Monetary Policy And Corporate Credit Financing:the Moderating Role Of Investor Sentiment

Corporate finance has always been the focus of the company's financial management,how to effectively carry out financing is difficulty to decide.Credit financing is an important financing channel for Chinese enterprises,how to effectively carry out the credit financing is worthy of paying attention.Corporate financing is influenced by the internal and external environment of the enterprise.Since the outbreak of the financial crisis in 2008,countries have been using monetary policy to control the economy,monetary policy as an important macroeconomic policy,is bound to have an impact on corporate credit financing.But what kind of impact does it impact the corporate financing?Does different monetary policies impact on corporate credit financing in the same way?The results of previous studies show that the company's management in order to cater to investor sentiment,will do more investment,continue to push the investor sentiment higher.The demand for investment funds will inevitably lead to the increase of enterprise financing needs.Based on this,I wonder whether the impact of monetary policy on corporate credit financing will be affected by the investor sentiment?This paper reviews and summaries the domestic and foreign literatures,analysis how the monetary policy and the investor sentiment can affect the enterprise credit financing,and how investor sentiment play a moderating role in the monetary policy credit financing for enterprises.Then puts forward the hypothesis,establishes the corresponding model,selects the appropriate variables to carry on the empirical test.Through theoretical analysis and empirical researches,this paper gets the following conclusions:(1)Monetary policy does have an impact on corporate credit financing,the rise in interest rates will make corporate credit financing reduce,the increase in the money supply will make corporate credit financing increase.(2)Investor sentiment does have an impact on corporate credit financing,high investor sentiment will lead to increase corporate credit financing.(3)Investor sentiment plays a moderating role in the impact of price and quantity monetary policy on corporate credit financing.Investor sentiment will weaken the negative impact of price monetary policy on corporate credit financing;and the rise of investor sentiment will weaken the positive impact of the increase in money supply on corporate credit financing.Finally,based on the theoretical and empirical analysis of the full text,this paper puts forward the shortcomings of this paper and the direction of future research.And puts forward the corresponding policy recommendations according to the conclusion of this paper.