The Empirical of Analysis of The Macroeconomics Variable and Financial Performance In China

Abstract

This chapter examines the impact of macroeconomic factors on the financial performance of Chinese companies. Using multiple regression analysis, the study finds that gross domestic product (GDP) growth rate, inflation rate, interest rate, exchange rate, and government expenditure are significant predictors of the financial performance of Chinese companies. The results show that GDP growth rate, leverage, size, liquidity, profitability, and growth in sales all have significant positive impacts on financial performance, while growth in assets has a negative impact. The study provides insights into the impact of macroeconomic factors on the financial performance of Chinese companies. Policymakers and investors should take these findings into account when making decisions about economic policies and investments, and companies operating in China should be aware of the potential impact of these factors on their financial performance and look for ways to manage them effectively. The chapter also includes a model specification test and a robustness test to validate the accuracy of the results. The findings have important guiding significance for policy makers and investors in making economic policies and investment decisions. However, the study has limitations such as the use of horizontal panel data and the limited data sources used