The Impact Of Global Economic Policy Uncertainty On Corporate Investment Efficiency And The Moderating Effect Of State Ownership: Empirical Evidence From Vietnam

Abstract

This study investigates the relationship between global economic policy uncertainty and corporate investment efficiency in Vietnam, as well as the moderating influence of state ownership. From 2010 to 2022, there are a total of 5344 firm-year observations of 658 non-financial firms listed on the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange. In this research, the sample of data is analyzed using the Fixed Effect Method (FEM) which is chosen as the best model in this study based on F-test, LM test, and Hausman test. The results indicate that an increase in global economic policy uncertainty leads to a rise in the investment efficiency of Vietnamese firms. This is the new finding for Vietnam compared to findings for other countries in prior studies. In addition, when there is uncertainty about the global economic policy, the investment efficiency of state-owned firms does not tend to be significantly different from that of non-state-owned enterprises. For other firm-specific factors that may affect corporate investment efficiency, the results suggest that age has a statistically positive effect on investment efficiency, whereas size, leverage, and profitability are found to have a significantly negative impact on corporate invesment efficiency.