Searcharxiv⌕ Search
Home/Archive/arXiv

arXiv · 2506.07476

Economic and Policy Uncertainties and Firm Value: The Case of Consumer Durable Goods

Bahram Adrangi·Saman Hatamerad·Madhuparna Kolay·Kambiz Raffiee
View original source ↗Read source document ↗Export metadata ↓

Abstract

The objective of this study is to analyze the response of firm value, represented by the Tobin's Q (Q) for a group of twelve U.S. durable goods producers to uncertainties in the US Economy. The results, based on an estimated panel quantile regressions (PQR) and panel vector autoregressive MIDAS model (PVM), show that Q for these firms reacts negatively to the positive shocks to the current ratio, and debt-to-asset ratio and positively to operating income after depreciation and the quick ratio in most quantiles. The Q of the firms under study reacts negatively to the economic policy uncertainty, risk of recession, and inflationary expectation, but positively to consumer confidence in most quantiles of its distribution. Finally, Granger causality tests confirm that the uncertainty indicators considered in the study are significant predictors of changes in the value of these companies as reflected by Q.

Explore related subjects

econ.EM

Keep this discovery

Explore connections, maps & timelines

BibTeXRIS

Bahram Adrangi, Saman Hatamerad, Madhuparna Kolay, Kambiz Raffiee. 2025-06-09. Economic and Policy Uncertainties and Firm Value: The Case of Consumer Durable Goods. https://arxiv.org/abs/2506.07476

Cite the original work for its findings. Save a collection to share your selection of sources.

KEEP EXPLORING

Related papers

arXiv2026

Identification in Linear Quantile Panel Models

This paper studies identification in linear quantile panel models with unrestricted individual heterogeneity when the number of time periods is fixed and small. We impose strict exogeneity, whereby the conditional quantile restriction holds given the individual's complete regressor history and latent individual effect, but otherwise allow the disturbances to be arbitrarily dependent over time.

econ.EM↗
arXiv2026

Experimental Design for Policy Choice

We show how to optimally design experiments when the resulting data will be used to choose a welfare-maximizing policy subject to constraints. A decision maker seeks to maximize Bayes expected welfare by choosing a policy whose effects depend on an unknown finite-dimensional parameter. The decision maker has access to a first wave of experimental data with a fixed design but may choose the design of a second wave that will be collected before choosing the policy. The resulting experimental design--policy choice problem is a very high-dimensional dynamic program that is generally intractable in finite samples. We propose a tractable approximation based on the limit experiment and show it is asymptotically optimal using a new asymptotic representation theorem for adaptive experiments with continuous treatments. We apply the method to a conditional cash transfer experiment and demonstrate the potential for large gains from tailoring the experiment to the policy choice.

econ.EM↗
arXiv2026

Designing Spatial Treatments

Spatial treatments are interventions assigned to locations potentially distinct from those of the responding units. We study their optimal design under a general model in which a unit's response diminishes with distance to a treated site. Our estimand of interest is an ``uncontaminated'' effect equal to the average impact of a single intervention site over all hypothetical sites. We propose a novel design based on a Mat\'{e}rn point process which separates treatments by a distance of at least $r$. A larger choice of $r$ reduces bias by separating interventions but increases variance by reducing their numerosity. We choose $r$ to maximize the rate of convergence of a Horvitz-Thompson estimator and prove that this is minimax rate-optimal. We provide weak conditions under which the estimator is asymptotically normal and propose a variance estimator.

econ.EM↗