The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS
This study aims to examine the moderating effect of FSD on the relationship between EPU and corporate investment in the BRICS nations between 2010 and 2022. It looks at how a developed financial sector can lessen these effects and aims to offer empirical evidence on the mechanisms through which EPU...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
|
| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2024.2430459 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850160425989046272 |
|---|---|
| author | Salem Hamad Aldawsari |
| author_facet | Salem Hamad Aldawsari |
| author_sort | Salem Hamad Aldawsari |
| collection | DOAJ |
| description | This study aims to examine the moderating effect of FSD on the relationship between EPU and corporate investment in the BRICS nations between 2010 and 2022. It looks at how a developed financial sector can lessen these effects and aims to offer empirical evidence on the mechanisms through which EPU influences corporate investment levels. Using a large dataset with 15,132 firm-year observations, this study uses system GMM panel EGLS and fixed effect models. The results show that corporate investment is considerably reduced by higher EPU levels, underscoring the detrimental effect of policy uncertainty on business investment choices. On the other hand, FSD has a positive moderating effect that protects against the damaging effects of EPU and encourages more corporate investment. To create an environment that is favorable for investment, the study emphasizes the significance of sound economic policies and a sophisticated financial sector. To improve investment resilience and economic growth, policymakers should give regulatory clarity and financial sector reforms top priority. By incorporating insights into how EPU and FSD interact to influence corporate investment behavior in emerging economies. It offers empirical data that broaden theoretical comprehension and has applications for stakeholders in the financial sector and policymakers. |
| format | Article |
| id | doaj-art-a0b45890d99a4be4976fb4d9683b4eec |
| institution | OA Journals |
| issn | 2331-1975 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-a0b45890d99a4be4976fb4d9683b4eec2025-08-20T02:23:09ZengTaylor & Francis GroupCogent Business & Management2331-19752024-12-0111110.1080/23311975.2024.2430459The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICSSalem Hamad Aldawsari0Department of Finance, College of Business Administration Hotat Bani Tamim, Prince Sattam Bin Abdulaziz University, Al-Kharj, Saudi ArabiaThis study aims to examine the moderating effect of FSD on the relationship between EPU and corporate investment in the BRICS nations between 2010 and 2022. It looks at how a developed financial sector can lessen these effects and aims to offer empirical evidence on the mechanisms through which EPU influences corporate investment levels. Using a large dataset with 15,132 firm-year observations, this study uses system GMM panel EGLS and fixed effect models. The results show that corporate investment is considerably reduced by higher EPU levels, underscoring the detrimental effect of policy uncertainty on business investment choices. On the other hand, FSD has a positive moderating effect that protects against the damaging effects of EPU and encourages more corporate investment. To create an environment that is favorable for investment, the study emphasizes the significance of sound economic policies and a sophisticated financial sector. To improve investment resilience and economic growth, policymakers should give regulatory clarity and financial sector reforms top priority. By incorporating insights into how EPU and FSD interact to influence corporate investment behavior in emerging economies. It offers empirical data that broaden theoretical comprehension and has applications for stakeholders in the financial sector and policymakers.https://www.tandfonline.com/doi/10.1080/23311975.2024.2430459Economic policy uncertaintyfinancial sector developmentcorporate investmentBRICSsystem GMMFinance |
| spellingShingle | Salem Hamad Aldawsari The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS Cogent Business & Management Economic policy uncertainty financial sector development corporate investment BRICS system GMM Finance |
| title | The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS |
| title_full | The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS |
| title_fullStr | The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS |
| title_full_unstemmed | The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS |
| title_short | The interplay of economic policy uncertainty and corporate investment: analyzing the moderating influence of financial sector development in BRICS |
| title_sort | interplay of economic policy uncertainty and corporate investment analyzing the moderating influence of financial sector development in brics |
| topic | Economic policy uncertainty financial sector development corporate investment BRICS system GMM Finance |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2024.2430459 |
| work_keys_str_mv | AT salemhamadaldawsari theinterplayofeconomicpolicyuncertaintyandcorporateinvestmentanalyzingthemoderatinginfluenceoffinancialsectordevelopmentinbrics AT salemhamadaldawsari interplayofeconomicpolicyuncertaintyandcorporateinvestmentanalyzingthemoderatinginfluenceoffinancialsectordevelopmentinbrics |