Does monetary policy affect the stock pledge of listed companies? Evidence from Chinese listed companies

Abstract Based on the financing motivation of equity pledges, this study explores whether and how monetary policy adjustment affects stock pledge behaviour listed companies. The empirical findings show that adjustments significantly affect companies; is, a tightening increases phenomenon companies, an expansionary reduces phenomenon. Heterogeneity analysis revealed had greater impact pledges non-state-owned enterprises, enterprises with weak government–enterprise relationships without bank–enterprise relationship. results mechanism tests suggested quantitative only companies through costs price-based scale. This article expands literature policies enriches studies macroeconomic microfirm behaviour.