Research on the Influence of Macroeconomic Fluctuation on Enterprise Financial Decision-making

Kewen Wu

doi:10.54097/csytpd21

Authors

Kewen Wu

DOI:

https://doi.org/10.54097/csytpd21

Keywords:

Macroeconomic Shifts, Corporate Finance, State-Owned Enterprises, Private Sector, Risk Mitigation.

Abstract

This research investigates how macroeconomic fluctuations impact the financial decision-making of state-owned and private enterprises in China. Utilizing secondary data alongside a case study methodology, the study explores how these two types of organizations adjust their investment strategies, financial practices, and risk management in response to economic volatility. Descriptive statistics are applied to assess financial indicators like investment levels, debt ratios, and capital expenditures before, during, and after periods of economic shifts. The study also conducts a comparative analysis to highlight the differing approaches of state-owned and private enterprises. The findings indicate that state-owned enterprises, bolstered by government support, focus on long-term stability and growth, whereas private enterprises prioritize adaptability and short-term financial resilience. This research offers valuable insights into the financial strategies of Chinese enterprises during economic fluctuations, with practical implications for policymakers and business leaders.

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