Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments
This paper investigates the link between corporate investments, eco-nomic policy uncertainty and the quality of institutional environments. The corporate investments of private firms in 10 European countries from 2009 to 2018 were examined and a negative effect of economic policy uncertainty on corp...
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| Format: | Article |
| Language: | English |
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Sciendo
2023-06-01
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| Series: | Review of Economic Perspectives |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/revecp-2023-0005 |
| _version_ | 1797795015537197056 |
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| author | Večeřová Klára |
| author_facet | Večeřová Klára |
| author_sort | Večeřová Klára |
| collection | DOAJ |
| description | This paper investigates the link between corporate investments, eco-nomic policy uncertainty and the quality of institutional environments. The corporate investments of private firms in 10 European countries from 2009 to 2018 were examined and a negative effect of economic policy uncertainty on corporate investments was identified. More importantly, it was determined that the higher-quality institutional environments reduced the negative impact of economic policy uncertainty on corporate investments, especially when economic policy uncertainty was high. We also demonstrate the effects of government stability, legislative strength, government cohesion and socioeconomic conditions that mitigate the negative effects of economic policy uncertainty on corporate investments. |
| first_indexed | 2024-03-13T03:11:28Z |
| format | Article |
| id | doaj.art-fd5d78acf4394248ae30ef825a2be2bc |
| institution | Directory Open Access Journal |
| issn | 1804-1663 |
| language | English |
| last_indexed | 2024-03-13T03:11:28Z |
| publishDate | 2023-06-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Review of Economic Perspectives |
| spelling | doaj.art-fd5d78acf4394248ae30ef825a2be2bc2023-06-26T10:48:15ZengSciendoReview of Economic Perspectives1804-16632023-06-0123215918010.2478/revecp-2023-0005Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investmentsVečeřová Klára01Mendel University in Brno, Faculty of Business and Economics, Zemědělská 1, 613 00Brno, Czech RepublicThis paper investigates the link between corporate investments, eco-nomic policy uncertainty and the quality of institutional environments. The corporate investments of private firms in 10 European countries from 2009 to 2018 were examined and a negative effect of economic policy uncertainty on corporate investments was identified. More importantly, it was determined that the higher-quality institutional environments reduced the negative impact of economic policy uncertainty on corporate investments, especially when economic policy uncertainty was high. We also demonstrate the effects of government stability, legislative strength, government cohesion and socioeconomic conditions that mitigate the negative effects of economic policy uncertainty on corporate investments.https://doi.org/10.2478/revecp-2023-0005economic policy uncertaintyfirm investmentsinstitutional environmentpanel datad22g30 |
| spellingShingle | Večeřová Klára Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments Review of Economic Perspectives economic policy uncertainty firm investments institutional environment panel data d22 g30 |
| title | Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments |
| title_full | Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments |
| title_fullStr | Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments |
| title_full_unstemmed | Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments |
| title_short | Moderating effect of institutional environment on economic policy uncertainty: evidence from firms’ investments |
| title_sort | moderating effect of institutional environment on economic policy uncertainty evidence from firms investments |
| topic | economic policy uncertainty firm investments institutional environment panel data d22 g30 |
| url | https://doi.org/10.2478/revecp-2023-0005 |
| work_keys_str_mv | AT vecerovaklara moderatingeffectofinstitutionalenvironmentoneconomicpolicyuncertaintyevidencefromfirmsinvestments |