Economic policy uncertainty and its mediating effect on leverage on the adjustment speed of corporate investment– evidence from China

References

• Altig, D., S. Baker, J. M. Barrero, N. Bloom, P. Bunn, S. Chen, S. J. Davis, et al. 2020. “Economic Uncertainty Before and During the COVID-19 Pandemic.” Journal of Public Economics 191: 104274. doi:https://doi.org/10.1016/j.jpubeco.2020.104274.
   PubMed Web of Science ®Google Scholar
• Arellano, M., and O. Bover 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Models.” Journal of Econometrics 68 (1): 29–51. doi:https://doi.org/10.1016/0304-4076(94)01642-D.
   Web of Science ®Google Scholar
• Arif Khan, M., X. Qin, and K. Jebran 2019. “Does Uncertainty Influence the Leverage-Investment Association in Chinese Firms?” Research in International Business and Finance 50: 134–152. doi:https://doi.org/10.1016/j.ribaf.2019.04.006.
   Web of Science ®Google Scholar
• Bajaj, Y., S. Kashiramka, and S. Singh 2021. “Economic Policy Uncertainty and Leverage Dynamics: Evidence from an Emerging Economy.” International Review of Financial Analysis 77: 101836. doi:https://doi.org/10.1016/j.irfa.2021.101836.
   Web of Science ®Google Scholar
• Baker, S. R., N. Bloom, and S. J. Davis 2016. “Measuring Economic Policy Uncertainty*.” The Quarterly Journal of Economics 131 (4): 1593–1636. doi:https://doi.org/10.1093/qje/qjw024.
   Web of Science ®Google Scholar
• Bloom, N. 2009. “The Impact of Uncertainty Shocks.” Econometrica 77: 623–685. doi:10.3982/ECTA6248.
   Web of Science ®Google Scholar
• Bradley, D., C. Pantzalis, and X. Yuan 2016. “Policy Risk, Corporate Political Strategies, and the Cost of Debt.” Journal of Corporate Finance 40: 254–275. doi:https://doi.org/10.1016/j.jcorpfin.2016.08.001.
   Web of Science ®Google Scholar
• Chowdhury, J., R. Kumar, and D. Shome 2016. “Investment–cash Flow Sensitivity Under Changing Information Asymmetry.” Journal of Banking & Finance 62: 28–40. doi:https://doi.org/10.1016/j.jbankfin.2015.07.003.
   Web of Science ®Google Scholar
• Christiano, L. J., R. Motto, and M. Rostagno 2014. “Risk Shocks.” The American Economic Review 104 (1): 27–65. doi:https://doi.org/10.1257/aer.104.1.27.
   Web of Science ®Google Scholar
• D’Mello, R., M. Gruskin, and M. Kulchania 2018. “Shareholders Valuation of Long-Term Debt and Decline in Firms’ Leverage Ratio.” Journal of Corporate Finance 48: 352–374. doi:https://doi.org/10.1016/j.jcorpfin.2017.11.006.
   Web of Science ®Google Scholar
• Davis, S. 2019. “Economic policy uncertainty in China since 1949: The view from mainland newspapers.” Working Paper.
   Google Scholar
• Davis, S. J., D. Liu, and X. S. Sheng, 2019. Economic Policy Uncertainty in China Since 1949: The View from Mainland Newspapers. Working Paper 1–35.
   Google Scholar
• DeAngelo, H., and R. Roll 2015. “How Stable are Corporate Capital Structures?” The Journal of Finance 70 (1): 373–418. doi:https://doi.org/10.1111/jofi.12163.
   Web of Science ®Google Scholar
• Decker, R. A., J. Haltiwanger, R. S. Jarmin, and J. Miranda 2017. “Declining Dynamism, Allocative Efficiency, and the Productivity Slowdown.” The American Economic Review 107 (5): 322–326. doi:https://doi.org/10.1257/aer.p20171020.
   Web of Science ®Google Scholar
• Flannery, M. J., and K. P. Rangan 2006. “Partial Adjustment Toward Target Capital Structures.” Journal of Financial Economics 79 (3): 469–506. doi:https://doi.org/10.1016/j.jfineco.2005.03.004.
   Web of Science ®Google Scholar
• Goodell, J. W., R. J. McGee, and F. McGroarty 2020. “Election Uncertainty, Economic Policy Uncertainty and Financial Market Uncertainty: A Prediction Market Analysis.” Journal of Banking & Finance 110: 105684. doi:https://doi.org/10.1016/j.jbankfin.2019.105684.
   Web of Science ®Google Scholar
• Gulen, H., and M. Ion 2015. “Policy Uncertainty and Corporate Investment.” The Review of Financial Studies hhv050. doi:https://doi.org/10.1093/rfs/hhv050.
   Web of Science ®Google Scholar
• Gulen, H., and M. Ion 2016. “Policy Uncertainty and Corporate Investment.” The Review of Financial Studies 29: 523–564. doi:10.1093/rfs/hhv050.
   Web of Science ®Google Scholar
• Jensen, M. C. 1986. “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers.” The American Economic Review 76: 323–329.
   Web of Science ®Google Scholar
• Jensen, M. C., and W. H. Meckling 1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure.” Journal of Financial Economics 3 (4): 305–360. doi:https://doi.org/10.1016/0304-405X(76)90026-X.
   Web of Science ®Google Scholar
• Johansen, S. 1994. “The Role of the Constant and Linear Terms in Cointegration Analysis of Nonstationary Variables.” Econometric Reviews 13 (2): 205–229. doi:https://doi.org/10.1080/07474939408800284.
   Google Scholar
• Kang, Q., Q. Liu, and R. Qi 2010. “The Sarbanes-Oxley Act and Corporate Investment: A Structural Assessment.” Journal of Financial Economics 96 (2): 291–305. doi:https://doi.org/10.1016/j.jfineco.2010.02.002.
   Web of Science ®Google Scholar
• La Rosa, F., G. Liberatore, F. Mazzi, and S. Terzani 2018. “The Impact of Corporate Social Performance on the Cost of Debt and Access to Debt Financing for Listed European Non-Financial Firms.” European Management Journal 36 (4): 519–529. doi:https://doi.org/10.1016/j.emj.2017.09.007.
   Web of Science ®Google Scholar
• Lee, C.-C., C.-C. Lee, J.-H. Zeng, and Y.-L. Hsu 2017. “Peer Bank Behavior, Economic Policy Uncertainty, and Leverage Decision of Financial Institutions.” Journal of Financial Stability 30: 79–91. doi:10.1016/j.jfs.2017.04.004.
   Web of Science ®Google Scholar
• Levine, R., N. Loayza, and T. Beck 2000. “Financial Intermediation and Growth: Causality and Causes.” Journal of Monetary Economics 46 (1): 31–77. doi:https://doi.org/10.1016/S0304-3932(00)00017-9.
   Web of Science ®Google Scholar
• Ludvigson, S. C., and S. Ng 2007. “The Empirical Risk–return Relation: A Factor Analysis Approach.” Journal of Financial Economics 83 (1): 171–222. doi:https://doi.org/10.1016/j.jfineco.2005.12.002.
   Web of Science ®Google Scholar
• Myers, S. C. 1977. “Determinants of Corporate Borrowing.” Journal of Financial Economics 5 (2): 147–175. doi:https://doi.org/10.1016/0304-405X(77)90015-0.
   Web of Science ®Google Scholar
• Obrenovic, B., J. Du, D. Godinic, D. Tsoy, M. A. S. Khan, and I. Jakhongirov 2020. “Sustaining Enterprise Operations and Productivity During the COVID-19 Pandemic: “Enterprise Effectiveness and Sustainability Model”.” Sustainability 12 (15): 5981. doi:https://doi.org/10.3390/su12155981.
   Web of Science ®Google Scholar
• Phan, Q. T. 2018. “Corporate Debt and Investment with Financial Constraints: Vietnamese Listed Firms.” Research in International Business and Finance 46: 268–280. doi:https://doi.org/10.1016/j.ribaf.2018.03.004.
   Web of Science ®Google Scholar
• Saona, P., E. Vallelado, and P. San Martín 2020. “Debt, or Not Debt, That is the Question: A Shakespearean Question to a Corporate Decision.” Journal of Business Research 115: 378–392. doi:https://doi.org/10.1016/j.jbusres.2019.09.061.
   Web of Science ®Google Scholar
• Stulz, R. 1990. “Managerial Discretion and Optimal Financing Policies.” Journal of Financial Economics 26 (1): 3–27. doi:https://doi.org/10.1016/0304-405X(90)90011-N.
   Web of Science ®Google Scholar
• Zeng, S., C. Jiang, C. Ma, and B. Su 2018. “Investment Efficiency of the New Energy Industry in China.” Energy Economics 70: 536–544. doi:https://doi.org/10.1016/j.eneco.2017.12.023.
   Web of Science ®Google Scholar
• Zhang, G., J. Han, Z. Pan, and H. Huang 2015. “Economic Policy Uncertainty and Capital Structure Choice: Evidence from China.” Economic Systems 39 (3): 439–457. doi:https://doi.org/10.1016/j.ecosys.2015.06.003.
   Web of Science ®Google Scholar