This study investigates the impact of low-quality political signals on the relationship between economic policy uncertainty and firms' capital structure decisions on leverage and debt maturity. We present compelling evidence that low-quality political signals significantly diminish the effect of...

This study examines the relationship between geopolitical risk and firms' capital structure decisions, focusing on the moderating effects of executive characteristics. Using US corporations data from 1992 to 2020, we find that firms adopt more conservative capital structure choices in response...

Exploiting a novel measure of firm-level political risk based on earnings conference calls, we examine the effect of political risk on stock liquidity. We show that liquidity decreases significantly more in firms that are exposed to political risk. An increase in political risk by one standard...