We document a negative impact of economic policy uncertainty on stock liquidity. This impact is stronger for firms with: (i) higher sensitivity of stock returns to economic policy uncertainty; (ii) higher level of political risk; and (iii) heavier dependence on government spending. We identify...

We find that U.S. corporations increase their cash holdings in response to higher economic policy uncertainty. The increase in cash holdings is not attributed to a reduction in firm investments. This increase is more pronounced for financially constrained firms or those with larger exposure to...

We find a strong evidence that firms reduce cash effective tax rate when economic policy uncertainty heightens. Firms also engage in more aggressive forms of tax avoidance including long-term tax planning or shelters. Cash holdings attenuate the negative effect of policy uncertainty on cash...

Different U.S. state governments have begun to adopt climate adaptation strategies and action plans to prepare for and combat the significant threat of climate change. The finalization of these strategies and action plans results in a state-level climate adaptation plan—the SCAP. We find that...

Based on theoretical advice and empirical evidence suggesting that risk-taking in asset allocation enhances pension returns, we evaluate empirically whether good corporate governance leads to a larger allocation of pension assets to risky securities as compared to safe investments. Our findings...

This research examines the relationship between policy uncertainty and mergers and acquisitions (M&As). We find that policy uncertainty is negatively related to firm acquisitiveness and positively related to the time it takes to complete M&A deals. In addition, policy uncertainty motivates...