Economic policy uncertainty and corporate financialization: Evidence from China
Y Zhao, K Su - International Review of Financial Analysis, 2022 - Elsevier
Using a quarterly sample of Chinese non-financial listed firms from 2007 to 2020, we find a
U-shaped relationship between economic policy uncertainty (EPU) and corporate
financialization. When economic policy uncertainty (EPU) is in an appropriate range, the
increase of economic policy uncertainty (EPU) is unlikely to make firms increase financial
assets investment. In contrast, the operational risk induced by too high economic policy
uncertainty (EPU) will make firms more willing to invest in financial assets. Additionally, we …
U-shaped relationship between economic policy uncertainty (EPU) and corporate
financialization. When economic policy uncertainty (EPU) is in an appropriate range, the
increase of economic policy uncertainty (EPU) is unlikely to make firms increase financial
assets investment. In contrast, the operational risk induced by too high economic policy
uncertainty (EPU) will make firms more willing to invest in financial assets. Additionally, we …
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