The Research On The Impact Effect Of Monetary Policy To Corporate Cash Holdings

As an important operational capital of enterprises,cash flow plays an important role in the establishment,operation and development,and the process of investment of enterprises.Though the small profits of cash could make,it is necessary for companies to retain a certain amount of cash to cope with the future development of company.With the continuous development of economy,maintaining high-level cash holdings has almost become a common choice in all walks of life.High cash holding is more vulnerable to external environmental factors,the cash holdings of enterprise will be impacted while the macroeconomic environment changes,according to different types of enterprises,the impact effect will be different.With the advance of interest rate marketization in our country,the transmission mechanism of monetary policy is also constantly improved,government strengthen macro monetary policy to promote economic development,which would cause the important influence on corporate cash holdings,due to external financing constraint degree is different,the impact of the monetary policy on the corporate cash holdings' changeable rates are different,so government should implement effective,differentiation of monetary policy to different enterprises,to the enterprises,they should make specific response and improve scheme to cope with the changes of tightening monetary policy to the negative impact of their cash holdings.On the other hand,regional financial development can effectively improve enterprise's financing constraint condition,and reduce the negative effect that the tight monetary policy impact on the corporate cash holdings.Government departments should actively improve the financial competition mechanism and deepen the financial market and interest rate marketization.This article is about the impact of monetary policy in China on corporate cash holdings from the perspective of financing constraints and the level of financial development,which analyzes the direction and size of the change of corporate cash holdings.This paper includes seven parts,the first chapter is introduction,mainly elaborated the article research background,research significance,research methods and framework,and possible innovation points,the second chapter is the relevant theoretical basis and the related literature review,theoretical basis is mainly including the definition of impact effect of corporate cash holding,cash holding policy theory,the related theory of monetary policy and corporate financing constraint theory,literature review includes the monetary policy,financing constraints,corporate cash holdings and generalization,and financial development level,summarizing what predecessors have done and the results,the third chapter is the theory analysis and the basic hypothesis of the article,the forth chapter is the described the sample selection of this article,the fifth chapter is the model design process and the specific empirical research process,the sixth chapter is the analysis of regression results,relevant policy recommendations,and vision of the future.Through the above analysis,we can conclude the following conclusions:tightening monetary policy has a negative effect on corporate cash holdings,monetary policy can alleviate the financing constraints of enterprises,the higher financing constraints of the corporate,the higher effect of monetary policy impacting on corporate cash holdings,the financial development can alleviate the financing constraints of enterprises,the higher the level of financial development,the higher effects of monetary policy impact on corporate cash holdings,and putting forward policy suggestions on these problems.