Monetary Policy Conditions, Corporate Finance And Governance Effects Of Credit

In the corporate finance structure,debt financing is not only a way of financing theenterprise,which itself is an important corporate governance mechanism. But scholarsgovernance effect on liabilities not yet reached a consensus that these inconsistencies maybe considered in this paper,and these studies did not consider the business in which themacroeconomic background. Because under different external economic environment,financing decisions and corporate governance effects,both between each other may exhibita huge difference. Meanwhile,as China’s capital markets are underdeveloped,corporatefinancing major credit financing. Based on this, consider the important macroeconomicpolicy-monetary policy and its impact on corporate governance effects of the creditfacility. Choice of monetary policy for two reasons: Firstly,monetary policy is one of theprimary means of national macroeconomic regulation and contro l,it is importantmacroeconomic events are also micro-enterprises are facing,it’s micro-enterprise financingbehavior fluctuations will have a direct and significant impact; Secondly, when turnedloose monetary policy tightening by the credit enterprise funds become scarce, it is thelargest debt financing when the marginal utility, this time to better balance theirrelationship was observed between the treatment effect.For the above reasons, the paper launched around the following research questions:When a change in monetary policy, whether they would credit facility financing decisionsand the level of corporate influence? China’s financial institutions themselves there isdiscrimination against small and medium scale, then the impact of monetary policy oncorporate credit facilities are also due to enterprise scale factors different? Further too,monetary policy under different conditions, the effect of corporate governance on how toget the credit funds? This treatment effect is rather differ-scale enterprises will be affected. This paper takes China’s listed Corporation data from2005to2011as samples,combined with the enterprise scale,effect of monetary policy on enterprise credit financingand governance effect. This study found that:（1）The monetary policy credit transmissionor through the monetary channel of credit funds market and interest rate,so as to influencethe direct or indirect financing cost and financing needs of enterprises,thereby affectingthe level of enterprise credit financing. When the tightening of monetary policy,the marketreduce the credit funds, credit financing difficulty, high cost, reduced demand for creditfinancing, thus reduce the level；（2）We found that when considering scale factor, themonetary policy and the enterprise credit financing a negative role in small andmedium-sized enterprises more in the sample. Because of the small and medium-sizedenterprises its own characteristics and the external financial environment,the impact ofmonetary policy on the greater；（3）The existing research on debt governance effect,different point of view,but when the factor into the monetary policy,monetary policytightening of credit funds that the marginal increase will improve corporate governancebetter performance for the agency cost,higher growth and lower. Monetary tightening islikely in the marginal utility maximum of debt financing,also know to observe therelationship between the governance effect of debt and the；（4）At the same time,thisrelationship is more reflected in the small and medium-sized enterprises,small andmedium enterprises that better efficiency of using credit capital. The interactive relationsbetween the research and development of macroeconomic policies and micro enterprises,but also provide new evidence for the relationship between debt financing and governanceeffect.