The Relationship Between Proactive Fiscal Policy And Corporate Performance

As an important part of macro policies, proactive fiscal policy makes the economy boom.The existing researches are mostly about the relationship between proactive fiscal policy and macro economic indexes. As main micro carriers, corporations are key points where proactive fiscal policy improves economy, theoretically, proactive fiscal policy improves economy, than economy and corporations interact with each other, finally reflects on corporate performance.Based the IS-LM model, this essay estimated the yearly fiscal multipliers through the 1981-2008 yearly macro economic data. At the same time, we made a empirical research on the listed corporations from 1998 to 2008, and analyzed the effects of government purchases transfer payment and taxes, there was partly a innovation on research methods and some kind of offsets.After my research, I found that expansionary of fiscal policies improve corporate performance, apart from transfer payment which improve the rate of return of corporations but do bad to accountant performance. We also found that there was a positive correlation between the rate of return of corporations and the natural rate of GDP increase which reflected the Chinese stock market didn't deviate from the macro economy, partly explained the Chinese stock market were a barometer of the macro economy.Based empirical study and the recent economy circumstance, also drawn on the experience of the last turn proactive fiscal policy, this essay researched on how proactive fiscal policy effected on macro economy and corporate performance and when the proactive fiscal policy operated, than came up with some measures for the coming years in the end.