How Does Monetary Policy Affect Corporate Risk-taking

After more than 30 years of reform and opening up,enterprises have become an increasingly important part of the market economy.In this context,the study of enterprise risk-taking has a profound significance for China today.As an important financial intermediary,commercial banks also play an important role in our financial system.Therefore,this paper studies the impact of monetary policy on corporate risk-taking with bank risk-taking as an intermediary variable.In terms of theoretical mechanism,this paper studies the intermediary role of banks in the transmission mechanism of monetary policy affecting enterprise risk-taking.The change of monetary policy position will affect the bank's risk-taking behavior.Monetary policy tends to be loose,which will increase the bank's preference for risk,otherwise,the bank's willingness to bear risk will decline;while the bank's preference for risk will affect the enterprise's risk bearing,and the increase of bank's risk preference will reduce the enterprise's financing constraints,improve the level of enterprise's risk bearing,and the decrease of bank's willingness to bear risk will increase the enterprise's financing constraints Flat decline.In the aspect of empirical research,the sample is all A-share companies(excluding financial industry and insurance industry)listed on Shanghai and Shenzhen stock exchanges in 2008-2018,and the model is estimated by using the generalized system moment estimation(sys-gmm).The first step is to empirically analyze the impact of monetary policy on corporate risk-taking.The second step is to test the relationship between monetary policy and bank risk;the third step is to explore the impact of bank risk-taking on enterprise risk-taking;finally,in the first step of the empirical model,the agency variable of bank risk-taking is added to study the intermediary role of bank risk-taking.The conclusions are as follows:(1)monetary policy will have a significant impact on bank risk-taking.If the monetary policy tends to tighten,it will reduce the risk-taking willingness of enterprises;otherwise,it will increase the risk-taking willingness of enterprises.The impact of monetary policy on the risk-taking of enterprises of different scales and natures is asymmetric.(2)monetary policy will significantly affect bank risk-taking.When the monetary policy tends to be tightened,it will reduce the risk-taking willingness of banks;otherwise,it will improve the risk-taking willingness of banks;(3)the risk-taking level of banks has a significant positive impact on the risk-taking of enterprises.(4)bank risk-taking plays a part of intermediary role in the process of monetary policy affecting enterprise risk-taking.Combined with the theoretical and empirical analysis,the policy suggestions put forward in this paper are as follows: using monetary policy and bank risk-taking to adjust enterprise risk-taking;implementing differentiated monetary policy for different enterprises;the government should strengthen the prudence and moderation of monetary policy...