Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241779 
Year of Publication: 
2018
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 11 [Issue:] 3 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2018 [Pages:] 233-254
Publisher: 
Elsevier, Amsterdam
Abstract: 
This study examines how the relationships between local governments and local enterprises moderate the effect of targeted monetary policies through different action-propagating mechanisms. First, we investigate the impact of monetary policies on enterprise investment in areas with different institutional environments. Second, we investigate the impact of monetary policies on state-owned enterprises (SOEs) with different property rights structures. Third, we examine how political connections can influence the action-propagating mechanism of monetary policies. We conclude that in China monetary policies have different effects on SOEs and on private enterprises with or without political connections. Specifically, local government interventions can significantly weaken and distort the effects of monetary policies, such that the intended reduction in investment is noticeably alleviated for SOEs and private enterprises with close links to local governments.
Subjects: 
Monetary policy
Government intervention
Nature of property rights
Political connection
Capital investment
JEL: 
E52
G31
M40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size
395.45 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.