Purpose

The purpose of this paper is to investigate the effect of monetary loosening on corporate investment in an emerging market.

Design/methodology/approach

The paper begins this study by using a dynamic model to investigate the effect of monetary loosening on corporate investment. This paper uses money supply growth as a proxy for monetary loosening, as the State Bank of Vietnam relies mainly on a quantity-based policy. Next, this paper continues to analyze whether cash holdings are able to mitigate this effect. Finally, this paper examines the effect of monetary loosening on investment smoothing and the mitigating role of cash holding. The research sample includes 4,868 from 617 firms. This paper uses different regression techniques (i.e. pooled ordinary least squares clustered by firm, fixed effects, random effects and system generalized method of moments).

Findings

The research findings show that money supply growth is positively related to both corporate investment and investment smoothing. The effect of monetary loosening on corporate investment is mitigated by corporate cash holding. Moreover, this paper finds that the mitigating effect of cash holdings is stronger for financially constrained firms and non-state-owned enterprises.

Originality/value

Prior studies only focus on corporate investment under-tightening monetary policy; however, there is no research on firm investment under monetary loosening in an emerging market.

中文翻译：

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新兴市场的扩张性货币政策和企业投资

目的

本文的目的是研究货币宽松对新兴市场公司投资的影响。

设计/方法/方法

本文通过使用动态模型研究货币松动对公司投资的影响来开始本研究。由于越南国家银行主要依赖基于数量的政策，因此本文将货币供应量增长作为货币宽松的代名词。接下来，本文继续分析现金持有量是否能够减轻这种影响。最后，本文研究了货币宽松对投资平滑和现金持有的缓解作用的影响。研究样本包括来自617家公司的4,868个。本文使用了不同的回归技术（即合并的普通最小二乘由牢固，固定效应，随机效应和系统广义矩集聚而成）。

发现

研究结果表明，货币供应量的增长与公司投资和投资平稳相关。公司现金持有量减轻了货币宽松对公司投资的影响。此外，本文发现现金持有量的缓解作用对于受财务约束的公司和非国有企业而言更为明显。

创意/价值

先前的研究仅关注紧缩货币政策下的公司投资。然而，在新兴市场货币宽松的情况下，尚无关于企业投资的研究。