Research on Asymmetric Response of Overinvestment to Monetary Policy

In order to better understand the transmission mechanism of monetary policy, we evaluated the asymmetric response of corporate over investment to monetary policy. We tested the different effects of monetary policy on excessive investment under the different corporate ownership structure. There are two findings. First, listed companies in China generally have excessive investment behavior. Second, excessive investment behavior of non-state-owned enterprises on the monetary policy reaction is more sensitive than state-owned enterprises. That is, for non-state-owned enterprises, the impact of monetary policy on excessive investment is more serious.