Economic policy uncertainty and stock price synchronicity: Evidence from China

Huayu Shen, Runxin Liu, Hao Xiong, Fei Hou and Xiaoyi Tang

Pacific-Basin Finance Journal, 2021, vol. 65, issue C

Abstract: This paper investigates whether and how economic policy uncertainty (EPU) affects stock price synchronicity (SPS) based on the sample of listed firms from year 2007 to 2017 in China. We find that EPU significantly negatively affect SPS. Moreover, managerial ownership, bearish stock market and financial crises attenuate the negative influence of EPU on SPS. Institutional investors, high-quality auditors and analysts tracking reinforce the negative influence of EPU on SPS. Robustness tests also support the above results.

Keywords: Economic policy uncertainty; Managerial ownership; Institutional investors; Stock price synchronicity; Analysts tracking (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:65:y:2021:i:c:s0927538x20306971

DOI: 10.1016/j.pacfin.2020.101485

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