Research on the Impact of Economic Policy Uncertainty on the Cost of Debt Financing—Based on Experimental and Mathematical Statistics Analysis

DOI

10.2991/978-94-6463-016-9_13How to use a DOI?

Keywords

economic policy uncertainty; corporate financing; debt financing cost; accounting conservatism

Abstract

Capital is the lifeblood of a company’s survival and development. Companies with lower financing costs are generally more competitive. However, the global pandemic of the new crown pneumonia has increased the uncertainty of economic policies and brought challenges to the financing activities of enterprises. The article selects the data of A-share non-financial listed companies from 2010 to 2019, first removes companies with missing data, and then narrows the scope of the data. Finally, 14,123 observation data of 2,354 listed companies were obtained. Establish a regression model to explore the relationship between economic policy uncertainty and corporate debt financing costs from the perspective of accounting conservatism. The study found that, first, the uncertainty of economic policy and the cost of corporate debt financing have a U-shaped relationship. Second, accounting conservatism can reduce corporate debt financing costs. Third, Economic policy uncertainty will negatively adjust accounting conservatism and reduce the role of corporate debt financing.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Li Guo
AU  - Chenghui Peng
PY  - 2022
DA  - 2022/12/07
TI  - Research on the Impact of Economic Policy Uncertainty on the Cost of Debt Financing—Based on Experimental and Mathematical Statistics Analysis
BT  - Proceedings of the 2022 2nd International Conference on Public Management and Intelligent Society (PMIS 2022)
PB  - Atlantis Press
SP  - 99
EP  - 108
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-016-9_13
DO  - 10.2991/978-94-6463-016-9_13
ID  - Guo2022
ER  -