Impacts of political uncertainty and regulatory change

Congratulations to Dr Caixia Shu following the successful defence of her thesis in a viva in March 2023. Her thesis was examined by the School of Management's Dr Marcel Lukas and Professor Evangelos Vagenas-Nanos from Adam Smith Business School, University of Glasgow.

Dr Shu's doctoral research investigated the impact of political uncertainty and regulatory change on the behaviour of Chinese listed firms. Over the years, the prevalence of issues induced by weak corporate governance and sudden changes in local politicians and policies have posed a major challenge to the development of Chinese listed firms. Her studies contribute to the understanding of how political uncertainty and corporate governance impact corporate financial decisions. She investigated and considered the impact of:

• political uncertainty induced by changes in provincial leadership on corporate cash holdings of private Chinese firms
• board independence on dividend payouts
• the sudden resignation of academic independent directors on green innovation.

Key findings included:

• Private firms located in provinces experiencing changes in political leadership tend to increase their cash holdings.
• Firms which add more independent directors to the board increase their dividend payouts.
• Firms that are affected by the sudden resignation of academic independent directors are likely to show to a decrease in green innovation.

Reflecting on her time in St Andrews and her plans for the future, Dr Shu said:

My experience with the School of Management's remarkable research community provides me with invaluable advantages, enabling me to establish strong foundations in research on the Chinese capital market. Since completing my thesis, my ongoing dedication is to contribute to enhancing the understanding of the Chinese market, while also expanding support to a broader range of individuals in their investment plans.