The Study Of The Influence Mechanism Of Monetary Policy On Enterprises's Cash Flow Risk

After the Financial Storm,the concepts of "Cash is King","Cash is the blood of an enterprise" have been back and management staff have pay more attention to the management of the cash flow,especially concerning identification and prevention of cash flow risk.Cash flow not only runs through the whole process of an enterprise's daily management,but also is related to the investment and financing activities.Cash flow is the comprehensive performance of enterprise financial situation and to a certain extent,its fluctuation determines an enterprise's ability to pay and resist risks(ZHAO Yijun[1],2014).Therefore,identifying and studying cash flow risk is an important task of financial risk management.In the 1990s,China's monetary policy system has established gradually.In recent years,in order to deal with the adverse effect of the financial crisis,the central bank has adjusted monetary policy frequently.In fact,an enterprise's cash flow is related to monetary policy closely.Changes in monetary policy will affect the financing channels and scale.In addition,due to the existence of financial frictions,such as information asymmetry of capital market,Enterprise's financing ability will determine the investment decisions.Changes in corporate's finance,investment and other aspects which are mainly caused by monetary policy will result in highly volatile in cash flow and influence cash flow risk.At present,China is currently in a transition period of social market economic system.Despite the coexistence of various ownership economy,state-owned enterprises occupy an absolute predominant position in the coming period.It is obvious that government has a favor for state-owned enterprises.Compared with private enterprises,when monetary policy is loose,state-owned enterprises are more likely to obtain external financing and their cash flow are more volatile than private enterprises'.Accordingly,the nature of property right plays an important regulatory role in the transmission mechanism of the macroeconomic policy to the enterprise's cash flow risk.This paper analy'zes monetary policy's starting point,takes enterprise's cash flow risk as the breakthrough point and study the mechanism of monetary policy extendedly.On this foundation,the sample enterprises are divided into two parts:private enterprises and state-owned enterprises to test the effect of monetary policy on enterprise with different nature of property right.The empirical results show that in the process of the effect of monetary policy on enterprise's cash flow risk,the scale of investment and the situation of debt financing play an important regulating role.When monetary policy gets looser,due to the impact of large-scale financing and investment,an enterprise's cash flow will be larger fluctuations and has accumulated cash flow risk.Besides,the paper also finds that as of the none-symmetrical quality of monetary policy,the effect of monetary policy on enterprises with different property rights is different.When monetary policy tends to be loose,the cash flow of the state-owned enterprise is more significant than that of the private enterprise.