Monetary policy and intangible investment

Robin Döttling and Lev Ratnovski

Journal of Monetary Economics, 2023, vol. 134, issue C, 53-72

Abstract: The investment and stock prices of firms with relatively more intangible assets respond less to monetary policy. Similarly, intangible investment responds less to monetary policy compared to tangible investment. These effects are most pronounced among financially constrained firms, indicating that corporate intangible capital weakens the credit channel of monetary policy transmission. The evidence that higher depreciation rates or higher adjustment costs of intangible assets explain these effects is mixed, suggesting a smaller role for these channels.

Keywords: Intangible investment; Monetary policy; Credit channel; Stock returns; Heterogeneity (search for similar items in EconPapers)
JEL-codes: E22 E52 G31 G32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Monetary policy and intangible investment (2020)
Working Paper: Monetary Policy and Intangible Investment (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:134:y:2023:i:c:p:53-72

DOI: 10.1016/j.jmoneco.2022.11.001

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