Impact of Economic Policy Uncertainty on Financing Infrastructure
Corporate Finance, Supervised by Prof. Harshal Mulay, 2024
- Investigated the potential impact of EPU on the choice between the use of Project Finance and General Corporate Finance across 23 countries.
- Cleaned and merged data from different sources: deal-level (Dealscan), firm-level, industry-level (Compustat), and country-level variables.
- Implemented a multivariate logistic regression model with Project Finance as the dependent variable, including EPU, controls, and fixed effects.
- Ensured robustness by checking for and controlling heteroscedasticity, autocorrelation, multicollinearity, and endogeneity in the model.
- Banks are more likely to mandate Project Finance during high uncertainty periods, as it reduces their risk and improves borrower cash flow.