Does higher policy uncertainty lead to higher financial risk for sure? This study shows an opposite evidence. Based on the sample of 16 listed banks from 2011 to 2020 in China, we find that economic policy uncertainty has a significantly large negative impact on the bank systemic risk, and the...

Skewness preference, the tendency to overweight the probability of extreme tail events, can affect managerial decision making. We find that Chinese listed firms managed by CEOs who experienced a largely unpredictable rare event, namely the outbreak of Severe Acute Respiratory Syndrome (SARS) in...

Nowadays, non-financial corporations invest heavily in financial assets, questioning the traditional boundaries of non-financial firms. We investigate how economic policy uncertainty affects firms' holding of non-currency financial assets and portfolios of such assets in China. We find that...