Policy Uncertainty,corporate Financing Constraints And Equity Returns

The government's chief officials hold the main power and decide the formulation and implementation of relevant policies,while the government officials will be replaced due to the term of office and other reasons,which will inevitably lead to the transfer of political power,thus causing the increase of external political environment or political uncertainty.And our country is in a government agency adopts linear function type structure in the political landscape,the local government officials change as a result of more significant policy uncertainty,the local enterprise's financing decision behavior may be affected,which may be reflected in stock returns on capital market trends,but have not yet found a direct financing constraints and local administration officials replacement and enterprise is discussed in this paper stock returns related literature.Therefore,this article from the provincial administration officials officials change events and aspects of listed companies,select 2002?2012 China a-share non-financial listed companies data and governor of China's 31 provinces and the replacement of provincial party committee secretary of the data as the research sample,review in terms of official replacement political uncertainty and the impact of stock returns to the enterprise financing constraints.Findings:(1)The replacement of provincial government officials in China is relatively frequent,which brings great political uncertainty to local enterprises.(2)Political uncertainty will ease the degree of financing constraint of local enterprises.There are differences among enterprises with different property rights,while the degree of financing constraint of state-owned enterprises is more affected by it.The political uncertainty caused by the arrival of new government officials from other places is more likely to ease the degree of financing constraints on enterprises.(3)The political uncertainty has a positive effect on the stock returns reflected by enterprises in the capital market.The stock returns of enterprises with different property rights are affected by the political uncertainty to different degrees,which is more significant in state-owned enterprises.At the same time,the political uncertainty caused by the relocation of new officials has a more significant positive effect on the company's stock earnings.The research conclusion of this paper has important policy significance for enterprises to cope with the changes of their external macro political environment and to make rational use of the government's "helping hand".According to the main research conclusions,this paper also puts forward some policy Suggestions to the governmentand enterprises.