Preface

After going through a rare occurrence of the financial crisis, how to improve the effectiveness of monetary policy has become a crucial issue for the monetary authorities to resolve. Today's China is in transition, the market economic operation mechanism is not perfect enough, and different companies are face with different market environments When the central bank uses the monetary policy instruments such as interest rates, legal deposit reserve rate and so on to implement macro-control, different companies react differently to the unified monetary policy, and then the final effect of monetary policy may be different. At this point, it is difficult for the monetary authorities to achieve the goal of a balanced and unified regulation. The accuracy and effectiveness of monetary control policy would be reduced and the final performance of monetary policy would be weakened. It influences the realization of the policy target. Based on the above analysis, taking China's current financial market structure and mature degree as the background and the financing activities of listed companies as the research object, this thesis examines the influence of monetary policy on debt finance of Chinese listed companies, and gives full consideration to the characteristics of listed companies, the micro-foundation of monetary policy.

Based on the theory of corporate finance and monetary policy transmission, this thesis first reviews and analyses China's monetary policy regulation and companies' financing situation, and then conducts empirical research on the influence of monetary policy on the bank loans, trade credit, dynamic adjustment of debt structure and financing choices of corporate with the micro data of listed companies. Besides introduction and conclusion, this paper includes six chapters, and the main content of each part are as follows:

The first chapter is mechanism of influence of monetary policy on corporate finance. In this chapter, we built the theoretical foundation of behavior of enterprise under the effect of monetary policy with the monetary theory and corporate finance theory. Then, we provide the analysis framework for the study of how the monetary policy influences the corporate finance.

The second chapter is the real background. Firstly, we review the operation effects, policy instrument and character of Chinese monetary policy. Then we analyze the environment of monetary policy influences the corporate finance, and discuss the existing finance problems faced by enterprise in China.

The third chapter is empirical test on the impacts of monetary policy on the bank loans of listed companies. Firstly, we analyze the impacts of different monetary policy on the bank loans of listed companies with various property natures. Secondly, we empirical test the impacts of monetary policy on the cost and maturity structure of bank loans. Finally, we test the effect of bank loans to monetary policy in regions of different financial competition and government intervention.

The fourth chapter is empirical test on the impacts of monetary policy on the trade credit of listed companies. Firstly, we analyze the different impacts of different monetary policy on the account payable of listed companies with various property natures；then, we analyze the different impacts of monetary policy on the account receivable of listed companies with various property natures, and discuss the effects of trade credit on the regulation effects of monetary policy.

The fifth chapter is empirical test on the impacts of monetary policy on the dynamic adjustment of debt structure of listed companies. We learn from the method of dynamic adjustment of debt structure, and then we analyze the impacts of monetary policy on the speed of dynamic adjustment to the optimal debt structure and the bias from the optimal debt structure.

The sixth chapter is empirical test on the impacts of monetary policy on the financing choices of listed companies. Firstly, we analyze the impacts of monetary policy on the choices between external finance and internal finance. And then we analyze the impacts of monetary policy on the choices between equity finance and debt finance.

The main conclusions of this thesis are as follows:

First, the effects of monetary policy on bank loans of listed companies with different property natures are of the character of heterogeneity. The credit ration faced by non-state-owned corporation is not only reflected in the scales, but also reflected in the costs. The empirical results find that during the periods of tight monetary policy, the short-term loans of non-state-owned corporation are decreased more than that of state-owned corporation, it is agree with the hypothesis of credit ration. While the long-term loans of state-owned corporation are decreased more than that of non-state-owned corporation, it is agree with the hypothesis of relationship financing. In general, the bank credit of non-state-owned corporation is decreased more than that of state-owned corporate due to credit ration. During the periods of tight monetary policy, the cost of bank loans in non-state-owned corporation is increase, while the cost of bank loans in state-owned corporation is decrease. At the same time, the listed companies often replace short-term loans with long-term loans, and this effect is more significant in non-state-owned corporation. Further research finds that during periods of tight monetary policy, the bank loans of corporation in regions where the lever of financial competition is lower and the lever of government intervention is higher are more sensitive to monetary policy. And at the same time, the difference of effects of bank loans to monetary policy in corporation with different ownership which in regions of fierce financial and the regions where the level of government intervention is lower decrease significantly. It means the rise of financial competition degree and the drop of government intervention degree can alleviate the credit discrimination which non-state-owned corporate suffers.

Second, the effects of trade credit of non-state-owned corporation during the periods of tight monetary policy can not be ignored. The study finds that during periods of tight monetary, the bank loans of non-state-owned corporation are decreased more than that of state-owned corporation due to credit ration, and the account payable is increased more than that of state-owned corporation, it means account payable agree with the theory of alternative financing in non-state-owned corporation during periods of tight monetary. But at the same time, the study finds that the account receivable of non-state-owned corporation are increased more than that of state-owned corporate, and during periods of expansionary monetary policy, the account receivable of non-state-owned corporation are also increased more than that of state-owned corporate, this results show that it is not state-owned corporation but non-state-owned corporation that play the role of credit resource reallocation.

Third, monetary policy tightening will accelerate the adjustment speed of debt structure and increase the bias from the optimal debt structure. The study finds that the higher of legal deposit reserve rate and interest rates is, the higher of the speed to the optimal debt structure will be, and this effect is more significant in the over-indebted and non-state-owned corporation. Further research finds that the higher of legal deposit reserve rate and interest rates is, the more the bias from the optimal debt structure will be, and this effect is more significant in the non-state-owned corporation and the corporation that debts below the optimal level.

Fourth, monetary policy can affect corporate financing choices. The study finds that during the periods of tight monetary policy, the corporate financing order is internal finance→debt finance→equity finance；but during the periods of expansionary monetary policy, the corporate financing order is equity finance→debt finance→internal finance. Further research finds those state-owned and nonover-indebted corporations are more sensitive to monetary policy when they faced the problem on the choice of internal financing and external financing, while nonstate-owned and non-over-indebted corporations are more sensitive to monetary policy when they faced the problem on the choice of debt financing and equity financing.

The policy recommendations which aim at the empirical conclusions include:

The monetary authority should pay more attention to the micro-foundation of monetary policy, and introduce different regulation policy according to different micro participants. The monetary authority should not only focus on the regulation to the formal financial institution such as commercial bank, but also focus on the effect of informal finance such as trade credit and nongovernmental finance in monetary transmission. And taking the counteract effect of informal finance into account, the operating force of the monetary authority need to be strengthen further. When the central bank takes the total amounts of social financing as intermediary goal, it should not only focus on the change of total social financing scale, but also focus on the change of the internal structure, and which will provide information for the monetary authority. Furthermore, it is important to develop the financial system served for private enterprises and small and micro enterprises, and it is also the develop direction for the financial system to raise the level of financial competition and decrease the level of government intervention. When the central bank conducts monetary policy, the government should consider supporting those enterprises who are affected more by the monetary policy.

The innovations of this thesis include:

First, since most existing studies research on the problems of monetary policy using macro data and macro index, this paper researches on the monetary policy transmission from the microcosmic point of view and based on financial statements of listed companies. It extends the related researches on the micro-foundation of monetary policy in China and is helpful for the central bank to find the micro heterogeneity of monetary transmission.

Second, taking into account the institutional background of financial competitions and government intervention, this paper researches on the impacts of monetary policy on the bank loan of listed companies, and provides the reason for the regional effects of monetary policy from a fresh perspective. Since previous studies about regional effects of monetary policy focus more on the reason of regional economic disparities, this paper finds that differences in institutional background are also the important factors which lead to the different reactions for listed companies in different areas to the changes of monetary policy.

Third, in a framework of natural experiment and applying differences-indifferences model, this paper researches on the impacts of monetary policy on the trade credit of listed companies. Natural experiment can decrease the endogeneity of model and identify the casual relationship of monetary policy and trade credit more precisely compared with previous studies. It is also helpful for the central bank to compare the different responses of enterprises under the circumstances of changes of monetary policy.