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The effect of economic policy uncertainty on enterprise total factor productivity based on financial mismatch: Evidence from China

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  • Li, Kaifeng
  • Guo, Zhaoxuan
  • Chen, Qi

Abstract

This study investigates the influence of economic policy uncertainty on total factor productivity (TFP) of enterprises. We find that economic policy uncertainty is significantly and negatively related to the TFP growth of enterprises in China. By distinguishing the nature of enterprise property rights and the scale of enterprises, we find that the reduction of the TFP growth of enterprises is more significant in non-state-owned enterprises and large-scale enterprises. Our analysis shows that economic policy uncertainty will reduce the TFP growth of enterprises by aggravating financial mismatch.

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  • Li, Kaifeng & Guo, Zhaoxuan & Chen, Qi, 2021. "The effect of economic policy uncertainty on enterprise total factor productivity based on financial mismatch: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:pacfin:v:68:y:2021:i:c:s0927538x21001207
    DOI: 10.1016/j.pacfin.2021.101613
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    Cited by:

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    7. Rongwu Zhang & Lan Luo & Jianjun Du, 2023. "The influence of fiscal policy uncertainty on corporate total factor productivity: Evidence from Chinese public companies," Contemporary Economic Policy, Western Economic Association International, vol. 41(3), pages 532-554, July.
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    9. Yangjun Ren & Xin Zhang & Hui Chen, 2022. "The Impact of New Energy Enterprises’ Digital Transformation on Their Total Factor Productivity: Empirical Evidence from China," Sustainability, MDPI, vol. 14(21), pages 1-17, October.
    10. Qiao, Sen & Zhao, Dong Hao & Guo, Zi Xin & Tao, Zhang, 2022. "Factor price distortions, environmental regulation and innovation efficiency: An empirical study on China's power enterprises," Energy Policy, Elsevier, vol. 164(C).

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