Does Economic Policy Uncertainty Affect Firm-level Financing in China
Shun-yi Xiao, Chi-chuan Lee
Available Online December 2018.
- 10.2991/febm-18.2018.43How to use a DOI?
- Economic policy uncertainty; Firm-level financing; Fixed effect model; Micro-economic; Macro-economic
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.
- © 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/).
Cite this article
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 -