The study investigates the moderation effect of economic policy uncertainty (EPU) towards the relationship between excess liquidity and bank risk-taking as well as explores its stronger impact in countries severely affected by the 2008 Global Financial Crisis (GFC). Using System Generalized...

The study investigates how economic policy uncertainty (EPU) moderates the impact of excess liquidity on risk-taking behaviours of banks and further examines whether the degree of such a moderating factor becomes stronger in the countries which were heavily affected by the 2008 Global Financial...

We study the impact of economic policy uncertainty on the probability and duration of economic recessions in 10 major European Union countries over the period 1987Q2-2021Q1. We find that economic policy uncertainty results in not only a higher probability of economic recessions but also longer...

This paper examines the impact of policy uncertainty on corporate dividend payouts in a sample of 20,856 US firms over the period 1991-2020. In line with the agency theory, we find evidence that firms pay higher dividends to mitigate agency problems during periods of high policy uncertainty. The...

We examine the relation between geopolitical risk and the cost of bank loans using a sample of 27,405 loan facilities in the US over the period 1991–2019. We show that geopolitical risk is associated with higher loan prices and more stringent nonprice loan terms. Delving into the components of...