The Impact Of Emergencies On Corporate Investment

Since the 21st century,emergencies have broken out from time to time,bringing huge negative impacts to the world economy with their unique urgency and uncertainty,and squeezing the real economy from both the demand side and the supply side,which has an extreme impact on the real economy.It is easy to transmit to the financial market along the industrial chain,capital chain and supply chain,aggravating the difficulty of corporate financing constraints,leading to the rise of macroeconomic uncertainty again,and falling into a vicious circle.Based on the evidence of the COVID-19 epidemic,this paper studies the impact of emergencies on corporate investment,and puts forward research hypotheses based on the analysis of the current situation and theoretical analysis.The listed companies are used as samples for empirical analysis,and the three mechanisms(supply shock,demand shock and credit shock)that emergencies affect corporate investment are tested.First,use the geographical heterogeneity of listed companies in Hubei and listed companies in other regions to identify the supply shock of the COVID-19 epidemic on corporate investment,and use the full-sample DID and PSM-DID to test the mechanism that the COVID-19 epidemic affects corporate investment through supply shocks.Second,according to the degree of dependence of enterprises on external demand before the COVID-19 epidemic,the two indicators of “export sales ratio” and “foreign exchange enterprises” were used to measure the degree of dependence of enterprises on external demand,and to test the mechanism of demand shock.Third,according to the degree of financing constraints faced by enterprises before the COVID-19 epidemic,the three indicators of “financial leverage”,“interest ratio expense” and “SA index” were used to measure the degree of financing constraints faced by enterprises to test the impact of credit shocks.A mechanism,and analyzed the changes of “cash holding ratio” and “net debt ratio” before and after the COVID-19 epidemic,and further tested the mechanism of credit shock.Fourth,it explores the impact of COVID-19 on the investment levels of enterprises of different industries,different property rights,and different sizes.This paper draws the following conclusions: First,during the COVID-19 epidemic,supply shocks will lead to a decline in corporate investment,and the decline in investment of listed companies in Hubei is more obvious than that of listed companies in other regions.Second,during the COVID-19 pandemic,demand shocks will lead to a decline in corporate investment,and more decline in investment by exportoriented companies that are more dependent on external demand.Third,during the COVID-19 pandemic,loose credit policies have injected a lot of liquidity into the economy and society.Credit shocks are not a key factor in the decline in investment of listed companies.The degree of financing constraints of listed companies before the pandemic has no significant impact on the decline in investment during the pandemic.Fourth,under the impact of the COVID-19 epidemic,corporate investment in the “COVID-19epidemic-related pharmaceutical industry” has relatively increased,while the investment of manufacturing enterprises has relatively decreased,and the investment level of private enterprises and small,medium and micro enterprises has declined more significantly.