International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 3 (May-June 2025) Submit your research before last 3 days of June to publish your research paper in the issue of May-June.

The Impact of Fiscal Policies on Corporate Investment Strategies and Stock Market Performance

Author(s) Ms. Lehar Bansal
Country India
Abstract This paper examines the relationship between fiscal policies and their impact on the private sector and stock market fluctuation particularly focusing on the difference in the reaction between developed and developing countries. It is based on secondary data focusing on case studies of key policy movements in recent years and their impact on the private sector and financial market. This included utilizing published data, academic journals, government economic reports, stock market performance indices, and corporate financial statements. The findings indicate a significant relationship between fiscal policies, both through tax policy changes and government expenditure, on corporate investment decisions. However, this relationship is also affected by factors like market conditions, economic growth, etc. Similarly, significant stock market volatility has been observed post-fiscal policy announcements. Other factors affecting stock market performance include investor’s psychology, long-term predictions, etc. Notably, developed economies generally observe fewer fluctuations after fiscal policy announcements and implementation as compared to emerging economies.
Keywords Fiscal policy, private sector impact, stock market fluctuations, developed vs developing economies, corporate investment decisions, tax policy changes, government expenditure, investor psychology, economic growth, market volatility.
Published In Volume 7, Issue 3, May-June 2025
Published On 2025-05-16
DOI https://doi.org/10.36948/ijfmr.2025.v07i03.40106
Short DOI https://doi.org/g9kfgm

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