A Research On The Impact Of Economic Policy Uncertainty On Enterprise Assets Allocation

2020 is the final stage of the ‘The 13 th Five-Year Plan',and it is also an important time for a decisive victory in building a well-off society and for fighting poverty.At the beginning of the new year,the epidemic of the new type of coronavirus pneumonia swept across the country,which had a wide impact on the lives of the majority of the people and had a major impact on the macro economy,especially the service industry.However,under the leadership of the Central Committee,the epidemic prevention and control work was carried out in an orderly manner.All relevant departments expeditiously formulated a series of policies and measures to minimize the impact of the epidemic on the economy,especially small and medium-sized enterprises.Of course,the impact of the epidemic on the economy and society is only temporary and controllable.On the whole,China's long-term economic fundamentals have not changed.Through policy adjustment,China's huge development potential and strong kinetic energy can be stimulated.At the same time,the epidemic is a huge development opportunity for traditional industries that have been negatively impacted and emerging industries that have not yet entered the large-scale development track.Enterprises should take this as an opportunity to transform traditional kine energy and cultivate new energy that meets the needs of the times.The asset allocation of an enterprise is one of the most important decisions in the operation.Asset allocation involves the entire process of corporate financing,investment,and distribution activities.There is no authoritative theory in the existing research in academia to unify the three processes.In addition,the uncertainty of economic policy may become a normalization trend,and its negative effects on the market have also become the focus of many scholars' attention.Therefore,the paper chooses to conduct in-depth exploration of asset allocation from the investment level,and combines the macroeconomic factor of economic policy uncertainty to explore the impact mechanism of economic policy uncertainty on asset allocation.The long-term asset of an enterprise reflects the strength of asset liquidity,and the financial asset reflects the degree of diversification.Therefore,these two indicators are used as key variables.An empirical analysis of how economic policy uncertainty affects the company's long-term asset and financial asset allocation.In order to study the above problems,we first proposed hypotheses by studying the existing literature,constructed a two-way fixed effect model,and used annual panel data from 2008 to 2018 to verify the research hypotheses one by one.Taking into account the different nature of ownership,the degree of financing constraints and the heterogeneity of the industry,the agent variables and economic policy uncertainty were added to perform interactive regression to verify the selection effect of economic policy uncertainty caused by corporate heterogeneity.The reliability of the empirical results is ensured through a number of robustness tests.Studies have shown that with the increasing uncertainty of economic policies,the proportion of long-term assets of enterprises in total assets has decreased,and this effect has become more apparent to non-state-owned enterprises,enterprises subject to greater financing constraints,and non-high-tech industry enterprises.At the same time,rising uncertainty has increased the scale of corporate financial asset allocation,and non-state-owned enterprises,companies with small financing constraints,and non-high-tech industries are more sensitive to this positive role.Based on the empirical results,the following policy recommendations are proposed: Enterprises need to consider the potential of economic policy uncertainty risk when making asset allocation investment decisions,adjust the asset allocation structure at the right time,enhance the ability to obtain information and environmental forecasts,and reduce excessive reliance on policies;policy-making departments need to strengthen the transparency of policy formulation,do a good job of publicity in a timely manner,and make timely adjustments based on policy implementation feedback,while enhancing the timeliness and fluency of communication between enterprises,fully considering the heterogeneity of enterprises,and ensuring a fair and healthy market environment.