Abdul Quddus, Drahomira Pavelkova, Sarfraz Hussain, Tien Phat Pham, Francis Atiso
This study examines the nexus between determinants of investment and firm performance moderated by Economic Policy Uncertainty (EPU) with a sample of 43 chemical and pharmaceutical firms in Pakistan for 2013-2018. We are using two proxies of ï¬rm performance, such as Tobin’s Q and Return on Assets. We ï¬nd that the eï¬ect of EPU on determinants of investment and ï¬rm performance is signiï¬cant and negative to Tobin’s Q and positive and signiï¬cant to ROA. To fix the endogeneity problem, the System-GMM estimate is used since unreported findings indicate heteroscedasticity and autocorrelation. This article also provides policy implications for potential investors and policymakers.