We investigate the impact of political uncertainty in the context of the upper echelon theory.Using provincial-level data of polit-ical leaders in China over the period 1995–2015,we take a two-step approach to first ...We investigate the impact of political uncertainty in the context of the upper echelon theory.Using provincial-level data of polit-ical leaders in China over the period 1995–2015,we take a two-step approach to first examine the impact of top leader teams’(TLTs)traits on productivity and,second,to test if such leadership effects vary with political uncertainty.We find that TLTs’educa-tion,generally a driving force behind productivity,is less effective during the period of high political uncertainty.TLTs’work experi-ence positively contributes to productivity,which is strengthened under high political uncertainty.TLTs’career ambition leads to higher productivity,but such an effect attenuates when political uncertainty is high.Finally,TLTs’political positions negatively con-tribute to productivity and the effect is barely affected by political uncertainty,suggesting a disconnection between political posi-tions and economic outcomes.展开更多
This paper investigates how economic policy uncertainty affects firms’frequency and their choice of financial instruments to raise capital.By applying a three-step sequential framework over a sample of 6834 publicly ...This paper investigates how economic policy uncertainty affects firms’frequency and their choice of financial instruments to raise capital.By applying a three-step sequential framework over a sample of 6834 publicly listed US non-financial firms,we find that during periods of high economic uncertainty,firms raise capital more frequently with a preference toward debt financing.The empirical findings suggest that firms prefer debt financing over equity financing to avoid ownership dilution and high equity premia.The rise in leverage during periods of high economic uncertainty highlights the importance of scrutinizing policy tools used to stabilize the economy during such times.展开更多
The trend of foreign direct investment(FDI)in China has switched from inflow to outflow following the rapid economic growth dur-ing the past several decades.Stimulated by government policies,in recent years China’s f...The trend of foreign direct investment(FDI)in China has switched from inflow to outflow following the rapid economic growth dur-ing the past several decades.Stimulated by government policies,in recent years China’s firms have actively sought overseas invest-ment opportunities.This paper examines the relationship between economic policy uncertainty(EPU)and cross-border cap-ital flow decisions for listed firms in China.Our findings demon-strate that EPU originating from China does not seem to dissuade FDI inflow into China,but it does curtail FDI outflow from the country.It appears that government policies and the uncertainty the policies bring are deterministic for FDI.展开更多
基金supported by the National Natural Science Foundation of China[Grant No.NSFC-71363014].
文摘We investigate the impact of political uncertainty in the context of the upper echelon theory.Using provincial-level data of polit-ical leaders in China over the period 1995–2015,we take a two-step approach to first examine the impact of top leader teams’(TLTs)traits on productivity and,second,to test if such leadership effects vary with political uncertainty.We find that TLTs’educa-tion,generally a driving force behind productivity,is less effective during the period of high political uncertainty.TLTs’work experi-ence positively contributes to productivity,which is strengthened under high political uncertainty.TLTs’career ambition leads to higher productivity,but such an effect attenuates when political uncertainty is high.Finally,TLTs’political positions negatively con-tribute to productivity and the effect is barely affected by political uncertainty,suggesting a disconnection between political posi-tions and economic outcomes.
文摘This paper investigates how economic policy uncertainty affects firms’frequency and their choice of financial instruments to raise capital.By applying a three-step sequential framework over a sample of 6834 publicly listed US non-financial firms,we find that during periods of high economic uncertainty,firms raise capital more frequently with a preference toward debt financing.The empirical findings suggest that firms prefer debt financing over equity financing to avoid ownership dilution and high equity premia.The rise in leverage during periods of high economic uncertainty highlights the importance of scrutinizing policy tools used to stabilize the economy during such times.
文摘The trend of foreign direct investment(FDI)in China has switched from inflow to outflow following the rapid economic growth dur-ing the past several decades.Stimulated by government policies,in recent years China’s firms have actively sought overseas invest-ment opportunities.This paper examines the relationship between economic policy uncertainty(EPU)and cross-border cap-ital flow decisions for listed firms in China.Our findings demon-strate that EPU originating from China does not seem to dissuade FDI inflow into China,but it does curtail FDI outflow from the country.It appears that government policies and the uncertainty the policies bring are deterministic for FDI.
