The Impact of Economic Policy Uncertainty on Investment Efficiency : Evidence from China

Previous studies (Wu et al.,2020, G, Xie et al.,2019) have provided evidence that economic policy uncertainty influences investment efficiency. The current research also supports the previous findings that firm investment level falls during periods of high policy uncertainty. To test the hypotheses the current study used panel data of 788 non-financial public listed companies in the Shanghai and Shenzhen stock exchange of China from 2008 to 2021. Thomson Reuters’ data stream is used for Data Collection. Based on a sample of Chinese listed companies, the present study finds that investment efficiency decreases significantly because of economic policy uncertainty. This study would be beneficial to the policymakers as well as to the investors for making investment choices by examining the impact of economic policy uncertainty on investment efficiency