Monetary Policy and the Financial Decisions of Firms – Empirical Study in Vietnam

Abstract

In this paper, we present the results from our research on Vietnamese Firms capturing the financial decisions of multiple firms in the transformation of the monetary policy. When the economy is affected by the changes of the monetary policy, the responses of firms differ substantially in terms of location. For example, Da Nang’s and Ho Chi Minh’s firms were more responsive than Hanoi’s firms. As a result, a higher level of monetary-policy sensitivity was witnessed in the output. This research also narrates about specific characteristics, such as sizes, capital structures, and how the monetary policy has altered the financial decisions of firms.

DOI: 10.5901/mjss.2016.v7n6p27