Firm-level political risk and corporate investment

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dc.contributor.authorChoi, Wonseok
dc.contributor.authorChung, Chune Young
dc.contributor.authorWang, Kainan
dc.creator.orcidhttps://orcid.org/0000-0003-3215-8091
dc.date.accessioned2023-03-23T17:32:58Z
dc.date.available2023-03-23T17:32:58Z
dc.date.issued2022
dc.descriptionPost-print under embargo until May 2024
dc.descriptionArticle originally published in Finance Research Letters, 46, 102307. English. Published online 2022. ttps://doi.org/10.1016/j.frl.2021.102307
dc.description.abstractExtant literature shows that firms reduce their capital investment in response to political risk. We examine firm-level activities and characteristics that mitigate the impact of political risk on firm investment. First, we empirically investigate the relationship between firm-level political risk and future investment, showing that firms with higher political exposure and political risk spend less on capital investment. Next, we examine the mechanisms behind the negative relationship between firm-level political risk and corporate investment. We find that political lobbying effectively reduces the negative impact of political exposure and political risk on corporate investment. In addition to corroborating the key findings documented in the literature that firms react to political risk by cutting investment, we show that this relationship is affected by certain firm activities and characteristics.en_US
dc.identifier.citationThis is a post-print version of an article that is available at https://doi.org/10.1016/j.frl.2021.102307. Recommended citation: Choi, W., Chung, C. Y., & Wang, K. (2022). Firm-level political risk and corporate investment. Finance Research Letters, 46, 102307. This item has been deposited in accordance with publisher copyright and licensing terms and with the author’s permission.en_US
dc.identifier.urihttps://hdl.handle.net/11274/14715
dc.identifier.urihttps://doi.org/10.1016/j.frl.2021.102307
dc.language.isoen_USen_US
dc.publisherElsevieren_US
dc.subjectFirm-level political risken_US
dc.subjectCorporate investmenten_US
dc.subjectCorporate governanceen_US
dc.titleFirm-level political risk and corporate investmenten_US
dc.typePost-Printen_US

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