Effects of Policy Uncertainty on Firm-Level Productivity

被引:1
作者
Cao, Melanie [1 ]
Tut, Daniel [2 ]
机构
[1] York Univ, Schulich Sch Business, Toronto, ON M3J 1P3, Canada
[2] Toronto Metropolitan Univ, Ted Rogers Sch Management, Toronto, ON M5B 2K3, Canada
关键词
Policy uncertainty; total factor productivity; leverage; cash; business cycles; INVESTMENT; DYNAMICS; RISK; CASH;
D O I
10.1142/S2010139224500101
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Does policy uncertainty affect productivity? Policy uncertainty creates delays on decision-making as firms await new information about prices, costs, and other market conditions before committing resources. Such delays can have real consequences on firms' productivity and corporate decisions. We find that economic policy uncertainty has a negative impact on firm-level productivity. We further show that the negative impact is alleviated by firms' high cash holdings or prior committed irreversible investments. These findings are robust to various specifications.
引用
收藏
页数:34
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