Abstract
The impact of macroeconomic policy uncertainty (EPU) on micro-level entities has garnered increasing attention in economic circles. This study examines the influence of EPU on the efficiency of investments made by China's A-share listed companies between 2016 and 2021. Using a panel fixed effect model for analysis, the research reveals that EPU has a notable adverse effect on the investment efficiency of enterprises. Furthermore, it suggests that advancements in digital finance, strong ESG performance, and enhanced entrepreneurial confidence can mitigate this negative impact effectively. The study also highlights that enterprises with lower valuation, shareholder control, limited audit reputation, and no bank connections are more vulnerable to the impact of EPU on investment efficiency compared to those with higher valuation, manager control, strong audit reputation, and bank connections. Consequently, future efforts should be directed towards enhancing the stability and relevance of economic policies, promoting digital finance, and enhancing corporate governance structures.
Copyright: © 2024 Zhou et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
MeSH terms
-
China
-
Humans
-
Investments* / economics
-
Models, Economic
-
Uncertainty
Grants and funding
Funder Name: Chongqing Social Sciences Association Project Grant Number: 2019WT42 Grant Recipient:Bing Zhou Funder Name: Key Research Platform Open Project of Chongqing Technology and Business University Grant Number:KFJJ2022043 Grant Recipient:Bing Zhou In our study, the funders played a pivotal yet arms-length role, primarily functioning as oversight entities ensuring the project adheres to the agreed-upon objectives and ethical standards. Their involvement was strategically confined to the realms of financial support and high-level guidance, thereby preserving the research team's autonomy in terms of methodology design, data collection, analysis, and interpretation. Regular progress updates were shared with sponsors, enabling them to monitor the project's trajectory without influencing the scientific process. This approach aligns with international guidelines on research sponsorship, which emphasize the importance of maintaining independence between funding sources and research outcomes to uphold scientific credibility. Additionally, a clear conflict of interest policy was in place, which all sponsors and researchers adhered to, further safeguarding the integrity of our findings. Through this, we were able to leverage the resources provided by our sponsors effectively while preserving the objectivity and authenticity of our research endeavor.