Research On The Impact Of Perceived Economic Policy Uncertainty On Business Performance

The rise of economic policy uncertainty will cause huge troubles to the operation and management of listed companies.If the economic policy cannot be consistent,coupled with the weak perception of economic policy uncertainty of listed companies,the company will have inaccurate expectations on market prospects and policy trends,which will affect the investment and financing behavior of enterprises,and not conducive to the stable growth of corporate performance.Therefore,it is extremely important to study the impact of perceived economic policy uncertainty on the business performance of listed companies for the government to introduce policies and enterprise management.At the present stage,the research on economic policy uncertainty often regards this uncertainty as a kind of macro impact but ignoring the difference in the perception of economic policy uncertainty of different enterprises.Therefore,this paper adopts the method of text analysis,takes the listed companies in China’s A-stock market from 2007 to 2021 as research samples,extracts the information of "management discussion and analysis" in the company’s annual report,and constructs the enterprise economic policy uncertainty perception index at the micro level.Then this paper takes firm performance as a starting point to study the impact of perceived economic policy uncertainty on firm performance.In addition,this paper also empirically tests the mechanism and channel that the perceived economic policy uncertainty affects corporate performance from the aspects of corporate investment expenditure,financing constraints,digital transformation level and so on,and further tests the heterogeneity of the property right nature and management incentive intensity of listed companies.The results show that: first,the increase in the perception of economic policy uncertainty will have a negative impact on the business performance of enterprises.Second,the increased perception of economic policy uncertainty will reduce corporate performance by reducing corporate investment expenditure and intensifying financing constraints.Thirdly,the level of enterprise digital transformation can weaken the negative effect of economic policy uncertainty perception on enterprise performance.Fourth,the negative impact of perceived level of economic policy uncertainty on firm performance only exists in non-state-owned enterprises but is not significant in stateowned enterprises.Fifth,the negative impact of perceived economic policy uncertainty on corporate performance only exists in enterprises with high management incentive intensity but is not significant in enterprises with low management incentive intensity.