Economic policy uncertainty and shareholder wealth: the role of marketing, operations, and R&D capabilities

Saurabh Mishra (), Sachin B. Modi () and Michael A. Wiles ()
Additional contact information
Saurabh Mishra: George Mason University
Sachin B. Modi: Wayne State University
Michael A. Wiles: Arizona State University

Journal of the Academy of Marketing Science, 2022, vol. 50, issue 5, No 6, 1031 pages

Abstract: Abstract This study evaluates how economic policy uncertainty (EPU) affects firm shareholder wealth. It further investigates the moderating roles of marketing, operations, and R&D capabilities in this relationship. Analysis of longitudinal data, collected from a large sample of firms across multiple industries in the United States, reveals a complex picture. Results show that although EPU lowers firm value (i.e., Tobin’s Q and stock returns), it also reduces firm idiosyncratic risk. In addition, high marketing capability is observed to attenuate the loss in firm value arising from EPU, whereas high operations capability is seen to amplify this loss, with R&D capability not playing a significant moderating role. On the other hand, the reduction in idiosyncratic risk of firms facing EPU is marginally strengthened by operations and R&D capabilities, but not by marketing capability. Together, the conceptual framework and findings provide novel insight into the role of marketing capability in dealing with EPU.

Keywords: Economic policy uncertainty; Shareholder wealth; Marketing capability; Operations capability; R&D capability (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s11747-022-00838-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joamsc:v:50:y:2022:i:5:d:10.1007_s11747-022-00838-x

Ordering information: This journal article can be ordered from
https://www.springer ... gement/journal/11747

DOI: 10.1007/s11747-022-00838-x

Access Statistics for this article

Journal of the Academy of Marketing Science is currently edited by John Hulland, Anne Hoekman and Mark Houston

More articles in Journal of the Academy of Marketing Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().