Economic policy uncertainty, financial asset allocation, and enterprise innovation

This article establishes a regression analysis on China A-share listed enterprises with relevant data in 2013-2023, testing the enterprise innovation behaviour in the face of economic policy uncertainty (EPU), and further analysing the mediating role of financial asset allocation in it. The results show that: (1) EPU significantly can promote enterprise innovations; (2) in the face of EPU, liquid financial asset allocation plays a mediating role in increasing enterprise innovation; (3) non-liquid financial asset allocation plays a mediating role in reducing enterprise innovation.