Central bank communication, corporate maturity mismatch and innovation

Xun Han, Sichao Ma, Yuchao Peng and Xinyan Xie

International Review of Financial Analysis, 2022, vol. 84, issue C

Abstract: This paper analyzes the relationship between central bank communication and corporate innovation. The results show that: (1) Communication in a loose direction of the central bank will promote corporate innovation. (2) The higher the degree of consistency between words and deeds, the stronger the positive impact of central bank communication on corporate innovation. (3) The increase in the proportion of policy continuity words in the central bank communication text will amplify the positive impact of the loose communication on corporate innovation. (4) Communication in the loose direction of the central bank will inhibit the corporate behavior of “Corporate Maturity Mismatch”, so as to promote corporate innovation. (5) The positive impact of central bank communication on corporate innovation is more significant in companies with stable investor sentiment and a high degree of management myopia. (6) The period of low moderation of monetary policy will help to strengthen the role of central bank communication in promoting corporate innovation.

Keywords: Central bank communication; Corporate maturity mismatch; Corporate innovation; Moderation of monetary policy (search for similar items in EconPapers)
JEL-codes: E58 G31 G32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:84:y:2022:i:c:s1057521922003428

DOI: 10.1016/j.irfa.2022.102392

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