How To Deal With Economic Policy Uncertainty And Attain Sustainable Growth: The Role Of Corporate Governance In Singapore

Abstract

This study aims to examine the effects of Corporate Governance (CG) on the Economic Policy Uncertainty (EPU) and Sustainable Growth (SG) relationship of Singapore firms. This paper takes out one hundred Singapore non-financial, non-utility listed firms from 2016 to 2021. This research applies the industry regression of fixed effects to study the immediate and moderate effect of Corporate Governance on the correlation of related-policy unpredictability and sustained development, which is measured by a comprehensive index of nine financial factors of Singapore firms. The results show the negative effect of EPU, ownership concentration, board size, and duality on SG, while only the portion of females on board build up to the Sustainable Growth of Singapore firm positively. The results also demonstrate that ownership concentration, board size and duality increase the negative effect of EPU on Sustainable Growth, while females on board can reduce this effect. Future research may consider evaluating the effect of financial and utility firms as the findings of this study are not generalized for utility or financial enterprises. Other research can consider extending the time for this topic. In addition, it is crucial for the government and policymakers to explore the detrimental effects of policy uncertainty on SG before developing strategies to lessen uncertainty. The study of the controlling influence of Corporate Governance adds to the body of knowledge on how corporations react to policy uncertainty. For corporations, it offers priceless insights on how to use CG methods to achieve SG. This can be seen as the first study to examine how changing CG affects the Sustainable Growth of Singapore enterprises using an index-based Sustainable Growth determination during the EPU.