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The impacts of economy policy uncertainty on peer effects of firms R&D investment: Based on LDA machine learning and regression statistical modeling approach

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  • Shanshan Wang
  • Xingxing Yang
  • Xia Zhu
  • Xiangyu Ge

Abstract

The Latent Dirichlet Allocation (LDA) model is used to extract the text themes of newspaper news and construct the Chinese Economic Policy Uncertainty (EPU) Index. On this basis, based on the relevant data of Chinese A-share listed companies from 2008 to 2020, this paper empirically analyzes the impact of EPU on peer effects of firms R&D investment, and finds that EPU will aggravate the peer effects of firms R&D investment. Furthermore, the moderating effect of manager’s motivation to maintain reputation on the process of EPU influencing the peer effects of firms R&D investment was tested, and the mechanism of EPU influencing the peer effects of firms R&D investment through financial frictions was verified.

Suggested Citation

  • Shanshan Wang & Xingxing Yang & Xia Zhu & Xiangyu Ge, 2024. "The impacts of economy policy uncertainty on peer effects of firms R&D investment: Based on LDA machine learning and regression statistical modeling approach," PLOS ONE, Public Library of Science, vol. 19(6), pages 1-23, June.
    • Handle: RePEc:plo:pone00:0305715
    DOI: 10.1371/journal.pone.0305715
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    References listed on IDEAS

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