Economic Policy Uncertainty, Cooperate Strategy, and Corporate Risk Taking

Abstract

In this paper, the dynamic panel model is used to examine the impact of the uncertainty of economic policy on corporate risk-taking by using the “economic policy uncertainty index” developed by the Baker team and the 2005~2018 A listed companies in China as samples. It is found that the increase of uncertainty of economic policy reduces the level of corporate risk-taking, and the inhibitory effect on state-owned enterprises is more serious. Further research has found that the radical corporate strategy weakens the negative effect of economic policy uncertainty on corporate risk-taking. This paper not only deepens the research on the influencing factors of corporate risk-taking, but also expands the interaction research between macroeconomic policy and micro enterprise behavior.