Article
Business, Finance
Hong Vo, Tien Nguyen, Hang Truong
Summary: This paper examines the impact of economic policy uncertainty on investment by chaebol and non-chaebol firms in Korea. The results suggest that both types of firms reduce investment during high-policy-uncertainty periods, but chaebol firms are more aggressive in their reduction. The negative effect of uncertainty on investment is more severe for financially constrained chaebol firms with higher debt costs or in industries that rely more on external finance. The impact varies depending on the type of policy uncertainty, with chaebol firms being more responsive to uncertainties related to monetary and fiscal policies rather than trade and foreign exchange policies.
FINANCE RESEARCH LETTERS
(2023)
Article
Economics
Muhammad Ilyas, Aamir Khan, Muhammad Nadeem, Muhammad Tahir Suleman
Summary: This study found that both oil price uncertainty and economic policy uncertainty have a negative impact on corporate investment, especially in oil-producing countries. Market volatility and global financial crises also significantly influence the relationship between corporate investment and uncertainty factors.
Article
Business, Finance
Li Zhang, Shiwei Hu, Guoli Xu
Summary: Using the World Uncertainty Index, this study examines the actual impact of pandemic-related uncertainty on firm investments in a cross-country context. The results indicate that higher levels of pandemic uncertainty are associated with a decrease in firm investments. This adverse effect is more pronounced in financially constrained or small firms.
FINANCE RESEARCH LETTERS
(2023)
Article
Business, Finance
Jialin Huang, Yu Luo, Yuchao Peng
Summary: The study shows that economic policy uncertainty negatively affects Chinese firms' allocation of non-currency financial assets, especially for less financially constrained firms. Additionally, firms in industries/regions with intensive competition are less impacted by economic policy uncertainty on their financial asset holdings.
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2021)
Article
Business, Finance
Liang Tang, Xiangyu Wan
Summary: This study finds that economic policy uncertainty enhances the informativeness of stock prices. Unexpected policy uncertainty has a more significant impact on stock price informativeness, with institutional investor behavior being the main driver. This association is mainly observed in listed companies with private ownership, centralized equity, and smaller financial risk.
PACIFIC-BASIN FINANCE JOURNAL
(2022)
Article
Business, Finance
Feiyang Cheng, Chunfeng Wang, Xin Cui, Ji Wu (George), Feng He
Summary: The study reveals a significant positive relationship between economic policy uncertainty exposure (EPU exposure) and stock price bubbles, driven by retail investors' speculative trading behavior. Furthermore, optimistic market states and firms with higher information uncertainty characteristics enhance the effects of EPU exposure. This provides unique evidence on the impact of uncertainty on stock prices.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2021)
Article
Business, Finance
Xieyang Shen, Sijie Yang, Yulin Chen, Jianyu Zeng
Summary: In periods of high economic policy uncertainty, managers are more inclined to learn from their peers' stock prices for investment decisions, especially for firms with high operating uncertainty, low price informativeness, and limited access to economic policy information. This learning behavior positively impacts firm value.
PACIFIC-BASIN FINANCE JOURNAL
(2022)
Article
Economics
Mengyi Yuan, Lin Zhang, Yonghui Lian
Summary: This study examines the impact of economic policy uncertainty on the stock price crash risk of commercial banks in China. The findings reveal that economic policy uncertainty significantly increases the risk of stock price crash for these banks. Furthermore, the level of financial risk and information transparency also play a role in moderating this relationship.
ECONOMIC ANALYSIS AND POLICY
(2022)
Article
Business, Finance
Xun Han, Sara Hsu, Jianjun Li, Ran An
Summary: The structural contradiction between the economic financialization and the long-term weakness of the real economy in China has become increasingly prominent. This study finds that companies engaged in high-leverage, high-risk shadow banking business exacerbate stock price crash risks. The increase in economic policy uncertainty positively impacts the relationship between non-financial companies' shadow banking business and stock price crash risk. This paper has important theoretical and policy guidance significance for reviewing the existing diversified shadow banking system and preventing systemic risks.
EMERGING MARKETS REVIEW
(2023)
Article
Business, Finance
Zhongbo Jing, Shiyu Lu, Yang Zhao, Jun Zhou
Summary: This study examines the relationship between economic policy uncertainty (EPU) and stock price crash risk through the corporate investment in Chinese listed firms. The findings suggest that higher EPU is associated with lower crash risk. Firms increase financial asset holdings and reduce overinvestment when EPU rises, leading to lower future crash risk. State-owned enterprises and firms with lower management incentives tend to reduce overinvestment, whereas non-SOEs tend to increase financial asset holdings. Therefore, firms tend to be cautious in their investments when EPU is high, which reduces crash risk. Our study provides new insights into the validity of the Lucas critique in China.
ACCOUNTING AND FINANCE
(2023)
Article
Business, Finance
Huayu Shen, Runxin Liu, Hao Xiong, Fei Hou, Xiaoyi Tang
Summary: This study examines the impact of economic policy uncertainty on stock price synchronicity in China, finding a significant negative effect. Various factors such as managerial ownership and institutional investors can attenuate or reinforce this influence. Robustness tests confirm these results.
PACIFIC-BASIN FINANCE JOURNAL
(2021)
Article
Economics
Qi Zhu, Sisi Jin, Yuxuan Huang, Cheng Yan
Summary: This paper examines the relationship between oil price uncertainty and stock price information for managerial decision making. The study finds that oil price uncertainty has a positive impact on investment-q sensitivity, mainly driven by the crowding of informed traders and the promotion of managerial learning. The interrelation between oil price uncertainty and investment-q sensitivity is more remarkable for firms with uncorrelated product demand, stronger CEO concern, and greater CEO equity incentives. Furthermore, evidence is provided that oil price uncertainty can enhance investment-q sensitivity, especially for firms in highly oil-intensive industries and non-oil-producing states. Overall, the research illustrates how oil price uncertainty affects stock price informativeness for firms' decision making.
Article
Operations Research & Management Science
M. Karanasos, S. Yfanti, J. Hunter
Summary: This study examines the impact of US and global economic fundamentals on the volatility of emerging stock markets, finding that economic uncertainty and global events play a significant role in volatility. Financial crises and health crisis events exacerbate market turbulence and volatility.
ANNALS OF OPERATIONS RESEARCH
(2022)
Article
Mathematics
Xiaqing Su, Zhe Liu
Summary: This study identified the transmission structure of financial shock among ten sectors in China and examined the impact of economic policy uncertainty through analysis. Results showed that certain sectors were systematically important during the sample period and each sector had a time-varying role in the structure. Additionally, while EPU had no significant long-term impact on total volatility spillover, it did affect some sectors' spillover indexes in a significantly heterogeneous manner.
Article
Economics
Mengzhe Li, Qianru Lin, Fei Lan, Zhimin Zhan, Zhongshi He
Summary: This study examines the impact of trade policy uncertainty on energy firms' financial investments. The findings reveal a negative relationship between trade policy uncertainty and financial investment, indicating that energy firms tend to reduce their financial investments in periods of higher trade policy uncertainty. The results remain robust after conducting several robustness tests. The negative correlation between trade policy uncertainty and financial investment is more significant for energy firms with lower sales revenues and lower sales growth rates. Moreover, energy firms with less competition and in areas with higher marketization are more likely to decrease their financial investment in response to trade policy uncertainty. Additional evidence suggests that energy firms are more inclined to hold more cash and increase research and development activities when trade policy uncertainty increases.
Article
Business, Finance
Quoc Dat Trinh, Christian Haddad, Kim Thuan Tran
Summary: This study examines the relationship between financial reporting quality and dividend payout across 76 countries. The research finds that financial reporting quality increases dividend payout. The study also identifies different factors that moderate this relationship, such as free cash flow problems, information asymmetry, and minority shareholder protection rights.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2022)
Article
Economics
Hong Vo, Anh Phan, Quoc-Dat Trinh, Linh Nhat Vu
Summary: This study investigates the impact of economic policy uncertainty on trade credit and firm value of business group-affiliated firms and stand-alone firms in Korea. The findings reveal a consistent negative relationship between economic policy uncertainty and trade credit for all Korean firms. It is also observed that small chaebol firms, facing greater financial constraints in the post-Asian financial crisis period, tend to respond more strongly to changes in economic policy uncertainty by reducing their trade credits. Furthermore, the study suggests that reducing trade receivables during periods of high economic policy uncertainty can enhance firm value, particularly for small chaebol firms, but this relationship is non-linear.
ECONOMIC ANALYSIS AND POLICY
(2022)
Article
Business, Finance
Dung Thuy Thi Nguyen, Ivan Diaz-Rainey, Helen Roberts, Minh Le
INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
(2022)
Article
Economics
Dung Thi Thuy Nguyen, Ivan Diaz-Rainey, Helen Roberts, Minh Le
Summary: This paper examines the impact of natural disasters on commercial bank performance and the role of financial integration using East Asian banks data from 1999 to 2014. The results suggest that natural disasters lower deposit ratios but do not have an immediate effect on liquidity, credit risk, profitability, and default risk. However, there is evidence of a delayed impact on deposits and liquidity. Additionally, foreign banking claims, particularly from regional Asian lenders, help mitigate the decline in deposits after natural disasters.
Article
Business, Finance
Hong Vo, Tien Nguyen, Hang Truong
Summary: This paper examines the impact of economic policy uncertainty on investment by chaebol and non-chaebol firms in Korea. The results suggest that both types of firms reduce investment during high-policy-uncertainty periods, but chaebol firms are more aggressive in their reduction. The negative effect of uncertainty on investment is more severe for financially constrained chaebol firms with higher debt costs or in industries that rely more on external finance. The impact varies depending on the type of policy uncertainty, with chaebol firms being more responsive to uncertainties related to monetary and fiscal policies rather than trade and foreign exchange policies.
FINANCE RESEARCH LETTERS
(2023)
Article
Business, Finance
Quoc Dat Trinh, Christian Haddad, Elie Salameh
Summary: We examine the relationship between financial earnings quality and block ownership by institutional investors, finding that institutional blockholders drive higher financial earnings quality. This relationship is more pronounced among firms adopting IFRS and those in countries with minority shareholder protection. Property rights and the lack of contestability partially mitigate the positive association between institutional ownership and earnings quality. Our findings contribute to the ongoing debate on the influence of institutional ownership on earnings and shed light on the institutional and regulatory dimensions that affect earnings quality.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2023)
Article
Business, Finance
Hien T. Nguyen, Hieu V. Phan, Hong Vo
Summary: The presence of dual holders leads to a decrease in excessive CSR activities in industry firms, especially for firms with severe conflicts of interest between shareholders and creditors or managerial agency problems. Further analysis suggests that decreased CSR activities are associated with increased firm value.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2023)
Article
Economics
Hong Vo, Tien Nguyen
Summary: Our study reveals that global uncertainties significantly impact corporate investment decisions in Hong Kong, especially for firms with extensive international operations.
Article
Business, Finance
Dung Thuy Thi Nguyen, Ivan Diaz-Rainey, Helen Roberts, Minh Le
Summary: The research found that financial integration helps reduce bank default risk in recipient countries, particularly through foreign claims extended by Asian lenders and local affiliates. The results support the strengthening of financial integration, promoting deeper regional connectivity in East Asia.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2021)
Article
Business
Canh Nguyen, Minh Le, Khoa Cai, Michel Simioni
Summary: This paper investigates the spillover effect of foreign direct investment (FDI) firms on the technical efficiency of local firms, and finds evidence that the horizontal and forward linkages have a negative impact on meta-technical inefficiency in the overall dataset as well as in specific economic regions and sectors in Vietnam.
JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT
(2021)
Article
Economics
Minh Le, Viet-Ngu Hoang, Clevo Wilson, Shunsuke Managi
ECONOMIC ANALYSIS AND POLICY
(2020)
Article
Economics
Wenqi Duan, Mingming Jiang, Jianhong Qi
Summary: This paper examines the impact of agricultural certification policy on the economic growth of poor counties in China. The study finds that this policy contributes to rural economic growth by increasing product premiums and employment opportunities, and also improves the surrounding air quality.
ECONOMIC ANALYSIS AND POLICY
(2024)
Article
Economics
Moinul Islam, Koji Kotani, Shunsuke Managi
Summary: Global climate change is a scientifically proven phenomenon, but there are discrepancies in how people perceive it. This research examines people's perceptions of seasonal change in relation to their life practices, experiences, and socioeconomic factors. The findings suggest that people's dependence on natural resources in their professions, experiences of natural disasters, and life history in specific locations shape their correct perceptions of climate seasonality.
ECONOMIC ANALYSIS AND POLICY
(2024)
Article
Economics
Yun Liu, Qun Gao
Summary: This paper discusses the impact of economic policy uncertainty on enterprise innovation from the perspective of equity financing and financing structure, analyzes the transmission mechanism of equity financing between them and the role of financing structure optimization under uncertainty. The findings reveal that economic policy uncertainty promotes enterprise innovation, and the positive effect is even more pronounced in non-state-owned and eastern enterprises, as well as high-tech enterprises. For the transmission mechanism of equity financing, it finds that the scale of equity financing and the cost of equity financing play positive and negative intermediary roles respectively. For the overall financing structure of enterprises, the proportion of equity capital exerts positive mediating and moderating effects on the relationship of economic policy uncertainty and enterprise innovation. The conclusions of this paper provide decision-making reference and theoretical support for enterprises in optimizing financing structure, coping with economic policy uncertainty, and promoting innovation.
ECONOMIC ANALYSIS AND POLICY
(2024)
Article
Economics
Guodong Chi, Yuanyuan Liu, Hong Fang
Summary: Environmental decentralization faces institutional barriers, but vertical reform can improve air quality and reduce data falsification.
ECONOMIC ANALYSIS AND POLICY
(2024)
Article
Economics
Kerstin Mitterbacher, Juergen Fleiss, Stefan Palan
Summary: This study experimentally examines the reciprocal relationship between economic migrants and citizens of destination countries. The labor market participation of economic migrants is found to be related to the openness of destination countries. The threat of restrictive policies increases migrants' willingness to work, but the actual implementation of such policies reduces this willingness. The study concludes that thoughtful and balanced migration policies are crucial in supporting mutually beneficial co-existence in society.
ECONOMIC ANALYSIS AND POLICY
(2024)
