| Under the economic new normal of “three-phase superposition”,the continued downturn of real economy and the continuous growth of financial industry are in sharp contrast,the imbalanced development of the real and virtual economies on economic structural imbalances is increasingly prominent(Huang,2017).Financial assets investment of non-financial corporate is a reflection of “economy shifting from real to virtual” at micro-firm level,which will cause funds to shift from production sectors to virtual economic(Epstein and Jayadev,2005).Zhang(2019)found that the total investment of financial assets,the rate of financial assets in total assets and financial revenues in profits are constantly increasing,and companies may overinveste in financial assets.Financial assets investment is an important part of corporate investment,and its impact is complex.It may damage the growth of company by squeezing physical asset investment resources,or it may improve the overall resource allocation efficiency by increasing the use of funds,indicating that resources are important,especially at the background of intensification of trade frictions,de-leveraging,and non-neutral competition of corporate financing.Monetary policy is an effective means for government to conduct macroeconomic regulation and control by adjusting the supply and prices of money.It constructs the macroeconomic background of micro-firm.At the beginning of2020,the capital market fluctuated violently affected by Covid-19.The U.S.stock market experienced four meltdowns in the past 10 days,three of which plummeted.In order to stabilize market sentiment,the United States and China and other countries implemented loose monetary policies,such as targeted RRR cuts and quantitative easing,improve market liquidity to enhance investor confidence.Previous studies have found that monetary policy can affect the way of companies investment in real assets and its efficiency,stock price fluctuations,and the quality of accounting information.Monetary policy may be effective to financial assets investment of corporate.On one hand,a dynamically adjusted monetary policy may generate greater policy uncertainty,and loose monetary policy may cause asset price bubbles,increase investment risks,and reduce investment incentives.On the other hand,monetary policy can change economic environment,loose monetary policies can enhance the external financing capacity of enterprises,create more investment opportunities,increase the prices of equity securities and corporate risk-taking levels,stimulate preference for high-risk investment projects,and promote investment in financial assets.In addition,non-economic factors such as Covid-19 may increase economic volatility and increase business operation and investment risks.Besides,China is focuses on promoting real economy and maintaining the stability of financial markets,which may increase the constraints on external financing.This shows that the way and path of monetary policy’s impact on financial assets investment is more complicated,and whether corporate financial assets investment is in line with policy expectations is still worthy of further study.There is only little literature has focused on the impact of monetary policy on financial assets investment,and the conclusions are not uniform.Besides,literatures on the influencing factors of financial assets investment is scarce,especially on the perspective of macroeconomic level.Based on the theory of monetary policy transmission mechanism,resource dependence and financing constraint,this paper tend to research on the effect and mechanism of monetary policy on corporate financial assets investment,and also the impact difference and the economy consequences.This paper is conducted to reveal the impact of changes in external financing environment on corporate financial assets investment from monetary policy,and to verify the effectiveness of monetary policy transmission mechanism from the perspective of corporate financial assets investment.This paper is divided into seven chapters,and the content of each chapter is arranged as follows:Chapter 1: Introduction.This chapter mainly introduces the economic and institutional background,make a brief review of relevant literature,and elaborates the significance of this paper from theoretical and practical aspects.After defining and analyzing key concepts,briefly explaining the research ideas,and elaborate the research framework and research method,and point out the research innovation and contribution of this paper finally.Chapter 2: Theoretical basis and literature review.This chapter is a briefly review of the three theories.Then systematically reviewing the research on the impact of monetary policy on firms,and research on financial assets investment about the concept,the influencing factors and the economic consequences.Finally,take a briefly review of the existing literature,pointing out the shortcomings.Chapter 3: The analysis of background and status of financial assets investment.This chapter based on the economic background of China’s new normal economy and continuous dynamic adjustment of monetary policy,trying to sort out the adjustment of China’s monetary policy,and analyze the changing trend combined with the four selected monetary policy indicators,and briefly review the regulatory policies related to financial assets investment.From the four aspects of the investment amount,investment characteristics,investment distribution,and the difference between investment of the financial and physical assets,a descriptive analysis of current status of financial assets investment is conducted.Chapter 4: Impact of monetary policy on corporate financial assets investment.This chapter based on the economic background of China’s new normal economy,and the theory of the transmission mechanism of monetary policy,resource dependence and financing constraints,research on the effect and difference of monetary policy on financial assets investment.We first analyze the effect of monetary policy on financial assets investment,and different impacts of monetary policy types.Then,from the aspects of credit acquisition,investment income and risk taking,further analysis the mechanism of monetary policy on corporate financial asset investment.Besides,in light of the new economic normal,analyze the investment motivation of enterprises’ financial assets under the implementation of monetary policy.Finally,combined with the liquidity,measurement mode,and investment purpose of financial assets,further analysis the differences in the impact of monetary policy on different types of financial assets.Chapter 5: Difference of the impact of monetary policy on corporate financial assets investment from the perspective of heterogeneity.This chapter from three dimensions of regional,industry,and firm heterogeneity,from the perspective of regional financial development and institutional environment,high-tech industry and industry competition,and property rights and manager financial links,to research on the effect of monetary policy on financial assets investment with theoretical analysis and empirical tests.Chapter 6: The Economic consequences of financial assets investment under monetary policy.This chapter from the aspects of firm risk,short-term and longterm performance,conduct the theoretical analysis and empirical test of economic consequences of financial assets investment under monetary policy at firm level.Then,combined with firm leverage,further analysis the mechanism of financial asset investment on risk.Finally,combining the investment differences between financial and physical assets,and the investment speed and efficiency of financial assets,the mechanisms of financial assets investment on performance are analyzed,intend to clarify the economic benefits and role path of financial assets investment under monetary policy at the micro-firm level.Chapter 7: Research conclusions and inspirations.This chapter summarizes the main research conclusions,studies the inspiration and policy suggestions from the perspective of firms,policy and government,and points out the research deficiencies and future research prospects.This paper studies the effects and mechanisms of monetary policy on financial assets investment,and the impact differences and economic consequences.This paper draws the following main conclusions:First,the looser monetary policy,the more investment in financial assets,which shows that increasing market liquidity can improve the motivation to invest in financial assets of enterprises.The looser monetary policy,the weaker effect of structural monetary policy in promoting financial assets investment,which turns out that improving the accuracy of monetary policy implementation can guide the flow of credit funds and improve the efficiency of monetary policy implementation.Further analysis find that increasing credit acquisition,financial assets returns,and corporate risk-taking levels are the mechanisms by which monetary policy affects financial assets investment.Besides,increasing the looseness of monetary policy will increase the gap between financial and physical returns,and the impact is stronger in companies with lower innovation or higher diversification.In terms of investment types,relative liquidity and non-fair value financial assets,monetary policy has a stronger influence on non-liquidity and fair value financial assets,but the nature of financial assets will not change the degree of monetary policy’s impact on financial asset investment.Second,there are differences in the impact of monetary policy on investment in financial assets.Specifically,the higher level of regional financial development,or regional marketization,or industry competition,or financial links of manager,the stronger impact of monetary policy on financial assets investment,while the hightech qualification and state-owned property rights will weaken the impact.It means that the impact of monetary policy on financial assets investment is affected by heterogeneity of regions,industries and companies.Third,the looser monetary policy,the greater promotion of financial assets investment on operating risk,explained that improving the looseness can increase.The looser monetary policy,the greater promotion of financial assets investment on short-term performance,it shows that in the short term,financial assets investment can effectively improve the performance.The looser the monetary policy,the less the suppression of long-term performance by financial assets investment,indicating that increasing the looseness of monetary policy can reduce the damage of financial assets investment to long-term performance,and increase monetary policy easing can reduce the adverse impact.Further analysis find that under loose monetary policy,financial assets investment has a significant role in promoting leverage.Besides,combining monetary policy with financial and physical asset investment differences,and financial assets investment speed and efficiency,it proves that the mechanism of financial assets investment on performance under monetary policy is to improve the resource situation,promote asset investment expansion,increase the investment speed of financial assets,and change the investment efficiency of financial assets.This research uncovers the black box of corporate financial assets investment under economic downturn of real economy,analyzes financial assets investment motivation and economic benefits guided by economic policies,which is of great significance in understanding and regulating financial assets investment.The innovation and contributions of this paper are mainly in the following aspects:First,from the perspective of external financing mechanism,clarify the effect and mechanism of monetary policy on financial assets investment.In the new normal economy,monetary policy mainly affects financial assets investment through external financing mechanism.Moreover,accommodative monetary policy will increase corporate risk-taking and enhance corporate profit-making motivation,rather than reduce investment due to risk aversion.Besides,heterogeneity can cause differences in the impact of monetary policy on financiali nvestment,especially heterogeneity in regional and industry,since these factors have great importance on the external financing environment,which are also vital to corporate development.Second,combined with the transmission mechanism of monetary policy,analyzes the effect path of monetary policy.Existing related studies have only conducted analysis from the perspective of benefits and risks,ignoring the transmission method and efficiency of monetary policy,while these are the prerequisite for monetary policy to produce economic benefits.In addition,combined with the types of monetary policy,the differences in the impact of structural monetary policy are studied.The type of monetary policy will affect the implementation efficiency and credit structure of monetary policy,and then affect the economic regulation effect of monetary policy.Third,combines with the background of Chinese new normal economy,accurately segment financial assets investment motivation.It can clarify the nature of speculative motivation of financial assets under specific backgrounds and policies,which is to improve the overall resource allocation of enterprises,rather than purely chasing high returns on financial investment.Moreover,combined with performance period in studying the impact of financial assets investment on performance.It finds that with decreasing return of physical asset,improving external financing environment and corporate resource acquisition capabilities,investment in higher profitable financial assets may have a positive impact,which can reveal the impact and path of financial assets investment on performance.Fourth,based on the theory of resource dependence to expand the theoretical basis.Existing literature is mainly on resource-based theory,under the premise of certain resources,financial and physical asset investments replace each other,and they fade away.This article combines theory of resource dependence and treats the allocation of financial assets as one types of investment,expanding the scope of corporate resources,which can enrich the relationship.The two types of investment can fade or grow together and broaden the relevant research thinking. |
PDF Full Text Request