Study On The Impact Of Economic Policy Uncertainty About Corporate Cash Holdings

Starting from the uncertainty of economic policy,this paper studies how this uncertainty affects corporate cash holdings.Using the uncertainty index of China's economic policy issued jointly by Stanford University and Chicago University as the measurement index of uncertainty of China's economic policy,taking listed companies as samples,using macroeconomic policy data from 2009 to 2017,1037 selected companies are selected.Fixed-effect panel regression model is constructed based on the financial data of listed companies through Hausman test.It is found that the increase of economic policy uncertainty will promote corporate cash holding behavior.This paper uses a variety of research methods to examine the relationship between economic policy uncertainty and corporate cash holdings.The innovation lies in introducing entrepreneur confidence index into the impact model of economic policy uncertainty on cash holdings for the first time,considering the impact of economic policy uncertainty and entrepreneur confidence index multiplier on corporate cash holdings,and then analyzing macro.This paper examines how economic policy uncertainty affects corporate cash holdings by means of this micro-transmission mechanism.At the same time,from the perspective of financing constraints and investment,it examines how economic policy uncertainty affects corporate cash holdings by combining economic policy uncertainty with financing constraints and the multiplier of investment demand.Empirical results show that firms tend to increase cash holdings with higher uncertainty of economic policies.The positive correlation between corporate cash holdings and economic policy uncertainty index increases with the increase of financing constraints faced by enterprises,decreases with the increase of investment demand,and decreases with the increase of entrepreneur confidence index.