Accounting quality and the transmission of monetary policy

• 成果类型: Article
• 署名作者: Armstrong, Christopher S.; Glaeser, Stephen; Kepler, John D.
• 署名单位: University of Pennsylvania; University of North Carolina; University of North Carolina Chapel Hill; Stanford University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2019.101265
• 发表日期: 2019
• 关键词: sarbanes-oxley act; financial constraints; reflect information; earnings management; reporting quality; interest-rates; stock-prices; Section 404; accruals; COSTS

摘要

We examine how firms' accounting quality affects their reaction to monetary policy. The balance sheet channel of monetary policy predicts that the quality of firms' accounting reports plays a role in transmitting monetary policy by affecting information asymmetries between firms and capital providers. Consistent with this prediction, we find that accounting quality moderates firms' equity market response and future investment sensitivity to unexpected changes in monetary policy. Moreover, the former relation is amplified for firms with more growth opportunities and more financial constraints, further consistent with accounting quality moderating the transmission of monetary policy. (C) 2019 Elsevier B.V. All rights reserved.