Monetary Policy Environment,Debt Financing Method And Enterprise Investment Efficiency

In recent years,with the development of Chinese bond market,bonds have played an increasingly important role in the market of corporate debt financing.The financing behavior of micro-enterprises is closely related to macro monetary policy.When debt financing is adopted,enterprises will choose different financing methods such as bank loans or corporate bonds according to the adjustment of monetary policy.The investment efficiency of enterprises is closely related to their financing decisions.Different debt financing methods play a different debt governance effect,which in turn affects the degree of investment efficiency.The purpose of this paper is to study the impact of monetary policy on corporate financing methods and the impact of debt financing methods on investment efficiency under different monetary policies,in order to make a marginal contribution to the relationship between Chinese monetary policy and micro-enterprise investment.This paper studies the impact of changes in monetary policy on corporate debt financing type,by taking the non-financial listed companies in China from 2007 to 2016 as a sample.We also examines the impact of monetary policy on the debt financing type of different property rights enterprises due to the significant differences between the financing costs of different property rights companies and the availability of external funds.It is found that under the overall effect,for companies that can choose both bank loans and bond market financing,as the monetary policy tightened,enterprises tend to choose bond financing;when the monetary policy is loosened,companies tend to choose bank loans.The effect on private enterprises is particularly prominent,while the debt financing type of state-owned enterprises is not sensitive to changes in monetary policy.Secondly,this paper studies the impact of debt financing methods on enterprise investment efficiency under different monetary policies.Because of the differences in internal incentives and constraints of different property rights enterprises,this paper examines the impact of debt financing of different property rights enterprises on investment efficiency.The study found that: overall,the hard constraint of bank loans weakens its debt governance effect,and not only does it not inhibit the non-efficiency investment of enterprises,but strengthens the degree of non-efficiency investment.While corporate bonds play its debt governance effect and improve the efficiency of enterprises investment.For different property rights enterprises,bank loans have shown to improve the company's inefficient investment,and compared with non-state-owned enterprises,state-owned enterprises' bond financing can fully exert their debt governance effects and improve enterprise efficiency investment.The results of this paper show that monetary policy in China has obvious influence on the financing behavior of micro-enterprises.When the monetary policy is tightened,the bank credit supply is insufficient.It is especially important to develop the corporate bond market to provide stablet funds for enterprises with real financing.Besides,corporate bond financing can better play the debt governance effect than bank loans,and improve the investment efficiency of enterprises.