A Study Of The Impact Of Macroprudential Policies On Firm Performance Under Global Financial Shocks

The financial crisis has devastated economies and financial markets around the world.Compared with developed countries,emerging market economies have been particularly hard hit due to the vulnerability of their own economic and financial systems.In the face of a new round of global financial shocks such as the new crown epidemic,the response policies of emerging market economies are very important.Among them,the importance of macroprudential policy,as an important policy to stabilize the domestic and foreign financial economies,cannot be overstated.Based on its good policy performance,whether macro-prudential policy has the effect of promoting economic growth in addition to the effect of stabilizing the economic and financial environment will be worth watching.To address this issue,this paper empirically examines the impact of macroprudential policies on the performance of nonfinancial firms in emerging market economies in response to global financial shocks by using data on nonfinancial firms in 44 emerging market economies from 2011-2019.The results show that macroprudential policies have a positive impact on the performance of nonfinancial firms in emerging market economies,both in terms of direct and indirect effects.This illustrates that macroprudential policies not only play a role in maintaining the stability of the financial and economic environment,but more importantly,at the micro level,macroprudential policies have a catalytic effect on economic growth.Further,we empirically examine the heterogeneity of macro-prudential policies affecting micro-firm performance.From the perspective of financing constraints,industry concentration,level of financial development and level of institutional quality across economies,there is strong heterogeneity in the impact of macroprudential policies on firm performance,both at the industry level and at the country(regional)level.This will remind policy makers in emerging market economies to choose the intensity of implementing macroprudential policies according to local realities when formulating and adjusting local macroprudential policies,so as to avoid weakening the actual effects of macroprudential policies.In addition,this paper empirically tests whether the inclusion of different policy variables has an impact on the policy effects of macroprudential policies from the perspective of the integrated policy framework.The results show that although other policies within the integrated policy framework can be detrimental to the growth of firm performance,the implementation effect of macroprudential policies is not affected.