Research on the impact mechanism of monetary policy shocks and the synergy of human capital structure on corporate investment

This study investigates how monetary policy uncertainty shapes corporate investment efficiency based on an unbalanced panel of 5,090 Chinese A-share listed firms over the period 2011–2024. The findings indicate that heightened monetary policy uncertainty leads to a significant deterioration in investment efficiency. This relationship remains stable after adopting alternative measures, introducing lagged terms, removing observations from the COVID-19 period, and applying instrumental-variable estimation. Mechanism analysis shows that tighter financing constraints and lower R&D expenditure constitute two important channels underlying this effect. The negative influence is particularly evident among capital-intensive and technology-intensive firms, state-owned enterprises, and firms characterized by CEO duality. Moreover, an upgraded human capital structure enhances firms’ capacity to absorb policy-related shocks and weakens the adverse effect of monetary policy uncertainty. These findings advance the understanding of firm-level responses to macroeconomic policy uncertainty and offer practical insights into policy communication, innovation financing, human capital allocation, and corporate investment management.

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Publication Details

Journal
Applied Economics
Published
2026-07-22
DOI
https://doi.org/10.1080/00036846.2026.2706696
Primary Topic
Market Dynamics and Volatility
Type
article
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article

Research on the impact mechanism of monetary policy shocks and the synergy of human capital structure on corporate investment

Bin Hao, Zi Wang, Lei Yin
Applied Economics
Market Dynamics and Volatility
article

Research on the impact mechanism of monetary policy shocks and the synergy of human capital structure on corporate investment

Bin Hao, Zi Wang, Lei Yin
article en

Abstract

This study investigates how monetary policy uncertainty shapes corporate investment efficiency based on an unbalanced panel of 5,090 Chinese A-share listed firms over the period 2011–2024. The findings indicate that heightened monetary policy uncertainty leads to a significant deterioration in investment efficiency. This relationship remains stable after adopting alternative measures, introducing lagged terms, removing observations from the COVID-19 period, and applying instrumental-variable estimation. Mechanism analysis shows that tighter financing constraints and lower R&D expenditure constitute two important channels underlying this effect. The negative influence is particularly evident among capital-intensive and technology-intensive firms, state-owned enterprises, and firms characterized by CEO duality. Moreover, an upgraded human capital structure enhances firms’ capacity to absorb policy-related shocks and weakens the adverse effect of monetary policy uncertainty. These findings advance the understanding of firm-level responses to macroeconomic policy uncertainty and offer practical insights into policy communication, innovation financing, human capital allocation, and corporate investment management.

Applied Economics
Nanjing University of Finance and Economics (CN), Beijing Technology and Business University (CN), East China Normal University (CN)
Openalex Percentile: Top 4%
Market Dynamics and Volatility
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