The impact of monetary policy on financing of Czech firms

0455336 - NHU-C 2016 RIV CZ eng J - Journal Article
Aliyev, Ruslan - Hájková, D. - Kubicová, I.
The impact of monetary policy on financing of Czech firms.
Finance a úvěr-Czech Journal of Economics and Finance. Roč. 65, č. 6 (2015), s. 455-476. ISSN 0015-1920. E-ISSN 0015-1920
Institutional support: PRVOUK-P23
Keywords : monetary policy transmission * broad credit view * external finance
Subject RIV: AH - Economics
Impact factor: 0.449, year: 2015
http://journal.fsv.cuni.cz/mag/article/show/id/1343

This paper uses firm-level financial data for Czech firms in the period from 2003 to 2011 and tests for the role of companies' financial structure in the transmission of monetary policy. Our results indicate that higher short-term interest rates coincide with lower shares of total debt and long-term debt and higher shares of short-term bank loans and trade credit. We find that firm-specific characteristics, such as size, age, collateral and profit affect the way monetary policy influences the external financing decisions of firms. These findings indicate the presence of informational frictions in credit markets and thus provide some empirical evidence of the existence of a broad credit channel in the Czech Republic.
Permanent Link: http://hdl.handle.net/11104/0255965