New Tools, Big Questions: Is Unconventional Monetary Policy Driving Real Change?—Evidence From Listed Companies in China, the U.S., and Japan

Abstract

In response to slowing growth and financial uncertainty, central banks have increasingly adopted unconventional monetary policies (UMPs). Using panel fixed-effects models with financial data from listed firms in China, the United States, and Japan during 2011–2021, this paper examines the impact of UMPs on corporate financing and cross-country heterogeneity. Robustness is confirmed through endogeneity checks, variable substitution, and external shocks. The results show that the use of UMPs in China and the United States can increase debt financing ratio of companies, but the similar  policies in Japan have the opposite effect. Policy effects differ by firm size and age, with smaller and younger firms more sensitive. Financial and political efficiency could moderate transmission. Furthermore, through the variable slope model, among the three countries, the impact of UMP on corporate debt was the strongest in China, while it was weaker in the United States and Japan. Overall, the study highlights substantial cross-country and institutional heterogeneity in UMP transmission, offering empirical evidence for differentiated policy design and insights into optimizing monetary policy tools.