Research On The Level Of Working Capital Considering The Monetary Policies

Since2008the international financial crisis swept the world, the economic of all countries was greatly affected, appeared different degrees of slowdown or a recession. Under the financial crisis, China’s economic growth rate fell sharply, exports declined significantly, textile, steel, real estate and other industries entered into winter, the production and business operation got into trouble. In order to resist the adverse impact on the economy, the Chinese government responded rapidly, launched4trillion two years of economic stimulus plan at the end of2008.Implementation of these policies were to promote the recovery of the economy in our country, but also had negative effects, such as external liquidity, domestic inflation expectations remain high, in order to keep overall price levels basically stable since2011, the macroeconomic regulation and control of the top priority, the central bank implemented prudent monetary policy. According to international common practices, the China enterprise confederation and China entrepreneurs association, worked together to complete a survey since2001, the survey revealed a China top500enterprises. Previous survey, state-owned and state holding enterprises accounted for two-thirds of China’s top500enterprises, the non-state-owned enterprises accounted for a third, the situation did not change for ten years;2011state-owned and state holding enterprises remained dominant, the number of state-owned and state holding enterprises was316,63.2%of the total. In this background, the study of the effect of monetary policy in working capital, as well as the monetary policy changes on the influence of different nature of the enterprise in the level of operating funds are consistent, helps us to better understand the influence of the monetary policy to the micro enterprise finance.Jiang guohua and Rao pingui published the paper " macroeconomic policy and micro behavior of enterprises ".In this paper, they considered that the process of macroeconomic policy’s impacted on economic output should be, macroeconomic policies affect the micro enterprise behavior, then affect the output of the enterprise, and the sum of the enterprise output was economic output. They thought that the current macroeconomic policy paid attention to research on macroeconomic policies and economic output, the relationship between enterprise behavior and the influence of the output as a step to analysis; Accounting and finance focus on the microscopic enterprise behavior and enterprise output, ignoring the macroeconomic policy’s influence on the enterprise microscopic behavior. So, they thought we should break through the bondage of existing research, form the new framework of accounting and financial studies. Against this background, this paper use empirical data to test the influence of the monetary policy to the level of working capital. So, this paper research on monetary policy adjustment will affect enterprise’s working capital.This article research methods mainly based on normative research and empirical research method of combining the. In terms of normative research, this paper analyzes the choice of subject background and significance, reviews the domestic related research literature, discusses the basic theory related to the topic, including working capital holdings motivation theories, financial theory of elasticity, optimal sequence financing theory, trade-off theory do set the stage for later in the empirical analysis. Using empirical and descriptive statistics, correlation analysis, comparative analysis and panel regression and robustness analysis method, makes the conclusion more credibility.This article is divided into six chapters, the structure as follows:The first chapter, introduction. This part mainly elaborated this article’s research background, research framework, the innovation, etc.The second, literature review. Firstly foreign literature review, included monetary policy’s influence on external financing constraints and the asymmetry of the monetary policy effectiveness,etc; Secondly the domestic literature review; At the last summarized literature review both at home and abroad.The third chapter, this part is related theory analysis. This chapter defined what was monetary policy and what was working capital, then analysised the influence factors of working capital, these factors include the micro internal environment, enterprise management authorities of working capital management strategy, medium industry competition environment and macro monetary policy and capital market environment, secondly, discusses the basic theory related to the topic, including working capital holdings motivation theories, financial theory of elasticity, optimal sequence financing theory, trade-off theory and so on, for later empirical analysis. The fourth chapter, this chapter is an empirical analysis of the monetary policy and the ownership levels of working capital.Fifth chapter, empirical research and result analysis.The sixth chapter, research conclusion and policy suggestionThrough regression analysis, the paper formed valuable empirical conclusions: the level of working capital changed over the tightness of monetary policy, if monetary policy tightening, the enterprise would improve the level of working capital; on the other hand, when a loosening monetary policy, the enterprise would reduce the holding level of working capital. Through the analysis also found that the level of working capital in state-owned enterprises and non-state-owned enterprises were significantly different.This article innovation spot lies mainly in the following three aspects:First, explained from the perspective of monetary policy changes in ownership levels of working capital of listed companies.Second, used the micro enterprise data as sample, inspection of monetary policy’s influenced on the enterprise operating funds holding level changes.Third, the different nature of the enterprise whether could distort the monetary policy adjustment’s influence on the changes in ownership levels of working capital.As Keynes says, economics had "schizophrenia" in the20th century, the separation between microeconomics and macroeconomics. Because of my low level of knowledge and limiter research ability, this paper proves there is insufficient.On the one hand, this paper only analyzed the influence of monetary policy to the level of working capital, the influence of the macro-economic policy impacted on micro enterprise financial behavior, but did not research on the adverse effect of working capital to monetary policy.On the other hand, this paper only analyzed single enterprise, without considering the interaction between different enterprises, even controlled the industry factors.