Economic Policy Uncertainty, Innovation Investment and Enterprise Value in the Context of the Internet

Because of the rapid growth of the Internet, innovation and development appear to be particularly important. How should companies respond when ecnomic policy uncertainty (EPU) continues to rise? The paper examines regulatory effects of EPU and enterprise innovation input, as well as the uncertainty and change of economic policy on the connection between enterprise innovation input and the worth of the company. It shows that EPU has an incentive impact on a business’s innovation input, while EPU and its changes have a negative regulatory impact on the positive correlation between the contribution of innovation and the value of the company. Further study shows in enterprises of weak financing constraints and strong internal control the reverse adjustment of the positive link between innovation investment and company value is more obvious due to EPU and its changes. Through the analysis and test of sample data, we hope to improve the innovation behavior of enterprises, increase the value of enterprises and improve economic benefits, and provide some references for macroeconomic regulation.