Expansionary Fiscal Policy, Corporate Governance and Corporate Value

Abstract

Among expansionary fiscal policy, corporate governance and corporate value, fiscal policy plays a unique influencing factor in the social organization as well as internal structure of countries with different levels of economic development. Such as the nature of different equity and governance characteristics, macro policy efficiency for firms and fiscal deficits. To measure the combined impact of fiscal policy expansion on corporate value, the governance structure of a firm is inextricably linked to the value of the firm itself if it is to be effective. The value of the company is reflected in the nature of equity and the management structure of the management. It is found that the higher the degree of fiscal policy expansion in the region to which the company belongs, the higher the value of the company itself. In terms of the marginal effect of fiscal policy, non-state owned companies are significantly stronger than state owned companies. State-owned enterprises are relatively weak and deficient in the efficiency of using funds to create valuable. Thus, analyzing the moderating role of corporate governance factors, it is clearly known that corporate management and corporate equity checks and balances can better ensure that companies can efficiently accomplish fiscal policy and create a reasonable value system.