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Economic Policy Uncertainty and Financial Performance in Emerging Markets

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  • Elif Akben-Selcuk

Abstract

The objective of this study is to investigate the relationship between economic policy uncertainty (EPU) and financial performance using 5,509 firm-year observations from nine emerging markets which are Brazil, Chile, Colombia, Greece, India, Korea, Mexico, Pakistan, and Russia. The period of analysis spans the years between 2011-2022. Fixed-effects regressions show that there is a negative relationship between EPU and firm financial performance. Results are robust to different EPU measures. Implications are provided.

Suggested Citation

  • Elif Akben-Selcuk, 2024. "Economic Policy Uncertainty and Financial Performance in Emerging Markets," Business Management and Strategy, Macrothink Institute, vol. 15(1), pages 256-264, June.
    • Handle: RePEc:mth:bmsmti:v:15:y:2024:i:1:p:256-264
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    References listed on IDEAS

    as
    1. Al-Thaqeb, Saud Asaad & Algharabali, Barrak Ghanim, 2019. "Economic policy uncertainty: A literature review," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).
    2. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    3. Umer Iqbal & Christopher Gan & Muhammad Nadeem, 2020. "Economic policy uncertainty and firm performance," Applied Economics Letters, Taylor & Francis Journals, vol. 27(10), pages 765-770, June.
    4. Xinge Feng & Weijie Luo & Yong Wang, 2023. "Economic policy uncertainty and firm performance: evidence from China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(4), pages 1476-1493, October.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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