Economic Policy Uncertainty, Information Disclosure, and Corporate Debt Default Risk: Evidence from China

DOI

10.2991/978-94-6463-916-2_41How to use a DOI?

Keywords

Economic Policy Uncertainty; Corporate Debt Default Risk; Information Disclosure

Abstract

Preventing corporate debt default risk is a critical element in ensuring steady economic growth. Drawing on micro-level data from Shenzhen Stock Exchange listed companies between 2012 and 2023, this paper examines the relationship between economic policy uncertainty (EPU), information disclosure, and corporate debt default risk. The findings show that EPU significantly increases default risk, while information disclosure effectively mitigates this effect, playing a negative moderating role. Furthermore, the heterogeneity analysis based on ownership structure reveals that although the amplifying effect of EPU on default risk is homogeneous, the mitigating role of information disclosure is more pronounced in non-state-owned enterprises. From a dynamic perspective, EPU exerts a “risk contraction effect” during periods of low volatility but a “cumulative amplification effect” during high-volatility phases. Meanwhile, information disclosure acts as a short-term buffer but may, in the long run, heighten market sensitivity and reinforce risk transmission. These results suggest that government authorities should prioritize policy stability, while enterprises should strengthen disclosure practices and enhance risk management to guard against default 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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TY  - CONF
AU  - Shan Ouyang
PY  - 2025
DA  - 2025/12/22
TI  - Economic Policy Uncertainty, Information Disclosure, and Corporate Debt Default Risk: Evidence from China
BT  - Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)
PB  - Atlantis Press
SP  - 372
EP  - 381
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-916-2_41
DO  - 10.2991/978-94-6463-916-2_41
ID  - Ouyang2025
ER  -