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The Impact of Economic Policy Uncertainty on Executives’ Self-Interest Behaviors: Evidence from China

Author

Listed:
  • Hong Huang

    (School of Finance and Business, Shanghai Normal University, Shanghai 200234, China)

  • Chang Liu

    (School of Finance and Business, Shanghai Normal University, Shanghai 200234, China)

  • Yuqian He

    (School of Finance and Business, Shanghai Normal University, Shanghai 200234, China)

Abstract

This paper empirically studies the impact of economic policy uncertainty on executives’ self-interest behaviors, distinguishes explicit self-interest behaviors from implicit ones, and studies the moderating effect of internal control. The results illustrate that rising policy uncertainty will inhibit explicit self-interest behaviors of executives, yet the implicit ones will be encouraged. Internal control can regulate the above effects. Further research proves that the above-mentioned impact is more significant in state-owned enterprises (SOEs). Stable institutional investors and sound market competition can play a certain role in governance. Our paper contributes to the literature on the impact of economic policy uncertainty on corporate governance.

Suggested Citation

  • Hong Huang & Chang Liu & Yuqian He, 2023. "The Impact of Economic Policy Uncertainty on Executives’ Self-Interest Behaviors: Evidence from China," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:1815-:d:1039368
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    References listed on IDEAS

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