The Impact Of Easy Monetary Policy On Financial Asset Allocation Of Non-financial Enterprises

The outbreak of COVID-19 at the end of 2019 has plunged all industries into a predicament of "shutdown and production".To cushion the downward pressure on the domestic macro economy,the central bank implemented easy monetary policy to release overall liquidity into the market and guide enterprises to make real investment.However,the market liquidity provided by easy monetary policy has stimulated the boom in stock and bond markets.In this case,it is meaningful to study whether the investment decisions of enterprises will be adjusted in accordance with the guidance of macroeconomic policy.Based on the background of COVID-19,this paper reviews and analyzes the literature on monetary policy and corporate financial asset allocation,and from the perspective of combining macro-monetary policy with micro-enterprises.After introducing the transmission channel theory of monetary policy and the speculative alternative theory,This paper empirically tests the overall effect of easy monetary policies on corporate financial asset allocation under the background of the novel coronavirus pandemic.Specifically,the research object is selected from the A-share non-financial listed enterprises in Shanghai and Shenzhen,and the implementation time of easy monetary policy is identified through the change trend of M2 growth rate.The first quarter of 2020 and later is set as the period of policy implementation,and the relevant data of enterprises from the first quarter of 2018 to the fourth quarter of2021 before and after the policy implementation are sorted out.Financial asset allocation index of explained variable was constructed,short-term financial asset allocation index and long-term financial asset allocation index were further divided,cash hold-capital ratio index was set as the variable of treatment intensity,and it was introduced into the benchmark generalized differential model to empirically test the positive and negative coefficient and significance of the interaction term between the variable of treatment intensity and the dummy variable before and after the policy release.Furthermore,the difference of the influence of easy monetary policy on financial asset allocation of different types of enterprises is tested by grouping of business performance,research and development intensity,growth and business risk.The results showed that: in the context of the novel coronavirus epidemic,easy monetary policy improved the financial asset allocation of enterprises;After further subdivision of the allocation structure of corporate financial assets,it is found that the allocation of long-term financial assets is significantly improved,while that of shortterm financial assets is not significantly improved,which verifies that enterprises increase the allocation of long-term financial assets out of speculative motives in the face of booming stock and bond markets under the easy monetary policy.Heterogeneity analysis shows that the promotion effect of easy monetary policy on long-term financial asset allocation is significant in the enterprises with poor business performance,low R&D intensity,poor growth and high business risk.The conclusion of this paper shows that in the context of the novel coronavirus epidemic,the investment behavior of enterprises is not fully adjusted in accordance with the guidance of macroeconomic policies.When an enterprise shifts the focus of asset allocation to financial assets,the long-term development of entity management will be harmed from a micro perspective,while the effectiveness of monetary policy will be affected from a macro perspective.Based on the above conclusions,suggestions are put forward from the enterprise level,monetary policy formulation level and government level: first,enterprises should adjust the investment structure and pay attention to long-term development;Second,monetary policy formulation should be targeted at the real economy to improve transmission efficiency.Third,the government should reasonably guide the allocation of financial assets and implement differentiated regulation.