The non-financial corporate sector is a vital division of a country's economy, and a solid,
effective, and robust industrial foundation is therefore fundamental for the economic
well-being of a country. Investment decision plays an important role in the performance
and value creation of a firm. The current dissertation aims to examine the moderating
role of economic policy uncertainty on investment decisions and firm financial
performance in the nonfinancial sector of Pakistan.
The objective of this dissertation is achieved using a quantitative method. A sample of
223 nonfinancial listed firms in the Pakistan Stock Exchange is employed for the period
of 10 years (2010-2019). Different panel regression estimation techniques were applied:
pooled OLS, random and fixed effects, and two-step system (GMM) dynamic panel data
estimation to examine the association among the variables to provide the consistent
results of the study. The result of the dissertation shows that investment in tangible assets,
investment in intangible assets, financial leverage and economic policy uncertainty has
a negative and significant impact on firm financial performance measured by return on
assets (ROA) but investment in working capital shows a positive and statistically
significant influence on ROA. On the other hand, investment in intangible assets and
financial leverage has a positive impact on firm market performance measured by Tobin's
Q but investment in tangible assets has negative impact on Tobin's Q. Moreover, the
moderating impact of economic policy uncertainty significantly and positively moderates
the relationship between investment in tangible assets, investment in intangible assets,
and financial leverage, and negatively moderates the investment in working capital on
firm financial performance (ROA). On the contrary, the interaction of economic policy
uncertainty moderates investment in intangible assets and financial leverage significantly
and negatively, but has a positive influence with investment in tangible assets and
investment in working capital on Tobin’s Q. The result of the study confirms that the
economic policy uncertainty significantly moderates the relationship between investment
decision and firm financial performance in the nonfinancial sector of Pakistan. The study
theoretically contributes to the existing body of knowledge that economic policy
uncertainty is the vital cause that influences investment decisions and firm value in
developing countries. Limitations, future research direction, and practical implications
are also defined.
| ISBN: | 978-80-7678-174-0 |
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| EAN: | 9788076781740 |
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| Počet stran |
48 stran |
| Datum vydání |
12. 07. 2023 |
| Pořadí vydání |
První |
| Jazyk |
anglický |
| Vazba |
e-kniha - pdf |
| Autor: |
Abdul Quddus |
| Nakladatelství |
Univerzita Tomáše Bati ve Zlíně |
| Tématická skupina |
999 - nezařazeno |
| Neprodejná publikace. Publikaci je možné poptávat zde: Volně dostupé na http://hdl.handle.net/10563/52435 |
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