A Study on the Influence of Central Bank's Written Communication on Enterprise Risk-Taking——Intermediary Effect Based on Investor Confidence and Enterprise Leverage
As a new monetary policy tool, the central bank’s written communication has an important impact on the decision of venture capital of enterprises. This study quantifies the central bank’s written communication through the text analysis method, using the annual data of 1440 Shanghai and Shenzhen A-share listed companies from 2009 to 2020 to build a fixed-effect model to empirically test the impact of the central bank’s written communication on corporate risk-taking. The result shows that the central bank’s easing written communication significantly increases corporate risk-taking, while the central bank’s tightening written communication reduces corporate risk-taking. In the process of the central bank’s written communication affecting corporate risk-taking, investor confidence and corporate leverage play a part of the mediating role, and the robustness test supports the above conclusion. Moreover, the results of heterogeneity test analysis show that the central bank’s easing written communication has a significant impact on the risk-taking of state-owned enterprises, enterprises in the eastern region and enterprises with high financing constraints. Further analysis of the economic consequences of written communication between the central bank and enterprise risk-taking shows that enterprise risk-taking promotes enterprise financialization and enterprise performance. Therefore, the central bank should constantly optimize the communication mechanism and pay attention to the communication effect, so as to better realize the expected guidance of enterprise risk-taking and promote the high-quality development of enterprises
Year of publication: |
2023
|
---|---|
Authors: | chen, shuai ; zhong, junjing ; liu, honglei ; liu, chao ; wang, pinchun |
Publisher: |
[S.l.] : SSRN |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Corporate sustainability management under market uncertainty
Liu, Honglei, (2019)
-
Sports sponsorship effects on customer equity : an Asian market application
Liu, Honglei, (2015)
-
Country of origin and brand image influences on perceptions of online game quality
Kim, Sang Jin, (2015)
- More ...