Monetary Policy, Corporate Finance, and Investment

• 成果类型: Article
• 署名作者: Cloyne, James; Ferreira, Clodomiro; Froemel, Maren; Surico, Paolo
• 署名单位: University of California System; University of California Davis; Banco de Espana; Bank of England; University of London; London Business School
• 刊物名称: JOURNAL OF THE EUROPEAN ECONOMIC ASSOCIATION
• ISSN/ISSBN: 1542-4766
• DOI: 10.1093/jeea/jvad009
• 发表日期: 2023
• 页码: 2586-2634
• 关键词: credit spreads; constraints; shocks; identification; INFORMATION; BEHAVIOR; channel; cycle; cash

摘要

In response to a change in interest rates, younger firms not paying dividends adjust both their capital expenditure and borrowing significantly more than older firms paying dividends. The reason is that the debt of younger non-dividend payers is far more sensitive to fluctuations in collateral values, which are significantly affected by monetary policy. The results are robust to a wide range of possible confounding factors. Other channels, including movements in interest payments, product demand, profitability, and mark-ups, are also significant but seem unlikely to explain the heterogeneity in the response of capital expenditure. Our findings suggest that these types of financial frictions play an important role in the transmission of monetary policy.