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Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China

Received: 9 September 2021     Accepted: 19 October 2021     Published: 29 October 2021
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Abstract

Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.

Published in International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 5)
DOI 10.11648/j.ijefm.20210905.15
Page(s) 203-209
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Economic Policy Uncertainty, Earnings Information Content, Quality of Accounting Information

References
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Cite This Article
  • APA Style

    Du Guoliang, Du Xunliang, Lin Wen. (2021). Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. International Journal of Economics, Finance and Management Sciences, 9(5), 203-209. https://doi.org/10.11648/j.ijefm.20210905.15

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    ACS Style

    Du Guoliang; Du Xunliang; Lin Wen. Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. Int. J. Econ. Finance Manag. Sci. 2021, 9(5), 203-209. doi: 10.11648/j.ijefm.20210905.15

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    AMA Style

    Du Guoliang, Du Xunliang, Lin Wen. Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. Int J Econ Finance Manag Sci. 2021;9(5):203-209. doi: 10.11648/j.ijefm.20210905.15

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  • @article{10.11648/j.ijefm.20210905.15,
      author = {Du Guoliang and Du Xunliang and Lin Wen},
      title = {Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {9},
      number = {5},
      pages = {203-209},
      doi = {10.11648/j.ijefm.20210905.15},
      url = {https://doi.org/10.11648/j.ijefm.20210905.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210905.15},
      abstract = {Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China
    AU  - Du Guoliang
    AU  - Du Xunliang
    AU  - Lin Wen
    Y1  - 2021/10/29
    PY  - 2021
    N1  - https://doi.org/10.11648/j.ijefm.20210905.15
    DO  - 10.11648/j.ijefm.20210905.15
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 203
    EP  - 209
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20210905.15
    AB  - Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.
    VL  - 9
    IS  - 5
    ER  - 

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Author Information
  • School of Accounting, Wuhan Textile University, Wuhan, China

  • School of Accounting, Wuhan Textile University, Wuhan, China

  • School of Accounting, Wuhan Textile University, Wuhan, China

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