Por favor, use este identificador para citar o enlazar este ítem:https://uvadoc.uva.es/handle/10324/47920
Título
Monetary policy and corporate investment: A panel-data analysis of transmission mechanisms in contexts of high uncertainty
Año del Documento
2021
Editorial
Elsevier
Descripción
Producción Científica
Documento Fuente
International Review of Economics & Finance, 2021, vol. 75. p. 609-624
Zusammenfassung
This paper investigates the impact of monetary policy on firm-level investment in contexts of economic turmoil. Using a panel of US public firms for the period 2000–2019, we show that policy-rate-based transmission mechanisms are undermined when uncertainty spikes. Furthermore, we find evidence of the existence of asymmetries at the firm level. In line with real options theory's predictions, firms with higher levels of investment irreversibility, operational inflexibility, and market power, as well as firms with lower cash flows and who operate in low-innovation sectors tend to be less responsive to changes in monetary policy. The effectiveness of monetary policy thus depends on the ability of monetary authorities to reduce uncertainty via expectations-based monetary tools, whilst targeting those sectors more likely to be affected by monetary-policy shifts.
Palabras Clave
Investment decisions
Decisiones de inversión
Interest rates
Tasas de interés
Central banks
Bancos centrales
Panel vector autoregressive
Autorregresión vectorial
ISSN
1059-0560
Revisión por pares
SI
Patrocinador
Ministerio de Economía, Industria y Competitividad (grant ECO 2017-84864-P)
Junta de Castilla y León (grant SA049G19)
Junta de Castilla y León (grant SA049G19)
Propietario de los Derechos
© 2021 The Authors
Idioma
eng
Tipo de versión
info:eu-repo/semantics/publishedVersion
Derechos
openAccess
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