Description:
Using a sample of up to 4587 firms in China over the period 2008–2021, we examine whether and how macroprudential policies shape corporate risk-taking. Our results show that macroprudential policies have a negative and significant impact on corporate risk-taking. The impact becomes more pronounced for firms with stringent financing constraints. These findings seem to be more attributed to borrower targeted macroprudential instruments than financial institutional targeted ones. Our results are robust to alternative measures of risk-taking and GMM tests