Does Economic Policy Uncertainty Affect Firm-level Financing in China

DOI

10.2991/febm-18.2018.43How to use a DOI?

Keywords

Economic policy uncertainty; Firm-level financing; Fixed effect model; Micro-economic; Macro-economic

Abstract

This paper investigates the impacts of economic policy uncertainty (EPU) on firm-level financing with the fixed effect model, using quarterly panel data of the Shanghai and Shenzhen Stock Markets’ A shares from 2003 to 2017. The results areas follows: (1) EPU has an unfavorable influence on firm-level financing. (2) Increases in firm growth, firm size, ROA, and GDP growth and a decrease in Tobin’s q significantly boost firm-level financing. Policy makers should thus maintain a stable economic policy, so that firms can firmly anticipate any economic policy and solidify their financing plans. Firms should also timely adjust decisions and behaviors according to changes in economic policy.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Shun-yi Xiao
AU  - Chi-chuan Lee
PY  - 2018/12
DA  - 2018/12
TI  - Does Economic Policy Uncertainty Affect Firm-level Financing in China
BT  - Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018)
PB  - Atlantis Press
SP  - 183
EP  - 186
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-18.2018.43
DO  - 10.2991/febm-18.2018.43
ID  - Xiao2018/12
ER  -