Research On The Impact Of Economic Policy Uncertainty On Enterprise Innovation Investment

Since China’s accession to the WTO in 2001,the uncertainty index of China’s economic policy has increased year by year.The introduction of new economic policies will inevitably affect the investment decisions of enterprises,especially the investment in innovation and the allocation of financial assets of enterprises.China puts innovation in the first place.However,most countries’ economies have a tendency to "move away from reality to emptiness",and China is no exception.Under the background of uncertainty of economic policy,it is a question worth discussing how China’s entity enterprises will adjust their internal investment decisions.This paper uses the A-share listed companies in China’s Shanghai and Shenzhen Stock Exchange from 2000 to 2019 as the research sample to empirically analyze the impact of economic policy uncertainty on enterprise innovation investment and financial asset allocation,and study the impact of financial asset allocation on enterprise innovation in the current and previous periods.From the perspective of enterprise financialization,this paper studies the impact and mechanism of economic policy uncertainty on enterprise innovation investment,and further analyzes and finds that:,There are three channels of influence of economic policy uncertainty on enterprise innovation investment.Finally,the heterogeneity analysis shows that the relationship between economic policy uncertainty and enterprise innovation investment is affected by the nature of enterprise ownership,government subsidies and other factors.The research results show that:(1)On the whole,when the uncertainty of economic policy increases,enterprises will increase their investment in innovation.(2)On the whole,the uncertainty of economic policy promotes the allocation of financial assets of enterprises;(3)Increasing the allocation of financial assets in the current period will inhibit enterprise innovation,while the allocation of financial assets in the previous period will promote enterprise innovation;(4)Then,combined with the uncertainty of economic policy,it is found that the allocation of financial assets has a negative regulatory effect on the relationship between the uncertainty of economic policy and the innovation investment of enterprises,that is,the behavior of enterprises to allocate more financial assets will weaken the promotion effect of the uncertainty of economic policy on the innovation investment of enterprises;(5)In addition,the relationship between economic policy uncertainty and enterprise innovation activities is affected by government subsidies,the nature of enterprise ownership and other factors.(6)Further analysis shows that the uncertainty of economic policy affects the innovation investment of enterprises through three channels.