Influence Of Economic Policy Uncertainty On Commercial Credit

After the financial crisis broke out in 2008,the Chinese government issued a 4 trillion economic stimulus plan.While effectively alleviating the downward pressure on the economy,it also led to overcapacity and excessive corporate leverage,which are not conducive to long-term economic development.Therefore,General Secretary Xi Jinping proposed a supply-side reform at the Central Economic and Financial Leadership Conference in November 2015 to ensure the long-term development of China's economy through " the five priority tasks of cutting overcapacity,reducing excess inventory,deleveraging,lowering costs,and strengthening areas of weakness".In the process of policy change,economic policy uncertainty will inevitably arise.The s economic policy uncertainty refers to the formulation,introduction and implementation of national Fiscal policies,monetary policies and other economic policies,as financial markets and corporate entities have difficulty predicting the timing,method,and effect of government policy introduction in advance..In addition,with the outbreak of the Sino-US trade war in the past two years,the rise of trade protectionism worldwide has also led to increased uncertainty in economic policies.Also,after the 2008 financial crisis,commercial credit has received increasing attention because it can case financing constraints and maintain the soundness of business operations.When studying this issue,in addition to information quality,internal control,and comparability of accounting information,etc.In addition to considering the microcosmic aspects of an enterprise,the macroeconomic environment in which the enterprise is located should be combined.As the degree of globalization continues to deepen,the economic links between countries are getting closer and closer,and slight changes in government policies will bring great turbulence to economic development.As the potential risk of economic development,the uncertain factors of this policy will have a huge impact on the production operation and development strategy of micro-enterprises in the course of economic development.On this basis,this paper collects and consults a large number of relevant literatures,and conducts in-depth analysis and combs.Taking 2010-2019 Shenzhen and Shanghai A-share listed companies in the financial industry as the key research object of this article,through theoretical analysis and Conduct empirical research to examine how economic policy uncertainty affects a company's business credit decisions.The results show that the increase in economic policy uncertainty will significantly reduce the company's commercial credit scale.Further analysis found that the company's commercial credit is greatly affected by the uncertainty of monetary policy.The uncertainty of monetary policy is mainly through changing the external financing environment and internal Operational uncertainty affects the company's business credit;at the same time,the uncertainty of fiscal policy has a significant negative impact on the company's business credit,while the uncertainty of trade policy and exchange rate and capital account policy has a relatively small impact on the company's business credit.In addition,increasing uncertainties in economic policies will also lead companies to shorten the supply period of commercial credit.Based on the research results,this paper proposes to maintain the stability of economic policies as far as possible for policy makers,especially in monetary policy,and to maintain the coherence of policies as much as possible,supplemented by corresponding supporting measures to mitigate the uncertainty of economic policies when necessary.In terms of the company,it is necessary to adjust the company's decisions and behaviors in a timely manner in accordance with policy changes and the corresponding characteristics of the company.