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

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.