Essays on corporate finance

Essays on corporate finance

Economic, Policy uncertainty under political opaqueness imposes great impact in the capital market. I construct ex ante cross-section of firm sensitivity to China Economic Policy Uncertainty (CEPU) index from Baker, Bloom and Davis (2013). This measure of policy sensitivity is significantly negatively...

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Bibliographic Details
Main Author: ZHOU, Sili
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2017
Subjects:
China
Agency problems
innovation
multinationals
informal financing
financial crisis
Corporate Finance
Online Access:https://ink.library.smu.edu.sg/etd_coll_all/31
https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1023&context=etd_coll_all
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Institution: Singapore Management University
Language: English
Description
Summary:Economic, Policy uncertainty under political opaqueness imposes great impact in the capital market. I construct ex ante cross-section of firm sensitivity to China Economic Policy Uncertainty (CEPU) index from Baker, Bloom and Davis (2013). This measure of policy sensitivity is significantly negatively predictive of a firm’s market value and Tobin’s Q. Cross sectional tests show that the negative effects are stronger in SOEs= for firms with higher agency problems, and for firms operating in market with lower degree of competition or market disciplining. The evidence suggests that high level of policy influence causes significant value destruction in the capital market.

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