The 284th Wenlan Financial Forum

Abstract：

We study the role of firm heterogeneity in state-ownership and productivity in monetary policy transmission in China. Empirically, we document that the impact of monetary supply shocks on firms' risk premia and corporate decisions varies substantially both within and across state-owned enterprises (SOEs) and private-owned enterprises (POEs). We develop and estimate a dynamic heterogeneous firm model with monetary supply shocks and financial frictions to interpret the empirical findings. The model shows that more severe frictions in accessing debt markets for POEs exacerbates capital misallocation in times of contractionary monetary shocks, leading to sizable losses in aggregate productivity and output.

Speaker Introduction：

Dr. Xiaoji Lin is US Bancorp Professor in Financial Markets and Institutions and a Professor of Finance at the University of Minnesota, Carlson School of Management. Before joining Minnesota, Dr. Lin taught at London School of Economics and Political Science and the Ohio State University (tenured in 2018). His research fields include asset pricing, corporate finance, and macroeconomics. Dr. Lin has published at leading academic journals including American Economic Review, Journal of Political Economy, Journal of Financial Economics, Journal of Monetary Economics, and Review of Financial Studies. His doctoral thesis won the Trefftzs award at 2008 Western Finance Association annual meetings. He is also the recipient of the Carlson School Outstanding Research Award in 2021.