An Empirical Study Of The Linkage Between Economic Growth, Economic Policy And Firm Performance

This paper first theoretically elaborates the relationship between macroeconomicgrowth and firm performance,and then analyzes macroeconomic fiscal policy(government purchas,tax)and monetary policy (money supply) effect on companyperformance.On the theory of economic growth, national income decision system and theIS-LM model, we put forward two hypothesis and the role of the correspondingmechanism:the first one is that there is a positive correlation between macroeconomicgrowth and company performance; the second one is that economic policy significantlyaffects company performance.In the empirical part,we select163listed company as the research sample,from1998-2011, total of14years of data.This paper uses stock yield to measure these companyperformance,with the quantitative macroeconomic growth and economic policy.By paneldata model,we make empirical regression test of the relationship between economicgrowth,economic policy and corporate performance, the results show that: listed companyperformance and economic growth always exsit signi ficantly positive correlation,mean-while economic policy significantly affects company performance.This is also verifies theabove two research hypothesis in the above theory analysis.This paper’s innovation is that macroeconomic policies will be introduced to theanalysis systerm which describes the relationship between the real economy and capitalmarket.Combined with the relevant financial and economic theory, it analyses thetransmission mechanism about how economic policy affects company performance andstock market.This can provide guidance for the development of our country economy andimproved policy for the capital market.