Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311892 
Year of Publication: 
2022
Citation: 
[Journal:] Review of Managerial Science [ISSN:] 1863-6691 [Volume:] 17 [Issue:] 5 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2022 [Pages:] 1863-1898
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
Using a sample of comparably sized public listed and private firms from nine European countries, we show that public firms reduce their investments by about 50% more than private firms in response to an increase in policy-related uncertainty. We find suggestive evidence that this can be explained by public firms' management being typically subject to greater shareholder scrutiny than private firms' management. Furthermore, only public firms invest more efficiently when confronted with uncertainty. Thus, private firms may benefit from emulating the decision-making processes of public firms in uncertain times.
Subjects: 
Uncertainty
Investment
Public versus private firms
Shareholder scrutiny
JEL: 
D80
D91
E22
E66
G38
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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