Item Details
Skip Navigation Links
   ActiveUsers:733Hits:21042998Skip Navigation Links
Show My Basket
Contact Us
IDSA Web Site
Ask Us
Today's News
HelpExpand Help
Advanced search

In Basket
  Journal Article   Journal Article
 

ID114789
Title ProperMonetary policy and corporate investment
Other Title Informationevidence from Chinese micro data
LanguageENG
AuthorHuang, Ying Sophie ;  Song, Frank M ;  Wang, Yizhong
Publication2012.
Summary / Abstract (Note)This paper investigates how a firm's characteristics restrict the influence of monetary policy changes on its investment behavior. Focusing on China's listed companies for a sample period from the first quarter of 2002 to the first quarter of 2011, we find that quantity-oriented and price-based monetary policies have heterogeneous impacts on corporate investment behavior, but the influence of monetary policies is constrained by the liquidity, inventory, size and asset-liability ratio of a firm. Firms with higher liquidity, lower inventory level and lower asset-liability ratios are less sensitive to the impact from two kinds of monetary policies. The larger the size of the firm, the less it is subject to influence from quantity-oriented monetary policy; it responds more to price-based monetary policy. The policy implication is that the monetary authorities should pay attention to the importance of policy-making based on the monetary demand of microeconomic entities.
`In' analytical NoteChina and World Economy Vol. 20, No.5; Sep-Oct 2012: p.1-20
Journal SourceChina and World Economy Vol. 20, No.5; Sep-Oct 2012: p.1-20
Key WordsMicro - Transmission Mechanism ;  Monetary Policy