Economic Policy Uncertainty and Corporate Innovation: Evidence From China

Abstract

This study investigates whether economic policy uncertainty affects corporate innovation. Using a sample of Chinese listed firms during the period of 2007-2017, this paper finds that economic policy uncertainty is positively associated with corporate innovation. Moreover, firm-specific characteristics (state ownership, internal control, and managerial ownership) have an influence on the above relationship. Our paper contributes to the economic effects of economic policy uncertainty.