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The impact of economic policy uncertainty on firm overinvestment
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Ali Jafari   |
| Assistant Professor, Accounting Department, Bonab Branch, Islamic Azad University, Bonab, Iran , afari.ali.iau@gmail.com |
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Abstract: (128 Views) |
Today, investment is one of the most important tasks of company managers. Therefore, if managers can correctly identify valuable investment opportunities in the market and invest in each of them appropriately, they will cause the growth of the company and increase the value of the shareholders. The purpose of this research is to investigate the impact of economic policy uncertainty on firm overinvestment. This research is applied in terms of purpose, and quantitative in terms of data nature, and combined research (longitudinal-cross-sectional) in terms of length of time duration, and descriptive in terms of method of cognition. The sample of the study included 132 companies listed in Tehran Stock Exchange during the years 2014-2021. Research data was collected using companies' financial reports and the Rahavard Novin software, statistics and information published by the Central Bank of the Islamic Republic of Iran, and the free exchange rate based on market prices.The research hypotheses were tested using a multivariate linear regression model, mixed data, and EViews12 software. The research results show that the interest rate criterion has a positive and significant effect on overinvestment. In addition, the impact of inflation rate, exchange rate, and economic growth on overinvestment was not statistically confirmed.
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Article number: 18 |
| Keywords: uncertainty of economic policy, Overinvestment, Tehran Stock Exchange |
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Full-Text [PDF 979 kb]
(46 Downloads)
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Article type: Research |
Subject:
Special
Received: 2022/10/31 | Accepted: 2023/03/8 | Published: 2023/03/1
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