Abstract:

Abstract: Loose monetary and tighten monetary policies are conducted alternately in China. However, there are few literatures about common effect of alternant loose monetary policies and tighten monetary policies on corporate output indicators, such as financial risk and operating performance. The paper chooses all the A shares listed companies from 2001 to 2012 as samples to do regression analysis. We divided this period into four alternant periods of loose monetary policies and tighten monetary policies. This paper revealed that the chances of business performance decline, financial crisis and corporate value decline will be greater during tighten monetary policy period in those corporations which obviously performed at high investment level during loose monetary policy period before, and vice versa.