Study on the Effect of Macroeconomic Factors on Corporate Finance

Jin SHEN

College of Business, Yancheng Teachers University, Yancheng, 224007, China

Abstract: Financial management is essential for each enterprise, in other words, financial management influences the enterprise’s surplus and long-term development directly. Therefore, it is necessary for each enterprise to analyze the factors that may cause the financial situation of the enterprise. From a macro point of view, the market inflation and deflation, the purchasing power of money, the market money supply, the overall economic environment, interest rates and other factors will have an impact on the financial situation of enterprise more ｏｒ less. And the related professional organization has made a conclusion through a specific method: the gross domestic product (GDP) has a negative correlation with the enterprise financial risk, the real interest rate of the market has a positive correlation with the financial risk of the enterprise and the inflation of the market is not related to the financial risk of the enterprise in a certain sense. In this paper, I will analyze the impact of specific macroeconomic factors on enterprise finance.

Keywords: Macroeconomic factors; Enterprise finance; Impact