TY - JOUR
T1 - Economic policy uncertainty and shareholder wealth
T2 - the role of marketing, operations, and R&D capabilities
AU - Mishra, Saurabh
AU - Modi, Sachin B.
AU - Wiles, Michael A.
N1 - Publisher Copyright:
© 2022, Academy of Marketing Science.
PY - 2022
Y1 - 2022
N2 - This study evaluates how economic policy uncertainty (EPU) affects firm shareholder wealth. It further investigates the moderating roles of marketing, operations, and R&D capabilities in this relationship. Analysis of longitudinal data, collected from a large sample of firms across multiple industries in the United States, reveals a complex picture. Results show that although EPU lowers firm value (i.e., Tobin’s Q and stock returns), it also reduces firm idiosyncratic risk. In addition, high marketing capability is observed to attenuate the loss in firm value arising from EPU, whereas high operations capability is seen to amplify this loss, with R&D capability not playing a significant moderating role. On the other hand, the reduction in idiosyncratic risk of firms facing EPU is marginally strengthened by operations and R&D capabilities, but not by marketing capability. Together, the conceptual framework and findings provide novel insight into the role of marketing capability in dealing with EPU.
AB - This study evaluates how economic policy uncertainty (EPU) affects firm shareholder wealth. It further investigates the moderating roles of marketing, operations, and R&D capabilities in this relationship. Analysis of longitudinal data, collected from a large sample of firms across multiple industries in the United States, reveals a complex picture. Results show that although EPU lowers firm value (i.e., Tobin’s Q and stock returns), it also reduces firm idiosyncratic risk. In addition, high marketing capability is observed to attenuate the loss in firm value arising from EPU, whereas high operations capability is seen to amplify this loss, with R&D capability not playing a significant moderating role. On the other hand, the reduction in idiosyncratic risk of firms facing EPU is marginally strengthened by operations and R&D capabilities, but not by marketing capability. Together, the conceptual framework and findings provide novel insight into the role of marketing capability in dealing with EPU.
KW - Economic policy uncertainty
KW - Marketing capability
KW - Operations capability
KW - R&D capability
KW - Shareholder wealth
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U2 - 10.1007/s11747-022-00838-x
DO - 10.1007/s11747-022-00838-x
M3 - Article
AN - SCOPUS:85126342676
SN - 0092-0703
JO - Journal of the Academy of Marketing Science
JF - Journal of the Academy of Marketing Science
ER -