Publication Type
PhD Dissertation
Version
publishedVersion
Publication Date
6-2017
Abstract
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.
Keywords
China, Agency problems, innovation, multinationals, informal financing, financial crisis
Degree Awarded
PhD in Business (Finance)
Discipline
Corporate Finance
Supervisor(s)
GOH, Choo Yong, Jeremy
Publisher
Singapore Management University
City or Country
Singapore
Citation
ZHOU, Sili.
Essays on corporate finance. (2017).
Available at: https://ink.library.smu.edu.sg/etd_coll_all/31
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.