The Study On Monetary Policy, Financial Constraints And The Investment Of Listed Companies

With the continuous development of the socialist market economy in our country, monetary policy, as the main means of macroeconomic regulation, plays a significant role in adjusting the country’s economy. After the four consecutive quarter of tight monetary policy of2011, a significant decline in investment in2012, the investment contribution to economic growth is lower than the consumption for the first time in a decade. After the implementation of the loose monetary policy in the year2012, investment of2013increased significantly. The Contribution of investment to economic growth is greater than the contribution of consumption. The21st century is the era of long period of division of macroeconomic and microeconomic, need to find a micro data base for the macroeconomic theory, at the same time, the macroeconomic total quantity will be derived from the microscopic behavior[1].In this context, research on the adjustment of monetary policy how to influence corporate investment has very important practical and theoretical significance.Based on the quarter data from2010to2013of Chinese listed manufacturing firms, this paper study the influence on the financing constraints and the corporate investment with the key point of monetary policy adjustment. This paper uses the WW index to measure the degree of external financing constraints, which is built by Whited and Wu (2006)[2]. Combine qualitative and quantitative to measure monetary policy and put forward the hypothesis. Hypothesis1:there is a positive correlation between monetary policy adjustment and financing constraints. Hypothesis2: there is a negative correlation between financing constraints and corporate investment. Hypothesis3: there is a correlation between monetary policy adjustment and the corporate investment. Hypothesis4: The different direction of the monetary policy adjustment, the impact of monetary policy on corporate investment is different. The effect of tight monetary policy taming the corporate investment is significant. The effect of loose monetary policy helping the corporate investment is not significant. Hypothesis5:The different degree of financing constraints, the effect of monetary policy adjustment on corporate investment is different. High degree of external financing constraints of the firm, the firm’s investment is strongly influenced by monetary policy adjustment. Low degree of external financing constraints of the firm, the firm’s investment is weakly influenced by monetary policy adjustment Establish regression model, use the logical regression to conduct the empirical study, test the proposed hypothesis, and draw the conclusion:Hypothesis1, hypothesis2, hypothesis 3, hypothesis4and hypothesis5have passed the test. The adjustment of monetary policy influence the corporate investment by affecting the company’s external financing constraints. In addition, the impact of monetary policy on investment has asymmetric effect, namely when the adjustment of monetary policy in a different direction or at different degree of the company’s financing constraints, the impact of monetary policy on investment is different.The conclusion of the study puts forward suggestions for the firm’s managers:Enterprises should focus on information of monetary policy adjustment, adjusting investment strategy according to the information of monetary policy adjustment. Enterprises should broaden the financing channels, innovative financing methods, moment to keep reasonable leverage, alert their potential financial risk, to reduce the external financing constraints. At the same time, the study conclusion put forward the scientific basis for monetary policy makers:if the monetary policy is tend to tight, tightening degree should be moderate; Implement different monetary policy according to firm characteristics (such as size etc.), this can make the effect of monetary policy implementation is more significant. This study also provides evidence for related corporate investment research.