Can firms with the best training program withstand the storm of economic policy uncertainty?

Vichet Sum

Journal of Business Economics and Management, 2015, vol. 16, issue 1, 206-213

Abstract: This study examines if firms whose training programs ranked as the best ones in the United States can withstand the changes in economic policy uncertainty. The regression analysis of monthly changes in economic policy uncertainty index, monthly returns on the CRSP value-weighted index, and monthly returns on an equal-weighted portfolio of public firms in the United States ranked consecutively from 2006 to 2011 in the top 50 of the Training Top 125 shows that the increased changes in economic policy uncertainty negatively affect the portfolio returns; however, this effect is not statistically significant at the 1% level. The result from regressing monthly returns on CRSP value-weighted index on the monthly changes of economic policy index yields a statistically significant negative coefficient at the 1% level, and this coefficient is more negative than the coefficient obtained from regressing the monthly portfolio returns on the monthly changes in economic policy uncertainty. This study provides empirical evidence of the ability of firms in the US with the best training program to withstand the storm of economic policy uncertainty better than the whole market. In other words, the findings suggest that firms with the best training program are more prepared than the whole market in responding to the changes in economic policy uncertainty.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.3846/16111699.2012.761647 (text/html)
Access to full text is restricted to subscribers.

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:taf:jbemgt:v:16:y:2015:i:1:p:206-213

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TBEM20

DOI: 10.3846/16111699.2012.761647

Access Statistics for this article

Journal of Business Economics and Management is currently edited by Izolda Joksiene, Romualdas Ginevicius and Ieva Meidute

More articles in Journal of Business Economics and Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().