Skip to content

The impact of economic policy uncertainty on stock returns: the role of corporate environmental responsibility engagement

Research output: Contribution to journalArticlepeer-review

This paper examines the impact of economic policy uncertainty (EPU) on market-driven common stock returns and individual-driven idiosyncratic stock returns as well as explores the role of corporate environmental responsibility (CER) engagement on this impact based on a sample of 175 firms listed on Shanghai and Shenzhen 300 index from 2008 to 2016. The results show that an increase in EPU significantly reduces the market-driven common stock returns but increases individual-driven idiosyncratic stock returns. Further, EPU has a lower negative impact on the common stock returns of high-CER firms comparing with low-CER firms. EPU has a higher positive impact on idiosyncratic stock returns of high-CER firms comparing with low-CER firms. Overall, the findings of this paper extremely relevant for the government, investors and firm’s managers and can be utilised for policy and investment decision-making.
Original languageEnglish
Article number0
Pages (from-to)1-7
Number of pages7
JournalInternational Journal of Finance and Economics
Volume0
Issue number0
Early online date9 Aug 2020
DOIs
Publication statusEarly online - 9 Aug 2020

Documents

  • ALBITAR_2020_cright_The Impact of Economic Policy Uncertainty on Stock Returns

    Rights statement: This is the peer reviewed version of the following article: Liao, G, Hou, P, Shen, X, Albitar, K. The impact of economic policy uncertainty on stock returns: The role of corporate environmental responsibility engagement. Int J Fin Econ. 2020; 1– 7, which has been published in final form at https://doi.org/10.1002/ijfe.2020. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

    Accepted author manuscript (Post-print), 512 KB, PDF document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 9/08/22

Related information

Relations Get citation (various referencing formats)

ID: 21752026