Economic Policy Uncertainty, Working Capital Management And Corporate Innovative Investment

In the context of the era of global economic integration,creativity has become the goal of all countries in the world.The 19 th National Congress of the Communist Party of China emphasized that innovation is the primary driving force for the sustained and healthy development of the country's economy,and pointed out the importance of developing strategic emerging industries.Since the post-financial crisis,in order to avoid a serious economic recession,the Chinese government has successively issued a series of economic stimulus policies,which have increased the uncertainty of the macroeconomic environment facing enterprises.Based on real options,financing constraints,information asymmetry and other theories,this paper studies the impact mechanism of economic policy uncertainty on innovative investment of enterprises,and adopts the data of A-share strategic emerging industry listed companies from 2011 to 2018 and China's economic policy uncertainty index,using multiple regression to conduct empirical tests.The study found that,first of all,economic policy uncertainty increases the uncertainty of the future cash flow of investment projects,and by inhibiting the channels of waiting for option value,it will inhibit the innovative investment of enterprises;Secondly,there is a certain competitive relationship between the net working capital investment of enterprises and innovative investment.The increase of net working capital level will inhibit the financial support of enterprises for innovative activities;Finally,when the uncertainty of economic policy rises,enterprises have incentives to over-invest in working capital,which makes the squeeze effect of net working capital on innovative investment more obvious.Therefore,innovative investment in enterprises is affected by higher degree of inhibition in the uncertain economic environment.In order to improve the level of innovation in strategic emerging industries,the government should maintain the stability,continuity and transparency of macroeconomic policies,while improving the external financing environment,broadening financing channels,and operating efficient financial market mechanisms.Enterprises should strengthen the company's own capacity building,enhance market competitiveness,do a good job in a series of management work on working capital,while use surplus liquidity to invest in innovative projects which prospect are optimistic.