Research On The Impact Of Economic Policy Uncertainty On The Dynamic Adjustment Of Capital Structure Of Chinese Enterprises

Since the birth of Keynesianism,government intervention in the economic field has become the policy proposition of the Macroeconomic regulation and control.Following the global financial crisis and the European debt crisis,governments have adopted a series of economic policies to intervene in the economic operation.Due to the complex changes in the global economic environment,the economic policy uncertainty brought by the frequent policy-making and adjustment has a serious negative impact on the macro-economy and market operation of the world.In the process of production,management and development of micro-enterprises,the choice,adjustment and pace of adjustment of the capital structure of enterprises to a great extent determine the realization of the optimal value of enterprises and the prospect of the future,is the most important financial activities of enterprises.The choice and adjustment of enterprise capital structure is not only restricted by internal factors,but also restricted by external macro-environment,and the uncertainty of economic policy is an important macro-risk that can not be ignored.At present,the research on the factors affecting the capital structure of enterprises mainly focuses on the micro-enterprises,the medium-sized industries and part of the macro-environment,based on the external macro-level economic policy uncertainty on the impact of enterprise capital structure adjustment research is still in the shallow stage of exploration,and,the research of bank manager based on the financing supply side which affects the capital cost of the enterprise is also relatively scarce.Unlike most previous studies,this paper starts from the uncertainty of macroeconomic policy and studies its impact on the dynamic adjustment of the capital structure of micro-enterprises,based on the internal and external channels,this paper explores the special effects of the related factors of managers’ confidence in the process of dynamic adjustment of capital structure influenced by the uncertainty of economic policy.Based on the analysis of relevant literature and logical mechanism,this paper is based on the quarterly financial data of non-financial listed companies in a-share market from 2007 to 2018,this paper empirically studies the impact of economic policy uncertainty on the speed of capital Structure Adjustment and the role of entrepreneur’s confidence and banker’s confidence in the process of the impact.The results show that as the uncertainty of economic policy increases,the investment decision-making of enterprises becomes more cautious and tends to reduce debt financing,at the sametime,some financial institutions such as banks are reluctant to lend,or they reduce the availability of credit funds by increasing the cost of capital,which eventually leads to the slow down of the adjustment of the target capital structure There is also the fact that the confidence of entrepreneurs and bankers is beneficial to the adjustment of the capital structure of enterprises,but because of the negative impact of the uncertainty of economic policy,therefore,on the whole,they only play a part of intermediary effect in the economic policy uncertainty affecting the adjustment of capital structure.The research and conclusions of this paper enlighten us that the forward-looking,coordinated and continuous stable policy expectation in the new period is the stable premise of the adjustment of the capital structure to the target,and also the premise of the supply-side structural deleveraging and stable leverage,we should focus on the pain points that affect the confidence of entrepreneurs and bankers,grasp the internal and external economic situation,improve the policy orientation,reduce the negative friction on macroeconomic and micro-enterprise restructuring;There is also a good classification of the adjustment of capital structure,to prevent and control systemic financial risks,reform of state-owned enterprises to do a good job,support small and medium-sized micro innovation enterprises to promote real economic development and provide useful reference.