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Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry

New energy vehicle (NEV) policies have greatly promoted the growth of the NEV industry in China, while also attracting a lot of investor attention. Using Chinese NEV concept stocks and related industrial policies, including purchase tax incentives (PTI) and promotion and application (P&A) polici...

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Autores principales: Su, Mimi, Wang, Chen
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8904884/
https://www.ncbi.nlm.nih.gov/pubmed/35282245
http://dx.doi.org/10.3389/fpsyg.2022.838588
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author Su, Mimi
Wang, Chen
author_facet Su, Mimi
Wang, Chen
author_sort Su, Mimi
collection PubMed
description New energy vehicle (NEV) policies have greatly promoted the growth of the NEV industry in China, while also attracting a lot of investor attention. Using Chinese NEV concept stocks and related industrial policies, including purchase tax incentives (PTI) and promotion and application (P&A) policies, issued from 2011 to 2020 as the research setting, this paper adopts a panel data model to examine the impact of policy announcement on the volatility of NEV concept stocks, as well as the mediating role of investor attention in transmitting the impact. We find that NEV P&A policies have a significant and positive impact on NEV concept stock volatility, while PTI policies do not have a significant impact. Moreover, investor attention plays a partial mediating role in transmitting the impact of P&A policies on NEV stock market by increasing the stock volatility risk. Furthermore, there is heterogeneous effect of equity ownership in the relationship between policy announcement and investor attention on the volatility of NEV concept stocks; non-state-owned firms are more sensitive to the NEV P&A policies than state-owned firms. By analyzing the relationship between policy announcement and concept stock volatility, this paper enriches the research on NEV concept stocks and provides policy implications for the NEV industry.
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spelling pubmed-89048842022-03-10 Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry Su, Mimi Wang, Chen Front Psychol Psychology New energy vehicle (NEV) policies have greatly promoted the growth of the NEV industry in China, while also attracting a lot of investor attention. Using Chinese NEV concept stocks and related industrial policies, including purchase tax incentives (PTI) and promotion and application (P&A) policies, issued from 2011 to 2020 as the research setting, this paper adopts a panel data model to examine the impact of policy announcement on the volatility of NEV concept stocks, as well as the mediating role of investor attention in transmitting the impact. We find that NEV P&A policies have a significant and positive impact on NEV concept stock volatility, while PTI policies do not have a significant impact. Moreover, investor attention plays a partial mediating role in transmitting the impact of P&A policies on NEV stock market by increasing the stock volatility risk. Furthermore, there is heterogeneous effect of equity ownership in the relationship between policy announcement and investor attention on the volatility of NEV concept stocks; non-state-owned firms are more sensitive to the NEV P&A policies than state-owned firms. By analyzing the relationship between policy announcement and concept stock volatility, this paper enriches the research on NEV concept stocks and provides policy implications for the NEV industry. Frontiers Media S.A. 2022-02-23 /pmc/articles/PMC8904884/ /pubmed/35282245 http://dx.doi.org/10.3389/fpsyg.2022.838588 Text en Copyright © 2022 Su and Wang. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Su, Mimi
Wang, Chen
Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry
title Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry
title_full Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry
title_fullStr Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry
title_full_unstemmed Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry
title_short Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry
title_sort policy announcement, investor attention, and stock volatility: evidence from the new energy vehicle industry
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8904884/
https://www.ncbi.nlm.nih.gov/pubmed/35282245
http://dx.doi.org/10.3389/fpsyg.2022.838588
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