Monetary Policy and Inventory Investment: Panel Data Evidence from China

DOI

10.2991/icem-17.2018.80How to use a DOI?

Keywords

Economic cycle; Fluctuation of cash flow; Inventory investment; Rade credit; Bank Loan

Abstract

This study uses 2000-2012 Chinese listed manufacture firms' data to examine the effects of monetary policy on the firms' inventory investment. The paper estimates the firms' inventory investment model using a dynamic neo-classical framework. We find that internal cash flow fluctuation is the most important factor to promote the fluctuation of inventory investment. Trade credit relatively weakens the impacts of monetary policy on inventory investment, and bank loan is the important channel of monetary policy on inventory investment. Our findings could explain the reason for the fluctuation of inventory.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuxin Ning
AU  - Huanying Wang
PY  - 2018/01
DA  - 2018/01
TI  - Monetary Policy and Inventory Investment: Panel Data Evidence from China
BT  - Proceedings of the 2017 7th International Conference on Education and Management (ICEM 2017)
PB  - Atlantis Press
SP  - 400
EP  - 408
SN  - 2352-5428
UR  - https://doi.org/10.2991/icem-17.2018.80
DO  - 10.2991/icem-17.2018.80
ID  - Ning2018/01
ER  -