TITLE:
Does Weakening Exist? Positive Text Tone and the Negative Effect of Economic Policy Uncertainty on Corporate Debt Financing
AUTHORS:
Peiyang Chen
KEYWORDS:
Economic Policy Uncertainty, Tone of Text Information, Debt Financing
JOURNAL NAME:
Modern Economy,
Vol.13 No.10,
September
30,
2022
ABSTRACT: From the perspective of economic policy uncertainty, this paper explores
the relationship between corporate debt financing and the tone of text
contained in relevant corporate text information. Based on the data from 2011
to 2018, it is found that economic policy uncertainty will inhibit the
acquisition of new debt financing by
enterprises. However, the positive tone of text information will convey to the
lender company’s current good operating conditions and the strengthening of
risk control, which will enhance the lending confidence of loan institutions
and can weaken the intensity of the above negative relationship.
Meanwhile, according to the relevant research results of heterogeneity, it is
found that compared with state-owned enterprises and enterprises with small
asset scale, the weakening effect of the positive tone of text information is more
significant in non-state-owned enterprises and enterprises with large asset
scale.