TITLE:
The Impact of Economic Policy Uncertainty on the Efficiency of Corporate Working Capital Management—The Evidence from China
AUTHORS:
Xi Cheng
KEYWORDS:
Economic Policy Uncertainty, Working Capital Management
JOURNAL NAME:
Modern Economy,
Vol.10 No.3,
March
21,
2019
ABSTRACT: As China’s economic development has entered a new
era, economic policy regulation has become more and more frequent. While the
government transform and restructure the economic development pattern through
policy regulation, the uncertainty brought by the policy also has a negative
effect on the investment and operation of the private sector. However, working
capital management, as an important part of enterprise operation, has received
little attention. From the perspective of economic policy uncertainty, this
paper uses a sample of the listed non-financial enterprises of Shanghai and
Shenzhen stock markets from 2000 to 2010 to study the impact of uncertainty
on the efficiency of enterprise working
capital management. We found that uncertainty has a negative impact on the
efficiency of working capital management.