A Study Of The Monetary Policy And The Listed Company's Credit Resources Allocation

Monetary policy is one of the most important macro-economic control means in a country. However, whether monetary policy can work or not depends on its transmission effect. China is still in the non-strong efficient capital market. The level of financial market is not developed. So the credit transmission channel may apply to Chinese basic conditions by which monetary policy control the amount of money and the development of micro-economic entities in the market through regulating the level of credit supply and interest rates. Bank credit that is affected by monetary policy occupies the most important credit resource of micro-enterprises. In the financial system of information asymmetry, the past credit records play an important role of bank loan review, which decide the credit quantity and term structure. On the other hand, the enterprises with close ties to the suppliers can create strong trust with each other over time, by which the enterprises gain trade credit being another financial method. In my paper the bank credit and trade credit are defined as the enterprises' credit resources for our later research.In the past, academia research to monetary policy focuses on macro-economic. There are few papers can study on the combination of macro-economic policy and micro enterprises behavior. In fact, with macro-economic policy fluctuation, how do the micro enterprises respond to the change of credit resources and choose which kind of accounting behavior to ease the monetary impact? How can the change of enterprises'credit resources affect their future performances and market value? Do the different property rights'enterprises behave the same? All of these are the new aspects of micro enterprises' finance and accounting research, which help making and maintaining the future macro-economic policy. Inspired by the topics of conversation on the conference called 'macro-economic policy and micro enterprises', my paper studies on macro monetary policy, micro enterprises credit resources, accounting policy choices and economic consequences. My study based on the background of Chinese macro monetary policy expands the range of micro enterprises accounting research and explores the transmission mechanism from macro to micro economics. My research investigates the respond of micro enterprises to measure the effect of monetary policy, and then we make the effective suggestion for making the future macro policy.My paper's core content can be concluded to several aspects following:Firstly, I tease and comment the literature researches from three aspects:the monetary policy and the listed companies'credit resources, credit resources and the accounting conservatism policy and the listed companies'economic consequence. Based on the credit transmission mechanism, my study shows the relationship between Chinese micro listed companies'bank credit with trade credit, the relationship between credit resource with accounting conservatism policy and the effect of credit resources to companies'performance and market value.Secondly, the second part of my study is the introduction of the regulation background, the relative concept and the theory framework of my paper. My study teases and comments the monetary policy regulation background from the aspects of monetary policy definition, control method, the intermediate target and transmission mechanism. This paper points out that the monetary policy is implemented by credit transmission mechanism in China. Then my study regards the bank credit and trade credit as'credit resource'. Based on it, we show the whole thinking framework.Thirdly, combined with the property rights, this paper starts the empirical analysis on Chinese monetary policy and the listed companies'credit resources from the aspects of the relationship between Chinese micro listed companies'bank credit with trade credit, the relationship between credit resource with accounting conservatism policy and the effect of credit resources to companies'performance and market value. The results show that in austerity policy period the amount of listed companies' bank credit decrease, and the cost of bank credit increase obviously. In contrast, the quantity of trade credit and the accounting conservatism increase, which show more obviously in private companies. The companies supported by monetary policy can gain the more bank credit the lower credit cost, which show remarkably in state enterprises. The companies non-supported by monetary policy may use more trade credit and its accounting conservatism will increase, which show obviously in private companies. The increase of accounting conservatism helps the companies getting more bank credit which show obviously in the state companies. In austerity policy period the more bank credit helps the listed companies increasing their future performance and market value, but in the same time, the more trade credit undermines their performance and market value.Finally, this part summarizes the conclusions of all chapters and points out the inspirations, the innovations, the suggestions and the deficiencies. When facing the monetary policy against to their development, the micro listed companies will defend for themselves. The use of trade credit and the increase of the accounting conservatism will offset the effect of transmission from macro monetary policy to micro enterprises. So the makers of monetary policy do focus on not the amount of bank credit and interest rate but only another effect of micro-economic to monetary policy. In China, the credit allocation is not effective. The regulation of future monetary policy still strengthens the rationality and the efficiency of credit allocation.