Monetary Policy Adjustment And Working Capital Policy Of China’s Companies

Monetary policy is an important tool of macro liquidity management and working capital is the main tool for liquidity management of enterprises.It’s a very good perspective to study the impact of macroeconomic policies on micro enterprise behavior mechanism for the adjustment of monetary policy,which has a direct impact on the working capital policy.In this paper,we construct a static and dynamic analysis framework of corporate liquidity based on working capital investment management,financing management and operation efficiency,and then take monetary policy as the starting point to influence the macro environment of enterprise financial activities to study the impact of macro liquidity management on enterprise liquidity management.First,based on the analysis of the literature research and practice,we conduct a comprehensive and in-depth analysis and summary of the working capital management theory research and practice of management behavior,and compare with the companies of the United States and the European Union countries,working capital management behavior.Secondly,based on the theory of enterprise resource allocation,liquidity risk theory and corporate finance theory,this paper investigates the mechanism and the influence path of the monetary policy on the Working Capital Management of the enterprise,and constructs the analytical framework of the monetary policy affecting the Working Capital Management of the enterprise based on the liquidity management.Thirdly,based on the single variable difference test and panel vector autorepression model(PVAR),panel regression analysis and logit regression econometric analysis methods are used to study the impact of monetary policy theory assumes that the working capital investment management,financing management and operation efficiency;The stability of cash flow and financing constraints are included in the analysis framework to study the impact of different characteristics of corporate monetary policy on Working Capital Management.Finally,we present the research conclusions and policy recommendations and the limitations of this study and further research problems.The main conclusions are as follows: 1.The proportion of current assets allocation of Chinese companies is higher than that of other countries,but the percentage of companies with "radical" working capital investment management is lower than that of other countries;The use of short-term funds to meet the proportion of working capital needs are higher than the ones of other countries,and working capital financing management is radical;The efficiency of working capital management is worse than that of other countries,and the biggest gap is the problem of inventory management.2.By changing the equilibrium state of financial risk and value creation,monetary policy adjusts enterprises’ liquidity management through the adjustment of working capital investment management.The more monetary policy looses,the more aggressive the working capital investment management is;Relatively poor cash flow stability of the enterprise has a more aggressive working capital investment management to reduce the value of the poor ability to create liquidity allocation of resources;The degree of financing constraints inhibit the easing of monetary policy to bring down the level of working capital investment;Monetary policy has an impact on working capital investment mainly through cash and inventory.In the period of the loosing monetary policy,enterprises pay more attention to the value creation ability of working capital than to reduce the risk.3.Monetary policy has an impact on the risk and cost of financing through changing the financing environment of the enterprise,which promote the adjustment of working capital financing management.The more monetary policy relaxes,the more enterprises incline to use short-term financing sources to meet the needs of working capital funds,and Working Capital Management is more aggressive;Poor cash flow stability encourages enterprises to adopt more aggressive working capital financing management in the monetary policy easing,and financing constraints would inhibit enterprises to adopt more aggressive working capital financing management in the monetary policy easing;In the period of loose monetary policy,the impact of short-term debt financing on working capital is greater than that of commercial credit financing.4.Monetary policy has an impact on the efficiency of working capital management through the impact of financing constraints and demand constraints.The more monetary policy looses,the higher the efficiency of working capital management is.But the poor cash flow stability and strong financing constraints make the improvement of working capital cash flow;In the turnover period of different working capital,the monetary policy mainly affects the cash flow period through the cash flow cycle with alternative financing function.The innovation in this thesis are as follows: From the perspective of liquidity management,the combination of macro monetary policy and micro liquidity management,a new perspective to the study of macroeconomic policy and micro enterprise behavior is presented;From the working capital investment,the theory of working capital is riched: financing and management efficiency of three aspects of the construction of a new liquidity management framework.