Article
Political regimes, investment and electoral uncertainty
Research in International Business and Finance
(2019)
Abstract
This study looks at firm’s investment spending in fixed and intangible assets around three types of national elections: presidential, joint presidential and legislative, and parliamentary elections. Investment in fixed assets declines by up to 2.3% during presidential elections, and 4.43% in joint presidential and legislative elections years. On the other hand, intangible investment decreases by 4.47% in parliamentary election years. Moreover, investment responses to electoral shocks differ markedly within political systems and countries’ institutional settings. Investment levels shift significantly downward in pre- and resume in postelection years. The electoral effect results in a net loss in investment over the election cycle.
Keywords
- political economy,
- policy uncertainty,
- electoral uncertainty,
- investment,
- capital intensity,
- intangible intensity
Publication Date
January, 2019
DOI
https://doi.org/10.1016/j.ribaf.2018.10.003
Publisher Statement
Note: full-text not available due to publisher restrictions. Link takes you to an external site where you can purchase the article or borrow it from a local library.
Citation Information
Marcelin, I., Stephen, S. A., Fanta, F. and M. Tecklezion, 2019. “Political Regimes, Investment and Electoral Uncertainty”, Research in International Business and Finance, 47, 580-599.