
   Google Scholar
• Lee, C. C., and C. W. Lin. 2018. “Economic Growth, Financial Market, and Twin Crises”. The Journal of International Trade and Economic Development 27: 937–967.
   Web of Science ®Google Scholar
• Lee, C. C., and M. F. Hsieh. 2013. “The Impact of Bank Capital on Profitability and Risk in Asian Banking.” Journal of International Money and Finance 32: 251–281.
   Web of Science ®Google Scholar
• Lintner, J. 1965. “The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets.” Review of Economics and Statistics 47: 13–37.
   Web of Science ®Google Scholar
• Markowitz, H. M. 1952. “Portfolio Selection.” Journal of Finance 7: 77–91.
   Web of Science ®Google Scholar
• McDonald, R., and D. Siegel. 1986. “The Value of Waiting to Invest.” Quarterly Journal of Economics 101: 707–728.
   Web of Science ®Google Scholar
• Metcalf, G. E., and K. A. Hassett. 1995. “Investment under Alternative Return Assumptions: Comparing Random Walks and Mean Reversion.” Journal of Economic Dynamics and Control 19: 1471‒1488.
   PubMed Web of Science ®Google Scholar
• Mossin, J. 1966. “Equilibrium in a Capital Asset Market.” Econometrica 34: 768–783.
   Web of Science ®Google Scholar
• Nakamura, T. 1999. “Risk Aversion and the Uncertainty-Investment Relationship: A Note.” Journal of Economic Behavior and Organization 38: 357‒363.
   Web of Science ®Google Scholar
• Pindyck, R. 1991. “Irreversibility, Uncertainty, and Investment.” Journal of Economic Literature 29: 1110–1148.
   Web of Science ®Google Scholar
• Ross, S., R. Westerfield, and J. Jaffe. 1999. Corporate Finance. 5th ed. Singapore: McGraw-Hill.
   Google Scholar
• Rubinstein, M. E. 1973. “A Mean-Variance Synthesis of Corporate Financial Theory.” Journal of Finance 28: 167–182.
   Web of Science ®Google Scholar
• Schnabel, J. A., and J. Frank. 1984. “Bankruptcy Risk and Impaired Investment Decisions.” Managerial and Decision Economics 5: 187–190.
   Web of Science ®Google Scholar
• Sharpe, W. F. 1964. “Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk.” Journal of Finance 19: 425–442.
   Web of Science ®Google Scholar
• Snakar, S. 2000. “On the Investment-Uncertainty Relationship in a Real Options Model.” Journal of Economic Dynamics and Control 24: 219‒225.
   Web of Science ®Google Scholar
• Treynor, J. L. 1961. “Market Value, Time, and Risk.” Working Paper.
   Google Scholar
• Treynor, J. L. 1962. “Toward a Theory of Market Value of Risky Assets.” Working Paper.
   Google Scholar
• Wang, Y., C. R. Chen, and Y. S. Huang. 2014. “Economic Policy Uncertainty and Corporate Investment: Evidence from China.” Pacific-basin Finance Journal 26: 227–243. doi:10.1016/j.pacfin.2013.12.008.
   Web of Science ®Google Scholar