Financial Asset Allocation,Uncertainty Of Economic Policy And Innovation Investment

Since the beginning of the 21st century,the ’uncertainty of China’s economic policy has increased dramatically.In formulating economic policies,the State attaches great importance to financial development and manufacturing industry innovation as an important pillar of China’s economy,which is closely related to the upgrade of industrial structure.As the foundation of Economic Development,the growth of a successful and contemporary real economy is strongly linked to sustained technological progress and capital investment.Sustained investment not only accelerates technological innovation,but also facilitates continuous economic development,therefore,based on the extended Tobin q formula,the research group selected the Chinese listed companies to explore the relationship between financial asset allocation and innovation investment,and explained the variables under this hypothesis.Based on the results of the study,appropriate recommendations are made from the perspective of policy-making and corporate behavior.Through the research,the main conclusions are as follows:First,under the uncertainty of economic policy,the impact of state-owned enterprises’ financial asset allocation on innovation investment still exists,and the financial asset allocation of state-owned enterprises has less impact on innovation investment than that of non-state-owned enterprises,the greater the size of the firm,the stronger the influence of the financial asset allocation and the direction of research investment.Third,the more investment opportunities there are for the firm,regardless of whether there are large fluctuations in macroeconomic policy.Fourth,under the background of sub-prime mortgage crisis,the impact of enterprise financial asset allocation on innovation input is the same as in ordinary times.