The Impact of Monetary Policy and Agent Heterogeneity on Firm Financing Structure: Evidence from the USA

• Authors: Malinowska Anna
• Languages of publication: EN

Abstracts

EN

Using panel modelling and firm-level data for 222 US listed companies I investigate how changes in monetary policy approximated by the three-month US LIBOR interest rate and its combined effect with firm-specific characteristics influenced firms’ financing decisions and their liability structure during the period 2005−2014. Reported findings suggest that despite the Zero Lower Bound on the Federal Funds Rate, the three-month US LIBOR has retained its impact on firm total debt, long-term bank debt and short-term trade credit. Monetary policy changes were found to have affected firm’s liability structure, especially through parameters such as size, collateral and profitability.

Keywords

balance sheet channel; LIBOR rate; ZLB; monetary policy; liabiliteis; corporate debt

• Publisher: Wydział Nauk Ekonomicznych Uniwersytetu Warszawskiego
• Journal: Ekonomia. Rynek, Gospodarka, Społeczeństwo
• Year: 2016
• Issue: 46
• Pages: 121-142

Dates

published

2016

Contributors

author

Malinowska Anna

• Akademia Leona Koźmińskiego, Warsaw, Poland

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Identifiers

DOI

10.17451/eko/46/2016/221