Abstract
The author examined the relationship between the capital expenditure to total assets (CETA) ratio and the economic policy uncertainty (EPU) index, as well as a few firm-specific financial and two macroeconomic variables in the Indian context. Logistic Regression and quantile regression are used to evaluate secondary data from 50 listed companies on India's National Stock Exchange (NSE) from 2014 to 2023 (January to December). The author found that as uncertainty increases, the sample companies' investment in assets decreases and vice versa. The study's originality is the use of EPU index data in an Indian context, which has rarely been done in previous studies. The findings have consequences for the promoter in understanding the impact of uncertainty in investment decisions, as well as for the government in reducing uncertainty in order to create a more stable economic environment.
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