This paper investigates the mechanism of transmitting economic policy uncertainty (EPU) shocks to capital structure. We adopt a novel approach that bridges the asset pricing implications of EPU and the debt-financing decisions of Chinese firms by introducing a variable “policy-risk-induced...

Will China find its way out of the current predicament without resorting to expenditure-switching policies, and how? This paper attempts to approach the question from three perspectives: First, it discusses economic conditions that exist in China which are favourable to maintaining current...

This paper investigates the impact of innovations in US economic policy uncertainty on the co-movements of, respectively, the Shanghai A-share, the Shenzhen A-share, the Shanghai B-share and the Shenzhen B-share market, with the US stock market. We show that it is absolute changes in the US...