The Influence of Macroeconomic and Political Uncertainty on Corporate Risk-Taking
Evidence from Vietnam
Bibliographic Data
| ID | 22006271 |
|---|---|
| Authors | Chi Nguyen Quoc (0009-0008-1353-2483, Ho Chi Minh City University of Foreign Languages and Information Technology), Thong Nguyen Tien (0000-0001-8170-6272, Ho Chi Minh City University of Foreign Languages and Information Technology, corresponding author) |
| Year | 2026 |
| Volume | 16 |
| Issue | 3 |
| Publication date | 2026-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | SAGE Open (JOURNAL) |
| Journal identifiers | ISSN: 2158-2440 • E-ISSN: 2158-2440 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/21582440261466868 |
| OpenAlex | W7167834517 |
| Language | EN |
| References cited | 57 |
This study investigates the impact of macroeconomic uncertainty on corporate risk-taking in Vietnam, an emerging economy with unique institutional characteristics. Using a balanced panel of 190 non-financial listed firms from 2018 to 2022, the analysis combines the World Uncertainty Index for Vietnam (WUIVNM) with a political uncertainty measure capturing leadership changes in the country’s “Four Pillars” system. The results provide consistent evidence that higher macroeconomic uncertainty is associated with lower Z -Scores, indicating greater corporate risk-taking. Leadership transitions in the Four Pillars also have an adverse effect, suggesting that institutional uncertainty influences firm behavior. The impact of macroeconomic uncertainty is more pronounced among high-growth firms, indicating heterogeneous responses across firm types. The findings highlight that the relationship between uncertainty and corporate risk-taking in Vietnam differs from standard predictions and documented evidence in other contexts, underscoring the importance of institutional settings in shaping firm responses to uncertainty
Corporate governance · Emerging markets · Institutional investor · Panel data · Politics · Uncertainty avoidance · Market Dynamics and Volatility · Qualitative Comparative Analysis Research · Risk and Portfolio Optimization
Investment under Uncertainty
Political uncertainty and risk premia
The World Uncertainty Index
Efficient Estimation of a System of Regression Equations when Disturbances are Both Serially and Contemporaneously Correlated
The role of macroeconomic factors in growth
A Positive Theory of Fiscal Deficits and Government Debt
Theory of the firm
The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics
Specification Tests in Econometrics
Financial constraints and firm dynamics
Macroeconomic stability, investment and growth in developing countries
What To Do (and Not to Do) with Time-Series Cross-Section Data
Fluctuations in Uncertainty
| Citation velocity | historical |
|---|---|
| Highly cited | No |