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Economic policy uncertainty, non-financial enterprises' shadow banking activities and stock price crash risk

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  • Han, Xun
  • Hsu, Sara
  • Li, Jianjun
  • An, Ran

Abstract

At present, the structural contradiction between Economic Financialization and the real economy's long-term weakness has become increasingly prominent. As China enters a “new normal” stage of economic growth, the real investment rate drops, non-financial enterprises continuously allocate resources to the shadow banking system. The financial economy becomes increasingly divorced from reality. This leads us to the questions: will the shadow banking behavior of non-financial companies exacerbate the risk of stock price crash risk? How does the increase in economic policy uncertainty affect the relationship between non-financial companies' shadow banking activities and stock price crash risk?

Suggested Citation

  • Han, Xun & Hsu, Sara & Li, Jianjun & An, Ran, 2023. "Economic policy uncertainty, non-financial enterprises' shadow banking activities and stock price crash risk," Emerging Markets Review, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:ememar:v:54:y:2023:i:c:s1566014123000080
    DOI: 10.1016/j.ememar.2023.101003
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    2. Lei, Ningze & Huang, Liqiang, 2023. "Corporate financing from shadow banking and bond credit spreads," Finance Research Letters, Elsevier, vol. 58(PB).

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    More about this item

    Keywords

    Economic policy uncertainty; Non-financial enterprises' shadow banking activities; Stock price crash risk;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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