Research On The Effect Of Monetary Policy,investor Sentiment On Corporate Financing Constraints

Since the financial crisis in 2008,monetary policy has become one of the important methods in adjusting real economy,unemployment rate and inflation for many countries.The transmission channel from monetary policy to the real economy has also received much attention.With the progress of China's economic reform and the continuous improvement of financial market environment,China has been developed from the rapid economic growth period to the new normal stage period,but this does not change the fact that China's economic growth mainly depends mainly on the high investment.The financing constraints are the key factors that affect the investment and development,and the problems related to the financing constraints is also one of the serious problems faced by Chinese enterprises in recent years.This thesis attempts to provide addition microeconomic level data to the existing literature,adding the effect of investor sentiment to transmission channel of monetary policy.Issues related to financing constraints are also one of the main problems corporations in China are facing.Further,we study how to effectively finance for innovation and structural transformation and how to utilize monetary policy tools to lower financing costs.Through theoretical and empirical analysis,this thesis adds investor sentiment to monetary policy transmission frameworks and researches the effect of both elements on corporate financing constraints.This thesis first summarizes existing literature and explains the relationship and transmission paths between monetary policy,investor sentiment and corporate financing constraints.Next,using data of publicly listed companies in China from 2000-2016,an empirical study is conducted.The empirical results demonstrate that monetary policy and investor sentiment can significantly relieve corporate financing constraints.That is,external financing cost decreases during monetary easing and corporate can receive external investment from many sources.High investor sentiment can also significantly relieve corporate financing constraints.In this thesis,the contribution of the relevant research on monetary policy is mainly embodied in the perspective of the research.The research of previous literatures focuses on the relationship between monetary policy,investor sentiment and enterprise financing constraint,this thesis tries to put the three into the same frame,and to study how to reduce the enterprise financing cost through monetary policy.It is of great practical significance to promote the development of the real economy by completing financing and carrying out technological innovation and structural transformation under the new normal economy.