The impact of economic policy uncertainty on manager sentiment: evidence from Chinese non-financial listed firms

Huanyu Ma, Xuegang Sun, Man Zhang and Ehsan Elahi

Applied Economics, 2024, vol. 56, issue 55, 7352-7368

Abstract: In this study, we investigate the link between economic policy uncertainty (EPU) and manager sentiment. Analysing a comprehensive dataset of Chinese non-financial listed firms spanning from 2007 to 2021, the findings indicate a negative relationship between EPU and manager sentiment expressed in annual reports. Additionally, we observed a significant reduction in manager sentiment bias in the presence of high EPU. The impact of EPU on manager sentiment is moderated by firms benefiting from government industrial policy and those exhibiting stronger risk-taking capability, as the negative effect is less pronounced in these cases. Our channel analysis reveals that EPU diminishes manager sentiment by impairing operating performance and capital market performance.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2023.2281293 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:56:y:2024:i:55:p:7352-7368

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2023.2281293

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().