Political uncertainty is a risk that affects the decision-making processes of firms. Therefore, it is crucial to … understand what causes political uncertainty and include appropriate indicators in a risk management system. This study … introduces election polls as a new determinant of political uncertainty. Election polls reveal the public’s opinion on current …

employed the investment-Q model as the baseline specification with firm fixed effects. Results revealed that during election … years, firms tend to reduce investment expenditures as compared to a period having no election after controlling for firm … characteristics and economic condition. The study also witnessed pre-election manipulation and the presence of the political business …