Feyzullah Esad ŞEKKELİ
The purpose of this study is to evaluate the impact of geopolitical risk (GPR) on the investment and leverage policies of publicly traded firms in five major ASEAN economies, namely, Indonesia, Thailand, Philippines, Malaysia, and Vietnam, from 2000 to 2024. In this context, the study employed a fixed effects model and revealed that, in general, GPR has a statistically significant negative effect on investment and leverage policies of firms. In particular, the study revealed that GPR has a negative effect on investment in the Philippines and Vietnam, while GPR is positively related to investment in Thailand. In contrast, GPR is not related to investment in Indonesia and Malaysia. Overall, the findings of this study are consistent with the Pecking Order Theory, which suggests that more profitable firms prefer internal finance to debt finance.