scholarly journals The Nexus of Sophisticated Digital Assets with Economic Policy Uncertainty: A Survey of Empirical Findings and an Empirical Investigation

2021 ◽  
Vol 13 (10) ◽  
pp. 5383
Author(s):  
Nikolaos A. Kyriazis
Keyword(s):  
Economic Policy ◽  
Empirical Investigation ◽  
Econometric Analysis ◽  
Policy Uncertainty ◽  
Negative Effects ◽  
Economic Policy Uncertainty ◽  
Strongly Connected ◽  
Threshold Arch ◽  
Best Fit ◽  
Digital Assets

This paper sets out to explore the nexus between economic policy uncertainty (EPU) and digital currencies. An integrated survey takes place based on eleven primary studies. Furthermore, an econometric analysis is conducted by the threshold ARCH, simple asymmetric ARCH and non-linear ARCH specifications covering the bull and the bear markets as well as the highly volatile period up to the present. Threshold ARCH is found to provide the best fit for estimations. Outcomes reveal that Bitcoin is strongly connected with EPU while Ethereum and Litecoin are not but are strongly linked with Bitcoin performance. Moreover, weak negative effects of the VIX on both cryptocurrencies are detected while oil exerts weak positive impacts on Ethereum. Overall, Ethereum and Litecoin could serve for diversifiers against Bitcoin or hedgers against traditional assets during highly stressed periods with the advantage of not being affected by economic policy uncertainty news.

scholarly journals The Sensitivity of Firms’ Investment to Uncertainty and Cash Flow: Evidence From Listed State-Owned Enterprises and Non-State-Owned Enterprises in China

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824402090343 ◽  
Author(s):  
Muhammad Arif Khan ◽  
Xuezhi Qin ◽  
Khalil Jebran ◽  
Abdul Rashid
Keyword(s):  
Economic Policy ◽  
Cash Flow ◽  
Generalized Method Of Moments ◽  
Corporate Investment ◽  
Policy Uncertainty ◽  
Market Uncertainty ◽  
Negative Effects ◽  
Economic Policy Uncertainty ◽  
Listed Firms ◽  
Positive Effects

This study examines the association between various uncertainties and corporate investment and further investigates this association between state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). Moreover, this study analyzes the indirect effects of uncertainty on corporate investment through cash flow. The current research uses an unbalanced panel data of Chinese nonfinancial listed firms for the period 1999–2016. To control endogeneity issues, this study applies a robust two-step system generalized method of moments (GMM) technique to estimate the model. Empirical findings indicate that market-based and firm-specific uncertainties have positive effects, whereas economic policy and CAPM-based uncertainties have negative effects on corporate investment. Furthermore, results indicate that the effects of market-based, CAPM-based, and firm-specific uncertainties (economic policy uncertainty) were less (more) prominent for SOEs. Additional analyses show that cash flow stimulates the effect of firm-specific uncertainty on SOEs’ investment, whereas it weakens the influence of CAPM-based uncertainty (economic policy uncertainty) on investment of non-SOEs (SOEs). Moreover, cash flow attenuates the market uncertainty effect on investment.

scholarly journals Does economic policy uncertainty predict the Bitcoin returns? An empirical investigation

2018 ◽  
Vol 26 ◽  
pp. 145-149 ◽  
Author(s):  
Ender Demir ◽  
Giray Gozgor ◽  
Chi Keung Marco Lau ◽  
Samuel A. Vigne
Keyword(s):  
Economic Policy ◽  
Empirical Investigation ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty
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