Monetary policy shocks and distressed firms’ stock returns: Evidence from the publicly traded U.S. firms

Seon Tae Kim and Luca Rescigno

Economics Letters, 2017, vol. 160, issue C, 91-94

Abstract: We study U.S. firms’ stock-return sensitivities to monetary policy shocks over the 2001–2015 period. Expansionary monetary shocks disproportionately increase returns of a distressed firm which has profit substantially smaller than its interest expense and is in need of external financing.

Keywords: Monetary policy shock; Stock returns; Distressed firm; External financing (search for similar items in EconPapers)
JEL-codes: E52 G12 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176517303762
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:160:y:2017:i:c:p:91-94

DOI: 10.1016/j.econlet.2017.09.009

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().