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Economic Policy Uncertainty and the Comparability of Accounting Information: Evidence from China

Year: 2025

Type: article

Abstract: Economic Policy Uncertainty (EPU) has become a growing concern in shaping corporate behavior and financial reporting quality.In the context of China's dynamic policy environment, this study investigates the impact of EPU on the Comparability of Accounting Information (CAI), using a sample of Chinese listed companies from 2013 to 2023.Employing panel fixed effects models and robustness tests using lagged variables, the study finds that EPU significantly reduces the level of CAI.Heterogeneity analysis further shows that large firms and state-owned enterprises are more sensitive to EPU shocks.These findings offer valuable insights for firms aiming to maintain reporting consistency amid uncertain policy environments and contribute to the literature on macro-policy effects in accounting.The study also suggests that future research should explore cross-country comparisons and industry-specific mechanisms to improve the generalizability and explanatory power of the EPU-CAI relationship.

Source: International Journal of Academic Research in Accounting Finance and Management Sciences

DOI: 10.6007/ijarafms/v15-i3/26219

Authors: Haiyan Wen, Norkhairul Hafiz Bajuri

Institutions: Yinchuan University of Science and Technology, University of Technology Malaysia

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4413435234

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