Monetary Policy,financial Development And Capital Allocation Efficiency ——An Empirical Study Based On The Data Of A-share Listed Companies In Shanghai And Shenzhen

Since the reform and opening up,China's economy has maintained a sustained high-speed growth for many years in China.Among the factors improving the growth of national economy such as investment,consumption and export,investment has contributed far more to economy growth than other driving factors for many years in China,and also has become the main driving force of economic development in China.According to some academic studies,China's economic growth has been characterized by high energy consumption and by high investment for a long time,mainly because of the rapid growth of fixed asset investment which drived economic growth.The rapid growth is high-investment high-growth model,which mainly relies on the increase in the amount of lift economic growth.So,in order to realize the long-term sustainable high-quality economy development in China,we must change model of the economic development from extensive growth to intensive growth.Enterprise is the main body of market economy activities,and corporate investment has been important content in the research of economy.Coporate investment expenditure and investment efficiency is highly regarded by academic researchers and enterprise practitioners.From the micro enterprise perspective,theory and practical experience shows that we must improve the investment efficiency of enterprise in China to realize the sustainable and high-quality development of our economy.Since financial crisis the year of 2008,many enterprises and financial institutions were in deep financial difficulties and management difficulties due to the increasing cost of financing,which caused serious liquidity crisis to the global economy.In order to reduce the obstacle which the liquidity crisis causes further to the real economy,governments and the monetary authorities of many countries have successively adopted monetary policy tools such as interest rate and money supply as important measures to regulate macroeconomic operation.To minimize the liquidity shock which caused by the financial crisis,the govement and central bank in China also regard monetary policy as an important adjustment means ensure macro-economy development persistly and healthily and regulate properly the liquidity of the market.Monetary policy,as a means of government macro-control,plays a major role in the development of the real economy through Banks and other financial institutions.Moreover,the deepening of the financial system has such information,risk diversification and resource optimization.The premotion of the level of financial development is conducive to the transmission of monetary policy and better serve to the real economy.Therefore,it is of great theoretical and practical significance to analyze deeply the influence of financial development and monetary policy changes on the behavior and efficiency of enterprise investment from the perspective of resource optimal allocation.First of all,this articale review relevant theoretical literature at home and abroad which research the monetary and financial development affecting the efficiency of capital allocation.And the credit transmission theory of monetary policy with the development of information economics is deeply analyze,and bank risk-taking transmission mechanism considering the risk tolerance and preference is expounded.The paper analyzes the mechanism of monetary policy on financing constraint,investment expenditure and efficiency of listed coporation in China from the credit rationing theory,debt squeeze theory and market timing theory.Furthermore,the relevant article about theories and functiongs of financial development are sorted out,and the effect mechanism of financial development on enterprise financing constraint and capital allocation efficiency is expounded in depth.Secondly,the paper based on Shanghai and Shenzhen A-share listed operation operation and financial data in China as the foundation,combined with related economic indicators of monetary policy and financial development to build the unbalanced panel data,which is the research object of this article.And then the paper uses the method of system generalized moment(System GMM)and uses the investment cash flow sensitivity model and investment-investment opportunities to study empirically monetary policy changes on financing constraints,the inluece of investment behavior and efficiency of listed companies in China.According to the result of finding of this paper,the implementation of expansive monetary policy can allievate financing constraints and promote enterprise investment expenditure.The paper still uses the investment-investment opportunity model to study the impact of monetary on investment efficiency of listed companies,and finds that the inefficient investment of listed enterprise will be reduced due to supervision role and the strengthen debt management mechanisim when monetary policy is tightened.With special property system in our country,the sample can be divided into state-owned and non-state-owned enterprise in accordance with the ultimate nature of property right.State-owned enterprises often receive more recessive guarantee,government subsidies,such as preferential policy because of the social responsibility which has been taken.By contrast,non-state-owned enterprises have more serious financing constraints because of imperfect information disclosure and the more stringent loan conditions of examination and approval.However,with increase of money supply and decrease of interest rate,the financing constraint of non-owned enterprises is eased,and investment efficiency of them improved to a greater extent than that of state-owned list company.Again,the scale and competition of bank and stock market development indicators and the financial development indicators by principal component analysis to extract is used to measure the provincial level of financial development in our country.The improved model of investment cash flow sensitivity and Richardson residual efficiency model is constructed.The paper makes a comprehensive study influence which the deepening development of financial system on the investment and financing behavior and efficiency of listed companies in China.The result express that the improvement of both the development level of banks and the capital market can reduce the financing constraints of list companies and improve investment efficiency of enterprises in our country.On the basis of the above studies,this article further studies the mechanism of the interaction between financial development and monetary policy on enterprise financing and investment efficiency by building a model and finds that financial development has a significant promoting effect on enterprise financing constraint and investment expenditure when monetary policy is tightened.The study found that financial development and monetary policy adjustment can both reduce the excessive investment effect significantly through the interaction between financial development and monetary policy adjustment impact on the efficiency enterprise investment.But when enterprise investment is inadequate and monetary si tightened,financial development especially the development of the banking sector can significantly improve the efficiency of enterprise investment in our country.Finally,in order to inspect more comprehensively the influence of financial development and monetary on the enterprise resource allocation efficiency,the paper studies empirically whether promoting effect the monetary policy and financial development on micro enterprise operating performance by improving the efficiency of corporate investment.From ex post investment efficiency,the article tests effect changes and interaction of the provincial financial development and the monetary policy on the role of enterprise performance.The study also finds that financial development and tight monetary policy is conducive to alleviate the dependence of corporate performance on the scale enterprise investment.The result provides evidence for the promotion of corporate investment and improvement of corporate investment efficiency by financial development when monetary policy is tightened.When the interaction term of monetary policy and financial is introduced into model and jont effect of them on enterprise performance is studied.The result is found that financial development plays a more significant role in improving corporate performance when tight monetary policy si implemented.Therefore,comeprehensive conclusion of the paper found that the ascension of size and level of bank,and the development of capital market for enterprise can alleviate financing constraints,and also can restraint non-efficiency of listed companies.So we should deepen the reform economic system and state-owned enterprise,and optimize the structure of financial markets in China and improve the level of marketization of financial institutions.We also establish and perfect the muti-level capital market.In view of influence of transmission mechanism of monetary policy on economic effects of enterprise in China,we should deepen interest rate liberalization and the reform of monetary policy,and alleviate the financing constraints of enterprises,especially medium-sized and small enterprises,and improve the efficiency of bank the efficiency of bank capital allocation.It should be taken into account the differences in the economic and financial development levels of various regions and the differences in the types of the enterprises with different ownership int consideration when the government and monetary authorities formulate economic and financial policy.So the targeted policy mearsure should be taken to guide the sustainable high-quality economy development in China.