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Does increased policy uncertainty dampen investment plans of firms? We provide direct evidence on this question by … induced policy uncertainty have revised their investment plans differently from those that did not perceive an increase in … uncertainty. We find strong evidence that an increase in policy uncertainty does lead firms to reduce their investment plans. As …
Persistent link: https://www.econbiz.de/10011458466
the literature, our empirical findings reveal a negative impact of firm-specific uncertainty on investment. However … adjust their investment if the realized situation is better than expected, which suggests that the uncertainty effect …This paper analyzes how firm-specific uncertainty affects firms’ propensity to invest. We measure firm …
Persistent link: https://www.econbiz.de/10011445660
adjust investment if the realised situation is better than expected suggesting that the uncertainty component of the forecast …–2011 affect firms’ investment propensity. Understanding how forecast errors affect firm investment behaviour is key to mitigate … impact of absolute forecast errors on investment. Strikingly, asymmetries arise depending on the size and direction of the …
Persistent link: https://www.econbiz.de/10012203080
Persistent link: https://www.econbiz.de/10011975702
Persistent link: https://www.econbiz.de/10013168189
. Fifth, our survey evidence suggests that elevated uncertainty is exerting only mild restraint on capital investment plans …We examine several measures of uncertainty to make five points. First, equity market traders and executives at … nonfinancial firms have shared similar assessments about one-year-ahead uncertainty since the pandemic struck. Both the one …
Persistent link: https://www.econbiz.de/10013186704
Since the global financial crisis, corporate investment has been weak in India. Sluggish corporate investment would not …, this paper analyzes the reasons for the slowdown and discusses how India can boost corporate investment, using both macro … investment but that they do not appear to account fully for recent weak performance, suggesting a key role of the business …
Persistent link: https://www.econbiz.de/10013108614
This study investigates the utility of business uncertainty indicators as predictive tools for forecasting economic … the dynamics of economic uncertainty and its impact on overall economic performance is of paramount importance. The study … the first half of 2024. Given the importance of uncertainty in shaping economic outcomes, the central research question of …
Persistent link: https://www.econbiz.de/10015396286
Are firms` expectations systematically too optimistic or too pessimistic? Does it matter? We use micro data from the West German manufacturing subset of the IFO Business Climate Survey to infer quarterly production changes at the firm level and combine them with production expectations over a...
Persistent link: https://www.econbiz.de/10009724017
Are firms’ expectations systematically too optimistic or too pessimistic? Does it matter? We use micro data from the West German manufacturing subset of the IFO Business Climate Survey to infer quarterly production changes at the firm level and combine them with production expectations over a...
Persistent link: https://www.econbiz.de/10013315803