Policy uncertainty and intellectual capital investment

Hoang, Khanh; Tran, Thanh Tat

doi:10.1080/13504851.2021.1934383

Cited by 10 publications

(5 citation statements)

References 23 publications

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“…However, innovative activities themselves have high uncertainty and high adjustment costs (Bloom, 2007). Economic policy uncertainty intensifies corporate financial constraints (Ma and Hao, 2022) and inhibits intellectual capital investment (Hoang and Tran, 2021). Further, the risk of enterprise innovation is intensified, which may inhibit enterprise innovation activities (Ya et al, 2018).…”

Section: Economic Policy Uncertainty and Enterprise Innovationmentioning

confidence: 99%

The time-varying effects of economic policy uncertainty and low-carbon economic transition on enterprise innovation in China

Zhang

Shao

Wang

2023

Front. Environ. Sci.

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With the increasing concern of all sectors of society about climate change, enterprises have become an important subject to undertake environmental protection. At the same time, enterprises have to seek survival and development under the background of economic policy uncertainty. Therefore, companies need to not only fulfill their environmental responsibilities but also find ways to respond to changes in economic policies through innovation. In the study, a three-variable time-varying vector autoregressive (TVP-VAR) model with stochastic volatility was used to investigate the nonlinear dynamic effects of economic policy uncertainty and low-carbon economic transition on enterprise innovation in China. It is found that the influence of economic policy uncertainty on enterprise innovation is time-varying and asymmetrical, especially with the 2008 financial crisis as the turning point. After the financial crisis, the positive impact of economic policy uncertainty on enterprises has been weakening, and in 2015, the positive impact turned into a negative impact. In general, economic policy uncertainty is not conducive to the transition to low-carbon economic transition, and with the outbreak of the financial crisis in 2008, the negative impact reached a negative peak. The low-carbon economic transition has a significant crowding-out effect on enterprise innovation, while enterprise innovation has a significant spillover effect on low-carbon economic transition. The conclusion can provide the scientific basis for enterprises to adapt to the change in the economic environment to complete low-carbon economic transition and formulate innovation strategies, which is conducive to the sustainable development of the ecological environment and economic society.

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Section: Economic Policy Uncertainty and Enterprise Innovationmentioning

confidence: 99%

The time-varying effects of economic policy uncertainty and low-carbon economic transition on enterprise innovation in China

Zhang

Shao

Wang

2023

Front. Environ. Sci.

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“…Therefore, if the future of the new climate policy becomes uncertain, heavy emitter firms may not want to invest in R&D immediately. Previous studies in the investment under uncertainty literature (Dixit & Pindyck, 1994; Gulen & Ion, 2016; Hoang & Tran, 2021; Kim & Kung, 2017; Strobel et al, 2018; Xu, 2020) show that firms tend to retrench investment or even divest under uncertainty until more is known to make more informed decisions. This is viewed as a real option available for heavy emitters when facing a difficult choice under CPU.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

How does corporate R&D investment respond to climate policy uncertainty? Evidence from heavy emitter firms in the United States

Hoang

2022

Corp Soc Responsibility Env

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This study explores how climate policy uncertainty (CPU) affects research and development (R&D) investment of heavy emitter firms in the United States during 2000-2019. Our empirical evidence indicates that while CPU exerts a positive impact on R&D investment of general firms, it seems to be a completely different story for heavy emitter firms. After a battery of sensitivity tests, we find a robust negative impact of CPU on R&D investment of heavy emitters, suggesting that those firms play a "wait-and-see" strategy in response to changes in environmental policies until more is known to make decisions. However, such behavior is not observed in light emitters. Even among heavy emitters, we show that the impact of CPU is only pronounced in heavy emitters with more technology uncertainty. Further analyses show such an impact varies with management sentiment, managerial ability, and firm maturity. Our findings have implications for policymaking and corporate strategy of heavy emitters in response to CPU.

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“…This part shows strong evidence of a negative impact of EPU on IC investment, implying EPU hinders corporate IC investment." [9]. The government should consider the chain reaction of the investors to avoid the capital flight.…”

Section: Bond Marketmentioning

confidence: 99%

The Effect of Federal Reserves Rate Hikes: A perspective of Financial Market

Huang

2023

AEMPS

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In recent years, due to the global economic recession caused by the Covid-19 pandemic, the Federal Reserve has increased the interest rate to a historical high level in recent years. In this article, the author plots the diagram of index vs. Time to show the overall economic situation. This article concentrates on the effect of the rate hikes of Federal Reserve. The purpose is guiding the investors and governments to make decision under the challenging situation. Based on the timeline of rate hikes, there are improvement of the overall economy in US. It is a chance for investors to invest the money. There are chances for investors to invest when the US Federal Reserve increase the interest rate. The investors will have more confidence to increase income if the overall economic condition is improved by the rate hike. The government can control the level of the investors confidences to keep stable development of economy by controlling time of rate hikes.

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Policy uncertainty and intellectual capital investment

Cited by 10 publications

References 23 publications

The time-varying effects of economic policy uncertainty and low-carbon economic transition on enterprise innovation in China

The time-varying effects of economic policy uncertainty and low-carbon economic transition on enterprise innovation in China

How does corporate R&D investment respond to climate policy uncertainty? Evidence from heavy emitter firms in the United States

The Effect of Federal Reserves Rate Hikes: A perspective of Financial Market

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