The impact of Economic Policy Uncertainty on firm performance in Vietnamese listed companies

Abstract

This study examines the impact of economic policy uncertainty (EPU) on the performance of Vietnamese listed companies from 2010 to 2022. EPU is measured by standardizing the search volume index of relevant keywords using data from Google Trends and Glimpse. The findings from regression models show a negative relationship between economic policy uncertainty and both return on total assets and return on equity in Vietnam during the period of 2010-2022. This study provides additional evidence in emerging markets to reinforce the negative impact of EPU on firm performance and supplements a new measurement of EPU in Vietnam. Furthermore, the study suggests that the government should formulate strategies to leverage economic advantages, thereby enabling firms to sustain their economic activities.