Current Economic Policy Uncertainty (EPU) indicators are highly correlated with macroeconomic growth. To better reveal the EPU perceived by each firm, a firm-level EPU index is constructed using a text mining method. Using data of Chinese A-share listed companies from 2011 to 2020, this study...

This paper constructs an index of firm’s perception of economic policy uncertainty (FEPU) with text-mining method and investigates its impact on cash holdings. With a sample of Chinese listed firms from 2012 to 2020, our empirical results show that firms tend to hold less cash when they...