Home >> Working Paper
The Nature of Shareholder and the Effectiveness of Monetary Policy Transmission
Read        DownLoad
TitleThe Nature of Shareholder and the Effectiveness of Monetary Policy Transmission  
AuthorYizhong Wang Frank Song and Lianfa Li  
OrganizationSchool of Economics , Zhejiang University;School of Economics and Finance, University of Hong Kong and School of Economics, Peking University;School of Economics, Peking University 
Key WordsMonetary Policy;The Nature of Shareholders;The Reformation of Interest Rates Liberalization 
AbstractBased on China's particular operation on monetary policy, this paper establishes the hypothesis of differences in the nature of of shareholders how to influence the effect of monetary policy transmission and uses Chinese listed companies’ data to conduct empirical analysis. The findings showed that during the entire sample period, monetary policy changes will impact on corporate investment behavior, and the nature of shareholders does not affect the transmission effects of quantitative monetary policy, but do will affect the price-based monetary policy transmission. However, considering the monetary policy cycle, we found that the nature of shareholder will affect transmission effects of monetary policy in the tightening cycle, but does not affect transmission effects in the expansionary policy cycle. Meanwhile, the liquidity, the size, the ratio to asset liability of companies will limit the effectiveness of monetary policy. The lesson is: the optimization of governance structure in micro fields should be prior to the reformation of interest rates liberalization; we should focus on the use of demand-oriented monetary policy. 
Serial NumberWP304 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153