overinvestment using Korean data from 2007 to 2016. Since Jensen (1986) shows that a firm's free cash flow is an important factor of … overinvestment, the authors examine how free cash flow influences the sensitivity of overinvestment to EPU. The authors find that a … high level of free cash flow attenuates the negative effect of EPU on overinvestment. The authors find that there is no …

The aim of this paper is to investigate the effect of economic policy uncertainty on firms' investment decisions. We … (EPU) indicator available for this country. We find strong evidence that uncertainty reduces corporate investment. This …-related uncertainty reduces corporate investment through increases in precautionary savings or to worsening of credit conditions. …