Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)

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The Impact of EPU on the Risk of Corporate Collapse: Conclusions from Chinese A-Share Market

Authors
Qian Cao1, *
1Alliance Manchester Business School, The University of Manchester, Manchester, UK
*Corresponding author. Email: qian.cao-4@student.manchester.ac.uk
Corresponding Author
Qian Cao
Available Online 3 July 2025.
DOI
10.2991/978-94-6463-748-9_88How to use a DOI?
Keywords
Economic Policy Uncertainty; Risk of Stock Price Collapse; Panel regression
Abstract

In the process of business operation, businesses face various threats, including market competition, technological changes, and uncertainty in macroeconomic policies. The emergence of these external threats will affect the expansion of enterprise scale, delay enterprise investment, and increase the potential risk of stock price collapse. Therefore, based on data from the Chinese A-share market, this study explores the impact of economic policy uncertainty (EPU) on the risk of stock price crashes in enterprises, with a particular focus on state-owned and large businesses. Through empirical analysis, EPU significantly increases the risk of bankruptcy faced by enterprises, and this improvement effect is more pronounced in state-owned and large enterprises. The main reason for this is that the importance of state-owned enterprises and large enterprises in the market makes them more susceptible to changes in investor sentiment, and their business decisions are more susceptible to policy changes and changes in investor sentiment. Finally, this article proposes relevant suggestions for investors, corporate managers, and policymakers to reduce unknown risks.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
3 July 2025
ISBN
978-94-6463-748-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-748-9_88How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qian Cao
PY  - 2025
DA  - 2025/07/03
TI  - The Impact of EPU on the Risk of Corporate Collapse: Conclusions from Chinese A-Share Market
BT  - Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
PB  - Atlantis Press
SP  - 798
EP  - 808
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-748-9_88
DO  - 10.2991/978-94-6463-748-9_88
ID  - Cao2025
ER  -