Economic Resilience: The Role of Monetary Policy and Firm Characteristics in Corporate Investment

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F25%3A43911280" target="_blank" >RIV/60076658:12510/25:43911280 - isvavai.cz</a>
Result on the web
<a href="https://inproforum.ef.jcu.cz/artkey/inf-990000-0900_Proceedings.php" target="_blank" >https://inproforum.ef.jcu.cz/artkey/inf-990000-0900_Proceedings.php</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.32725/978-80-7694-143-4.30" target="_blank" >10.32725/978-80-7694-143-4.30</a>

Result language
angličtina
Original language name
Economic Resilience: The Role of Monetary Policy and Firm Characteristics in Corporate Investment
Original language description
This study examines how monetary policy influences corporate investment in China, emphasising how firm characteristics shape heterogeneous investment responses.Using a panel of 5,440 firms from 2000 to 2024, we analyse how interest rates, inflation, and firm-level attributes—such as size, leverage, and liquidity—interact to determine capital expenditure decisions. The results show that both interest rates and inflation exert positive and significant effects on investment, reflecting structural features of China’s financial system and firms’ adaptive behaviour under macroeconomic fluctuations. Larger and more leveraged firms invest significantly more, while liquidity has a negative effect, suggesting precautionary savings motives. Subsample regressions reveal meaningful heterogeneity: large firms respond more strongly to interest rates, while small firms face internal financial constraints and show minimal responsiveness to inflation. These insights highlight the importance of firm-level characteristic0s in understanding monetary transmission and corporate resilience.
Czech name
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Czech description
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Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
INPROFORUM 2025. Proceedings of the 19th International Scientific Conference INPROFORUM. Economy under Pressure.
ISBN
978-80-7694-143-4
ISSN
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e-ISSN
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Number of pages
15
Pages from-to
249-263
Publisher name
Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta
Place of publication
České Budějovice
Event location
České Budějovice
Event date
Nov 6, 2025
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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