The Impact Of Economic Policy Uncertainty On The Enterprise's Investment Efficiency

The Economic Policy Uncertainty has a significant impact on the systemic risk of enterprise,and through altering the expectation of intra-enterprise personnel and the intra-enterprise cash-flow to affect the enterprise's efficiency of investment,may even becomes the primary cause of economic recession,but there are existing researches in domestic and overseas concentrates on the Economic Policy Uncertainty indeterminacy's impact on the enterprise investment volume.Based on the real option theory,financial friction theory and financing restriction theory,this article construct an empirical model with the Economic Policy Uncertainty index investment efficiency model as an economic policy indeterminacy index and enterprise investment efficiency index,the research is based on the data of China's A-share listed companies from 2012 to 2016.The research found out,the economic policy indeterminacy has a distinct inhibiting effect on corporate over-investment,yet simultaneously intensified the under-capitalize degree of the corporate.The further research indicates,large corporations,the mid-west regional enterprises and state-owned businesses are significantly affected by economic policy indeterminacy,hence the government ought to be more careful while formulating and executing economic policies,maintain economic policies especially the stability and continuity for monetary policies and industrial supportive policies,reinforce the policy transparency and reduce the economic policy indeterminacy's negative impact on enterprise investment efficiency.