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, 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.

THE RELATIONSHIP BETWEEN ECONOMIC POLICY UNCERTAINTY AND CORPORATE TAX RATES

2021 ◽  
pp. 2150002
Author(s):  
MATTHEW CLANCE ◽  
GIRAY GOZGOR ◽  
RANGAN GUPTA ◽  
CHI KEUNG MARCO LAU
Keyword(s):  
Economic Policy ◽  
Policy Uncertainty ◽  
Tax Rates ◽  
Corporate Tax ◽  
Economic Policy Uncertainty ◽  
Estimation Techniques ◽  
Uncertainty Index ◽  
Corporate Tax Rates ◽  
The Relationship

This paper investigates the relationship between economic policy uncertainty and corporate tax rates in a panel dataset of 126 countries throughout 2003–2018. We use the so-called “World Uncertainty Index” to measure the level of economic policy uncertainty. We utilize various estimation techniques and find a one-way causality from economic policy uncertainty to corporate tax rates. Specifically, a rise in economic policy uncertainty leads to higher corporate tax rates. We also discuss potential implications.

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 Acute Performance Estimation of Students Using Quantile Regression Approach (A Case Study of Lahore)

2020 ◽  
Vol 36 (3) ◽  
Author(s):  
Sunaina Ishtiaq ◽  
Yasar Mahmood ◽  
Dr. Hina Khan
Keyword(s):  
Quantile Regression ◽  
Least Squares ◽  
Student Performance ◽  
High Performance ◽  
Positive Impact ◽  
Ordinary Least Squares ◽  
Performance Estimation ◽  
Policy Implications ◽  
High Quantiles ◽  
Private And Public

Extreme behavior (Performance) of students is inclined by number of factor which must be painted for important policy implications. This study states that the CGPA is the most important system to deduct student performance. Data on CGPA has been collected from B.A/B.Sc (Hons.) of 32 private and public universities of Lahore. Generally, researchers investigate an average performance of the students with classical methods of simple linear regression. This approach does not give complete picture of different variables influencing student performance from corner to corner. Quantile regression introduces information across the whole distribution of the student’s achievements. Study furnishes that students performance strongly affected by father’s education. Student’s gender, passion for fashion, and mother’s job are significant factors. Class participation is found as a magical variable that has positive impact on student performance at all quantiles. The quantile estimate of student performance shows that effect of the urban-rural difference is significant factor. The study clearly shows for high performance students, factors like mother occupation, father education, gender and area become insignificant at high quantiles. The results highlight that quantile regression model is a useful technique for examine information than ordinary least squares. It also depicts that ordinary least squares underestimated and overestimated the Quantile regression at different quantiles.

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.

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