scholarly journals Economic Policy Uncertainty, Heterogeneity of Executives and Enterprise Innovation

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Xun Han ◽  
Yuyan Jiang ◽  
Xianjing Huang
Keyword(s):  
Economic Policy ◽  
Positive Impact ◽  
Policy Uncertainty ◽  
Senior Executives ◽  
Moderating Effects ◽  
Economic Policy Uncertainty ◽  
Dynamic Investment ◽  
Investment And Financing ◽  
Political Background ◽  
Enterprise Innovation

This study analyzes how economic policy uncertainty affects corporate innovation, and the moderating effects of executive heterogeneity. A threephase dynamic investment and financing model is first built to analyze the mechanism. Empirical analysis confirms that the increase in the degree of economic policy uncertainty promotes enterprise innovation. Further results show that this promotion effect is more significant in enterprises with male executives, low educational level, no financial experience and political background. Moreover, the positive impact is only found in enterprises with moderate executive ability, and the overconfidence of senior executives plays a positive regulating role in it.

scholarly journals Economic Policy Uncertainty, National Culture, and Corporate Debt Financing

2021 ◽  
Vol 13 (20) ◽  
pp. 11179
Author(s):  
Bilal Haider Subhani ◽  
Umar Farooq ◽  
M. Ishaq Bhatti ◽  
Muhammad Asif Khan
Keyword(s):  
Economic Policy ◽  
National Culture ◽  
Default Risk ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Debt Financing ◽  
Mitigation Strategies ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Corporate Managers

Financial innovation vis-à-vis economic policy uncertainty (EPU) without due regards being given to debt financing. This paper fills this gap and unveils the dynamic role of national culture in defining debt financing via EPU. We use a sample of 3831 non-financial firms of Asian economies and employ the System Generalized Method of Moments to estimate the regression coefficients. Our findings reveal an inverse relationship between the EPU and debt financing, which suggests that debt finance mitigation strategies are successfully executed in the region. The potential reasons for this include the policies by businesses to reduce business activities and avoid the unfavorable rising financing cost through EPU. On the supply side, the rising EPU induces the banks to accelerate their interest rate due to increased default risk. Similarly, we observe that high uncertainty avoidance (UND) has a negative and significant link with debt financing due to an unpleasant behavior of corporate managers towards debt when they have an alternate source of financing instruments instead of accepting long-term obligations. However, we find that the UND and EPU interaction has a significantly positive impact on debt financing due to the rigid behavior of managers, which forces them to consider cultural traits and converts their risk-averse attitude into risk-friendly behavior. This implies that corporate managers should reflect the sensitivity of the national culture while considering debt financing.

scholarly journals COVID-19, Oil Price, Bitcoin, and US Economic Policy Uncertainty: Evidence from ARDL Model

2021 ◽  
Vol 13 (11) ◽  
pp. 88
Author(s):  
Hanan Naser
Keyword(s):  
Economic Policy ◽  
Financial Market ◽  
Global Economy ◽  
Positive Impact ◽  
Oil Price ◽  
Market Volatility ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The Impact

The pandemic of coronavirus (COVID-19) creates fear and uncertainty causing extraordinary disruption to financial markets and global economy. Witnessing the fastest selloff in the American stock market in history with a plunge of more than 28% in S&P 500 has increased the volatility of global financial market to exceed the level observed during the financial crisis of 2008. On the other hand, Bitcoin value has shown considerable stability in the last couple of months peaking at $10,367.53 in the mid of February 2020. In this context, the aim of this paper is to investigate the impact of COVID-19 numbers on Bitcoin price taking into consideration number of controlling variables including WTI-oil price, S&P 500 index, financial market volatility, gold prices, and economic policy uncertainty of the US. To do so, ARDL estimation has been applied using daily data from December 31, 2019 till May 20, 2020. Key findings reveal that the daily reported cases of new infections have a marginal positive impact on Bitcoin price in the long term. However, the indirect impact associated with the fear of COVID-19 pandemic via financial market stress cannot be neglected. Bitcoin can also serve as a hedging tool against the economic policy uncertainty in the long term. In the short run, while the returns of economic policy uncertainty have no impact on Bitcoin price, the growth in the new cases of COVID-19 infection and returns of financial market volatility have more positive significant impact on Bitcoin returns.

scholarly journals Impact of Trump’s Phenomenon, Brexit, & Oil Prices Fluctuation Toward Indonesia’s Economic Growth

2018 ◽  
Vol 7 (4) ◽  
pp. 348-373
Author(s):  
Abdul Holik
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Oil Prices ◽  
Developed Countries ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The Us ◽  
Short Run

This paper tries to find impact of global uncertainties toward Indonesia’s economic growth. Several problems which will be discussed in this paper namely: impacts of President Donald Trump’s policies, Brexit, and uncertainty regarding crude oil prices. It conducted from 1st quarter of 2010 until 1st quarter of 2017. The method of analysis used here is VECM (Vector Error Correction Model). We use dummy variable to capture the specific change of economic policies when Brexit and Trump’s emergence appear as the major issues which attract attention around the world. We consider these as the uncertainties which influence global society. Based on the result, there is positive impact of economic policy uncertainty in UK in the long-run. When Brexit was taken into account, in the short-run, it also has positive impact toward Indonesia’s economic growth. Meanwhile economic policy uncertainty in the US generates negative impact on Indonesia’s economic growth. But Trump’s emergence in the US presidency produces positive impact in the short-run. Oil price fluctuation as the latest shock in the global context has positive significant impact on Indonesia’s economic growth. We consider these results as ways to find breakthrough in understanding of changing policies from developed countries; that not all of them will contribute to negative matters. The conjecture, hunch, and any speculation must be postponed due to lack of convincing proofs.

scholarly journals Asymmetric Risk Spillover Networks and Risk Contagion Driver in Chinese Financial Markets: The Perspective of Economic Policy Uncertainty

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Zongxin Zhang ◽  
Ying Chen ◽  
Weijie Hou
Keyword(s):  
Economic Policy ◽  
Real Estate ◽  
Financial Markets ◽  
Financial Risk ◽  
Positive Impact ◽  
Spillover Effect ◽  
Spillover Effects ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The Impact

The global financial market shocks have intensified due to the COVID-19 epidemic and other impacts, and the impacts of economic policy uncertainty on the financial system cannot be ignored. In this paper, we construct asymmetric risk spillover networks of Chinese financial markets based on five sectors: bank, securities, insurance, diversified finance, and real estate. We investigate the complexity of the risk spillover effect of Chinese financial markets and the impact of economic policy uncertainty on the level of network contagion of financial risk. The study yields three findings. First, the cross-sectoral risk spillover effects of Chinese financial markets are asymmetric in intensity. The bank sector is systemically important in the risk spillover network. Second, the level of risk stress in the real estate sector has increased in recent years, and it plays an important role in the path of financial risk contagion. Third, Economic policy uncertainty has a significant positive impact on the level of network contagion of financial risk of Chinese financial markets.

scholarly journals Economic Policy Uncertainty in China and Bitcoin Returns: Evidence From the COVID-19 Period

2021 ◽  
Vol 9 ◽  
Author(s):  
Tiejun Chen ◽  
Chi Keung Marco Lau ◽  
Sadaf Cheema ◽  
Chun Kwong Koo
Keyword(s):  
Economic Policy ◽  
Quantile Regression ◽  
Least Squares ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Policy Uncertainty ◽  
Jel Codes ◽  
Economic Policy Uncertainty ◽  
Estimation Techniques ◽  
Daily Returns

This paper analyses the effects of the Chinese Economic Policy Uncertainty (CEPU) index on the daily returns of Bitcoin for the period from December 31, 2019 to May 20, 2020. Utilizing the Ordinary Least Squares (OLS) and the Generalized Quantile Regression (GQR) estimation techniques, the paper illustrates that the current CEPU has a positive impact on the returns of Bitcoin. However, the positive impact is statistically significant only at the higher quantiles of the current CEPU. It is concluded that Bitcoin can be used in hedging against policy uncertainties in China since significant rises in uncertainty leads to a higher return in Bitcoin.JEL Codes: G32; G15; C22

scholarly journals Economic Policy Uncertainty and Conditional Dependence between China and U.S. Stock Markets

Complexity ◽  
2022 ◽  
Vol 2022 ◽  
pp. 1-9
Author(s):  
Xinyu Wu ◽  
Meng Zhang ◽  
Mengqi Wu ◽  
Hao Cui
Keyword(s):  
Economic Policy ◽  
Stock Markets ◽  
Goodness Of Fit ◽  
Positive Impact ◽  
Tail Dependence ◽  
Mixed Data ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Conditional Dependence ◽  
The Impact

In this paper, we investigate the impact of economic policy uncertainty (EPU) on the conditional dependence between China and U.S. stock markets by employing the Copula-mixed-data sampling (Copula-MIDAS) framework. In the case of EPU, we consider the global EPU (GEPU), the American EPU (AEPU), and the China EPU (CEPU). The empirical analysis based on the Shanghai Stock Exchange Composite (SSEC) index in China and the S&P 500 index in the U.S. shows that the tail dependence between China and U.S. stock markets is symmetrical, and the t Copula outperforms alternative Copulas in terms of in-sample goodness of fit. In particular, we find that the t Copula-MIDAS model with EPU dominates the traditional time-varying t Copula in terms of in-sample fitting. Moreover, we observe that both the GEPU and AEPU have a significantly positive impact on the conditional dependence between China and U.S. stock markets, whereas CEPU has no significant impact. The tail dependence between China and U.S. stock markets exhibits an increasing trend, particularly in the recent years.

scholarly journals Economic Policy Uncertainty, Environmental Regulation, and Green Innovation—An Empirical Study Based on Chinese High-Tech Enterprises

2021 ◽  
Vol 18 (18) ◽  
pp. 9503
Author(s):  
Yue Zhu ◽  
Ziyuan Sun ◽  
Shiyu Zhang ◽  
Xiaolin Wang
Keyword(s):  
Economic Policy ◽  
Environmental Regulation ◽  
Positive Impact ◽  
Environmental Regulations ◽  
High Tech ◽  
Policy Uncertainty ◽  
Green Innovation ◽  
Economic Policy Uncertainty ◽  
Innovation Output ◽  
The Impact

As the continuous changes in environmental regulations have a non-negligible impact on the innovation activities of micro subjects, and economic policy uncertainty has become one of the important influencing factors to be considered in the development of enterprises. Therefore, based on the panel data of Chinese high-tech enterprises from 2012–2017, this paper explores the impact of heterogeneous environmental regulations on firms’ green innovation from the perspective of economic policy uncertainty as a moderating variable. The empirical results show that, first, market-incentivized environmental regulation instruments have an inverted U-shaped relationship with innovation output, while voluntary environmental regulation produces a significant positive impact. Second, the U-shaped relationship between market-based environmental regulation and innovation output becomes more pronounced when economic policy uncertainty is high. However, it plays a negative moderating role in regulating the relationship between voluntary-based environmental regulation and innovation output. This paper not only illustrates the process of technological innovation by revealing the intrinsic mechanism of environmental regulation on firm innovation, but also provides insights for government in environmental governance from the perspective of economic policy uncertainty as well.

scholarly journals COVID-19, Oil Price, Bitcoin, and US Economic Policy Uncertainty: Evidence from ARDL Model

2021 ◽  
Vol 13 (11) ◽  
pp. 92
Author(s):  
Hanan Naser
Keyword(s):  
Economic Policy ◽  
Financial Market ◽  
Global Economy ◽  
Positive Impact ◽  
Oil Price ◽  
Market Volatility ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The Impact

The pandemic of coronavirus (COVID-19) creates fear and uncertainty causing extraordinary disruption to financial markets and global economy. Witnessing the fastest selloff in the American stock market in history with a plunge of more than 28% in S&P 500 has increased the volatility of global financial market to exceed the level observed during the financial crisis of 2008. On the other hand, Bitcoin value has shown considerable stability in the last couple of months peaking at $10,367.53 in the mid of February 2020. In this context, the aim of this paper is to investigate the impact of COVID-19 numbers on Bitcoin price taking into consideration number of controlling variables including WTI-oil price, S&P 500 index, financial market volatility, gold prices, and economic policy uncertainty of the US. To do so, ARDL estimation has been applied using daily data from December 31, 2019 till May 20, 2020. Key findings reveal that the daily reported cases of new infections have a marginal positive impact on Bitcoin price in the long term. However, the indirect impact associated with the fear of COVID-19 pandemic via financial market stress cannot be neglected. Bitcoin can also serve as a hedging tool against the economic policy uncertainty in the long term. In the short run, while the returns of economic policy uncertainty have no impact on Bitcoin price, the growth in the new cases of COVID-19 infection and returns of financial market volatility have more positive significant impact on Bitcoin returns.

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