Economic policy uncertainty: A new firm‐level measurement and impact on enterprise innovation strategies

Guangchen Li, Qianlong Ma, Subuhi Khan and Khaoula Aliani

Managerial and Decision Economics, 2023, vol. 44, issue 8, 4671-4685

Abstract: This paper investigates the impact of the perception of economic policy uncertainty (PEPU) on enterprise innovation strategies. Using a text‐based method and a sample of Chinese listed companies from 2007 to 2021, we find that PEPU negatively affects substantive and strategic innovations, and its negative impact on strategic innovations is more noticeable than that on substantive innovations. Mechanism analysis shows that PEPU affects enterprise innovation strategies through innovation investment and financing constraints. Moreover, enterprises with a high shareholding ratio of executives and private enterprises are more likely to suffer the negative impact of PEPU. Finally, analyst attention and internal control quality may weaken the inhibitory impact of PEPU on enterprise innovation strategies.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3969

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:wly:mgtdec:v:44:y:2023:i:8:p:4671-4685

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().