<![CDATA[Objectives: This study examines the impact of economic policy uncertainty and political connections on asymmetric pricing behaviour, as well as the moderating role of board independence, in non-financial firms listed on the Indonesia Stock Exchange during the period 2021–2024. This is among the first studies to test economic policy uncertainty and political connections simultaneously within a single empirical model in an emerging-market setting. Design/method/approach: The quantitative study utilised panel data comprising 377 firms (1,508 observations). EPU was measured using an index constructed in accordance with Baker et al. (2016), whilst political connections were measured using dummy variables. The analysis was conducted using panel data regression with firm and year fixed effects. Results/findings: EPU has been shown to reduce cost stickiness, whereas political connections significantly increase cost stickiness. Board independence has not been shown to moderate the relationship between EPU and cost stickiness. Theoretical contribution: This study expands on Agency Theory by integrating macro and micro factors to explain asymmetric cost behaviour. Practical contribution: Investors should regard political connections as a risk factor. For regulators, oversight by independent boards needs to be strengthened, particularly in companies with political exposure. Limitations: The study may be subject to survivorship bias, uses a simple measure of political connections, and has a limited scope in terms of EPU and observation period]]>
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