Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China

Du Guoliang; Du Xunliang; Lin Wen

doi:doi:10.11648/j.ijefm.20210905.15

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Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China

Du Guoliang, Du Xunliang, Lin Wen

Published in International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 5)

Received: 9 September 2021 Accepted: 19 October 2021 Published: 29 October 2021

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Abstract

Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 5)
DOI	10.11648/j.ijefm.20210905.15
Page(s)	203-209
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Economic Policy Uncertainty, Earnings Information Content, Quality of Accounting Information

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APA Style

Du Guoliang, Du Xunliang, Lin Wen. (2021). Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. International Journal of Economics, Finance and Management Sciences, 9(5), 203-209. https://doi.org/10.11648/j.ijefm.20210905.15

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ACS Style

Du Guoliang; Du Xunliang; Lin Wen. Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. Int. J. Econ. Finance Manag. Sci. 2021, 9(5), 203-209. doi: 10.11648/j.ijefm.20210905.15

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AMA Style

Du Guoliang, Du Xunliang, Lin Wen. Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. Int J Econ Finance Manag Sci. 2021;9(5):203-209. doi: 10.11648/j.ijefm.20210905.15

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@article{10.11648/j.ijefm.20210905.15,
  author = {Du Guoliang and Du Xunliang and Lin Wen},
  title = {Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {9},
  number = {5},
  pages = {203-209},
  doi = {10.11648/j.ijefm.20210905.15},
  url = {https://doi.org/10.11648/j.ijefm.20210905.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210905.15},
  abstract = {Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.},
 year = {2021}
}

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TY  - JOUR
T1  - Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China
AU  - Du Guoliang
AU  - Du Xunliang
AU  - Lin Wen
Y1  - 2021/10/29
PY  - 2021
N1  - https://doi.org/10.11648/j.ijefm.20210905.15
DO  - 10.11648/j.ijefm.20210905.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 203
EP  - 209
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20210905.15
AB  - Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.
VL  - 9
IS  - 5
ER  -

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Author Information

Du Guoliang

School of Accounting, Wuhan Textile University, Wuhan, China
Du Xunliang

School of Accounting, Wuhan Textile University, Wuhan, China
Lin Wen

School of Accounting, Wuhan Textile University, Wuhan, China

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APA Style

Du Guoliang, Du Xunliang, Lin Wen. (2021). Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. International Journal of Economics, Finance and Management Sciences, 9(5), 203-209. https://doi.org/10.11648/j.ijefm.20210905.15

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ACS Style

Du Guoliang; Du Xunliang; Lin Wen. Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. Int. J. Econ. Finance Manag. Sci. 2021, 9(5), 203-209. doi: 10.11648/j.ijefm.20210905.15

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AMA Style

Du Guoliang, Du Xunliang, Lin Wen. Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China. Int J Econ Finance Manag Sci. 2021;9(5):203-209. doi: 10.11648/j.ijefm.20210905.15

Copy | Download

@article{10.11648/j.ijefm.20210905.15,
  author = {Du Guoliang and Du Xunliang and Lin Wen},
  title = {Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {9},
  number = {5},
  pages = {203-209},
  doi = {10.11648/j.ijefm.20210905.15},
  url = {https://doi.org/10.11648/j.ijefm.20210905.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210905.15},
  abstract = {Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Economic Policy Uncertainty and Enterprise Earnings Information Content: Evidence from China
AU  - Du Guoliang
AU  - Du Xunliang
AU  - Lin Wen
Y1  - 2021/10/29
PY  - 2021
N1  - https://doi.org/10.11648/j.ijefm.20210905.15
DO  - 10.11648/j.ijefm.20210905.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 203
EP  - 209
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20210905.15
AB  - Earnings information as a key factor affecting investors' decisions, has attracted much attention from scholars in recent years. Based on the data of A-share listed companies from 2002 to 2019, this paper examines the impact of economic policy uncertainty on earnings information content of enterprises through multiple linear regression, empirical results show that: 1. the benchmark results show that the uncertainty of economic policy significantly improves the earnings information content of enterprises. The above conclusions still hold after changing the uncertainty index of economic policy, carrying out the lag and lag treatment during the uncertainty of economic policy, and carrying out the robustness test by changing the measure method; 2. mechanism studies show that enterprises are more likely to attract investors' attention under uncertain environment, and the "supervision" pressure from investors forces enterprises to reduce earnings management and increase information disclosure, thus enhancing investors' trust in corporate earnings; 3. the expansion study found that the more high-quality accounting information, so as to establish a good corporate reputation among investors. The research conclusion not only expands the existing literature on the impact of economic policy uncertainty on the content of corporate earnings information, but also provides a new perspective and new empirical evidence for understanding whether and how the uncertainty of economic policy will affect the content of corporate earnings information, and has a certain practical significance.
VL  - 9
IS  - 5
ER  -

Copy | Download