Publication Type

PhD Dissertation

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

Publication

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Singapore Management University

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Available for download on Tuesday, April 24, 2018

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