Economic Policy Uncertainty and Firm Value: The Mediating Role of Intangible Assets and R&D

Applied Economics Letters, Forthcoming

11 Pages Posted: 30 Jan 2020

See all articles by Richard Borghesi

Richard Borghesi

University of South Florida-Sarasota

Kiyoung Chang

University of South Florida Sarasota-Manatee - College of Business

Date Written: August 6, 2019

Abstract

We explore the mechanisms by which intangible assets and R&D intensity mediate the relationship between global economic policy uncertainty and firm value. We find that firms in high intangible-intensity industries and those engaging in R&D suffer the most from restrictive governance policies when economic instability is high. However, when the economic environment is volatile, these same firms benefit the most from prior investments in corporate social responsibility. Results add nuance to prior literature exploring the CSR and corporate governance strictly during the Great Recession and also shed light on optimal governance and CSR policies in times of global economic policy uncertainty.

Keywords: Economic policy uncertainty, firm value, intangible assets, research and development

JEL Classification: G28, G32, G34, G38

Suggested Citation

Borghesi, Richard and Chang, Kiyoung, Economic Policy Uncertainty and Firm Value: The Mediating Role of Intangible Assets and R&D (August 6, 2019). Applied Economics Letters, Forthcoming . Available at SSRN: https://ssrn.com/abstract=3516859

Richard Borghesi (Contact Author)

University of South Florida-Sarasota ( email )

8350 N. Tamiami Trail
Sarasota, FL 34243-2049
United States
941-359-4524 (Phone)
941-359-4367 (Fax)

HOME PAGE: http://usfsm.edu/academics/faculty-listing/dr-richard-borghesi.aspx

Kiyoung Chang

University of South Florida Sarasota-Manatee - College of Business ( email )

8350 N. Tamiami Trail, SMC-C263
Sarasota, FL 34243-2025
United States
9413594359 (Phone)
9413594367 (Fax)

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