Research On The Influence Of Monetary Policy On Cash Flow Risk Of Capital-intensive Industries Enterprises

Since the early 1990 s,China’s monetary policy system has been gradually established and improved.In recent years,with the change of the international economic situation,The People’s Bank Of China has frequently adjusted the monetary policy to maintain the stable development of China’s economy.However,the broken capital chain of enterprises still occurs.Based on the above background,this paper selects the capital-intensive enterprise China Zhonghua Geotechnical Engineering Co.,Ltd.as the case company to analyze on the basis of relevant theories on monetary policy and cash flow risk."Policy’s impact on CGE cash flow risk" is the core of the study,which mainly studies the following two issues:(1)What effect does monetary policy have on the cash flow risk of capital-intensive enterprises;(2)How does monetary policy affect the cash flow risk of capital-intensive enterprises.Firstly,this paper sorts out the composition of CGE ’s cash flow business,and uses this as a basis to identify and measure its cash flow risk,and then to answer the first question by combining analysis with monetary policy in different institutional contexts.Subsequently,this paper selects companyspecific indicators in three aspects of operating activities,fund-raising activities and investment activities to discuss in depth the impact of monetary policy on CGE’s cash flow risks and answer the second question.The research conclusions of this paper are:(1)Tight monetary policy has reduced the money supply,slowed down the cash withdrawal rate of enterprises’ cash,intensified the situation of fund payments,and prolonged the cash cycle.Therefore,the tight monetary policy will increased cash flow risk of corporates.Conversely,loose monetary policy can alleviate the cash flow pressure of corporates,but due to the expansion of the scale of investment and financing of enterprises,the overall cash flow risk of enterprises is also increasing;(2)In the process of the impact of monetary policy on corporate cash flow risks,Corporate financing and investment play an important regulatory role.Under the tightening monetary policy,the limited credit will reduce the investment and financing activities of private enterprises,while the increase in the money supply under the loose monetary policy will increase the scale of investment and financing of enterprises.If an enterprise blindly increases financing and investment,the enterprise’s cash flow will fluctuate greatly,and the enterprise will continue to accumulate cash flow risks.At the same time,the lagging and irreversible investment will lay hidden risks for the enterprise.The research value of this paper lies in: it establishes an effective link between macro-monetary policy and micro-enterprise cash flow risk,and further enriches and develops related theories;it has certain guiding significance for the corporate management,but also helps the government to formulate more effective related economic policies,so that it can better affect the real economy.