Economic policy uncertainty and corporate innovation: Evidence from China

Jialin Guan, Huijuan Xu, Da Huo, Yechun Hua and Yunfeng Wang

Pacific-Basin Finance Journal, 2021, vol. 67, issue C

Abstract: This paper empirically examines the impact of the Chinese economic policy uncertainty (EPU) on corporate innovation. Using the EPU index that has been developed by Davis et al. (2019), and the data of Chinese A-share listed companies, we have found that the EPU is positively related to corporate technological innovation, and is negatively related to corporate business model innovation, in general. Furthermore, the rising market competition is also an important channel for firms to promote corporate innovation, particularly when they face a high EPU. The paper expands the understanding of corporate innovation, and also aims to enrich the empirical evidence that pertains to the impact of economic policy uncertainty, on corporate innovation.

Keywords: Economic policy uncertainty; Corporate innovation; Business model innovation; China (search for similar items in EconPapers)
JEL-codes: F4 G1 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X21000494
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:67:y:2021:i:c:s0927538x21000494

DOI: 10.1016/j.pacfin.2021.101542

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().