Economic policy uncertainty and corporate investment: evidence from Indian hospitality firms

This study explores the effect of economic policy uncertainty on the corporate investment of 180 Indian Hospitality firms for 15 years. Applying generalized methods of moments technique we find that EPU has a negative impact on the investment decisions of Indian Hospitality firms. Additionally, we find that this negative relationship is relevant for firms in the lower quantile of capital investment, and this negative relationship is more pronounced for firms facing higher financial constraints.