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2817In recent years, economists gradually realize that the single use of monetary policy which controls currency issuance is ineffective to address the imbalance of financial structure and financial cyclical fluctuations, thus unable to maintain financial stability and national financial security. The Report of the 19th CPC National Congress proposed that China should improve the Two-pillar Adjustment Framework, and take stabilizing economic development and keeping the bottom line to forestall the systemic financial risk as important goals of China’s current economic and financial task. At present, relevant studies mainly focus on the impact of the Two-pillar Adjustment Framework on the commercial bank risk and the financial risk, while ignoring its effect on the risk of non-financial enterprises in the market economy.
In order to identify the micro-financial stabilizing effect of the Two-pillar Adjustment Framework from the perspective of business risk, this paper uses the data of Shanghai and Shenzhen A-share main board listed companies from 2010 to 2018 and empirically investigates the effect and mechanism of the Two-pillar Adjustment Framework on business risk. The following conclusions are obtained: First, monetary policy and macro-prudential policy, as the Two-pillar Adjustment Framework, might coordinate to restrain the accumulation of business risk. Second, the Two-pillar Adjustment Framework not only exerts a counter-cyclical effect in different economic cycles, but also exerts a micro-financial stabilizing effect on enterprises with different life cycles. However, in the case of the superposition of the above two cycles, the effect of Two-pillar Adjustment Framework on business risk is heterogeneous. Third, the Two-pillar Adjustment Framework might also exert a structural effect on business risk under different financial market structures and micro investment and financing structures.
The academic value of this paper could be concluded in following aspects: First, it extends the empirical research on the micro-financial stabilizing effect of the Two-pillar Adjustment Framework to the perspective of the business risk of non-financial enterprises. Second, it investigates the counter-cyclical effect of the Two-pillar Adjustment Framework, and discusses its different role in different cyclical superposition and different structural thresholds, providing supplementary evidence for the related research. Third, it not only provides reliable empirical evidence for the study of the Two-pillar Adjustment Framework regulating business risk, but also provides valuable suggestions for optimizing the regulatory policy of the Two-pillar Adjustment Framework.
