Author(s)

Li Chaoying ¹, Gao Ya ²

Affiliation(s)

¹ Liaoning Police College, Dalian, Liaoning, 116036, China
² China Center for Information Industry Development, Haidian, Beijing, 100048, China

Corresponding Author

Gao Ya

ABSTRACT

This paper examines the response of corporate value to the impact of fiscal policy uncertainty based on the uncertainty index of China's fiscal policy from 2000 to 2019 and the sample data of A-share listed companies in Shanghai and Shenzhen from 2000 to 2019. The study finds that fiscal policy uncertainty is conducive to the increase of enterprise value. On one hand, it indicates that China's fiscal policy is currently in a relatively stable state. On the other hand, it suggests that China's fiscal policy, when formulated, does not deviate from the market but rather better regulates the economy, leading to healthier and sustained economic growth. The existing fiscal policy adjustments are beneficial for the long-term and healthy development of enterprises, with a more significant effect on value increase observed in enterprises with lower asset-liability ratios, lower book values, and smaller scales.

KEYWORDS

Uncertainty of fiscal policy, enterprise value, increase

CITE THIS PAPER

Li Chaoying, Gao Ya, The impact of financial uncertainty on enterprise value. Accounting and Corporate Management (2023) Vol. 5: 86-93. DOI: http://dx.doi.org/10.23977/acccm.2023.051214.

REFERENCES

[1] Zhong, K., Sun, C., Wang, Y., & Wang, H. (2018). Capital market openness and stock price heterogeneity: Empirical evidence from the Shanghai-Hong Kong Stock Connect. Financial Research, (7).
[2] Fernández-Villaverde, J., Guerrón-Quintana, P. A., Kuester, K., & Rubio-Ramírez, J. (2015). Fiscal volatility shocks and economic activity. American Economic Review, 105(11), 3352-3384.
[3] Benjamin Born; Johannes Pfeifer,(2014).Journal of Monetary Economics.Policy risk and the business cycle.
[4] Chen, G., & Wang, S. (2016). How does economic policy uncertainty affect corporate investment behavior? Finance and Trade Economics, (05).
[5] Baker, S., Bloom, N., & Davis, S. (2016). Measuring economic policy uncertainty. Quarterly Journal of Economics.
[6] Wang, H., & Wang, T. (2021). Can capital market openness enhance firm value? Evidence from the Shanghai-Hong Kong Stock Connect. Financial Development Research, 22(6), 1-8.
[7] Huang Ning, Guo Ping. The Impact of Economic Policy Uncertainty on Macroeconomy and Its Regional Differences: An Analysis Based on Provincial Panel Data PVAR Model. [J]. Financial Science, 2015, (6): 61-70.
[8] Wang Liyong, Ji Yao. International Research Trends on Fiscal Policy Volatility. [J]. Economic Dynamics, 2015(10).
[9] Chen Guojin, Zhang Runze, Zhao Xiangqin. Policy Uncertainty, Consumer Behavior, and Stock Asset Pricing. [J]. World Economy, 2017, 40(1): 116-141.
[10] Li Fengyu, Yang Mozhuzhu. Does Economic Policy Uncertainty Inhibit Firm Investment? An Empirical Study Based on China's Economic Policy Uncertainty Index. [J]. Financial Research, 2015, (4): 115-129.
[11] Zhu Jun. Construction, Characteristics, and Causes of China's Fiscal Policy Uncertainty Index. [J]. Finance and Trade Economics, 2017, (10): 22-36.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Financial Engineering and Risk Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics