금융시장에서 Balance Sheet Effect와 비선형성에 관한 연구

This study explained the corporate Balance Sheet Effect by constructing the theory model against the contradictory theory of the preceding research. According to this study results, supposing that the horizontal axis indicates the mean value of corporate net assets while the vertical axis indicates the investment or production over the whole economy, the relationship between the two is non-linear, assuming an S-shaped form. In short, the corporate Balance Sheet Effect varies depending on whether corporate net assets stay at a high level, or a low level. In case the economy is placed at the concave part of the S-shaped curve, the more the corporate net assets decline, the more the sensitivity of investment & production to a change of net assets increases. Meanwhile, in case the economy is place at the convex part of the S-shaped curve, the more the corporate net assets decline, the sensitivity of investment & production to a change of net assets decreases. Also, what matters in relation to the nature of Balance Sheet Effect is the very effectiveness of a policy. Effectiveness of a Monetary policy varies depending on what part of the S-shaped curve the economy is placed from the perspective of Balance Sheet Effect, i.e. when the economy is placed on the left of the S-shaped curve, Balance Sheet Effect is small, and subsequently the effectiveness of a financial policy falls. In other words, in case corporate net assets decline a lot, and the economy is in the grip of a severe depression, the effect of a Monetary policy gets smaller. In addition, in case the economy is placed at a central part of the S-shaped curve, Balance Sheet Effect is big, and effectiveness of a Monetary policy gets larger.