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Economic policy uncertainty, related-party transactions and corporate liquidity

Author

Listed:
  • Wang, Lei
  • Qu, Xinyi
  • Wang, Yunquan
  • Lu, Jun
  • Wang, Qi

Abstract

This study examines the impact of economic policy uncertainty on enterprises' related-party transactions using a sample of listed companies from 2018 to 2022. The findings indicate that related-party transactions increase as economic policy uncertainty rises. Enhanced economic policy uncertainty leads to decreased corporate liquidity, prompting enterprises to engage in more related-party transactions. Additionally, non-state-owned enterprises exhibit stronger incentives to conduct related-party transactions when economic policy uncertainty increases.

Suggested Citation

  • Wang, Lei & Qu, Xinyi & Wang, Yunquan & Lu, Jun & Wang, Qi, 2025. "Economic policy uncertainty, related-party transactions and corporate liquidity," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002740
    DOI: 10.1016/j.frl.2025.107010
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