Impact Of Economic Policy Uncertainty On Corporate Investment

Originated in the United States in 2008, the spread of the global financial crisis make the enterprise for the future income, taxation, spending, such as monetary policy uncertainty expectations have increased, the uncertainty of the expected in turn affect business investment spending.After the outbreak of the financial crisis countries are taking active measures to strengthen the intervention of its real economy, to avoid falling into financial difficulties.Investing activities affect the enterprise value increment, economic policy as an important factor that affect the investment it produce a significant influence of the uncertainty of investment, so under the background of the research on economic policy uncertainty on the impact of corporate investment is particularly important.This paper systematically reviews the relationship between uncertainty and investment theoretical research and empirical research, found that most of the existing research from real option premium effect or financing effect unilaterally to study relationship between uncertainty and investment. Innovative combine two kinds of effects, this paper analyses the influence of uncertainty on investment, investment in basic model respectively in economic policy uncertainty and irreversibility of investment and economic policy uncertainty and profitability crossover study the relationship between the economic policy uncertainty and corporate investment is affected by investment irreversibility and profitability. With asset-liability ratio as proxy variable of financing at a premium, the sample size according to the asset-liability ratio is divided into a group of high asset-liability ratio and a set of asset-liability ratio is low, the asset-liability ratio of different corporate investment is influenced by economic policy uncertainty. This paper choose the Shanghai and Shenzhen two city motherboard a-share listed manufacturing companies as the research object, will China economic policy uncertainty index as A measure of economic policy uncertainty, the results indicate that economic policy uncertainty are negatively related with the enterprise investment, investment irreversibility exacerbated the negative impact of uncertainty on investment, on the contrary the profitability of the alleviate the negative impact of uncertainty on investment, economic policy, the negative impact of uncertainty on investment in the performance of A set of high asset-liability ratio.May be it’s innovative: from real option premium effect and financing effect two aspects to analyze the relations between the economic policy uncertainty and investment, rich experience in the field of theory and data. Index in this paper based on the building of economic policy uncertainty, the uncertainty sources more clearly, to improve the practical significance of the research.