Monetary Policy,Cash Holdings And Corporate Investment

The research on enterprise investment behavior has always been a hot topic in academic circles and an important content in the field of micro-enterprise finance.On the one hand,it is due to the important driving role of enterprise investment in stimulating national economic growth,on the other hand,it is also because investment is also important for enterprises to expand production and operation,adjust production structure,achieve industrial upgrading and enhance their competitiveness.One way is to have an important impact on the future development of enterprises.With the emergence and spread of the economic crisis,macroeconomic policies have been adjusted frequently accordingly.These changes in the external economic policy environment have had a significant impact on the investment behavior of enterprises,which makes the research perspective of the combination of macroeconomic policy and micro-enterprise behavior more and more concerned by scholars.At present,this part of the research mainly includes the relationship between monetary policy and enterprise investment expenditure,and the relationship between monetary policy and enterprise investment efficiency.However,there are few literature to study the relationship between monetary policy and enterprise investment behavior from the perspective of monetary policy asymmetry and cash holding adjustment effect.This provides a certain opportunity for this study.At the same time,since China’s monetary policy has been adjusted frequently in 2003,which also provides the realistic basis and policy environment for this study.Based on the quarterly data of A-share listed companies in Shanghai and Shenzhen from June 2007 to June 2018,this paper studies the relationship between monetary policy and investment expenditure and investment efficiency from the perspective of asymmetry of monetary policy and cash holding adjustment effect.The study found that:(1)Monetary policy can have a significant positive impact on the investment expenditure of enterprises;(2)There is a vertical asymmetric effect of monetary policy,which is manifested in that the restraint effect of tightening monetary policy on excessive investment of enterprises is stronger than that of easing monetary policy on insufficient investment;(3)the level of cash holdings of enterprises has a regulatory effect,which can significantly weaken the impact of monetary policy changes on under-investment.The impact effect on investment expenditure of enterprises;(4)The adjustment effect of cash holdings on investment efficiency isdifferent under different monetary policies,which is more significant in the period of tightening monetary policy;(5)The impact of monetary policy on investment expenditure of enterprises will vary according to the nature of property rights and the scale of enterprises,especially in small scale and non-state-owned enterprises.It is more obvious in enterprises.The significance and Enlightenment of this study are as follows: Firstly,this paper also examines the impact of monetary policy on investment expenditure and investment efficiency of enterprises,which is conducive to a more comprehensive and systematic reflection of the impact mechanism of macroeconomic policy on micro-enterprise level;secondly,the study of this paper makes up for the lack of research on the micro-level of the asymmetric effect of monetary policy and non-monetary policy on micro-enterprise level.The theory of symmetric effect provides micro-data support.Thirdly,this paper validates the difference of the impact of monetary policy on the investment behavior of enterprises with different cash holdings,which is conducive to making a more reasonable investment judgment for enterprises when facing the change of monetary policy and combining their own cash holdings.Finally,based on the asymmetry of the impact of monetary policy on enterprise investment efficiency,macro-monetary policy makers can formulate more reasonable monetary policy and corresponding supporting policies according to different macro-economic conditions.