Heterogeneity Analysis of Economic Policy Uncertainty on Corporate Investment Based on Panel Threshold Regression

As the global landscape evolves rapidly, economic policies must constantly adapt to the volatile economic situation, leading to economic policy uncertainty (EPU). Firms, as microeconomic entities, need to continuously adjust their strategies in response to these changes. Given that corporate investment is one of the most crucial factors in business operations, it is of paramount importance to investigate how the characteristics of corporate investment are influenced by EPU. Using the panel threshold regression method, we delve into the nonlinear impact of EPU on corporate investment. By collecting data from 2000 to 2023 for A-share listed companies in Shanghai and Shenzhen, as well as macroeconomic data, we empirically find that EPU exerts significant and differentiated effects on corporate investment across four dimensions: leverage level, company size, profitability, and growth potential.