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Although the literature has highlighted that a firm’s board is critical for firm innovation, the impact of board characteristics on firm innovation has always been examined separately, leading to inconclusive research results. Based on the complexity theory, this paper incorporates four board characteristics, including board size, board ownership, board independence and CEO duality, to examine the impact of the combinations of different board characteristics on firm innovation through qualitative comparative analysis.

Using the panel data of listed manufacturing firms in China from 2007 to 2022, this paper conducted the fuzzy set qualitative comparative analysis to test the proposed hypotheses.

The research results show that no single board characteristic can explain firm innovation, as board size, board ownership, board independence and CEO duality can lead to either positive or negative firm innovation. Moreover, firm innovation depends on a complex combination of board characteristics.

This paper makes the following contributions: Firstly, this paper advances the firm innovation literature by extending the role of board characteristics on firm innovation, thereby offering a new way to model firm innovation in terms of board characteristics. Secondly, this paper provides a more comprehensive account of the role of a firm’s board by integrating agency theory and resource dependence theory. Thirdly, this paper also identifies a promising avenue for further research in the field of corporate governance: the investigation of other contingency contexts in which the effect of board characteristics may be observed, with the aim of further increasing the understanding of board functioning.

This study investigated the asymmetric effects of changes in policy uncertainty on real sector variables in Brazil, China, India and South Africa.

The study used the nonlinear autoregressive distributed lag (NARDL) modeling framework.

The results showed that both in the long run and short run, rising uncertainty not only increases consumer prices significantly in these economies, but also impedes aggregate and sectoral output growths, and deters investment, employment and private consumption. Contrary to economic expectation, the results also showed that in the long run, declining uncertainty impedes aggregate and sectoral output growths in these economies, and significantly hinders employment in South Africa and Brazil. This suggests that in the long run, economic agents in these economies somewhat behave as if uncertainty is rising. The authors also found significant asymmetric effects in the response of real sector variables to uncertainty both in the long run and short run, which justifies the choice of NARDL framework for this study.

The sample is limited to Brazil, India, China and South Africa. While Brazil, India and China are three of the most prominent large emerging market economies, South Africa is the largest emerging market economy in Africa.

To lessen the adverse effects of policy uncertainty observed in the results, there is need for sound institutions and policy regimes that can promote predictable policy responses in these economies so that policy neither serves as a source of uncertainty nor as a channel through which the effects of other shocks are transmitted.

Apart from using the NARDL framework to capture the asymmetric effects of policy uncertainty, this study also accounted for the sectoral effects of uncertainty in emerging markets.