Research On The Influence Of Economic Policy Uncertainty On Enterprise Credit Financing

The emergence of global financial crisis,trade impact,Chinese external macroeconomic environment is complicated and volatile due to COVID-19 and other events.The economy continues to fluctuate and the credit market is under attack.The Chinese government has adjusted the intensity of macro-control in time and introduced economic policies to ensure the steady development of the national economy.However,the complexity of economic policies resulted in unpredictable implementation effects,namely,the increase of economic policy uncertainty(EPUs),which made it difficult for enterprises and other microeconomic entities to accurately formulate production and operation plans and long-term strategies,leading to the increase of business risks faced by enterprises.And further exacerbates the financing difficulties of these enterprises.On the other hand,we have also noted that local governments have been intervening in the credit market in different ways for a long time,such as fiscal subsidies and tax policies.Therefore,under the environment of economic policy uncertainty,the government has adopted various support policies to try to reverse the deteriorating financing environment of these enterprises and smooth the fluctuations brought by economic policy uncertainty.Considering the special position and great influence of Chinese government in economic development,this paper holds that examining the impact of economic policy uncertainty on corporate credit financing activities from the perspective of the implicit government guarantee not only helps to deepen the understanding of the relationship between corporate financing activities and the macro-policy environment,but also provides important decision-making basis for the government’s non-market-oriented intervention policies.Therefore,it has important research value.The research samples of this paper are listed companies from 2009 to 2020.This paper explores how corporate credit financing is impacted by economic policy uncertainty.It mainly starts from the scale and cost of corporate credit,and empirically analyzes the mechanism of government implicit guarantee in policy uncertainty and corporate credit behavior from two dimensions of corporate ownership and government fiscal subsidies.The research shows that:first,with the increase of EPUs,enterprises are faced with increased market uncertainties,which inhibits enterprise credit financing,specifically manifested as the decrease of enterprise credit line and the increase of financing cost;Second,the implicit guarantee provided by the government to some enterprises can mitigate the impact of EPUS on enterprise credit financing,and benefit from more loans and lower costs under EPUS.The results remain strong when the measure of implicit guarantees is changed to political ties.Thirdly,in the heterogeneity analysis,with the increase of EPUs,enterprises with a high degree of risk taking or financial constraint will obtain more implicit guarantees.In the comparison of provinces in China,the guarantee effect exists in regions with low marketization degree or weak financial strength.This study helps to understand how the implicit government guarantee moderates the impact of EPUS on corporate credit financing activities in emerging markets.Fourthly,in the mechanism analysis,we find that corporate financialization and information transparency are the channels through which economic policy uncertainty affects corporate credit financing,and play a partial intermediary role.This study combines macroeconomic policy environment and micro corporate credit to help understand how corporate credit financing is impacted by policy uncertainty and government implicit guarantee.Finally,this paper has policy related suggestions for the government and enterprises to adjust credit financing.