 Economic policy uncertainty and stock price informativenessLiang Tang and Xiangyu Wan Pacific-Basin Finance Journal, 2022, vol. 75, issue C Abstract: Will economic policy uncertainty enhance stock price informativeness? Due to information and expected concerns, investors will consider policy uncertainty as risk. We examine the effect of policy uncertainty on firms' stock price informativeness and find a positive association. For expected economic policy uncertainty, the effect is weak and insignificant. Unexpected economic policy uncertainty is mainly affecting the stock price informativeness and institution investor behaviors are the reason for stock price informativeness increase. This association mainly exists in firms with private ownership, centralized equity, and smaller financial risk listed companies. We conclude that the policy uncertainty increases the stock price informativeness. The conclusions have theoretical and practical significance for finance market governance and corporate strategy. Keywords: Economic policy uncertainty; Stock Price Informativeness; Corporate governance; Institution shareholder ratio (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:pacfin:v:75:y:2022:i:c:s0927538x22001512 DOI: 10.1016/j.pacfin.2022.101856 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 |
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