How perceived uncertainty shapes corporate resilience: Evidence from China

This study examines how firms respond to shifts in economic policy uncertainty (EPU) by analyzing its impact on firm resilience. Using data from 2,660 Chinese A-share listed firms from 2010 to 2022, we find that higher firm-perceived policy uncertainty (FEPU) significantly weakens firm resilience. Drawing on real options and growth options perspectives, the results show that firms become less adaptable when uncertainty leads managers to behave more cautiously and when operational decisions—such as cash reserves and R&D spending—are distorted. Social media pressure, however, softens this negative effect by encouraging greater transparency and discipline. The findings also reveal substantial differences across ownership types, financial conditions, and industry characteristics. The study provides practical insights for managers and policymakers seeking to strengthen organizational resilience in uncertain environments and highlights the need to design governance and communication strategies that help firms remain adaptive when policy risks rise. • Corporate perceived policy uncertainty (FEPU) weakens firms’ ability to adapt and remain resilient. • Managerial behaviour and operations explain how uncertainty reduces resilience. • Social media pressure helps firms counteract the negative effects of FEPU. • Corporate resilience varies by ownership, financial strength, industry, and leadership traits. • Findings offer guidance for building stronger firms under rising policy risks.