Author(s)

Yacong Wang

Corresponding Author

Yacong Wang

ABSTRACT

The tough economic situation has ignited lots of study about the effect of economic policy uncertainty and its implications for economics. The paper uses the sample of Chinese listed companies between 2000 and 2018, I research the influence of economic policy uncertainty on Chinese investment. And then I choose a key influencing factor, financial constraint, to study its impact on investment rate considering economic policy uncertainty. The results tell me that both of economic policy uncertainty and financial constraint significantly decrease Chinese companies’ investment rate. The results further show that financial constraint alleviates the negative impact of the uncertainty on Chinese investment.

KEYWORDS

Economic policy uncertainty, financial constraints, investment