This paper investigates how economic policy uncertainty affects firms' frequency and their choice of financial instruments to raise capital. By applying a three-step sequential framework over a sample of 6834 publicly listed US non-financial firms, we find that during periods of high economic...

Using listed firms of Japan, this paper examines the changes of R&D investment decisions during high economic policy uncertainty. Following the methodology of Bloom (2007), we find that firms are more responsive to their previous R&D investment under high uncertainty and reduce their...