%0 Journal Article
%A Albertus Henri Listyanto Nugroho
%A Nandya Octanti Pusparini
%A Hilma Tsani Amanati
%A Firdaus Kurniawan
%D 2023
%F katalog:9072
%I Asian Review of Accounting
%J Journal of Asian Review of Accounting
%K olicy uncertainty, Economic uncertainty, Corporate investment, Quality of financial reporting,  Developing countries, EPU
%T EFFECTS OF POLICY AND ECONOMIC UNCERTAINTY ON INVESTMENT ACTIVITIES AND CORPORATE FINANCIAL REPORTING: A STUDY OF DEVELOPING COUNTRIES IN ASIA-PACIFIC
%U https://katalog.ukdw.ac.id/9072/
%X Purpose – This study investigates the impact of government and economic policy uncertainty (EPU) on  companies’ business operations, especially risk-taking tendencies and corporate financial reporting  quality (FRQ).  Design/methodology/approach – The study employs the generalised least squares regression model. The  final sample comprised 27,376 company-year observations from eight countries in the Asia-Pacific region.  Findings – EPU has a negative and significant effect on investment activity and FRQ. Higher EPU leads to a  decline in investment and FRQ.  Research limitations/implications – There are several limitations in this study. First, the authors used  abnormal investments to measure investments, without considering the degree of irreversibility investment  objectives. Second, although control variables are included at the company and country levels, they may only  partially control for companies’ mitigation effects. Third, the sample is limited to developing countries with  unique characteristics in Asia-Pacific; therefore, the findings cannot be generalised.  Practical implications – The findings can help investors, analysts and regulators evaluate EPU’s impact on  companies’ business activities by offering an overview regarding the decline in investment efficiency and FRQ.  The results can also be used as input for regulators in formulating policies that encourage companies to  regulate investment levels without harming other stakeholders and maintain FRQ during periods of  uncertainty.  Originality/value – This research provides intriguing insights into EPU’s effects on companies’ investment  activity and FRQ in developing countries, which are sensitive to changes in macroeconomic conditions.