Economic Policy Uncertainty, Corporate Risk-Taking, and Production Management
Subject Areas :
Farhad Azizi
1
,
Lida Jenabi Ghods
2
1 - Department of Accounting, shahr-e qods,Islamic Azad University, shahr-e qods, Iran
2 - Master of Science in Accounting, Shahr-e-Quds Branch, Islamic Azad University, shahr-e qods, Iran
Keywords: Economic uncertainty, company risk tolerance, production management,
Abstract :
Economic policy uncertainty, as a key factor in the business environment, has profound effects on production management. This uncertainty, resulting from unpredictable changes in government financial, trade, or regulatory policies, can lead to fluctuations in production costs, resource availability, and market demand. In such circumstances, risk management becomes a vital tool for production managers to reduce the negative effects of this uncertainty by anticipating different scenarios, optimizing the supply chain, and adopting flexible strategies. Applying risk management approaches, such as diversifying suppliers or using long-term contracts, can strengthen production sustainability and make the organization more resilient to economic shocks. Therefore, based on this argument, the purpose of the present study is to investigate the impact of economic policy uncertainty and risk management on production management. This research is applied in terms of purpose and is a descriptive research in terms of method, identification, correlation and correlation. The statistical population of the research is the Tehran Stock Exchange and the research sample is 167 companies listed on the Tehran Stock Exchange in the 9-year period between 2016 and 2024. In order to test the research hypotheses, multivariate regression with mixed data and Iviews software was used. The results of the research findings show that economic policy uncertainty causes a decrease in production management. Also, risk management causes an increase in production management.
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