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Monetary policy, corporate credit and digital transformation

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  • Jiang, Ruishi
  • Ruan, Jia
  • Long, Keru
  • Ni, Jianhui

Abstract

This paper investigates whether monetary policy and digital transformation of enterprises can increase corporate credit, using Chinese A-share listed companies in Shanghai and Shenzhen from 2014 to 2021. The results show that loose monetary policy can significantly increase corporate credit, while the higher the degree of enterprise digital transformation, the less favorable loose monetary policy is to increase corporate credit. Meanwhile, the heterogeneity analysis finds that the higher the degree of digital transformation of non-state-owned enterprises relative to state-owned enterprises, the more unfavorable loose monetary policy is in increasing corporate credit. The enterprise liquidity ratio is larger, the asset-liability ratio is smaller, and the size is moderate, the digital transformation of enterprises is more conducive to increasing corporate credit.

Suggested Citation

  • Jiang, Ruishi & Ruan, Jia & Long, Keru & Ni, Jianhui, 2024. "Monetary policy, corporate credit and digital transformation," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324007682
    DOI: 10.1016/j.frl.2024.105738
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