| dc.description.abstract | This research delves into the intricate connection between Economic Policy
Uncertainty (EPU) and the stability of Chinese-listed commercial banks during the period
spanning from 2018 to 2022. Utilizing regression analyses, the study examines how the
Chinese EPU index, derived from Huang and Luk (2020), impacts bank stability,
considering the moderating effects of ownership structure. With a focus on 137
observations across 42 listed banks, the study employs the Random Effects Model (REM)
to analyze financial data, revealing a notable positive correlation between Chinese EPU
and bank stability. This finding diverges from prior research, possibly due to the tailored
nature of the Chinese EPU index and the unique dynamics of Chinese banks. In addition,
the study explores the moderating effects of ownership structure on the EPU-bank stability
relationship. However, no significant moderating effects are observed, indicating a uniform
regulatory environment across ownership structures. Noteworthy control variables such as
liquidity ratio, inflation rate, and bank size are found to significantly impact bank stability,
providing nuanced insights into the complexities of banking operations amidst policy
uncertainty. Despite contributing valuable insights, the study acknowledges limitations
including data scope and study period, highlighting avenues for future research.
Recommendations are offered for policymakers, bank managers, and researchers, aiming
to inform strategic decision-making and guide future investigations into this critical area
of study. | en_US |
