Investment decision and efficiency: Global insights on manufacturing firms amidst energy uncertainties

Dao Le Trang Anh, Nguyen Thi Thieu Quang and Nguyen Tuan Anh

Energy Economics, 2024, vol. 137, issue C

Abstract: This study examines the impacts of energy-related uncertainties on manufacturing listed firms' investment decisions and performance in advanced and emerging markets using panel data during the period 2004–2022. Our empirical investigations show that energy-related uncertainties significantly and positively affect firms' investment scale. This indicates a tendency of manufacturing firms to invest more in innovation and technology that reduces their dependence on traditional energy and meets new energy standards. Further, we reveal that nations' digitalization, institutional quality, business support environment, and R&D incentives relieve firm's pressure in increasing investment under energy uncertainties. Our study offers valuable insights for businesses, policymakers, and researchers, and sheds light on the relationships between energy-related uncertainties and strategic investment decisions in the global corporate landscape.

Keywords: Digitalization; Energy-related uncertainty; Institutional quality; Investment (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:137:y:2024:i:c:s0140988324005012

DOI: 10.1016/j.eneco.2024.107793

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