Central Bank's Verbal Communication,monetary Policy Action And Corporate Debt Ratio

The monetary policy of the central bank can be divided into two categories: the actual actions of the central bank and the verbal communication of the central bank.The actual actions of the central bank have two major functions: first,the actual operation function.The central bank makes use of three major monetary policy tools: deposit reserve requirement,rediscount and open market operation to conduct macrocontrol,so as to achieve the set monetary policy objectives of the central bank.The second is the signal function of actual actions.When the central bank announces and implements the actual actions,it will also convey the signal of monetary policy adjustment to various micro-economic entities,thus affecting the expectations and decisions of economic entities.The verbal communication of the central bank is similar to the signal function of actual actions,but the central bank's verbal communication,on the one hand,is to proactively inform the public in advance of the actual actions and explain the intention of monetary policy.On the other hand,it also includes comments and explanations on the economic environment and existing policies..Compared with the policy signal of actual actions,the verbal communication of the central bank is more effective in guiding the expectations and behavioral decisions of economic entities.Since the 2008 financial crisis,the verbal communication of central Banks has become an important monetary policy tool for central Banks,given the limited space for traditional monetary policy.Under the background of the research on the influence of macro economy on the micro enterprise behavior,the issue of the influence of the actual actions and verbal communication of the central bank on the corporate debt behavior is worth further study.There have been many researches on the influence of the actual actions of the central bank on the corporate debt behavior,but the research on the corporate debt behavior by the verbal communication of the central bank is still blank.Based on the monetary policy of central bank action to the enterprise debt behavior impact study,on the basis of existing research,this paper discusses the credibility of China's central bank communication and transparency,and respectively discusses the effective impact of central bank communication on enterprise expectation,financial institution risk taking and asset price in financial market.,thus to put forward the central bank communication effective influence corporate financing behavior hypothesis.Furthermore,the paper discusses the different influences of the central bank's communication and monetary policy on the financing behavior of enterprises in terms of the easing and tightening period,and the enterprises with high and low financing constraints,and carry on the demonstration research to demonstrate.This paper takes China's A-share non-financial listed companies as the research object,and collects the quarterly data from the first quarter of 2007 to the second quarter of 2018 for empirical analysis.The research results show that :(1)the actual actions and verbal communication of the central bank are positively correlated with the interestbearing debt ratio of enterprises.(2)the actual actions and verbal communication of the central bank have the same and different effects on the debt ratio of enterprises under different policy tightening environments and different financing constraints.The similarity is that the actual actions and verbal communication of the central bank have a better effect on the debt ratio of enterprises with high financing constraints than those with low financing constraints,This is reflected in the loose and tight policy environment,which can both have a significant impact on the interest-bearing debt ratio of enterprises with high financing constraints.The direction of policy tightening has a better effect on corporate debt ratios than the direction of easing,both in action and in communication.(3)the difference in the effect of the actual actions and verbal communication of the central bank on the interest-bearing debt ratio of enterprises is mainly reflected in that,in the monetary policy tightening environment,the time delay of the actions of the central bank on the interest-bearing debt ratio of enterprises with high financing constraints is greater than the time delay of the actions of the central bank.The possible reason is that in the face of adverse policy environment,enterprises with high financing constraints have to react quickly when the central bank tightened its policy.,while when the central bank communicates tightening,enterprises can adjust to the impact for a certain time because Banks and other financial institutions have not immediately tightened the fund supply.The difference suggests that central bank ommunication can achieve policy goals with less impact on businessIn terms of policy Suggestions,it is necessary to fully study the similarities and differences between the influence of the central bank's verbal communication and actual actions on the micro subject,and give play to the characteristics of the two kinds of policy tools.The central bank should distinguish the different reactions of the micro subjects under different policy environments,improve its ability to guide the micro subjects and improve the effectiveness of monetary policy.The central bank should improve the top-level design of verbal communication,improve the mechanism of interaction and feedback between the central bank and the public,and pay attention to the research on the behavioral decisions of enterprises under different communication situations to improve the communication behavior,so as to avoid situations that are contrary to the intention of the verbal communication policy of the central bank.