Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187639 
Year of Publication: 
2015
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 8 [Issue:] 2 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2015 [Pages:] 91-109
Publisher: 
Elsevier, Amsterdam
Abstract: 
We investigate monetary policy effects on corporate investment adjustment, using a sample of China's A-share listed firms (2005-2012), under an asymmetic framework and from a monetary policy transmission channel perspective. We find that corporate investment adjustment is faster in expansionary than contractionary monetary policy periods. Monetary policy has a significant effect on adjustment speed through monetary and credit channels. An increase in the growth rate of money supply or credit accelerates adjustment. Both effects are significantly greater during tightening than expansionary periods. The monetary channel has significant asymmetry, whereas the credit channel has none. Leverage moderates the relationship between monetary policy and adjustment, with a greater effect in expansionary periods. This study enriches the corporate investment behavior literature and can help governments develop and optimize macro-control policies.
Subjects: 
Monetary policy
Transmission channels
Asymmetric effect
Corporate investment
Dynamic adjustment
JEL: 
G31
E52
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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