Macro Monetary Policy and Micro Corporate Behavior

The process of monetary policy transmission can be understood as a “macro policy stimulus-microeconomic response-macro output” process, that is, from the process of macro monetary policy control affecting macro output, micro Economies (businesses, households, individuals, etc.) have played a decisive role in responding to monetary policy changes. As early as 1963, scholar To-bin pointed out that corporate asset allocation is a direct reflection of corporate behavior, so it is also of great significance to explore the role of corporate financial asset allocation in the impact of monetary policy on corporate performance. This article reviews the impact of monetary policy on corporate investment and financing behavior, and reviews past research to show the impact of monetary policy on corporate financial behavior.


Introduction
Macroeconomic policies are policies that affect the entire economy formulated by the government of a country in order to regulate the development of the national economy. Monetary policy has always been an important means of government intervention in the economy. The implementation of monetary policy operating tools also affects enterprises through various transmission mechanisms. This paper reviews the literature from three perspectives: the transmission mechanism of monetary policy, the differences and effects of monetary policy, and the effects of monetary policy on corporate investment and financing.

The Transmission Mechanism of Monetary Policy
From the perspective of the transmission mechanism of monetary policy, Kashyap, Stein & Wilcox (1993) envisage that if faced with austerity monetary policy, banks may mitigate the crisis in the following three ways: reduce loans to enterprises, sell securities they hold, or increase equity capital. And they found that the proportion of securities held by large banks in the United States is lower than that of small banks. At the same time, in the context of tightening monetary policy, raising equity capital is not easy. Therefore, banks facing the crisis are most likely to reduce Business loans. Kashyap, Stein & Wilcox (1993) provided direct and more convincing empirical evidence for the monetary policy credit transmission mechanism. They used data from Bank of America from the first quarter of 1976 to the third quarter of 1993 to study the transmission mechanism of monetary policy and found that tight monetary policy has a greater impact on small banks and illiquid banks, especially when the regression variable is commercial and industrial loans. Kashyap et al. (1993) found that during the tightening of monetary policy, large enterprises will seek financing channels other than bank loans, such as short-term bonds. In addition to short-term bonds, commercial credit between companies and suppliers can also be used as a substitute for bank deposits. Almeida et al. (2012) found that during the credit crunch period, those companies with a large number of loans due may face renewal freezes and liquidity crises, which will have a greater negative impact on corporate investment and financing, making it too short. The debt maturity constitutes an acceleration mechanism for the impact of tightening credit shocks on micro-enterprises. In addition, the loan term structure is an important means for banks to participate in corporate governance. The shorter the loan term is, the stronger the bank's ability to restrain corporate opportunism will be (Acharya et al., 2011). When the monetary policy shock comes, the bank's risk attitude will change (Borio & Zhu, 2012). When the statutory deposit reserve ratio rises, commercial banks need to deposit more funds into the reserve Accounts, allowing banks to cut lending levels; when rediscount rates or reloan rates rise, commercial banks' willingness to hold loan assets also declines (Bernanke & Gertler, 1995). Therefore, when monetary policy tends to be tightened, banks will be forced to reduce the level of stock loans on the asset side due to reduced financing sources and rising financing costs on the bank's liability side (Bernanke & Blinder, 1992;Kashyap et al., 1993).

The Differences and Effects of Monetary Policy
In the second section, we analyzed the transmission mechanism of monetary policy. According to previous research, the transmission mechanism of monetary policy does exist. This section is intended to further analyze whether the transmission effects of monetary policy are heterogeneous.

Monetary Policy Differences
From the perspective of monetary policy differences, Cover (1992) confirmed the concept of the differential effects of monetary policy by studying the impact of US monetary policy on economic growth. The differential effect of monetary policy is defined as: expansionary monetary policy and tightening monetary policy of the same magnitude have different stimulating and inhibiting effects on the economy. With the continuous research on the difference of monetary policy, the definition of the difference of monetary policy has also been expanded a lot, forming the horizontal difference effect of monetary policy and the vertical difference of monetary policy. Karras (1996) used data from 18 European countries to find that there is indeed a situation in these countries where the impact of austerity monetary policy on output is greater than that of expansionary monetary policy, especially when interest rates decrease, output is hardly affected. Leu (2006) borrowed from Cover's model to prove that there is also a difference in the effectiveness of Australian monetary policy. In addition, Garibaldi (1997) also started from the perspective of employment to study the difference between the impact of expansionary and contractionary monetary policies on employment, and found that contractionary monetary policies can effectively suppress employment, while expansionary monetary policies are difficult to promote. Aye and Gupta (2012) used India's quarterly data from the second quarter of 1960 to the second quarter of 2011 to test the effects of monetary policy on There is a difference in direction, and they find that positive and negative monetary policy shocks will have different effects on both output and prices. In addition, they also found that compared with the traditional linear VAR model, the use of a nonlinear VAR framework can better characterize the central bank's monetary policy effects.

The Heterogeneity of Monetary Policy Effects
From the perspective of the heterogeneity of monetary policy effects, Garrison and Chang (1979), when studying the effects of monetary policy in different regions, found that the characteristics of industries in each region determine the degree of influence by monetary policy. When studying the regional effects of policies, we noticed the important role played by industrial heterogeneity. It is precisely because of the different industrial capital density distribution in different regions and the inconsistent scale of enterprises that this has caused the effectiveness of monetary policy to be different. This has led scholars to study the differences in monetary policy at the industrial level, that is, the differences in the industrial effects of monetary policy. The research of Blinder (1981) and Christiano et al. (1997) found that the difference in the impact of monetary policy on industries stems from the difference in the impact of monetary policy shocks on industrial profitability. Before the company obtains sales income, it usually pays the costs of fixed asset investment and production factors through borrowing. Due to the different production costs and profit margins of various industries, the impact of changes in nominal interest rates on the profitability of various industries varies greatly., And cause different industries to respond to the same degree of monetary policy. Bernanke and Gertler (1995) use the VAR model and use discrete data to study the impact of monetary policy on the consumption of different types of goods, and obtain the conclusion that monetary policy has different effects on industries corresponding to different types of goods. Ganley and Salmon (1997), using British data from 1970 to 1995, used the VAR model to study the impact of British monetary policy on 24 different industries. The impact was relatively large, and the tertiary industry represented by the service industry was relatively less affected by changes in monetary policy. Moreover, the degree of response of different enterprises to monetary policy in the same industry also varies greatly. Small enterprises are more sensitive to monetary policy than large enterprises. Hayo and Uhlenbrock (2000) used the VAR model to study the impact of monetary policy on 28 different industries in German industry. They further confirmed that heavy industries are more sensitive to interest rates than non-durable goods industries. They believe that the inter-industry capital stock The difference is the main reason for the industrial effect of monetary policy. Heavy industries with high capital stocks are affected by changes in monetary policy more than light industries with low capital stocks. Dedola and Lippi (2005) analyzed the panel data of 21 industries in five OECD countries (Germany, Italy, France, the United States, and the United Kingdom), and they found that factors such as company size, financing capacity, and financial cost sharing are explaining the various factors The main reason why industries have varying degrees of reaction to changes in monetary policy. Based on the research based on Dedola and Lippi (2005), Peersman and Smets (2005) expanded the scope of the study, using data from seven countries (France, Germany, Australia, Belgium, Netherlands, Spain, Italy) to study through VAR model The impact of monetary policy on 11 industries, it was found that monetary policy showed significant differences between different industries, and that during economic depression, the impact of changes in interest rates in Europe on output was significantly greater than that during economic prosperity, and they received capital The higher the intensity of the industry, the greater the impact of changes in monetary policy. The industry that produces durable goods is more than three times as strong as the industry that produces non-durable goods. Arnold, Kool & Raabe (2005) selected relevant data from US states and used VAR models to study the response of manufacturing and non-manufacturing industries to interest rate shocks. The results show that different industries show different degrees of response to interest rate shocks. At the same time, They conducted a more in-depth analysis of the industrial discrepancy effect of monetary policy and they believe that the difference in capital intensity and scale of different industries is an important reason for the difference in the effects of monetary policy industry.

The Impact of Monetary Policy on Corporate Financing
In terms of the impact of monetary policy on corporate financing, Rao Pingui and Jiang Guohua (2010) studied the micro-mechanism of China's monetary  (2013)  at the same time, the development of regional financial markets can play a similar role, so as to strengthen the effect of alleviating corporate financial constraints, thereby reducing corporate financial constraints.

The Impact of Monetary Policy on Corporate Investment
In constructed a "investment-short-term loan" sensitivity model, which initially verified the existence of certain "short-term and long-term investment" behaviors in Chinese enterprises, and found that "short-term and long-term investment" may increase operating risks and trigger inefficient investments. Ways such as increasing financial distress costs have a negative effect on the company's performance; while a modest increase in monetary policy can not only directly inhibit the "short-term long-term investment", but also reduce the adverse effect of the "short-term long-term investment" on the company's performance Impact plays an indirect role. Yu Ze et al. (2015) research found that in order to evade the control of the scale of desirable loans, commercial banks will use shadow banking to transfer high-risk loans off-balance sheet. This behavior will cause liquidity mismatch, which will cause financial and real economy to be  In terms of the impact of monetary policy on corporate investment and financing: The method of measuring corporate investment efficiency is mainly indirect; most scholars analyze the impact of monetary policy on corporate investment efficiency from the perspective of easing corporate financing constraints and affecting corporate investment opportunities and investment decisions. Most scholars analyze the impact of commercial credit on corporate investment efficiency from the perspectives of financing constraints and debt governance; the relationship between commercial credit and monetary policy is mainly reflected in the substitution relationship between commercial credit and bank credit, and the impact of commercial credit channels on The weakening effect of the transmission effect of monetary policy; monetary policy and commercial credit will comprehensively affect the investment efficiency of enterprises.

Conclusion
Economic theory points out that the impact of monetary policy on the economic system is mainly through monetary channels and credit channels. The former is mainly reflected in interest rates, while the latter is mainly reflected in bank credits. Both of these affect the company's financing environment. The impact of monetary policy on corporate financing constraints is mainly reflected in two aspects: On the one hand, loose monetary policy is conducive to enterprises' access to credit rationing. On the other hand, the interest rate level of China's private lending market will also be affected by monetary policy. When monetary policy is tightening, private lending rates will increase, which will further worsen the financing constraints of enterprises; when monetary policy is loose, private market lending rates Reduction will become a source of financing complementary to credit resources. Based on this, on the basis of economic theory, this article reviews the literature on the transmission mechanism of monetary policy to explain the theoretical and display evidence of the impact of monetary policy on the economic system.
On the other hand, as a new field of accounting and financial research, macroeconomic policies and micro-enterprise behaviors have expanded the perspective of research in the field of accounting and finance, and have established a bridge connecting macroeconomic policies and micro-enterprise behaviors. This article takes the macroeconomic policy of monetary policy as the starting point, reviews the impact of monetary policy on micro-enterprise behavior, and uses the two financial issues of investment behavior and financing behavior as sections to show the financial behavior of micro-enterprise by different monetary policies.