Does Economic Policy Uncertainty Affect Microsystemic Financial Risk : A Study Based on Data of Chinese Listed Financial Companies

In this paper, data related to 123 micro financial institutions in China from January 2005 to January 2022 are selected to measure micro systemic financial risk using the SRISK method. And a Common Correlated Effects approach is used to examine the impact of economic policy uncertainty on the systemic financial risk of micro financial institutions by controlling the influence of cross-sectional dependence in control panel variables.The results of the study find that economic policy uncertainty significantly increases the systemic financial risk of micro-financial institutions, especially the impact on the systemic financial risk of banks and securities is much greater than that of financial holding financial institutions, and its impact varies with the level of economic fluctuations. In response to the above research findings, this paper provides empirical insights to relevant government departments and financial entities