The Credit Transmission Mechanism of Monetary Policy----Evidence from Business Credit and Firm Ownership Structure
Read
DownLoad |
| Title | The Credit Transmission Mechanism of Monetary Policy----Evidence from Business Credit and Firm Ownership Structure
|
| Author | Rao Pingui and Jiang Guohua |
| Organization | Management School, Jinan University；Guanghua School of Management, Peking University |
| Email | raopingui@gmail.com |
| Key Words | Monetary Policies; Credit Transmission Mechanism; Business Credit; Bank Loan; Ownership |
| Abstract | Based on business credit and firm ownership, this paper investigates Chinese monetary policy’s credit transmission mechanism. Using monetary policy contraction dummy variable and bankers confidence index, we find the impact of monetary policies on lending is stronger for non-state enterprises, via-a-vis for state enterprises, during monetary policy contraction phase, and not-state enterprises are more likely to obtain net business credit as alternative financing. In ancillary tests we also find that firms shorten the account receivable period and extend the account payable period during monetary policy contraction phase, especially in the non-state enterprises. Evidences in this paper indicate monetary policy credit transmission mechanism on a micro level exists in China, also enriches research on macroeconomic analyses and firm behaviors. Understanding monetary policy transmission mechanism should help policy-makers find more appropriate monetary policy intermediate target, and deepen our understanding of the role of information asymmetry and credit-rationing in monetary policy impact. |
| Serial Number | WP91 |
| Time | 2011-07-20 |
|