How does economic policy uncertainty affect corporate risk-taking? Evidence from China

Wen, Fenghua; Li, Cui; Sha, Han; Shao, Lei

doi:10.1016/j.frl.2020.101840

Cited by 142 publications

(61 citation statements)

References 27 publications

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“…At present, China is in a stage of rapid development in digital financial technology, and the resource consumption and pollution caused by the rapid growth of the industrial economy are also criticized by other countries [40,41]. At the same time, China is also the net recipient of foreign spillovers most of the time [42][43][44]. As China's economic structural transformation and economic development enter a new normal, digital financial technology is also urgently needed to provide new momentum for a new round of industrial revolution.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Spatial Interaction Spillover Effects between Digital Financial Technology and Urban Ecological Efficiency in China: An Empirical Study Based on Spatial Simultaneous Equations

Yang

2021

IJERPH

122

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As a core component of the digital economy, digital financial technology has a complex interactive and interdependent relationship with ecological efficiency. From the holistic spatial interaction perspective, this paper uses spatial simultaneous equations and generalized spatial three-stage least squares (GS3SLS) to analyze the spatial interaction spillovers between digital financial technology and urban ecological efficiency based on data from 284 Cities in China from 2008 to 2018. The results show that: (1) Digital financial technology and urban ecological efficiency promote each other, and the latter is relatively dominant. (2) Both digital financial technology and urban ecological efficiency have significant spatial spillover effects. (3) Digital financial technology in surrounding cities has a restraining effect on local ecological efficiency, and the improvement of ecological efficiency in surrounding cities has a siphon effect on local digital financial technology. (4) There is spatial and period heterogeneity in the intensity of the spatial interaction spillover effect between the two. With resources and environment increasingly becoming rigid constraints on economic growth, these findings help identify new drivers of regional ecological efficiency and promote the coordinated development of digital finance and green ecology.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Spatial Interaction Spillover Effects between Digital Financial Technology and Urban Ecological Efficiency in China: An Empirical Study Based on Spatial Simultaneous Equations

Yang

2021

IJERPH

122

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“…With firm-level data collected from 35 countries and a hierarchical linear modeling method to separate the effects of firm-specific and country-specific variables, they show that individualistic culture is positively related to corporate risk-taking, while the impacts of uncertainty avoidance and harmony are significantly negative. Tran (2019) Vural-Yavaş (2020) and Wen et al (2020) show that policy uncertainty negatively affects corporate risk-taking. Furthermore, Boubakri et al (2013) examine the relationship between political institutions and corporate risk-taking with a large research sample of non-financial firms across 77 countries during the period 1988–2008.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Corruption and corporate risk-taking: evidence from emerging markets

Trần

2020

IJOEM

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PurposeThis paper investigates the relationship between corruption and corporate risk-taking in emerging markets where corruption is considered as “public enemy number one.”Design/methodology/approachThe study measures corruption based on Corruption Control Index annually published by World Bank and examines how corruption affects corporate risk-taking in emerging markets covered in MSCI Emerging Market Index.FindingsWith a sample of 75,338 observations from 8,326 firms across 20 emerging stock markets during the period 2005–2016, the author finds that corruption negatively affects corporate risk-taking. Robustness checks with a reduced sample without China and India, alternatives of corruption measures, various measures of risk-taking and Generalized method of moments (GMM) estimator also show consistent results. Moreover, additional analysis shows that information disclosure mitigates the effect of corruption on risk-taking.Originality/valueThe extant literature implies that corruption may decrease corporate risk-taking behavior through two channels including operational cost and debt financing cost.

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“…According to the hypotheses proposed above, there is an interaction between new-urbanization and the green land utilization efficiency. Therefore, a fixed effects panel regression model based on simultaneous-equations can be established [38], with the form as follows:…”

Section: Model Setting and Measurement Methodsmentioning

confidence: 99%

Spatio-Temporal Evolution Characteristics and Spatial Interaction Spillover Effects of New-Urbanization and Green Land Utilization Efficiency

Wang

Yang

2021

Land

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In the context of vigorously promoting new-urbanization, effectively improving the green use efficiency of urban land is an inevitable requirement to achieve high-quality economic and social development. Based on the panel data from 2011 to 2018 of 297 prefecture-level and above cities in China, this paper uses the entropy weight method and the super-efficient SBM-GML model to estimate the spatio-temporal evolution characteristics of new-urbanization and urban green land utilization efficiency. Then, the spatial simultaneous-equation and the generalized spatial three-stage least square method (GS3SLS) are employed to empirically investigate the spatial interaction spillover effects between the new-urbanization and the green land utilization efficiency. The results indicate that: (1) The level of new-urbanization and the green land utilization efficiency in Chinese cities have common and complex temporal and spatial dynamic evolution characteristics. (2) There are mutual inhibition effects between new-urbanization and green land utilization efficiency, and the level of new-urbanization is in a comparatively leading role. (3) Both the level of new-urbanization and green land utilization efficiency have obvious spatial spillover effects. (4) The level of new-urbanization of surrounding regions promotes the green land utilization efficiency of local regions, and the improvement of the green land utilization efficiency of surrounding regions also promotes the level of new-urbanization of local regions. As environmental pressure increasingly becomes a constraint on urban development, these findings are helpful to clarify the regional relationship between urban construction and green development and promote the harmonious development of new-urbanization and green land utilization efficiency.

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How does economic policy uncertainty affect corporate risk-taking? Evidence from China

Cited by 142 publications

References 27 publications

Spatial Interaction Spillover Effects between Digital Financial Technology and Urban Ecological Efficiency in China: An Empirical Study Based on Spatial Simultaneous Equations

Spatial Interaction Spillover Effects between Digital Financial Technology and Urban Ecological Efficiency in China: An Empirical Study Based on Spatial Simultaneous Equations

Corruption and corporate risk-taking: evidence from emerging markets

Spatio-Temporal Evolution Characteristics and Spatial Interaction Spillover Effects of New-Urbanization and Green Land Utilization Efficiency

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