Investment behavior, financial constraints and monetary policy – empirical study on Vietnam stock exchange

Using the data-set of 200 non-financial companies listed on HOSE and HNX for the period 2007 - 2016, this paper examines the effect of bank financing on corporate investment behavior and the extent to which bank financing affects corporate investment behavior in different monetary policy periods. By applying GMM method, the results find that company with more bank financing will reduce the proportion of investment, and in comparison with the period of loosening monetary policy, company tend to reduce its investments by bank loans in the period of tightening monetary policy.