Uncertainty of Economic Policy and Corporate Financial Risk -- Based on the Empirical Analysis of the Impact of the New Crown Epidemic

Shichun Zhao

《Frontiers in Economics and Management》 3卷6期 (2022/06) Pp. 1-9

https://doi.org/10.6981/FEM.202206_3(6).0001

摘要

The outbreak of the new crown pneumonia in 2020 has had a serious impact on China's economic activities and aggravated the uncertainty of economic policies. This article focuses on the microscopic consequences of the epidemic and empirically tests the impact of economic policy uncertainty on corporate financial risks. The study found that rising economic policy uncertainty has exacerbated the financial risks faced by enterprises, and the impact of the epidemic has significantly magnified this negative impact. Further analysis shows that this effect mainly exists in non-state-owned enterprises, small-scale enterprises, enterprises with higher asset-liability ratios, enterprises with lower current ratios, and enterprises with lower levels of cash holdings. This article enriches the literature on the impact of major emergencies on the micro-economy, and also has some enlightenment for the formulation of government economic policies and the prevention of corporate financial risks.

關鍵字

New Crown Pneumonia Epidemic ； Economic Policy Uncertainty ； Financial Risk ； Investment and Financing Decisions

參考文獻

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