..., diminishing external financing demand and constraining investment, while preserving firms’ responsiveness to fundamentals. Markov switching analysis reveals this effect is most pronounced during high public confidence periods. The relationship is attenuated pre-election when political uncertainty dominates...

...Lindsay Baran; Maisha Tamanna Khan We study the impact of political activism on corporate restructuring decisions − upsizing and downsizing − during periods of political uncertainty. We find that political uncertainty delays both expansion and contraction decisions involving assets and workforce...