Author(s)

Lei Jingxuan

Corresponding Author

Lei Jingxuan

Abstract

At present, a series of problems such as the difficulty of financing and financing of private enterprises in China have attracted widespread attention. Under the socialist market economy system with Chinese characteristics, the business strategy and decision-making of an enterprise are inseparable from the government's various policy directions. This article uses the quarterly data of China's A-share listed companies from 2007 to 2017 as a sample to study how economic policy uncertainty affects corporate cash holding behaviors, and examines different systems from the perspective of regional financial development and legal integrity of businesses in environmental conditions. Studies show that when economic policy uncertainty rises, companies will choose to increase their holdings of cash, and this behavior varies among companies. Through research, this article hopes to provide a scientific basis for the country to formulate and adjust macroeconomic policies in the future in order to improve the financing environment for enterprises and promote the healthy development and sustainable growth of the economy.

Keywords

Uncertainty of economic policy; Institutional environment; Cash holdings; Macro-control