Monetary Policy,Corporate Financial Asset Allocation and the Capital Income Share
In the economic growth of various countries over the past century,there have been significant differences in the income distribution of the two core factors of capital and labor.Although long-term stable economic growth is typi-cally associated with labor-augmenting technological progress,capital-augmenting technological progress is more com-mon during economic transition periods,and especially some economic and industrial policies influence and even acceler-ate technological change.Therefore,with the motive of exploring the connotation of high-quality economic development,this paper explores the dynamic changes in the income share of capital and labor—the two core elements of economic growth—during the implementation of monetary policies.As the main body of economic activities,the factor income distribution of enterprises has an important impact on the gap between the rich and the poor.At present,the research on the factor income distribution of enterprises is mainly based on micro factors,while in reality,monetary policies will also affect the capital income share by affecting the financial inte-gration of enterprises.So far,the impact of monetary policies on the factor income distribution from the micro perspec-tive of enterprises has not been fully discussed.In addition,the rapid development of shadow banking in China after 2012 and the increasing level of corporate financial asset allocation may also affect the impact of monetary policies on the capi-tal income share of enterprises.Therefore,this paper aims to conduct research in the above-mentioned fields by analyzing how the micro mechanism of monetary policies affect the factor income distribution of enterprises from the theoretical and empirical levels,as well as examining how the corporate financial asset allocation affects the relation between mon-etary policies and the factor income distribution of enterprises.Based on theoretical model derivations and using financial data of A-share non-financial and non-real estate listed enterprises in Shanghai and Shenzhen stock exchanges from 2007 to 2019,this paper empirically analyzes the impact of monetary policies on the capital income share of enterprises,as well as the role of corporate financial asset allocation in this process.The study finds that loose monetary policies significantly increase the capital income share of enterprises,and corporate financial asset allocation further strengthens the impact of loose monetary policies on the capital income share of enterprises.Heterogeneity analysis shows that under the impact of loose monetary policies,enterprises with smaller scale,higher financing constraints,and lower capital intensity,as well as those in regions with higher levels of fi-nancial development and during periods of lower bank liquidity hoarding,exhibit a faster growth trend in the capital in-come share.The marginal contributions of this paper are as follows.First,existing literature on the factor income distribution ei-ther focuses on the macro level or is based on micro-enterprise characteristic factors.However,there are few studies on the impact and mechanism of monetary policies on the factor income distribution of micro-enterprises.In this regard,this paper combines theoretical analyses and empirical tests to explore the impact of monetary policies on the capital income share of enterprises from a micro-enterprise perspective.Second,this paper analyzes how corporate financial asset allocation affects the relationship between monetary poli-cies and the capital income share of enterprises.Globally,there is widespread inequality in the financial asset allocation of non-financial enterprises and the factor income distribution;however,very few studies analyze the role of financial as-set allocation of non-financial enterprises in the factor income distribution.In this regard,this paper conducts empirical testing based on theoretical analysis,and the results confirm that corporate financial asset allocation can indeed signifi-cantly enhance the effect of loose monetary policies increasing the capital income share of enterprises.
Monetary PolicyCorporate Financial Asset AllocationCapital Income Share
万方数据
维普
