ID | 114789 |
Title Proper | Monetary policy and corporate investment |
Other Title Information | evidence from Chinese micro data |
Language | ENG |
Author | Huang, Ying Sophie ; Song, Frank M ; Wang, Yizhong |
Publication | 2012. |
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 Note | China and World Economy Vol. 20, No.5; Sep-Oct 2012: p.1-20 |
Journal Source | China and World Economy Vol. 20, No.5; Sep-Oct 2012: p.1-20 |
Key Words | Micro - Transmission Mechanism ; Monetary Policy |