Is energy firms' investment behavior more sensitive on corporate perception of monetary policy?

Central bank communication has emerged as a non-traditional monetary policy tool capable of mitigating adverse effects, policy uncertainties and stabilizing expectations, thereby affecting corporate investment behaviors. Additionally, monetary authorities among the pioneers are performed in promoting green growth. To shed light on the role of corporate perception of monetary policy in corporate investment and tell the heterogeneous effects between energy and non-energy firms, we employ the Chinese listed firm data during 2011 to 2022 to estimate the relationship. Our empirical findings reveal that corporate firms' investment behaviors are significantly sensitive on corporate perception of monetary policy. In specific, energy-intensive firms are more sensitive on such effects. Moreover, a series of working mechanisms is well explored. The corporate perception of monetary policy helps firms reducing financial risk, alleviating internal financial cost and external bank financing pressure to facilitate energy-intensive firms' investment behaviors. Furthermore, the heterogeneous of non-SOEs and high regulation level highly motivates energy-intensive firms to invest.