The Research Of Monetary Policy’s Impact On Trade Credit Of Listed Companies In China

In recent years, the international and domestic economic situation is complicated.In order to promote economic development and keep prices stable, the governmenthas timely taken a different monetary policy in response to the changes of economicenvironment. At present, the financial system, the capital market, bond market is notperfect. So the commercial credit and bank credit financing have become theimportant means of enterprise. It has important effects on economic growth. Thisarticle will focus on how the monetary policy, market power and the nature of theproperty right of enterprise influents the commercial credit financing and theinfluence of monetary policy adjusting to commercial credit financing of differentmarket position and different nature of the property right of enterprise. On the onehand, this paper tests the motivation theory of commercial credit of listed companiesin our country. On the other hand it can provide the micro data basis for theformulation of monetary policy.Firstly this article reviews the domestic and foreign research literature oncommercial credit including the commercial credit of motivation theory, influencefactors and the analysis of the economic consequences. Then the influence mechanismof monetary policy’s impact on the commercial credit financing has carried on thetheoretical analysis. This paper argues that monetary policy affect enterprisecommercial credit financing needs by influencing the enterprise’s operating activitiesnet cash flow, equity financing and bank financing costs.At the same time it affectthe availability of commercial credit. Then it will ultimately affect the commercialcredit of enterprise financing. In the empirical part, this article firstly studies theinfluence of monetary policy, market status, the nature of the property right ofenterprise to commercial credit financing through the Pearson correlation analysis andmultiple linear regression analysis of the quarterly data of31037listed companies ofShanghai and Shenzhen A shares. Secondly in order to study the influence ofmonetary policy adjusting to enterprise commercial credit of financing differentmarket position, different nature of the property right, the sample is divided intotightening monetary policy and loose monetary policy sub samples according to themonetary policy. Finally, in this paper, the influence mechanism of monetary policy’s impact on the commercial credit financing has carried on the empirical analysis.This paper concluded that monetary policy adjustment would significantlyinfluence enterprise’s net cash flows of operating activities. When monetary policy istightening, net cash flows of operating activities is significantly reduced. Commercialcredit and bank credit financing that is the enterprise’s most important financing waysin the daily management is substituted. High market position of enterprises andstate-owned enterprises could use more commercial credit financing instead of bankcredit financing to fund day-to-day operations. When easing the monetary policy theenterprises can gain more commercial credit instead of bank creditfinancing.Adjustment of monetary policy have a greater impact on the commercialcredit financing of the low position of market share and private enterprises, especiallyin low market position of private enterprises. In our country the existence of thecommercial credit in listed companies is the result of the market power or marketcompetition, rather than an alternative when the bank credit financing are unavailable.Therefore, this paper argues that the government should continue to promote thedevelopment of capital market, financial system, and supply chain finance. At thesame time, in the formulation of monetary policy should give full consideration to theinfluence of different economic agents to make different policies, so as to promotefurther development of the economy of our country.