Economic Policy Uncertainty、Enterprise Financial Asset Allocation And Innovation Investment

Technological innovation is the first impetus to promote our country’s social and economic growth.Financial asset allocation and innovation investment are two important business activities for manufacturing enterprises in China,which are related to the long-term stable development of enterprises.However,on the one hand,in recent years,the profit rate of the financial industry has been high and the profit rate of entity enterprises has decreased year by year.Due to the motive of capital seeking profit,some entity enterprises have increased their financial asset allocation and reduced their innovation investment.On the other hand,the global macroeconomic volatility has intensified and the competition between China and the United States has been escalating.In order to adjust economic growth,the government has frequently introduced industrial,monetary,and fiscal policies,and the uncertainty of economic policies has greatly increased in order to cope with the uncertainty of the external economic environment.Data shows that physical enterprises have increased the proportion of financial asset allocation in recent years.Based on the above background,this article takes 2012-2019 China’s Shanghai and Shenzhen A-share non-financial and real estate industry listed companies as the research samples,starting from the adjustment effect of economic policy uncertainty on the relationship between corporate financial asset allocation and innovation investment.First,it empirically tests the inhibitory effect of corporate financial asset allocation on innovation investment,and it explores the adjustment effect of economic policy uncertainty on the inhibition effect between the two,and examine the degree of difference of this adjustment effect in different industries and types of enterprises,and explore its influence mechanism.The research conclusions of this paper are as follows:(1)Among my country’s A-share listed non-financial companies,corporate financial asset allocation has a significant crowding-out effect on innovative investment.That is to say,non-financial listed companies are too pursuing financialization,which has a significant inhibitory effect on innovation investment.(2)The increase in economic policy uncertainty has aggravated the crowding-out effect of corporate financial asset allocation on innovation investment,that is,the higher the uncertainty of economic policies,the greater the crowding-out effect.(3)When the uncertainty of economic policies increases for enterprises of different industries,the restraint effect of their financial asset allocation on innovation investment is more differentiated.By grouping and comparing industries with high and low levels of competition,state-owned enterprises and private enterprises,high-tech and non-high-tech enterprises,it is found that in low-competitive industries,state-owned enterprises,and non-high-tech industries,the increase in economic policy uncertainty has significantly enhanced the crowding-out effect of corporate financial asset allocation on innovation investment.Finally,according to my research results,I will give suggestions for both the government and enterprises.The government should keep the stability and continuity of economic policies,and formulate economic policies flexibly and accurately according to the differences in various industries and different types of enterprises.Better guide the financial service entity industry and encourage enterprises to invest in innovation;enterprises should focus on complying with the monetary,fiscal and industrial economic policies formulated by the government,coordinating the allocation of financial financing assets and innovative investment,focusing on technological innovation,improving the core competitiveness of enterprises,and seeking sustainable and healthy development.