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Professor Jaewoo Kim
Associate Professor of Accounting
Lundquist College of Business
University of Oregon

This study examines whether corporate policy staff mitigate the adverse impact of uncertainty about government economic policy on information asymmetry among investors. We find that the sensitivity of Amihud illiquidity and bid-ask spreads to policy uncertainty is attenuated in the presence of corporate policy staff. This moderating effect varies by staff characteristics, being significantly more pronounced when corporate policy personnel are more senior and have longer tenure within the firm. Our findings provide novel evidence that corporate policy staff serve as an internal channel through which firms reduce policy-induced information asymmetry among investors, thus improving stock liquidity.