 Economic policy uncertainty and enterprise value: Evidence from Chinese listed enterprisesYanli Zhu, Yingnan Sun and Xinyu Xiang Economic Systems, 2020, vol. 44, issue 4 Abstract: In this paper, we investigate how economic policy uncertainty (EPU) influences enterprise value based on China’s EPU index and financial data on A-share listed enterprises from 2004 to 2018. Our empirical results show that uncertainty in economic policy has a significant restraining effect on enterprise value in general and that the degree of the impact is closely related to enterprise characteristics, including financial leverage, scale, R&D intensity, the degree of marketization, ownership, and location. More precisely, an increase in financial leverage and scale can mitigate the restraining effect of EPU on enterprise value, while an increase in R&D intensity and marketization degree will exacerbate the restraining effect. In addition, non-state-owned enterprises (non-SOEs) and firms located in first-tier cities are more vulnerable to rising EPU. The evidence indicates that policymakers should pay attention to stability in macroeconomic policy and micro-enterprises should be concerned about the impact of uncertainty in economic policy, plan ahead, and take precautions. Keywords: Chinese listed enterprises; Economic policy uncertainty; Enterprise value (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:44:y:2020:i:4:s0939362520301497 DOI: 10.1016/j.ecosys.2020.100831 Access Statistics for this article Economic Systems is currently edited by R. Frensch More articles in Economic Systems from Elsevier Contact information at EDIRC. |
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