Electoral uncertainty, macro-economic environment and corporative nvestment startegy
Joint Authors
Loukil, Sahar
Ben Romdhane, Yusra
Kammoun, Suhaylah
Source
Journal of Finance and Corporate Governance
Issue
Vol. 3, Issue 1 (30 Jun. 2019), pp.25-42, 18 p.
Publisher
Larbi Ben M'hidi Oum el-Bouaghi University
Publication Date
2019-06-30
Country of Publication
Algeria
No. of Pages
18
Main Subjects
Topics
Abstract EN
Our study looks at the relationship between firm's investment spending in fixed and intangible assets and electoral uncertainty around two types of national elections: presidential and parliamentary elections.
We analyze investment sensitivity to electoral uncertainty from 1996 through 2017 using a sample of 1485 firms from 45 countries.
We find that, regardless election type, firm's fixed investment significantly decrease around elections.
Precisely, firms hold investment spending in before elections and restart the year following year.
In this case, firms adopt a wait-and-see strategy.
But, in the context of corruption control the potential negative effects are reduced.
We thus highlight how different types of investments respond to various electoral shocks since microeconomic processes respond to policy uncertainty based upon firm's resource needs.
We conclude that the effect of political uncertainty on business investment depend on the degree of political uncertainty and the investment to be undertaken.
American Psychological Association (APA)
Loukil, Sahar& Kammoun, Suhaylah& Ben Romdhane, Yusra. 2019. Electoral uncertainty, macro-economic environment and corporative nvestment startegy. Journal of Finance and Corporate Governance،Vol. 3, no. 1, pp.25-42.
https://search.emarefa.net/detail/BIM-1088506
Modern Language Association (MLA)
Loukil, Sahar…[et al.]. Electoral uncertainty, macro-economic environment and corporative nvestment startegy. Journal of Finance and Corporate Governance Vol. 3, no. 1 (Jun. 2019), pp.25-42.
https://search.emarefa.net/detail/BIM-1088506
American Medical Association (AMA)
Loukil, Sahar& Kammoun, Suhaylah& Ben Romdhane, Yusra. Electoral uncertainty, macro-economic environment and corporative nvestment startegy. Journal of Finance and Corporate Governance. 2019. Vol. 3, no. 1, pp.25-42.
https://search.emarefa.net/detail/BIM-1088506
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1088506