Monetary Policy, Asset Specificity And Financing Constraints

In 2008,the global financial crisis broke out.In order to stabilize the economic growth,the Chinese government carried out a relatively loose monetary policy.This policy has stabilized the economic growth,but it has also brought about a flood of liquidity and economic dislocation.Therefore,in recent years,the Chinese government has adopted a relatively tight monetary policy,and the growth rate of M2 has declined significantly.Changes in monetary policy will have a direct impact on the financing cost and financing constraints.At the same time,the specificity of enterprise assets reflects the "lock in" role of assets,which influences the choice of enterprise financing methods,and then influences the financing constraints.As a result,the relationship between monetary policy,corporate asset specificity and corporate financing constraints are becoming an important subject in the financial theory community.This paper intends to discuss the relationship between monetary policy,enterprise asset specificity and financing constraints,in order to play a role in solving the problem of financing constraints of Chinese enterprises.This paper uses multiple linear regression,group regression and other research methods in the case of the non-state-owned listed companies in Shanghai and Shenzhen stock market in 2007-2016,studying the relationship between monetary policy,enterprise asset specificity and financing constraints.The paper is divided into five parts.The first part introduces the research background,research significance and basic content of this article;The second part summarizes the basic theories related to monetary policy,asset specificity and financing constraints and then reviews previous literature.;The third part is empirical research design,put forward the assumptions of this article and build models,select variables;The fourth part is empirical results and analysis,we also perform robustness tests on the models and variables in this paper;The fifth part is the conclusion and suggestion.Through the above research,this paper draws the following conclusions.Firstly,the degree of the tightening of monetary policy and financing constraints are positively related.That is,the tightening monetary policy has enhanced the company's reliance on net cash flow from operating.Secondly,the level of enterprise asset specificity and the financing constraints are positively related.Although companies with high asset specificity have higher profitability,they also face higher external financing constraints.Thirdly,the level of enterprise asset specificity significantly influences the relationship between monetary policy and corporate financing constraints.Companies with high asset specificity are less dependent on debt financing,and their financing constraints are less influenced by monetary policy.