The impact of economic policy uncertainty on the profitability of China’s listed export enterprises
DOI:
https://doi.org/10.58567/fel01010004Keywords:
Economic Policy Uncertainty, Profitability, Foreign TradeAbstract
Based on the empirical data of 6110 listed export companies in China from 2010 to 2019, this paper studies the impact of China's economic policy uncertainty (EPU) index on the profitability of listed companies from the specific perspective of export companies, and analyzes the moderating effects of different factors on this impact. The results show that China's EPU index has a significant negative impact on the profitability of listed export companies, and the increase in R&D investment and wage returns will aggravate this negative impact. In addition, listed export enterprises with different enterprise characteristics have different responses to EPU. State-owned enterprises and enterprises located in coastal areas are relatively less negatively affected by EPU.
References
Antonakakis, N., Chatziantoniou, I., & Filis, G. (2013). Dynamic co-movements of stock market returns, implied volatility and policy uncertainty. Economics Letters, 120(1), 87-92.
Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring economic policy uncertainty. The quarterly journal of economics, 131(4), 1593-1636.
Bernanke, B. S. (1983). Irreversibility, uncertainty, and cyclical investment. The quarterly journal of economics, 98(1), 85-106.
Caggiano, G., Castelnuovo, E., & Groshenny, N. (2014). Uncertainty shocks and unemployment dynamics in US recessions. Journal of Monetary Economics, 67, 78-92.
Dang, D., Fang, H., & He, M. (2019). Economic policy uncertainty, tax quotas and corporate tax burden: Evidence from China. China Economic Review, 56, 101303.
Huang, Y., & Luk, P. (2020). Measuring economic policy uncertainty in China. China Economic Review, 59, 101367.
Im, H. J., Park, H., & Zhao, G. (2017). Uncertainty and the value of cash holdings. Economics Letters, 155, 43-48.
Jin, X., Chen, Z., & Yang, X. (2019). Economic policy uncertainty and stock price crash risk. Accounting & Finance, 58(5), 1291-1318.
Kido, Y. (2016). On the link between the US economic policy uncertainty and exchange rates. Economics Letters, 144, 49-52.
Lee, C. C., Lee, C. C., & Ning, S. L. (2017). Dynamic relationship of oil price shocks and country risks. Energy Economics, 66, 571-581.
Phan, D. H. B., Iyke, B. N., Sharma, S. S., & Affandi, Y. (2021). Economic policy uncertainty and financial stability–Is there a relation?. Economic Modelling, 94, 1018-1029.
Wen, F., Li, C., Sha, H., & Shao, L. (2021). How does economic policy uncertainty affect corporate risk-taking? Evidence from China. Finance Research Letters, 41, 101840.
Zhu, Y., Sun, Y., & Xiang, X. (2020). Economic policy uncertainty and enterprise value: evidence from Chinese listed enterprises. Economic Systems, 44(4), 100831.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Liping Zheng
This work is licensed under a Creative Commons Attribution 4.0 International License.