Impact of economic policy uncertainty on the performance of SMEs in a university environment

Jessica Paule-Vianez, Carmen Orden-Cruz, Alba Gómez-Ortega and Sandra Escamilla-Solano

Review of Accounting and Finance, 2025, vol. 24, issue 5, 640-658

Abstract: PurposeThis study aims to analyze how economic policy uncertainty (EPU) influences the economic and financial performance of small and medium-sized enterprises (SMEs) located in a university environment.Design/methodology/approachTo achieve the proposed objective, a sample of 449 companies located in the university environment of the Rey Juan Carlos University of Madrid (Spain) was taken for the period 2012–2020. Given the temporal and cross-sectional nature of the data, the chosen methodology was panel data analysis.FindingsThe results show how EPU has a negative impact on the performance of these SMEs. However, firm size and age are not influential factors in the relationship between EPU and the performance of SMEs.Practical implicationsThis evidence provides more knowledge to SMEs located near a university to make decisions under uncertainty. Fiscal and monetary authorities should be aware of the impact of EPU, not only economic but also social.Originality/valueThis research provides more knowledge on the impact of EPU on firm performance, focusing on a specific segment of SMEs, namely those located in a university environment.

Keywords: Economic policy uncertainty; Performance; Small and medium-sized enterprises; University; Firm characteristics (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:rafpps:raf-05-2024-0204

DOI: 10.1108/RAF-05-2024-0204

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