Economic Policy Uncertainty And Corporate Financial Assets Allocation

At the moment,countries around the world are going through the biggest changes in a century.There have also been profound changes in the economic aspects of the Comprehensive National Power.The National Development and Reform Commission of our country has emphasized on many occasions: stable economic development.Our government responds to economic changes by making economic policies.Along with the change of economic environment aggravates,the uncertainty of economic policy is increasing year by year,at the same time,our country insists on the focus of developing economy in the aspect of real economy,therefore,it is necessary to study the impact of economic policy uncertainty on the behavior of entity enterprises.As the most active part of market economy,enterprises are greatly influenced by economic policies.Domestic and foreign studies have shown that economic policy uncertainty will have an impact on corporate investment behavior.When the economic policy uncertainty rises,does the enterprise adjust the proportion between the financial asset allocation and the industrial investment? Is the allocation of financial assets more likely to liquidity financial assets or income financial assets? At the same time,many enterprises carry out diversified production and management and adjust their own organizational structure,promoting the formation of the group’s internal capital market.When the uncertainty of economic policy increases,is there a significant difference between the asset allocation of group firms and that of independent firms? Considering the characteristics of the internal capital market,can we judge whether the allocation of financial assets is an active investment or a passive action waiting for the industrial investment opportunity?Based on the literature review,this paper focuses on the internal mechanism of the impact of economic policy uncertainty on the allocation of financial assets,and the impact of internal capital markets on the above-mentioned relations.Further empirical testing using the 2012-2021.The results show that:(1)There is a significant positive correlation between economic policy uncertainty and the allocation of financial assets,and the increase of economic policy uncertainty significantly increases the allocation of financial assets,and significantly reduced the proportion of financial asset allocation.(2)Compared with independent firms,firms with internal capital markets will reduce the increase of the allocation of liquid financial assets when facing the increase of economic policy uncertainty.(3)When economic policy uncertainty rises,the increase of financial asset allocation is a kind of passive action,at which time the investment opportunity of industry decreases and the financial asset allocation of enterprise passively increases,as a kind of real option,waiting for the right industrial investment opportunities.Finally,the conclusion of the article,and put forward relevant policy recommendations.