 Effects of quantitative easing on firm performance in the euro areaPetr Korab (), Ray Saadaoui Mallek and Selahattin Dibooglu The North American Journal of Economics and Finance, 2021, vol. 57, issue C Abstract: This paper examines the effects of quantitative easing on firm performance using firm-level data in the euro area during the Corporate Sector Purchase Programme. We apply a difference-in-difference framework and focus on long-term and short-term book leverage, turnover, and profitability. Despite an increase in leverage, firms in the treatment group did not experience an increase in turnover or profitability as a result of the CSPP. Improved access to credit in the bond market seems to have no statistically discernible effects on the firms' real performance. Our empirical results also show cross country and region heterogeneity in the effects of CSPP. Possible factors driving the results include the limited scope of the CSPP program, financial constraints being less of a concern for firms in the euro area, and that monetary policy is in general less effective in the aftermath of financial crises as the monetary transmission mechanism is partially impaired. Keywords: Quantitative easing; Firm performance; Non-conventional monetary policy; Country studies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:57:y:2021:i:c:s1062940821000814 DOI: 10.1016/j.najef.2021.101455 Access Statistics for this article The North American Journal of Economics and Finance is currently edited by Hamid Beladi More articles in The North American Journal of Economics and Finance from Elsevier |
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