Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty
This study examines the effects of product market competition on corporate investment and firm value and the moderating role of economic policy uncertainty on this relationship. The firm-level data of 1971 listed corporate firms for BRIC (Brazil, Russia, India, China) countries during 2009–2020 were...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-06-01
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| Series: | Economies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2227-7099/11/6/167 |
| _version_ | 1797595209866936320 |
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| author | Oluwaseyi Ebenezer Olalere Janine Mukuddem-Petersen |
| author_facet | Oluwaseyi Ebenezer Olalere Janine Mukuddem-Petersen |
| author_sort | Oluwaseyi Ebenezer Olalere |
| collection | DOAJ |
| description | This study examines the effects of product market competition on corporate investment and firm value and the moderating role of economic policy uncertainty on this relationship. The firm-level data of 1971 listed corporate firms for BRIC (Brazil, Russia, India, China) countries during 2009–2020 were used, totaling 23,652 observations. Using the GMM estimates, our results depict that product market competition significantly influences corporate investment and firm value in BRIC countries. The result also reveals that economic policy uncertainty plays a significant role in the impact of product market competition on corporate investment and firm value at Brazilian, Russian, Indian, and Chinese firms. The study’s findings contribute to the body of knowledge by providing new evidence on the relationship between PMC, corporate investment, and firm value. These findings are vital for policymakers and regulatory bodies to focus on economic uncertainty in a competitive environment without jeopardizing investment returns in emerging markets. |
| first_indexed | 2024-03-11T02:33:48Z |
| format | Article |
| id | doaj.art-84824c25171a4068ad9d62ea9287fb50 |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-11T02:33:48Z |
| publishDate | 2023-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-84824c25171a4068ad9d62ea9287fb502023-11-18T10:05:33ZengMDPI AGEconomies2227-70992023-06-0111616710.3390/economies11060167Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy UncertaintyOluwaseyi Ebenezer Olalere0Janine Mukuddem-Petersen1Graduate School of Business, University of Cape Town, Cape Town 8002, South AfricaGraduate School of Business, University of Cape Town, Cape Town 8002, South AfricaThis study examines the effects of product market competition on corporate investment and firm value and the moderating role of economic policy uncertainty on this relationship. The firm-level data of 1971 listed corporate firms for BRIC (Brazil, Russia, India, China) countries during 2009–2020 were used, totaling 23,652 observations. Using the GMM estimates, our results depict that product market competition significantly influences corporate investment and firm value in BRIC countries. The result also reveals that economic policy uncertainty plays a significant role in the impact of product market competition on corporate investment and firm value at Brazilian, Russian, Indian, and Chinese firms. The study’s findings contribute to the body of knowledge by providing new evidence on the relationship between PMC, corporate investment, and firm value. These findings are vital for policymakers and regulatory bodies to focus on economic uncertainty in a competitive environment without jeopardizing investment returns in emerging markets.https://www.mdpi.com/2227-7099/11/6/167corporate investmentproduct market competitioneconomic policy uncertaintyfirm value |
| spellingShingle | Oluwaseyi Ebenezer Olalere Janine Mukuddem-Petersen Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty Economies corporate investment product market competition economic policy uncertainty firm value |
| title | Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty |
| title_full | Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty |
| title_fullStr | Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty |
| title_full_unstemmed | Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty |
| title_short | Product Market Competition, Corporate Investment, and Firm Value: Scrutinizing the Role of Economic Policy Uncertainty |
| title_sort | product market competition corporate investment and firm value scrutinizing the role of economic policy uncertainty |
| topic | corporate investment product market competition economic policy uncertainty firm value |
| url | https://www.mdpi.com/2227-7099/11/6/167 |
| work_keys_str_mv | AT oluwaseyiebenezerolalere productmarketcompetitioncorporateinvestmentandfirmvaluescrutinizingtheroleofeconomicpolicyuncertainty AT janinemukuddempetersen productmarketcompetitioncorporateinvestmentandfirmvaluescrutinizingtheroleofeconomicpolicyuncertainty |