scholarly journals Enterprise Sustainability: Economic Policy Uncertainty, Enterprise Investment, and Profitability

2020 ◽  
Vol 12 (9) ◽  
pp. 3735 ◽  
Author(s):  
Aijun Guo ◽  
Haiqi Wei ◽  
Fanglei Zhong ◽  
Shuangshuang Liu ◽  
Chunlin Huang
Keyword(s):  
Sustainable Development ◽  
Economic Policy ◽  
Inhibitory Effect ◽  
Investment Behavior ◽  
Policy Uncertainty ◽  
Dynamic Interactions ◽  
The Sustainable Development ◽  
Economic Policy Uncertainty ◽  
The Government ◽  
Enterprise Investment

Under economic fluctuations, the sustainable development of enterprises is crucial. Currently, there are few studies on the interaction between economic policy uncertainty (EPU) and the sustainable development behavior of enterprises. Based on a panel vector autoregressive (PVAR) model, this paper explores the static and dynamic interactions among EPU, enterprise investment, and enterprise profitability and then analyzes regional heterogeneity in these factors. It finds that EPU has an inhibitory effect on the investment and profitability of enterprises, while the investment and profitability of enterprises also have an inhibitory effect on EPU. In addition, there are contribution differences and regional differences in the degrees of influence of the three factors. In the long run, EPU and the inhibition of enterprise investment and profitability are strongest in China’s central region. The results show that the stronger the certainty of economic policy, the more conducive this policy is to promoting enterprise investment behavior and improving enterprise profitability. Therefore, to ensure normal economic development, the government should limit changes in economic policy as much as possible; doing so is critical for promoting investment behavior and improving the profitability of enterprises.

scholarly journals Evaluating the Power Grid Investment Behavior in China: From the Perspective of Government Supervision

Energies ◽  
2019 ◽  
Vol 12 (21) ◽  
pp. 4192
Author(s):  
Yanbin Li ◽  
Feng Zhang ◽  
Yun Li ◽  
Bingkang Li ◽  
Zhen Li
Keyword(s):  
Sustainable Development ◽  
Power System ◽  
Power Grid ◽  
Power Industry ◽  
Evaluation Index System ◽  
Investment Behavior ◽  
System Reform ◽  
The Sustainable Development ◽  
Government Supervision ◽  
The Government

Power grid investment behavior (PGIB) is a necessary prerequisite to ensure safe and reliable power supply. The supervision of PGIB is an important measure to reduce electricity price. It helps to release the dividends of the new power system reform and promote the sustainable development of the power industry. However, for a long time, China’s regulation of PGIB was relatively weak, lacking clear supervision awareness and effective supervision methods. On the basis of clarifying the contents of PGIB supervision, this paper establishes an evaluation index system for the compliance of PGIB from the government supervision perspective, involving four dimensions and 14 secondary indicators. Furthermore, a hybrid evaluation model based on the combined decision-making trial and evaluation laboratory method (DEMATEL-ANP), analytical network process method, and vague set is proposed. The results reveal that the control over cost and efficiency of the PGIB in China is not enough. According to the results, this paper puts forward the indicators that close attention should be paid to and the work priorities in China’s supervision of PGIB, which has certain practical value for the implementation of new power system reform and the sustainable development of Chinese power industry.

Global Economic Policy Uncertainty and Tourism of Fragile Five Countries: Evidence from Time and Frequency Approaches

2020 ◽  
pp. 004728752092124
Author(s):  
Tsung-Pao Wu ◽  
Hung-Che Wu
Keyword(s):  
Economic Policy ◽  
National Security ◽  
High Frequency ◽  
Annual Data ◽  
Frequency Change ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The Government ◽  
Changes Over Time ◽  
The Relationship

The purpose of this study is to examine the relationship between global economic policy uncertainty (GEPU) and tourism activities in the Fragile Five (F5) countries, namely, Brazil, India, Indonesia, South Africa, and Turkey. By using wavelet transform context structures and the annual data during the period of 1997–2016. The finding shows that the relationship is generally positive but changes over time, displaying low- to high-frequency cycles. Moreover, the timing and frequency change when GEPU co-moves with tourism. It can be recommended that the government maintain the national security and peace protocols.

Causality between European Economic Policy Uncertainty and Tourism Using Wavelet-Based Approaches

2018 ◽  
Vol 58 (8) ◽  
pp. 1347-1356 ◽  
Author(s):  
Tsung-Pao Wu ◽  
Hung-Che Wu
Keyword(s):  
Economic Policy ◽  
Annual Data ◽  
Policy Uncertainty ◽  
Causality Analysis ◽  
Economic Policy Uncertainty ◽  
Causal Influence ◽  
European Economic ◽  
Continuous Wavelets ◽  
The Government ◽  
Wavelet Coherency

This article aims to examine the link between European economic policy uncertainty (EPU) and tourism activities in Portugal, Ireland, Italy, Greece, and Spain using wavelet transform context structures. This innovative technique allows the decomposition of time-series at different time frequencies. In this work, we used continuous wavelets, wavelet coherency, and wavelet phase difference based on Granger causality analysis to investigate the relationship between European EPU and tourism using the annual data from 1995 to 2015. The results indicate that there is a unidirectional causal influence of European EPU on international tourism receipts (ITR) in the short run and a bidirectional causal influence of European EPU on ITR in European countries in the long run. Accordingly, it can be recommended that the government needs to increase and promote tourism demand and to further provide and nurture the expansion of tourism supply.

scholarly journals Assessment of Resident Happiness under Uncertainty of Economic Policies: Empirical Evidences from China

2020 ◽  
Vol 12 (18) ◽  
pp. 7296
Author(s):  
Zhigang Ouyang ◽  
Fengyu Liu ◽  
Ge Zhai ◽  
Svitlana Bilan
Keyword(s):  
Quality Of Life ◽  
Sustainable Development ◽  
Economic Policy ◽  
Well Being ◽  
Policy Uncertainty ◽  
Economic Policies ◽  
Direct Impact ◽  
Household Asset ◽  
Economic Policy Uncertainty

The main aim of sustainable development is to increase the quality of life and resident happiness as the latter is one of the most important indicators for the assessment of quality of life. However, due to the uncertainty of economic policies, it will not only have a direct impact on resident well-being but may also indirectly affect resident well-being through specific channels. The economic policies are aimed at the achievement of sustainable development, therefore it is very important to investigate the influences of the uncertainty of economic policies on resident happiness. This allows to assess the sustainability of policies in terms of their inputs to the quality of life. The direct impact of economic policy uncertainty on resident well-being and the mediating effects of household asset allocation and the expectation on the above influencing relationship were analyzed based on the uncertainty index of China’s economic policies and households database of China Family Panel Studies (CFPS) during the period 2010–2018, so as to clarify the complete path of economic policy uncertainty affecting resident happiness. Results show that the uncertainty of economic policy significantly reduces resident happiness. In the context of the uncertainty of economic policies, families can relieve such negative impacts as an increasing proportion of financial assets in their total assets. However, decreases in asset shares for household consumer goods and future expectation obviously lower resident happiness. The research conclusions provide important input in research on the influences of the uncertainty of economic policy on the quality of life and offer new evidences for the development of “happiness economics”.

scholarly journals Firms’ Sustainability: Does Economic Policy Uncertainty Affect Internal Control?

2019 ◽  
Vol 11 (3) ◽  
pp. 794 ◽  
Author(s):  
Fang-Nan Liao ◽  
Xiao-Li Ji ◽  
Zhi-Ping Wang
Keyword(s):  
Sustainable Development ◽  
Economic Policy ◽  
Internal Control ◽  
Policy Uncertainty ◽  
Causal Inferences ◽  
Firm Level ◽  
Exogenous Shock ◽  
Economic Policy Uncertainty ◽  
Insight Into

This paper studies whether economic policy uncertainty (EPU) influences internal control (IC). Exploiting EPU as an exogenous shock and using unique internal control index data at the firm level from China, we can make causal inferences about the EPU effect on IC, and provide new insight into firms’ sustainability. Our results show that firms tend to cope with higher EPU by improving IC, indicating their efforts to ensure sustainability development. We also find that this trend is intensified for firms localized in regions with a lower marketization degree, state-owned firms, or firms with fewer analysts following. Further analyses show that EPU significantly reduces the internal control auditing fees, hence backing up the association between EPU and IC. Unlike the previous literature, this paper shows the important role of internal control for firms in coping with EPU, which is of crucial significance to how firms seek to adhere to sustainable development and how economic policy works best.

Economic policy uncertainty and corporate social responsibility performance: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianjiao Zhao ◽  
Xiang Xiao ◽  
Bingshi Zhang
Keyword(s):  
Economic Policy ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Inhibitory Effect ◽  
Policy Uncertainty ◽  
Content Type ◽  
Economic Policy Uncertainty ◽  
Corporate Social ◽  
The Relationship ◽  
Csr Engagement

Purpose The purpose of this paper is to show how the external issue of economic policy uncertainty (EPU) affects enterprises’ corporate social responsibility (CSR). Design/methodology/approach This study investigates the relationship between EPU and CSR based on the Chinese capital market from 2010 to 2018. Following the most recent studies focused on economic policy uncertainty, this paper uses the news-based method proposed by Baker et al. (2016) to measure EPU and explore the effect of EPU on CSR, as well as the mediating role of state ownership in such a relationship. Findings Empirical results show that increasing EPU will restrain enterprises’ social responsibility behaviour and the inhibitory effect is more obvious for state-owned enterprises. Further analyses reveal that the inhibitory effect of EPU on CSR is stronger for enterprises that face severe financial constraints and is significant for various components of CSR, and trade policy uncertainty could also curb enterprises’ social responsibility behaviour. Practical implications As a stable economic environment is important for enterprises’ CSR engagement, the present study’s conclusions can help policymakers better understand the implications of policy stability for enterprises’ financial and non-financial decisions and especially their CSR decisions. Social implications With the increasing attention paid to the CSR of enterprises, this study provides evidence that enterprises should develop appropriate CSR strategies according to the economic policy environment and enhance their capacity to withstand the risks generated by EPU. Originality/value To the best of the author’s knowledge, this study is the first to analyse the relationship between EPU and CSR. The results contribute to a better understanding of what issues influence enterprises’ CSR engagement, highlighting the importance of a stable economic policy environment and of enterprises’ ability to withstand risks.

scholarly journals Economic Policy Uncertainty and Enterprise Financialization under the Condition of Informationization

2021 ◽  
Vol 251 ◽  
pp. 01026
Author(s):  
Miao He
Keyword(s):  
Economic Policy ◽  
Relevant Literature ◽  
Information Age ◽  
Development Trend ◽  
Practical Significance ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
The Government ◽  
And Control ◽  
The Relationship

Information is the current global development trend, is an important force driving economic change. The incompleteness of information leads to the fluctuation of economy, which urges the government to carry on the macro-policy regulation and control, thus affects the micro-enterprise decision-making. Based on the perspective of financialization, this paper empirically tests the relationship between economic policy uncertainty and enterprise financialization under informatization, and finds that there is a significant positive correlation between them. This paper enriches the relevant literature on the uncertainty of economic policy and the financialization of enterprises under the information age, and has some practical significance for enterprises to make rational decisions when they face the uncertainty of economic policy under the information age.

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