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Economic Policy Uncertainty and Analyst Behaviors: Evidence from China

Author

Listed:
  • Min Chen

    (Department of Accounting, San Francisco State University, San Francisco, USA.)

  • Jiaxin Chang

    (Department of Finance, Kent State University, Ohio, USA.)

  • Zhaobo Zhu

    (Shenzhen Audencia Financial Technology Institute, Shenzhen University, China.
    Audencia Business School, Nantes, France.)

  • Yuanhong Zhang

    (School of Economics, Beijing Technology and Business University, Beijing, China.)

Abstract

This paper documents the signifcant impact of local and external economic policy uncertainty (EPU) on China’s information environment. Specifically, during periods of high local uncertainty, analyst earnings forecast accuracy declines, while analyst dispersion and coverage increase. Both analyst upgrade and downgrade recommendations decrease during such periods. External policy uncertainty exerts significant, though varying, cross-country effects on Chinese analysts' behaviors. Time-series analyses reveal that several key economic, political, and market events or reforms notably influence the impact of EPU on analyst behaviors in China. In particular, sentiment mitigates the impact of EPU on analyst accuracy, disperiosn, and coverage.

Suggested Citation

  • Min Chen & Jiaxin Chang & Zhaobo Zhu & Yuanhong Zhang, 2026. "Economic Policy Uncertainty and Analyst Behaviors: Evidence from China," Annals of Economics and Finance, Society for AEF, vol. 27(1), pages 113-143, May.
    • Handle: RePEc:cuf:journl:y:2026:v:27:i:1:chenchangzhuzhang
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    Keywords

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    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F49 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Other
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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