Monetary Policy,Debt Financing And The Investment Efficiency Of Enterprises

As China pays more attention to the quality of economic development rather than the sacles,the investment efficiency of enterprises is not only the focus of enterprises,but also the important indicator of the quality of economic development at the micro level which is focused by the state.As an important means of regulating the economy,monetary policy affects the behavior of economic entities such as enterprises and residents.Under the financing structure based on indirect financing,debt financing is one of the important financing channels for Chinese enterprises.Bank loans and commercial credit are the most important debt financing methods for enterprises.On the one hand,debt financing is affected by monetary policy,on the other hand,it plays a role in investment efficiency of enterprises.So what role does debt financing plays in the process of monetary policy affecting investment efficiency? In order to improve the investment efficiency of enterprises,how should we formulate monetary policy and how to change corporate debt financing behavior? This series of questions is thought-provoking.Most of the literature on the factors affecting the efficiency of corporate investment is based on internal factors of the enterprise.However,for China in a transitional economy,the external environment of enterprises changes more frequently,and it is more practical to study external factors.This paper not only analyzes the impact of monetary policy on investment efficiency,but also focuses on debt financing of enterprises,and focus on the two major types of debt for bank loans and commercial credit.Then carry out the chain analysis of external economic policy-the financing behavior of enterprises-the investment efficiency of enterprises,and realize the organic integration of macro research and micro research.This paper first analyzes the impact of monetary policy on the scale of enterprise investment,and then studies the investment increment caused by loose monetary policy to improve or reduce the investment efficiency of enterprises with different property rights.This is the first main line of this paper.Secondly,it discusses the impact of monetary policy on the total scale of corporate debt financing,bank loans and commercial credit.Thirdly,it studies how debt financing and its two major components influence the investment efficiency of enterprises through principal-agent conflict and governance functions,and then elaborates the intermediary role of debt financing in the process of monetary policy affecting enterprise investment efficiency,and it concatenates the second main line of this article,namely monetary policy-debt financing-investment efficiency of enterprises.The first main line explains the total impact of monetary policy on investment efficiency of enterprises,and the second main line explains the intermediary role of debt financing.After theoretical and empirical analysis,the following conclusions are drawn: loose monetary policy improves the investment efficiency of non-state-owned enterprises and reduces the investment efficiency of state-owned enterprises;loose monetary policy improves the overall level of corporate bank loans and debt financing,and increases the scale of commercial credit of non-state-owned enterprises,but the commercial credit of state-owned enterprises is not sensitive to changes in monetary policy;the overall level of debt financing has no significant effect,bank loans reduce the efficiency of enterprise investment,commercial credit improves the investment efficiency of non-state-owned enterprises,but the effect of stateowned enterprises is not obvious;bank loans has a suppressing effect in the process of loose monetary policy to improve the investment efficiency of non-state-owned enterprises,and it plays a mediating role in loose monetary policy to reduce the investment efficiency of stateowned enterprises;commercial credit has a mediating effect in the process of loose monetary policy to improve the investment efficiency of non-state-owned enterprises,and does not play a mediating role for state-owned enterprises.Based on the above analysis,in order to improve the investment efficiency of enterprises and the effectiveness of monetary policy,this paper proposes the following four recommendations: strengthening the differential regulation of monetary policy;promoting the reform of state-owned enterprises,and strengthening corporate governance;promoting the standardized operation of commercial banks,and unblocking the chain of monetary policy transfer;standardizing the creditor market and improving the effectiveness of debt governance.