Mihai Ion

TL;DR: In this paper, a strong negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory outcomes is found, and the relation between policy uncertainty and capital investment is not uniform in the cross section, being significantly stronger for firms with a higher degree of investment irreversibility and for firms more dependent on government spending.

TL;DR: In this article, a news-based index of policy uncertainty was used to find a negative relationship between firm-level capital investment and the aggregate level of uncertainty associated with future policy and regulatory outcomes.

TL;DR: For example, this article found that political and regulatory uncertainty is strongly negatively associated with merger and acquisition activity at macro and firm levels, and that the strongest effects are for uncertainty regarding taxes, government spending, monetary and fiscal policies, and regulation.

TL;DR: In this paper, the authors used a measure of political and regulatory uncertainty to evaluate the effect of policy uncertainty on merger and acquisition activity at both macro and firm levels and found that increases in policy uncertainty are associated with significant declines in aggregate deal volume and value, and in the likelihood of merger waves.

TL;DR: This article developed a new method for identifying firm exposure to changes in policy using asset prices that has several advantages over standard measures: it is natively firm level, it encompasses the net impact of all avenues of exposure, it yields estimates for firms in all sectors of the economy, and it captures aspects of policy change that can be difficult to quantify using standard approaches.