Monetary Policy,Regional Financial Level And Corporate Debt Financing

Enterprises are the main body of China’s micro-economic operation,the continuous and stable external financing is an important source of healthy development of enterprises.The Improvement and breakthrough of the problem of financing difficulties of SMEs is the key to ensuring the stability and long-term development of the Chinese economy.Debt financing is a favored financing method for small and medium-sized private enterprises,of which bank loans are their main debt financing method.However,China’s long-term unbalanced dual economic and social structure has led to the obvious dual characteristics of the market economic system and the financial system,which has directly caused serious imbalances and injustices in the distribution of financial resources and occupation costs,and has made the SMEs and other vulnerable Group faces dilemma of financial exclusion.In addition,China has a vast territory and different geographical and economic foundations between regions.Financial infrastructure construction and development mechanisms are intricate.Not only microeconomic entities have many constraints on debt financing,monetary economic policies are in a complex and changing international economic situation and China ’s key strategies under the multi-tasking goal of the transition period,the intention to help finance is also a hindrance.On the basis of sorting out relevant literature and proposing theoretical basis,this article first constructs a comprehensive indicator system to measure the level of local financial development,and then uses local data from 2009 to 2017 in 31 provinces and municipalities in China,using principal components.The analysis method calculates the financial level scores and corresponding rankings of each province and city in each year,and uses this as a measurement index to measure the level of local financial development.Combined with the financial data of 585 A-share listed companies in China from 2009 to 2017 and the implementation of monetary policy during the sample period,the method of univariate comparative analysis and fixed-effect model regression was used to examine the monetary policy and regional financial development level for enterprises’total debt level,credit financing level,and the impact of commercial credit,and the cross-cutting effect of monetary policy and regional financial development in this process,focuses on the discussion of enterprises facing both tight monetary policy and poor regional financial development and the changes in debt financing methods and levels under the circumstances.Finally,on the basis of changing the measures of the explained variables and explanatory variables and the regression model,the hypothesis of this paper is tested for robustness.The basic conclusions drawn are:1.The comprehensive index evaluation system for regional financial development shows that China’s regional financial development levels vary widely and the basic pattern has not changed during the vertical development process.2.Monetary policy has a positive role in promoting corporate debt and credit financing,and its effect on commercial credit is not obvious;and the impact of monetary policy on the two is relatively low in provinces and cities with relatively low financial levels..3.The level of regional financial development has a positive effect on the company’s total debt level,credit financing level and commercial credit level.In the period of loose monetary policy,the impact of regional financial development level on corporate debt financing level is relatively small.When monetary policy is tightening,regional financial levels have a greater positive impact on corporate debt financing.4.Corporate debt financing is still dominated by bank credit,supplemented by commercial credit.In the context of loose monetary policy and more developed regional financial development levels,there is a complementary relationship between corporate credit financing and commercial credit,but when companies face tight monetary policies and underdeveloped regional financial levels,There is an alternate relationship between credit financing and commercial credit.