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

In recent years,a series of events such as the Sino-US trade war,the global spread of the new crown epidemic,the rising trend of anti-globalization,and the relocation of the global industrial chain and manufacturing supply chain have made my country’s external environment in a state of high uncertainty.In order to reduce the impact of external shocks on the domestic economy,the Chinese government has introduced and adjusted a series of policies.It is worth noting that the frequent changes in economic policies have increased the uncertainty of domestic economic policies.Listed companies are an important pillar of the domestic economy,not only shouldering the important mission of meeting the people’s growing needs for a better life,but also the main driving force for building an innovative country.Uncertainty in economic policies has exacerbated market volatility and interfered with the judgment of listed companies on future development trends,which is bound to have some impact on their innovation activities.Innovation activities are not only a necessary condition for listed companies to gain a relatively dominant position and win in global competition,but also a key factor for their high-quality development.Therefore,Investigating the influence of EPU on Chinese firms’ innovation performance is not only of theoretical significance,but also of great practical significance.This thesis focuses on the influence of EPU on Chinese listed companies’ innovation performance,analyzes the moderating role of internal corporate governance between the two.Chapter 1 introduces concept definitions and literature review.Firstly,the core concepts of this thesis are introduced,and the domestic and foreign literatures related to economic policy uncertainty and corporate innovation performance are sorted out.The second chapter is the theoretical basis and research hypothesis.Based on information asymmetry theory,principal-agent theory,precautionary saving motive theory and real options theory,this thesis analyzes the relationship between economic policy uncertainty and innovation performance of Chinese listed companies,the influence path of the former on the latter,and the adjustment of internal corporate governance.and make corresponding hypotheses.The third chapter is the research design.Taking my country’s Chinese listed companies from 2007 to 2020 as the research object,the selected variables and their components are introduced in detail,and the test model is set up based on the research hypothesis in Chapter 2.The fourth chapter is empirical research.Select the panel data of my country’s Chinese listed companies from 2007 to 2020 and use the fixed effect model to test the relevant hypotheses.Finally,there are conclusions and recommendations.Conclusion 1:Economic policy uncertainty will have a negative impact on the innovation performance of Chinese enterprises.Conclusion 2:Financing constraints and corporate financialization are the influence paths of EPU to hinder the innovation performance of Chinese companies,that is,EPU can hinder firms’ innovation performance by aggravating corporate financing constraints and improving the degree of corporate financialization.Conclusion 3:Internal corporate governance plays a moderating role between economic policy uncertainty and innovation performance of Chinese firms.Specifically,in state-owned enterprises,expanding the size of the board of directors and improving the management’s equity incentives can reduce the negative effect of EPU on firms’ innovation performance.The research results of this thesis will bring new ideas for the Chinese government and enterprises to improve their innovation performance and cultivate their core competitiveness.In order to reduce the negative impact of EPU on the firms’ innovation performance,this thesis puts forward four countermeasures and suggestions:Suggestion 1:maintain general economic policy stability and promote the transparency of policy information.Recommendation 2:Unblock financing channels and ease corporate financing constraints.Recommendation 3:Combining the suppression of excessive financialization of enterprises with the creation of a favorable environment for innovation and investment.Recommendation 4:Give full play to the role of internal corporate governance in promoting innovation.