Reaserch On The Effect Of Monetary Policy To Enterprise’ Financing Decision

The research on financing decision can be concluded as analysing and testing financing tools and channels which is selected for minimizing cost and maximizing income.A main work about it is testing factors which affect financing decision. Researchers have analysed and tested in micro and industry view, recently macro factors were researched. As a whole, External finance and economic setting would affect financing decision, and scholars are striving to break studying positions in the past.Last decade, financial market developed rapidly and affected enterprise’finance deeply. Recent, finance and economic’crisis disturbed enterprise’business. So, we will research the effect of monetary policy to enterprise’financing decision, we will focus on monetary policy’channel of transmission and relative effect. Because both monetary channel and credit channel play an important role in enterprise’financing decision, especially credit channel, we first and foremost research three contents.Firstly, the relationship of bank and enterprise was tested. Credit channel play an important role in enterprise’financing decision. In which"information asymmetry" lead to the specific way of credit channel’ transmission and some problems of credit rationsSecondly, agency problem affecting the relationship between bank and enterprise was tested. Abnormal phenomena of enterprise’financing decision in credit channel of transmission was researched. In which "agency cost" and Manifestation of agency cost-fee stickness would leed to abnormal phenomena.Thirdly, replacement of ententy financing in monetary channel to debt financing in credit channel was tested. The change of monetary policy would affect enterprise’stock financing under monetary channel of transmission. Stocks’price would change when monetary policy changes and substruction of stock market to debt market would exist.Besides, choosing variable in model and System Background would affect rasearches narrated above, two contents was analysed and tested.Firstly, the fundmental relationship of monetary policy’change and enterprise’financing decision was tested. The method used is Analysis of Aggregate Time Series in third chapter.Secondly, credit policy acted for industry’development would affect enterprise’financing decision. Research was designed by "wave phenomenon" based on Anticipation of industries in seventh chapter.The fundamental conclusion of studying as narrated above is that monetary policy and credit policy affect enterprise’financing decision notablely in china. Credit channel play an important role in the effect of policy to financing decision, besides monetary channel does Complemently. credit policy affect debt financing decision of industry’enterprises notablely. The empirical results demonstrate that "credit regulation" and "credit ration" under credit channel leed to restrained enterprise decreasing debt financing when monetary policy is tighten, while can not increase their debt when monetary policy is relax (In fourth chapter). This result is not Coincide to credit channel of transmission. Additionally empirical results demonstrate that fee stickness would affect enterprise’value and bank’credit supply (In fifth chapter), and that monetary policy is related to stock’value and enquty financing (In sixth chapter), these proof support the view that agency problem would disturb credit channel and monetary channel would Complement credit channel. Besides, empirical results demonstrate that "wave phenomenon" based on Anticipation of industries would affect credit policy and industry’enterprises financing, especially restrained enterprises(In seventh chapter).The paper gives us some advice based on above problems being found:1.In enterprise’financing decision. Middle and small enterprises face credit discrimination under System Background of china. So these enterprises should pay more attention to financial restrains, they ought to look monetary policy as a key variable in their financial early warning models, it will let enterprise make an best buget and management effectively.2.1n bank’credit supply. It must pay more attention to enterprise’condition of Information disclosure though bank should focus on enterpris’collateral value. As frictions exist commonly in financial market in china, it is necessary and urgent for banks to deal with financial risk. So banks ought to cellect and communicate enterprise’information to Optimize Contraction between bank and enterprise.3.1n government’industry regulation. If financial system background can not be reformed recently, it is necessary for government to regulate capital maret reasonablelyo The empirical results demonstrate that enquty financing is an important financing way for enterprise. So government first and foremost must cultivate stock market when frictions exist credit market.The empirical results demonstrate that "wave phenomenon" based on Anticipation of industries would affect industry’enterprises financing, especially restrained enterprises. So government should pay more attention to restrained enterprises and lead these enterprises to finance reasonablely.Above all, the design and carrying out of this research not only deepen thoreies of financing decision but also guide practice of enterprises, while enterprise and government’financial policy can be maded by this research.However, there are some defections in this research. For example, data is collected from listed company for testing, The empirical results may be deviate; another example, agency problem affect the relationship between bank and enterprise, but the paper only tested fee stickness’role and other factors were not considered. But agency problem affecting enterprise’value was researched in capital structure field, corporate governance field, and so on. In evidence, lot’of jobs should be done by the paper’logic structure in future.