| Author: | Wang, Jing |
| Title: | Economic policy uncertainty, local business environment and credit |
| Advisors: | Xu, Xinpeng (AF) |
| Degree: | D.B.A. |
| Year: | 2022 |
| Subject: | China -- Economic policy Bonds -- China Bond market -- China Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | i, 70, [17] pages : color illustrations |
| Language: | English |
| Abstract: | Does economic policy uncertainty (EPU) influence the cost of credit in China? To answer this question, I develop a novel measure of EPU at the province-level in China using Python techniques in newspaper text scraping of keywords from 29 provincial newspapers. Then, I use this measure to examine how EPU affects bond spread in China's offshore dollar bond market during 2016–2020. I find that EPU has a sizable effect on bond spread. In other words, the higher the EPU a firm faces, the wider the spread of its offshore dollar bond will be. However, I do not find evidence that more favorable provincial business environments (BE) help narrow bond spread. Contrary to the theory of institutional economics wherein institution matters, I find that better provincial BE widens the EPU's impact on bond spread, which seems to be consistent with the theory of rational expectation. Finally, I discuss implications of the findings to both policy makers and market participants. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 6601.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.35 MB | Adobe PDF | View/Open |
Copyright Undertaking
As a bona fide Library user, I declare that:
- I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
- I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
- I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.
Please use this identifier to cite or link to this item:
https://theses.lib.polyu.edu.hk/handle/200/12137