Monetary Policy?capital Structure And Business Performance

Monetary policy is an important measure for macroeconomic regulation and control in our country.By analyzing the monetary policy adopted by our government in recent years,we can find that there is a consistent trend between the degree of tightening and the change of bank loans.When monetary policy is relaxed,Bank loans increased,while monetary policy tightened,bank loans decreased.This shows that the implementation of monetary policy will have an impact on corporate debt financing,thus affecting the capital structure of enterprises.In addition,the relationship between capital structure and corporate performance has always been the focus of academic research.However,the specific relationship between the two has not been drawn a unified conclusion.This paper argues that the reason is that the macro monetary policy is not considered.Under the loose monetary policy,enterprises can obtain adequate bank loans and their asset-liability ratio is raised.Tightening of monetary policy makes it difficult for enterprises to obtain bank loans and reduce their asset-liability ratio.Changes in corporate lending funds are related to their operations and investments Project development,thereby affecting the performance of enterprises.Therefore,this paper combines monetary policy,capital structure and business performance to conduct research and analysis,which provides some theoretical support for the study of capital structure.In addition,it provides some theoretical basis for the government to make a reasonable monetary policy and helps enterprises in When making financing decisions,we can fully consider the impact of macroeconomic factors,arrange effective capital structures in time,and provide adequate funding for investment projects so as to improve corporate performance.First of all,by analyzing the changes of monetary policy and bank loans implemented in recent years in our country,we find that there is the same trend of change between the two.It is suggested that monetary policy will have an impact on the capital structure of the enterprise.The change of the capital structure of the enterprise is related to the operation of the enterprise Capital surplus situation,so this paper believes that there is a correlation between monetary policy,capital structure and business performance.Then,the paper reviews the literature on monetary policy,capital structure and corporate performance.Secondly,this paper defines the monetary policy,capital structure and corporate performance,and puts forward the theoretical basis of this article,including credit transfer theory,Signal transmission theory and the theory of optimal financing;thirdly,hypothesis is deduced and the research hypothesis in this paper is put forward.H1: The relationship between monetary policy and capital structure;H2: In the case of certain monetary policy,capital structure and corporate performance are positively correlated.In the meantime,a total of 11,404 listed companies were selected as research samples and the study period was from 2010 to 2016.A total of 33,404 quarterly data were identified.In addition,we choose the indexes of each variable,among which the monetary policy is measured by monetary policy index,the capital structure is measured by debt-to-asset ratio,and the corporate performance is measured by total assets return rate.Fifth,establish a model,and conduct empirical analysis and robustness test.The empirical results show that:(1)Monetary policy is related to capital structure;(2)Capital structure is positively correlated with firm performance under certain monetary policy.Accordingly,some suggestions are put forward:(1)Enterprises must pay attention to the change of external monetary policy in the financing decision-making,enhance the sensitivity to the change of cash flow and arrange the financing in advance so as to make the financial budget and corporate performance Impact control within a reasonable range.(2)In the course of lending,banks should pay more attention to the information disclosure of borrowing enterprises,and should not only pay attention to the ability of compensating for the default of mortgaged property.(3)The government should strictly control the entry and exit of the securities market so as to ensure that enterprises can choose to issue securities in a timely manner for financing when the financing of bank loans is blocked.