Cash Heterogeneity and the Payout Channel of Monetary Policy

• 成果类型: Article
• 署名作者: Pazarbasi, Altan
• 署名单位: Ihsan Dogramaci Bilkent University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70059
• 发表日期: 2026-08
• 页码: 2371-2418
• 关键词: FIRMS HOLD; INVESTMENT; transmission; shocks; FLOWS

摘要

This paper provides novel empirical evidence that cash-rich firms have higher equity payouts and higher stock prices in response to expansionary monetary policy surprises. Stock prices rise despite weak cash-flow, investment, and credit responses to monetary policy. I rationalize the empirical evidence in a heterogeneous-firm New Keynesian model where firms finance investment with cash and equity issuance. Monetary easing weakens precautionary cash demand, leading cash-rich firms to optimally allocate excess funds to shareholders. Since payouts are procyclical, cash-rich firms earn higher returns in expansionary periods. My findings highlight a payout channel through which monetary policy impacts asset prices.